Rajasthan Regulator Orders Settlement of Solar Developer’s DSM Dues, Rejects Interest Claim

The Rajasthan Electricity Regulatory Commission (RERC) has directed the Rajasthan State Load Despatch Centre (SLDC) to reconcile and clear long-pending deviation settlement mechanism (DSM) receivables owed to Dhursar Solar Power Pvt. Ltd., which operates a 40 MW solar power plant at Dhursar in Jaisalmer district. The petitioner placed the outstanding amount at approximately ₹1.95 crore.

The order, passed on 16 October 2026 in Petition No. RERC/2396/2026, also requires SLDC to propose defined timelines for future payments to generators. The Commission, however, declined the developer’s request for interest on the delayed amounts.

Background of the Petition

Dhursar Solar approached the Commission under Section 86 of the Electricity Act, 2003, read with Regulations 24 and 25 of the RERC (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2017, and the Procedure for Implementation of the Framework on Forecasting and Scheduling for Renewable Energy Generating Stations (Wind and Solar) dated 23 October 2019. It sought directions to SLDC on the release of DSM amounts payable to generators.

The plant supplies power to Adani Electricity Mumbai Limited outside Rajasthan, so its deviations are settled against scheduled generation through the State DSM Pool. A Qualified Coordinating Agency (QCA) handles scheduling and commercial settlement on behalf of the generators at a pooling station. SLDC, Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN) and Manikaran Analytics Ltd., the QCA for the petitioner’s pooling station, were the respondents. According to the petitioner, receivables due to it from the State Pool had remained unpaid since April 2021.

The Petitioner’s Case

The developer argued that the framework treats generators and the State Pool unequally. Generators must pay DSM charges into the pool within prescribed timelines, failing which simple interest of 0.04% per day applies. No comparable deadline or interest liability applies when the pool owes money to a generator for over-injection.

On this basis, the company sought release of the outstanding receivables along with interest at the same rate. It also raised the issue of SLDC issuing DSM invoices several months late, despite timelines prescribed under the Approved Procedure.

Positions of SLDC and the QCA

SLDC contended that the QCA is responsible for commercial settlement of deviation charges, including de-pooling amounts payable to generators, and that responsibility for DSM receivables could not be placed on SLDC. It opposed the interest claim, stating that the prevailing framework does not provide for interest on delayed payment of receivables, and added that invoices are issued only after data validation.

Manikaran Analytics disputed this, submitting that it acts only as a single point of contact and settles amounts on a back-to-back basis. Its obligation to pay generators arises only after the corresponding funds are received from the State Pool.

Commission’s Findings

The Commission observed that the 2017 Regulations treat payments to and from the State Pool reciprocally, but the Approved Procedure prescribes timelines and consequences only for payments by the QCA or generator. It termed this a regulatory asymmetry and held that the absence of an express timeline cannot justify leaving receivables unsettled indefinitely.

On the QCA’s role, RERC agreed that the settlement is back-to-back. The QCA cannot be expected to pay generators from its own funds before the State Pool releases the amounts.

The interest claim was not accepted. Since the Approved Procedure in force did not prescribe any interest liability on the State Pool, the 0.04% per day provision could not be extended retrospectively. RERC clarified, however, that this does not prevent it from prescribing consequences for delay through a prospective amendment.

Directions and Timelines

The Commission issued the following directions:

For the amendment, SLDC must examine procedures adopted by the Central Electricity Regulatory Commission (CERC) and other State Commissions and consult QCAs and generators. The proposal must also cover measures for timely invoicing and settlement of amounts both payable to and receivable from the State Pool.

Why the Order Matters

The ruling addresses a practical concern for wind and solar generators under Rajasthan’s DSM framework. Penalties for late payment by generators were clearly defined, but there was no corresponding obligation on the pool side, leaving receivables open-ended. By recognising this gap and directing a procedural fix, the Commission has set the stage for a more balanced settlement cycle.

At the same time, relief for past delays is limited to the reconciled amount. Any compensation for future delays will depend on the amendment SLDC proposes and the Commission approves. With deviation norms for wind and solar sellers also evolving under CERC’s DSM Regulations, 2024, predictable settlement of DSM accounts is becoming more important for project cash flows.

Conclusion

The RERC order resolves a payment dispute pending for more than five years and pushes for a structural correction in how DSM receivables are disbursed in Rajasthan. SLDC’s proposed amendment to the Approved Procedure will determine how quickly generators in the state receive settlement amounts in future.

Official References

1. Rajasthan Electricity Regulatory Commission – Orders (Petition No. 2396/2026, M/s Dhursar Solar Power Pvt. Limited, order dated 16.10.2026): https://rerc.rajasthan.gov.in/rerc-user-files/office-orders
2. Rajasthan Electricity Regulatory Commission – Official Website: https://rerc.rajasthan.gov.in/
3. Central Electricity Regulatory Commission – Current Regulations (DSM Regulations, 2024 and amendments): https://cercind.gov.in/current_reg.html
4. Central Electricity Regulatory Commission – Notification on commencement of DSM Regulations, 2024: https://cercind.gov.in/Regulations/192-effective-160924.pdf