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JAN 12 2017

MERC directs MSEDCL to grant Open Access to Json Foundry Private Limited

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 12th JAN 2017


Jsons Foundry Pvt. Ltd (JFPL), has filed a Petition, on 19th Sep 2016 regarding denial of Short Term Open Access (STOA) by Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) under Section 42 of the Electricity Act (EA), 2003. JFPL is a manufacturer of corrosion resistant grade castings in stainless steel series and high nickel super alloys, with its foundry situated at MIDC Kupwad Industrial Area, Sangli. JFPL had entered into Energy Purchase Agreements (EPAs) with MSEDCL in respect of its following Wind Energy Projects for 13 years:



Project Site


Date of Commissioning

Date of Signing of EPA


Village- Charan, Tal. Shirala, District- Sangli

0.600 MW


May, 2007


Village- Charan, Tal. Shirala, District- Sangli

0.600 MW


05th July, 2008


Village- Charan, Tal. Shirala, District- Sangli

0.600 MW


August, 2008


Village- Titane, Tal. Sakri, District- Dhule

1.250 MW


November, 2006


Village- Basar, Tal. Nandurbar, District- Dhule

1.250 MW


November, 2006


JFPL issues monthly invoices for sale of energy to MSEDCL for all its five Generating Units. MSEDCL has made payment till August, 2015. However, it failed to make payments towards outstanding invoices from September, 2015 onwards, and also the late payment surcharge (i.e. delayed payment charge (DPC)) in respect of the bills raised till date. JFPL sent letters to MSEDCL on 25th of Jan and 14th of Feb 2016 for payment of the outstanding dues. MSEDCL owes JFPL a total of INR. 1,23,41,370.00/- as on 8th Sep, 2016. JFPL’s own monthly requirement of electricity has increased and MSEDCL’s tariff also increased considerably. Hence, in 2014, JFPL requested MSEDCL for premature termination of the EPAs and for Open Access (OA) permissions so that it could utilize its entire wind power for captive consumption. JFPL also submitted four STOA applications for self-use of the wind energy generated from its own Units.

After hearing comments and further analysis, Commission stated that:

JFPL, an Industrial consumer of MSEDCL, sought STOA permission for sourcing power from its own Wind Energy Units. MSEDCL denied STOA on the ground that the power was committed by JFPL for supply to MSEDCL under the EPAs. However, JFPL contends that the EPAs no longer subsist as it had duly terminated them because of delayed or non-payment by MSEDCL for the energy supplied, and of the DPC amounts due. Since the EPAs were duly terminated, they cannot be a ground for denial of STOA.

Since the only ground cited by MSEDCL for rejection of JFPL’s STOA applications, namely that premature termination of the EPAs by JFPL was not permissible, has been held to be untenable in the circumstances of this matter, the Commission directs MSEDCL to adjust the units injected by JFPL into the grid from May, 2016 onwards in the respective billing cycles of consumption within a month, subject to payment of the applicable fees and charges, and to provide Open Access to JFPL upon application henceforth if it otherwise satisfies the requirements of the relevant OA Regulations.




TOTAL Maharashtra Maharashtra State Electricity Distribution Company Ltd Captive Open Access Grid Wind Tariff Electricity Act Wind Power Energy Power Electricity Consumer CAPTIVE

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