BHUBANESWAR: The Odisha Electricity Regulatory Commission (OERC) has recalled its January 25, 2022 order, maintaining the validity of the Grid Corporation’s November 5, 2021 notice to Vedanta requisitioning supply of power from the Unit-II captive power plant at Jharsuguda to the State.
Disposing of the review petition of Gridco, a two-member commission chaired by officiating chairperson G Mohapatra said, “The Commission in exercise of its inherent power under Regulation 76 of the OERC (Conduct of Business) Regulations, 2004 hereby partially recalls its view as stated in the January 25 order and accordingly, allows the review application affirming the validity of Gridco’s notice/requisition to Vedanta for supply of power from Unit-II under control of the latter.”
Gridco had filed the review petition when its requisition to Vedanta for supply of power for the first quarter of 2022 (from January 1 to March 31) was declared ineffective by OERC for delay in serving the notice by a day. As per the OERC order, Gridco should have exercised its option within one month of the order - on or before November 4, 2021 - instead of sending its requisition on November 5, 2021.
Admitting the fact that November 4, 2021 was a declared holiday of the State government, the OERC said, “On a gazetted holiday Gridco officials are not normally expected to do official business. In view of the fact and having regard to the spirit of Section 10 of the General Clauses Act, 1897, the delay of one day in issuance of the requisition issued by the Petitioner-Gridco is found to be condonable.”
Curiously, OERC rendered the Gridco notice to Vedanta ineffectual even though the one the latter had not agitated the issue before the commission. The entire problem arises when OERC converted the Unit-II (600 MW) of Vedanta from IPP to CGP stipulating that the unit will operate as CGP with a rider obliging the Vedanta to supply electricity to Gridco, upon requisition, in case of need.
Aggrieved by the OERC order and refusal of Vedanta to supply power to the State, Gridco moved the Orissa High Court which directed the State PSU to seek remedy from the commission. The regulator was asked to pass appropriate order in accordance with law. The financial loss aspect does not come under the purview of decision in the present proceedings, the commission said..