Author: PPD Team Date: 12/03/2025
APTEL directs CERC to review tariff calculations for Vallur Thermal Power Project
The Appellate Tribunal for Electricity (APTEL) ruled on NTPC Tamil Nadu Energy Company Ltd.’s (NTECL) appeal against the Central Electricity Regulatory Commission’s (CERC) tariff determination for the Vallur Thermal Power Project (1500 MW). The appeal challenged CERC’s order dated 8 February 2016, which set tariffs for Units 1 and 2 for the period up to 31 March 2014 under the 2009 Tariff Regulations.
NTECL raised multiple concerns, including the non-consideration of notional Interest During Construction (IDC), disallowance of share application money as equity, rejection of Rs 235.8 million in civil package expenditures, and a pro-rata reduction in overhead expenses. CERC had also made suo-moto corrections in a review order dated 18 April 2017 without prior notice to NTECL.
APTEL ruled that CERC erred in rejecting notional IDC for the period 2003-04 to 2007-08, as the project was funded through shareholder equity before loans were drawn in 2008. It directed CERC to reconsider the notional IDC calculation. The tribunal upheld CERC’s stance on share application money but allowed NTECL to present additional documents during the true-up process.
On the disallowance of civil package costs and overhead expenses, APTEL remanded the issues to CERC for fresh consideration, instructing it to review new supporting documents from NTECL. It also set aside CERC’s suo-moto corrections, stating that such changes require a hearing with the affected parties.
The appeal was partially allowed, with certain matters remanded to CERC for review. The Appeal stands disposed of in the above terms.
Petition No: APPEAL No. 212 OF 2017 | Read the full order here.
APTEL rules in favor of MePGCL in RoE dispute with MSERC
The Appellate Tribunal for Electricity (APTEL) has ruled in favor of Meghalaya Power Generation Corporation Limited (MePGCL) in a case challenging the Meghalaya State Electricity Regulatory Commission’s (MSERC) tariff order. The appeal, filed in 2017, contested the MSERC’s computation of Return on Equity (RoE) for the financial years 2013-14 and 2014-15.
The dispute arose when MSERC approved an RoE of Rs. 12.76 million for 2013-14 and Rs. 12.79 million for 2014-15, significantly lower than MePGCL’s claims of Rs. 95.26 million and Rs. 101.30 million, respectively. MePGCL argued that the Commission incorrectly calculated the equity base using Gross Fixed Assets (GFA), contrary to the Tariff Regulations, 2011.
The Tribunal found that MSERC failed to consider equity additions resulting from the transfer of assets from the erstwhile Meghalaya State Electricity Board (MeSEB) to MePGCL. The Tribunal emphasized that the equity base should reflect the audited balance sheet or transfer scheme notifications, as per Regulation 101 of the Tariff Regulations.
In its final order, the Tribunal stated, “Accordingly, the impugned order stands set aside, and the appeal stands allowed to the extent indicated hereinabove.” The matter has been remanded back to the Commission for fresh consideration, directing it to account for the equity additions due to the transfer scheme.
Petition No: APPEAL No.367 OF 2017 | Read the full order here.
MERC allows partial approval of MSPGCL’s change in law claim for coal tolling under Case IV
The Maharashtra Electricity Regulatory Commission (MERC) has granted partial approval to Maharashtra State Power Generation Company Limited (MSPGCL) for a change in law claim related to increased coal transportation costs under its coal tolling arrangement with Ideal Energy Projects Limited (IEPL) in Case IV, Phase III.
MSPGCL sought approval for passing on additional costs arising from revised surface transportation charges levied by Western Coalfields Limited (WCL) between June 2022 and December 2023. The company argued that these changes occurred after its competitive bidding process concluded in April 2022, qualifying them as a change in law under applicable regulations.
MSEDCL opposed the retrospective approval of costs from earlier WCL notifications, citing MERC’s regulations requiring petitions to be filed within a month of a change in law event. However, MERC accepted MSPGCL’s reasoning that the initial cost impacts were minimal and only became significant with WCL’s December 2023 revision.
The commission provisionally approved Rs 8.2 million for the period between September 2022 and December 2023, allowing MSPGCL to recover this amount through its ongoing Multi-Year Tariff (MYT) proceedings. However, it directed MSPGCL to submit a separate petition detailing the overall financial impact of the coal tolling arrangement before allowing further claims.
Petition No: CASE No. 62 of 2024 | Read the full order here.
UPERC postpones hearing on Rosa Power’s petition to April 15, 2025
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has postponed the hearing of Rosa Power Supply Company Ltd.’s (RPSCL) petition to April 15, 2025. The petition, filed under Sections 61, 62, and 86 of the Electricity Act, 2003, seeks a declaration that Clause 6.2(5) of the National Tariff Policy, 2016, and subsequent Ministry of Power letters constitute a “Change in Law” event. RPSCL is also seeking in-principle approval for additional capital and operational expenditures.
During the hearing on February 27, 2025, RPSCL’s representative, Sumeet Notani, informed the commission that consultations with the Central Electricity Authority (CEA), Ministry of Environment, Forest and Climate Change (MoEF&CC), and Ministry of Power were nearing completion but had been delayed. The final consultations are expected to conclude within a month.
The UPERC has directed the matter to be listed for the next hearing on April 15, 2025, to allow time for the completion of these consultations. The petition involves RPSCL and U.P. Power Corporation Ltd. (UPPCL), with RPSCL seeking relief under the Power Purchase Agreement (PPA) dated November 12, 2006, and its subsequent amendments.
Petition No: 2071 of 2024 | Read the full order here.
UPERC denies MEIL Lanco’s request to submit additional invoices in fly ash cost case
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has rejected MEIL Lanco Anpara Power Limited’s request to submit additional invoices for FY 2023-24 in its ongoing petition seeking reimbursement for fly ash transportation costs. The matter, heard on February 27, 2025, involves claims under the Power Purchase Agreement (PPA) dated November 12, 2006, and a supplementary PPA dated December 31, 2009.
MEIL Lanco had sought to include new invoices with its rejoinder, but UPPCL’s counsel opposed the move, arguing that it would alter the petition’s scope. The commission noted that adequate time had already been provided and denied further extensions. MEIL Lanco was directed to file a fresh petition if it wished to introduce new documents.
The commission also instructed MEIL Lanco to submit its rejoinder to UPPCL’s reply within two weeks. The case has been listed for the next hearing on April 15, 2025. The petition seeks reimbursement for fly ash transportation costs incurred during FY 2022-23 and FY 2023-24, in line with a Ministry of Environment, Forest & Climate Change notification dated December 31, 2021.
Petition No: 2106 of 2024 | Read the full order here.
UPERC directs Dhariwal Infrastructure to submit NOx emission data in De-NOx case
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has directed Dhariwal Infrastructure Ltd. (DIL) to provide data on NOx emission levels before and after the installation of a De-NOx system. The directive came during a hearing on February 25, 2025, in a petition filed by DIL seeking approval for additional capital expenditure and incremental tariff due to a “Change in Law” event.
DIL’s petition, filed under Regulation 20(2)(ii) of the UPERC (Terms and Conditions for Generation Tariff) Regulations, 2019, cites multiple Environment (Protection) Amendment Rules issued between 2015 and 2022 as the basis for the “Change in Law” event. The company has already obtained approval for a similar case from the Central Electricity Regulatory Commission (CERC) for its PPA with TANGEDCO, with the next hearing scheduled for March 19, 2025.
During the hearing, DIL’s counsel, Ms. Shikha Ohri, requested additional time to file a rejoinder to Noida Power Company Ltd.’s (NPCL) reply. The commission has listed the matter for the next hearing on April 3, 2025, and directed DIL to submit the required emission data.
Petition No: 2130 of 2024 | Read the full order here.
WBERC partially allows CESC’s review petition on FPPCA and APR for 2019-20
The West Bengal Electricity Regulatory Commission (WBERC) has issued an order partially allowing a review petition filed by CESC Limited concerning its Fuel and Power Purchase Cost Adjustment (FPPCA) and Annual Performance Review (APR) for 2019-20. The petition sought a revision of WBERC’s earlier order dated October 5, 2024, in Case No. FPPCA-99/20-21 and APR-83/20-21, arguing that certain cost deductions were erroneously applied.
CESC filed the review petition on November 12, 2024, under Section 94(1)(f) of the Electricity Act, 2003, citing inadvertent omissions in WBERC’s assessment. The company raised concerns over the double deduction of Operation and Maintenance (O&M) costs, non-allowance of capital costs, and modifications to tariff determination principles.
Upon review, WBERC found merit in CESC’s claim regarding the double deduction of O&M costs for both generation and distribution. The Commission recalculated these expenses and granted an additional recoverable amount. However, the claims related to capital costs and modifications to tariff principles were dismissed, as WBERC determined they did not qualify as errors apparent on the record.
As a result, the Aggregate Revenue Requirement (ARR) for CESC for 2019-20 was revised, increasing the recoverable amount from Rs 1.35 billion to Rs 1.84 billion. This resulted in a differential recoverable amount of Rs 485.23 million, which will be adjusted in the ARR for 2025-26 or a subsequent year as determined by the Commission.
In its final order, WBERC corrected the calculation errors in O&M costs but upheld its previous stance on capital costs and tariff-setting principles, ensuring regulatory consistency.
Petition No: APR(R)-43/24-25 | Read the full order here.
WBERC revises fuel cost calculations in Haldia Energy’s APR review for 2017-18
The West Bengal Electricity Regulatory Commission (WBERC) has issued a revised order in response to Haldia Energy Limited’s (HEL) review petition concerning the Annual Performance Review (APR) for the financial year 2017-18. The case, numbered APR(R)-36/24-25, revises the fuel cost calculations and other related charges for HEL’s 2×300 MW power plant.
HEL had sought a review of the WBERC’s order dated May 16, 2024, arguing that certain cost components related to coal purchases were not considered. These included a materialization incentive of Rs. 18.63 per ton, third-party sampling adjustments of Rs. 1.49 per ton, and entry tax of Rs. 35.68 per ton, totaling Rs. 55.80 per ton. HEL contended that these costs should have been included in the fuel cost computation.
The WBERC, after examining the petition, admitted the revisions. The commission recalculated the purchase price of coal, increasing it from Rs. 3,041.93 to Rs. 3,097.73 per ton. This adjustment led to a revised fuel cost of Rs 12.47 billion, up from Rs 12.27 billion. The commission also revised other charges, including interest on working capital and capacity charges, resulting in a revised net aggregate revenue requirement (ARR) of Rs 19.98 billion for FY 2017-18.
However, HEL had already recovered Rs 21.03 billion during the year, leading to a surplus of Rs 1.06 billion. The WBERC ordered that this surplus be adjusted against future ARRs or through a separate order.
The revised order impacts various financial components, including fuel costs, fixed costs, and capacity charges, ensuring a more accurate reflection of HEL’s operational expenses. The commission emphasized that the review was limited to correcting apparent errors and not re-hearing the case.
Petition No: APR(R)-36/24-25 | Read the full order here.
WBERC finalizes Haldia Energy’s tariff for FY 2025-26
The West Bengal Electricity Regulatory Commission (WBERC) has finalized the tariff structure for Haldia Energy Limited (HEL) for the financial year 2025-26. The order, issued on March 5, 2025, under Case No. TP-101/22-23, determines the Aggregate Revenue Requirement (ARR) and tariff for HEL’s 2×300 MW generating station and its 400 kV dedicated transmission line.
HEL, a power generation company, supplies electricity to CESC Limited under a long-term power purchase agreement. The Commission’s order covers the eighth control period (2023-24 to 2025-26) and sets the revenue recoverable through tariff for 2025-26. The ARR for the generating station is Rs 17.71 billion, with admitted fuel costs of Rs 10.96 billion and capacity charges of Rs 6.75 billion. The energy charge rate is fixed at Rs. 2.865 per kWh for 2025-26.
For the dedicated 400 kV transmission line, the ARR is Rs 822.16 million, with transmission charges set at Rs. 125,482.14 per MW per month. The transmission loss for the line is capped at 0.25% for 2025-26.
The tariff order also includes provisions for Monthly Fuel Cost Adjustment (MFCA) to account for any future increases in fuel costs. The new tariffs will be effective from April 1, 2025, and will remain in force until further orders from the Commission.
Petition No: TP-101/22-23 | Read the full order here.
WBERC issues tariff order for Durgapur Projects Limited for FY 2025-26
The West Bengal Electricity Regulatory Commission (WBERC) has issued a tariff order for Durgapur Projects Limited (DPL) for the financial year 2025-26. The order, dated March 5, 2025, finalizes the Aggregate Revenue Requirement (ARR) and tariff structure for DPL’s generating units, ensuring compliance with the Multi-Year Tariff (MYT) framework for the eighth control period.
DPL, a generating company with embedded thermal power stations, had submitted its tariff application for the years 2023-24, 2024-25, and 2025-26. The WBERC determined the ARR for 2025-26 at Rs 13.06 billion, with capacity charges set at Rs 2.05 billion for Unit No. 7 and Rs 2.47 billion for Unit No. 8. The energy charges were fixed at 238.50 paisa/kWh for Unit No. 7 and 247.66 paisa/kWh for Unit No. 8.
The tariff order also includes provisions for Fuel Cost Adjustment (FCA) to account for any variations in fuel costs. The State Load Despatch Centre (SLDC) will monitor energy accounting and availability, ensuring that DPL raises bills based on actual performance. The tariff will be effective from April 1, 2025, to March 31, 2026, and will remain applicable until further orders.
DPL had earlier sought a review of the 2023-24 and 2024-25 tariff orders on several issues, including employee expenses, normative O&M expenses, and interest on loans. However, the WBERC upheld its earlier decisions in the review order dated December 9, 2024.
The commission also directed DPL to comply with several regulatory requirements, including submitting audited financial statements, details of terminal benefit funds, and manpower details post-decommissioning of Unit No. 6. The order is subject to the final outcome of a pending writ petition at the Calcutta High Court.
Petition No: TP-106/22-23 | Read the full order here.
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