The CERC issued a suo-motu draft order towards the revision of the cost compensation mechanism for emission control systems (ECS) in competitively bid TPPs, as set out in suo-motu petition no. 6/SM/2021, and invited public comments on the same.

Suo-motu action towards the reflection of operational realities and other parallel regulatory revisions (such as the CERC MYT Regulations 2024) is essential towards ensuring that this cost compensation mechanism for Section 63 generators remains relevant and that all generators are held to similar standards. Prayas (Energy Group) has some comments and suggestions to ensure clarity of process, accountability, and effective implementation of the proposed mechanism. These are listed below:

• Ensure charges on account of ECS are passed on to the consumer only if the TPPs are in compliance to the emission norms
• Ensure that the computation of additional auxiliary energy consumption due to ECS is linked to the availability of the ECS
• Disincentivise delays in compliance by disallowing carrying cost on account of any delays in ECS commissioning
• Require generators to maintain detailed reporting of the handling, disposal, and sale of gypsum and other byproducts