CERC provides compensation to solar developers for GST law change

The Central Electricity Regulatory Commission (CERC) announced that developers are entitled to reimbursement for extra expenses incurred for 100 MW solar power projects in Uttar Pradesh and Karnataka following the implementation of the Goods and Services Tax (GST). The compensation would be considered a ‘Change in Law’ event and would be relevant even if GST was enacted after the project’s commercial operation date. The Commission also permitted developers to be compensated for increased expenditure on operation and maintenance activities, even if these services were outsourced.