MPERC disposes MPPMCL/Discoms' plea to recover ₹3,450.63 Cr of deferred generator supplementary bills (FY15-23); directs re-filing via SOP-compliant True-Up FY24-25
Filing of the Petition under Section 94 of the Electricity Act, 2003 and under Section 40, 46 & 47 of MPERC (Conduct of Business) (Revision 1) Regulations, 2016 (Regulation No. 1490/MPERC/2016) dated 14th September 2016, along with the other guidelines and directions issued by the MPERC from time to time, for Approval of Additional Cost Recovery on account of Supplementary Bills raised by the Generator for prior period and deferred by the Commission during the True-Up exercises from FY 2014-15 to FY 2022-23. (Petitioner: 1) Managing Director, MP Power Management Company Limited 2) MP Poorv Ksh
MPPMCL and the three MP Discoms sought Commission approval under Section 94 of the Electricity Act, 2003 for additional recovery of power purchase costs arising from supplementary bills raised by generators for prior periods (due to new/revised CERC MYT orders, statutory levy changes, income-tax adjustments and Change-in-Law events). These costs, though booked in audited accounts, were repeatedly deferred/disallowed by MPERC during True-Up exercises for FY2014-15 to FY2022-23 pending further substantiation. Petitioners reconciled the claims and sought approval of the cumulative unadmitted amount of ₹3,450.63 Crore across the nine years.
- Petition disposed of as 'not considerable in the present manner at this stage'; not admitted for recovery now
- Commission reiterated it had already allowed part of supplementary bill costs (₹6,545.86 Cr admitted out of ₹9,996.47 Cr claimed cumulatively) after prudence checks in respective True-Up Orders
- Directed that the deferred claim of ₹3,450.63 Crore be re-filed as a separate chapter in the True-Up Petition for FY2024-25 under MYT Regulations, 2021 (as amended)
- Re-filing must follow the Standard Operating Procedure (SOP) for verification of supplementary bills, in-principle approved via letter dated 01.01.2025
- Noted that approving such cost impacts ARR/retail tariff, requiring prior stakeholder consultation under Section 64(3) of the Electricity Act, 2003
- Fee already paid for this petition to be adjusted against the fee payable for the True-Up Petition for FY2024-25
- Petitioners to re-file the ₹3,450.63 Cr claim as a distinct chapter within the True-Up Petition for FY2024-25
- Filing must comply with the MPERC-approved SOP for supplementary bill verification (officer-wise audit trail, main-bill linkage, cause-of-action dating, generator certification of first-time claim)
- MPPMCL to demonstrate functional IT verification tools to the Commission (originally within one month of 01.01.2025 SOP approval)
- Until IT tools are operational, verification and cost consideration for supplementary bills remains deferred
- Stakeholder suggestions/objections to be invited before any tariff impact is finalized, per Section 64(3)
- Fee paid for instant petition to be adjusted against the True-Up Petition FY2024-25 fee
- • No immediate tariff increase: the ₹3,450.63 Cr claim is deferred, not rejected outright — C&I consumers should watch the FY2024-25 True-Up Petition for potential pass-through of these legacy power purchase costs
- • Discoms' power purchase cost base remains under scrutiny, reinforcing tighter documentation/SOP discipline before Change-in-Law and MYT-linked cost pass-throughs are approved — relevant for PPA-linked open access and RE developers billing MPPMCL
- • Any future approval will flow through ARR and retail tariff, meaning open-access/C&I tariffs could see a one-time true-up surcharge once the FY24-25 exercise concludes
- • Developers/generators awaiting settlement of past supplementary bills should ensure their billing documentation aligns with the new SOP to avoid further disallowance
This is procedural, not substantive relief — MPERC has neither approved nor rejected the ₹3,450 Cr; it has simply routed the claim into a disciplined, audit-trail-backed process via the FY24-25 True-Up. For C&I buyers, near-term tariffs are unaffected, but a material legacy cost overhang (~₹3,450 Cr) remains in the pipeline and could surface as a lump-sum true-up impact next cycle. Track the FY2024-25 True-Up filing closely and watch for public consultation on this cost before it lands in retail tariffs.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.