JUDGEMENT

PER HON’BLE MR. SANDESH KUMAR SHARMA, TECHNICAL MEMBER

1. M/s. GRIDCO Limited has filed these Appeals, challenging the Impugned Order dated 04.02.2020 in Petition No. 115/MP/2019 and Impugned Order dated 04.04.2022 in Petition No. 498/MP/2020, passed by the Central Electricity Regulatory Commission (in short “CERC” or “Central Commission”).

2. The Order dated 04.04.2022 was passed against the Petition filed by Respondent No. 1 seeking execution of the Order dated 04.02.2020 passed by CERC. Accordingly, both the captioned appeals challenge the identical issues and therefore are tagged together.

Description of the Parties

3. The Appellant, GRIDCO Limited, is a wholly owned Company of the Government of Odisha and is carrying on the function of Bulk Supply of Electricity to four Distribution Companies in the State of Odisha with effect from 01.04.2005.

4. Respondent No. 1, GMR Kamalanga Energy Limited (GKEL), is a subsidiary of GMR Energy Limited, part of the GMR Group that owns and operates a 1050 MW coal-based thermal power plant in Kamalanga village, Dhenkanal district, Odisha.

5. Respondent No. 2, State Load Dispatch Centre (in short “SLDC”), is a wholly-owned subsidiary of Odisha Power Transmission Corporation Ltd (in short “OPTCL”). SLDC's primary function is to ensure the reliable and efficient operation of the state's power grid.

6. Respondent No. 3 is the Central Electricity Regulatory Commission, established under section 76 of the Electricity Act, 2003, having been vested with the powers under section 79 of the Electricity Act, 2003 (in short “Act”) inter alia to resolve the dispute herein.

Factual Matrix (in Appeal No. 254 of 2021) (As submitted by the Appellant)

7. Government of Odisha signed a Memorandum of Understanding dated 09.06.2006 with GMR-Kamalanga Energy Limited (GKEL), Respondent No. 1 herein, for setting up a 1000 MW Thermal Power Plant in the State of Odisha. Subsequently, the capacity of the Project was increased to (4X350 MW) 1400 MW vide MOU dated 28.10.2010.

8. As per the principal MOU and Revised PPA 04.01.2011, the contracted capacity of power entitlement for the State of Odisha, to be supplied to the State Designated Entity, i.e., GRIDCO, was upto 25 % of the installed capacity of the Thermal Power Station and have the right to purchase on behalf of Government of Odisha upto 25% of the power sent out from the Thermal Power Station.

9. The details of the date of synchronisation and COD of each of the Units of GKEL having installed capacity of 3X350 MW are mentioned below:

 :

10. GRIDCO has procured all Infirm Power from all three Units of GKEL as per the provision of the existing Power Purchase Agreement 04.01.2011 and Firm/Scheduled power from the date of Commercial Declaration of the Thermal Units as per the provision of PPA and final schedule of GKEL by SLDC.

11. During synchronisation and COD declaration, all three Units were connected with STU through LILO connectivity. Thereafter, all three Units were connected at CTU. Subsequently, after the construction of the Dedicated Transmission Line to STU, Unit #3(350 MW) was connected with STU at Meramundali through a 400 KV Single Circuit Transmission Line with effect from 18.03.2015.

12. Till the time the first tariff order was passed by CERC on 12.11.2015 in Petition No.77/GT/2013, GKEL was supplying power to GRIDCO at the provisional Tariff fixed by OERC in the Annual Revenue Requirement (ARR) orders of GRIDCO from time to time. The Energy Accounting was carried out based on the Minutes of Meeting (MoM) dated 05.04.2014 and 10.03.2015, signed by GKEL, SLDC, and GRIDCO, and during the disputed period MoM dated 10.03.2015 was effective.

13. Permission for Short Term Open Access was given by GRIDCO vide letter dated 29.05.2015. Subsequently, vide letter dated 04.07.2015, GKEL ac