APTEL Sets Aside TNERC Order, Reverses Rs.4.95 Crores Provision for Ponni Sugars

In a significant development, the Appellate Tribunal for Electricity (APTEL) has set aside the order of the Tamil Nadu Electricity Regulatory Commission (TNERC) regarding the levy of Parallel Operation Charges (POC) on Ponni Sugars (Erode) Ltd. The dispute, which has been ongoing since 2019, revolved around the payment of POC by captive generating plants, regardless of their participation in parallel operation with the grid. APTEL's judgement, delivered on 16.06.2025, has ruled that POC are only applicable to those captive generating plants that opt for parallel operation with the grid, as per the procedure outlined in the Open Access Regulations, 2014. This decision is expected to reverse an aggregate provision of approximately Rs.4.95 crores for Ponni Sugars till March 2025, which will be reflected in the Q1 of FY 2025-26.