#hydrotariff

One of the most consequential updates in Power tariff analysis India comes from HPERC’s order approving—yet modifying—the PPA for the 1 MW Sansal SHP. By lowering the tariff to Rs 4.67/kWh after imputing a ₹93.60-lakh subsidy that the developer simply chose not to claim, the regulator has reaffirmed that consumer interests override developer discretion. This is a key evolution in Power tariff analysis India, where regulators increasingly insist that eligible incentives must be mandatorily built into tariff computation.

The project’s long delays, Amnesty Scheme utilisation and revised SCOD placement within the 4th Control Period reflect how scheduling shifts interact with tariff eligibility—again a recurring issue in Power tariff analysis India where control-period boundaries significantly influence project viability.

HPERC’s stance that “benefit available is benefit availed” eliminates strategic non-claiming of subsidies. The Commission further tightened compliance by mandating disclosure of any future incentives, reaffirming royalty obligations and cautioning that slippage beyond the control period will automatically reduce the applicable tariff.

For stakeholders engaged in Power tariff analysis India, the order demonstrates a tightening regulatory discipline: • Subsidy deduction is non-negotiable, • Tariffs must reflect real net capital outlay, • Small deviations in SCOD can materially reshape payable tariffs, • PPA approvals now come with layered compliance triggers.

A major clarification has emerged from India’s power regulator, which has reworked the FY19 hydro shortfall computation for JSW Hydro Energy Ltd. The revised entitlement—Rs 20.36 crore—marks a Rs 6.27-crore reduction, following APTEL’s finding that the power regulator had inconsistently applied DSM offsets in earlier cases. By mandating uniform treatment, the remand forced CERC to recast the figures in line with current regulatory practice.

In the updated computation, the power regulator acknowledges that JSW Hydro injected 35.97 MUs of unscheduled DSM energy. Since DSM-settled injection is actual grid-delivered energy, it must be counted when measuring saleable output under hydro design-energy rules. This reduces the shortfall quantum from 152.80 MUs to 116.83 MUs.

The ruling directs JSW Hydro to refund the excess within one week, benefiting PSPCL and other state beneficiaries. Beyond the monetary impact, the power regulator has clarified a larger principle: DSM-accounted injections cannot be ignored in determining recoverable shortfall. This elevates consistency, predictability and regulatory discipline across hydro tariff cases.For observers tracking sector jurisprudence, the order positions the power regulator as aligning firmly with APTEL’s guidance on DSM-linked energy realism, Power Regulator, CERC Order, Hydro Tariff, DSM Adjustment, Energyline India.