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The Karnataka Electricity Regulatory Commission (KERC) issued an Order regarding net metering arrangements for Solar Rooftop Photovoltaic (SRTPV) plants. In the Order dated July 18, 2022, the Commission stated that consumers using power from other sources or through captive sources via the open access mechanism would not be eligible for net metering. These consumers could either choose a gross metering arrangement or set up a captive plant for self-consumption.
However, many open-access consumers have raised concerns that BESCOM, the electricity supply company, issued a circular on June 23, 2023, which contradicts the Commission’s earlier order. This has confused, as some consumers are struggling to claim the benefits outlined in the original order, accusing BESCOM of non-compliance. As a result, these consumers have requested that the Commission take action against BESCOM and issue clear guidelines on how to implement the Order from 2022.
In response, the Commission clarified that ESCOMs (Electricity Supply Companies) cannot change the billing arrangement from net metering to gross metering without following the terms and conditions outlined in the existing Power Purchase Agreements (PPA). As part of the Order, ESCOMs have been directed to notify SRTPV consumers using the open access mechanism to comply with the Commission’s previous Order from July 2022.
For consumers who wish to switch from net metering to gross metering, ESCOMs will need to formalize the change through a Supplemental Power Purchase Agreement (SPPA). The SRTPV consumers must also ensure that necessary wiring modifications are made and safety measures are followed, as recommended by the ESCOM.
The ESCOM will issue monthly electricity bills for the gross energy exported to the grid, based on the meter reading schedule. Payment for the exported energy will be made within 30 days, according to the agreed tariff in the PPA. If there are delays in payment beyond 30 days, the ESCOM will pay interest according to the PPA terms.
For consumers opting for captive plants for self-consumption, by installing a Reverse Power Relay (RPR) or executing a wheeling agreement, the existing PPA under net metering will be terminated. The Commission also warned that any deviations from implementing this Order would hold the concerned officers accountable, and actions would be taken under the provisions of the Electricity Act, 2003. This Order was signed and issued by KERC on September 12, 2024. |
