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Gujarat has been raising concerns over rate at which surplus energy shall be purchased by distribution licensees from wind projects set up for captive use or third-party sale utilizing open access. As per existing regulations the distribution licensee would purchase the surplus power at the rate of the Average Pooled Power Purchase Cost (APPC) of the year of the commissioning of the project and if project is registered under REC mechanism, the distribution licensee would purchase the surplus power on a 15-minute time block basis at 85% of the APPC of the year of commissioning of the project, throughout the life of the project. Wind tariffs in Gujarat has fallen to Rs. 2.43 in recent bid while APPC is at Rs. 3.47. Discoms are concerned of paying more to the projects set up primarily for captive use or third-party sale while tariffs have fallen to low. Discoms have requested commission for allowing the distribution licensees to purchase the surplus power at the rate of APPC or the tariff discovered through competitive bidding anywhere in India during the previous six months, whichever is lower for projects not opting for RECs. Commission on the other hand have quoted that tariff for the wind projects applicable in Gujarat and the capacity utilization factor (CUF) in other states would vary, and therefore, they are not comparable. Commission also assured that it would take appropriate decision and revise the relevant regulations and orders to decide about the monetary compensation for the projects and remove ambiguity in the regulations. Amendment to regulation is foreseen to have a reduced rate of power supply to discoms which shall be passover to consumers, reflected in low power rates.