APTEL Clears NTPC in Solar Metering Dispute, Reverses CERC Order

The Appellate Tribunal for Electricity has ruled in favour of NTPC Ltd., absolving the state-owned power giant of responsibility for delays in sealing meters at a 50 MW solar power project in Uttar Pradesh.

This judgement overturns a 2020 order by the Central Electricity Regulatory Commission (CERC) that held NTPC liable for procedural lapses in meter installation.

The dispute arose from a 2016 agreement under India’s National Solar Mission, where NTPC facilitated the sale of solar power generated by Prayatna Developers to Uttar Pradesh’s distribution companies (UPPCL and DVVNL). Prayatna had completed the project ahead of schedule in 2017 but faced delays in commissioning due to unsealed 33 kV meters. CERC had earlier directed NTPC to refund INR 5.2 crore in penalties to Prayatna, citing contractual obligations under the Power Purchase Agreement (PPA).

In its ruling, the tribunal emphasised NTPC’s role as an intermediary trader under the Electricity Act, 2003, which limits its responsibilities to commercial coordination. The judgement clarified that metering obligations, including sealing, fall on the generator (Prayatna) and the state distribution licensees (UPPCL/DVVNL), not NTPC. The tribunal noted that the CEA Metering Regulations, 2006, designate the 'buyer' as the entity receiving electricity, which in this case was the Uttar Pradesh discoms, not NTPC.

The tribunal criticised CERC’s interpretation of NTPC as a 'buyer' under the PPA, stating it contradicted the statutory definition of 'trading' under the Electricity Act. Trading licensees, the judgement reiterated, do not own or operate physical infrastructure like meters and cannot be held liable for procedural delays.

The ruling modified CERC’s order, removing observations that wrongly assigned metering responsibilities to NTPC.

The verdict reinforces the legal distinction between traders and utilities, ensuring intermediaries like NTPC are not burdened with operational duties beyond their contractual scope. The tribunal upheld CERC’s directive for NTPC to refund the penalty, as this was unrelated to metering delays.

The judgement underscores the need for clarity in renewable energy contracts. It places accountability on generators and distribution companies to ensure timely compliance with technical requirements, streamlining India’s transition to green energy.