Uttar Pradesh discom to deposit Rs 72.45 bn in RPO Regulatory Fund

22 Jun 2021 CW Team

In a recent order, the Uttar Pradesh Electricity Regulatory Commission (UPERC) ordered Uttar Pradesh Power Corporation (UPPCL) to pay Rs 72.45 billion in the renewable purchase obligation (RPO) Regulatory Fund.

The total amount of Rs 72.45 billion comprises Rs 14.59 billion for the shortfall in RPO compliance till FY21 and Rs 57.85 billion against proposed RPO obligations for FY 2021-22.

The Commission asked the UPPCL to pay the sum in ten equal instalments and stated that the amount would be used to obtain renewable energy, including hydropower. The payment for acquiring hydropower will also be done through the RPO Regulatory Fund.

On behalf of the distribution companies (discoms) of Uttar Pradesh, UPPCL had filed a petition asking for relaxation regarding the execution of the RPO Regulatory Fund as mandated by the UPERC order dated December 30.

UPPCL, in its submission, stated that it had partly complied with the Commission’s order concerning the execution of the RPO Regulatory Fund. Though, the total amount was yet to be paid.

The Commission had also urged UPPCL to submit the year-wise status of the RPO compliance showing the amount of backlog cleared till March 31.

Additionally, UPPCL said that as per the directions declared by the Commission, the payments to renewable generators were being routed through the RPO Regulatory Fund created by UPPCL. The discom added that a total amount of Rs 7.09 billion was paid to renewable generators till May.

UPPCL stated that the backlog of non-solar RPO and hydropower purchase obligation (HPO) was mainly due to the delay in the commissioning of some projects because of the Covid-19 pandemic.

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