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The Bihar Electricity Regulatory Commission (“BERC”), through order dated 02.03.20261 , in the matter of SJVN Thermal Private Limited v. South Bihar Power Distribution Company Limited & Ors., while examining the metering and billing arrangements for start-up power supplied to the 1320 MW Buxar Thermal Power Project (“BTPP”), held that the supply of start up power was governed by the High Tension Agreement dated 03.02.2024 executed between the parties, and that the rights and obligations relating thereto were to be regulated by the terms of the said High Tension Agreement (“HTA”), and not by the provisions of the PPA.
The dispute arose in relation to the 1320 MW BTPP, for which a PPA was executed on 05.01.2011 and later supplementary PPA was executed on 09.04.2021, providing that sale of electricity to the beneficiary would occur at the busbars of the generating station upon commencement of commercial supply.
The HTA stipulated that the point of supply and metering would be at the outgoing terminal of the distribution licensee’s apparatus at the consumer’s premises, with meters installed and maintained by the licensee. South Bihar Power Distribution Company Limited (“SBPDCL”) raised bills based on metering at the grid sub-station in accordance with applicable tariff orders and the Bihar Electricity Grid Code, resulting in higher charges due to reactive power arising from the long transmission line and low drawal. SJVN Thermal Private Limited challenged this arrangement, contending that billing should instead be undertaken at the busbar of BTPP in line with the supplementary PPA and regulatory provisions relating to start-up power.
BERC held that once the parties had executed the HTA for availing start-up power, the rights and obligations relating to supply, including the point of supply and metering arrangements, were governed by the contractual terms of that agreement and not by the PPA or supplementary PPA.
Footnote
1. Case No. 14 of 2025.
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