Last Updated: December 09, 2022
Central Electricity Regulatory Commission
Determination of Fee and Charges payable under Regulation 15 of the Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2022.
The Commission notified the Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2022 (hereinafter referred to as ‘REC Regulations’) on 09.05.2022. By virtue of clause (1) of Regulation 3 of the REC Regulations, this Commission has designated the National Load Despatch Centre as the Central Agency to perform the functions under clause (2). 2. Regulation 3(2) of the REC Regulations provides the functions of the Central Agency as under: i. undertake registration of eligible entities, ii. develop a mechanism for accounting of generation and sale in respect of Certificates; iii. undertake issuance of Certificates, iv. maintain and settle accounts in respect of Certificates, Order in Petition No. 15/SM/2022 Page 2 v. act as repository of transactions in Certificates, vi. maintain Registry of Certificates, vii. perform such other functions incidental to sub-clauses (i) to (vi) of this clause, viii. undertake any other function that may be assigned by the Commission 3. Regulation 15 of the REC Regulations empowers the Commission to determine by order, based on the proposal in this regard from the Central Agency, the fees and charges payable by the eligible entities for participation in the scheme for accreditation, registration, issuance of certificates, and other matters connected therewith. The relevant portion of the REC Regulations is extracted as under: “15. FEES and CHARGES The Commission may, based on the proposal from the Central Agency, determine the fees and charges payable by the eligible entities for accreditation, registration, issuance of Certificates and other matters connected therewith.” 4. In accordance with the above Regulation, the Central Agency submitted a proposal through communication dated 7th October, 2022 for the determination of the fees and charges payable by the eligible entities for accreditation, registration, issuance of certificates and other matters connected therewith. 5. Central Registry in its proposal has highlighted that the expenditure towards Central Agency’s responsibility for REC mechanism is not covered through RLDC Fees and charges and these charges are determined and recovered through separate orders of the Commission from time to time, based on the proposal in this regard from the Central Agency. 6. According to the proposal expenditure likely to be incurred by the Central Agency towards discharging its functions as described in the REC Regulations 2022 can be categorised under the following heads: i. Development of REC Web Application ii. Comprehensive AMC charges of REC Web Application iii. Server co-location charges/ Cloud Server Space charges iv. Expenditure towards Cyber Security Compliance v. Manpower Expenses vi. Legal Expenses Order in Petition No. 15/SM/2022 Page 3 vii. Expenditure towards Compliance Audit viii. Capital Expenditure towards IT infrastructure upgradation ix. Miscellaneous expenses 7. Central Agency has highlighted that a complete upgradation of REC Web application would require conforming the same with the REC Regulations 2022 and would require exclusive expenditure towards Cyber Security infrastructure and audit compliance to comply with Government of India’s thrust towards Cyber security. 8. It is also highlighted that as per the REC Regulations 2022 the registration granted by the Central Agency to the eligible entities shall remain valid for a period of 25 years which will further reduce the fees received towards the revalidation of registration charges. 9. The proposal also includes fees and charges for accreditation by RLDCs as per the Regulations 6 (2) of the REC Regulations 2022 for accreditation of eligible entities connected to inter-State transmission system. 10. The Central Agency in its proposal has provided audited accounts of income and expenditure statement and balance sheet pertaining to REC mechanism for FY 2020-21 and FY 2021-22 and highlighted that it has suffered recurrent loss of Rs. 55.86 Lakhs and Rs. 50.09 Lakhs in the previous FY 21 and FY 22 respectively.