Regulatory Developments in Power Transmission Sector: May 19, 2025

TNERC issues draft 2025 Grid Code 

The Tamil Nadu Electricity Regulatory Commission (TNERC) has released the draft Tamil Nadu Electricity Grid Code, 2025 (TNEGC), repealing the 2005 version. The draft aims to align grid operations with the Indian Electricity Grid Code (IEGC), 2023, and invites public comments until June 11, 2025.

The Code will apply to all users of the intra-state transmission system, including the State Load Despatch Centre (SLDC), State Transmission Utility (STU), generating firms, distribution licensees, and open access customers.

Key provisions include mandatory data registration in both physical and digital formats to improve coordination. A new reactive power compensation mechanism is proposed, with incentives or penalties based on VAr drawal at specified voltage levels. Detailed norms will follow through separate Commission orders.

Standardised data formats for new projects are introduced under Appendix A, covering site maps, interconnection diagrams, clearances, and timelines. The STU will be required to prepare 5-, 10-, and 15-year rolling transmission plans and comply with resource adequacy frameworks notified by the Central Electricity Authority.

Operational updates include a revised frequency range of 49.90–50.05 Hz and new protocols for trial runs, restoration, and ancillary services. TNERC is empowered to address implementation issues, and the draft clarifies that it will not constitute a “change in law” under current contracts.

Stakeholders may send comments to TNERC’s Guindy office by June 11. The final version will be issued after reviewing submissions.

Read the full draft here.

APTEL sets aside CERC order on Greenko’s transmission charge liability

The Appellate Tribunal for Electricity (APTEL) has overturned a Central Electricity Regulatory Commission (CERC) order that held Greenko Budhil Hydro Power Pvt. Ltd. solely liable for transmission charges related to its 70 MW Budhil Hydro Electric Project (HEP) in Himachal Pradesh. The tribunal ruled that charges shall be shared under the Bulk Power Transmission Agreement (BPTA) dated 18 October 2007, signed with PTC India Ltd. and Power Grid Corporation of India Ltd. (PGCIL).

The case involved charges for the period from 1 November 2011 to 24 May 2012, when PGCIL’s transmission system was ready, but Greenko’s project was delayed. CERC had previously directed Greenko and NHPC to share the cost, citing an indemnity agreement between PGCIL and NHPC, developer of the Chamera-III project.

APTEL held that CERC misread the BPTA, which governed the transaction and did not involve NHPC. The tribunal ruled that Greenko’s prior commitments could not override the BPTA’s provisions. It quashed PGCIL’s invoices raised solely on Greenko and directed revised invoices in accordance with the BPTA.

The judgment confirms that NHPC’s separate indemnity agreement with PGCIL does not affect Greenko’s obligations under the tripartite BPTA.

Appeal No. 69 Of 2020 , 70 of 2020, 72 of 2020 & 73 of 2020 | Read the full order here.

CERC approves PGCIL tariff for Lara STPS-I transmission assets

The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for Power Grid Corporation of India Limited’s (PGCIL) assets linked to the Lara Super Thermal Power Station-I (STPS-I) project. The order in Petition No. 184/TT/2025 covers tariff adjustments for the 2019–24 period and sets tariffs for 2024–29.

The assets include the 400 kV D/C Lara STPS-I to Raigarh (Kotra) line and the 400 kV D/C (Quad) Lara STPS-I to Champa line. The Commission examined capital cost, additional capital expenditure (ACE), depreciation, interest on loans, return on equity (RoE), and operation and maintenance expenses.

Madhya Pradesh Power Management Company Limited (MPPMCL) raised objections on RoE grossing-up, transmission charge sharing, and GST treatment. CERC dismissed these concerns, referring to earlier rulings.

For 2019–24, CERC approved a trued-up capital cost of Rs 3.455 billion, including Rs 2.87 million for additional spares in line with APTEL directions. Annual fixed charges were approved with minor changes in depreciation and loan interest. For 2024–29, projected ACE of Rs 4.71 million was approved, with tariffs determined under the 2024 Tariff Regulations based on a 70:30 debt-equity ratio.

Petition No. 184/TT/2025 | Read the full order here.

CERC approves YTC for KPTCL’s intra-state lines carrying interstate power

The Central Electricity Regulatory Commission (CERC) has approved the yearly transmission charges (YTC) for nine 220 kV intra-state lines owned by Karnataka Power Transmission Corporation Limited (KPTCL), declaring them eligible for cost recovery under the Point of Connection (PoC) mechanism. The order addresses a long-standing dispute under the Sharing of Inter-State Transmission Charges and Losses Regulations, 2020.

The Southern Regional Power Committee (SRPC) had certified the lines, ncluding Sedam–Raichur, Chikkodi–Belgaum, and Chikkodi–Ghataprabha, as non-ISTS assets carrying more than 50% interstate power, making them eligible for inclusion in the PoC pool.

CERC upheld SRPC’s certification based on 2019–20 power flow data and adopted a 35-year useful life in line with Appellate Tribunal for Electricity (APTEL) rulings. The Commission rejected KPTCL’s request for additional capital expenditure due to lack of supporting records.

Transmission charges were set using normative cost benchmarks. Operations and maintenance (O&M) expenses were adjusted to exclude costs related to bays. For FY 2020–21, CERC approved total YTC of Rs 70.6 million, compared to KPTCL’s claim of Rs 124 million. Notable approvals include Rs 16.21 million for the Sedam–Raichur lines (claimed: Rs 32.08 million) and Rs 27.11 million for the Chikkodi–Ghataprabha lines (claimed: Rs 32.56 million).

CERC directed KPTCL to adjust these recoveries against its state-approved Annual Revenue Requirement (ARR). SRPC was instructed to verify line availability for future PoC charge allocation.

Petition No. 353/TT/2023 | Read the full order here.

CERC resolves Powerica–JKTL dispute over deemed COD and transmission charges

The Central Electricity Regulatory Commission (CERC) has settled a dispute between Powerica Limited and Jam Khambaliya Transco Limited (JKTL) concerning transmission charges and commissioning delays related to Powerica’s wind power project in Gujarat. The order addresses issues around deemed Commercial Operation Date (COD), force majeure, and loss compensation.

JKTL had declared the COD for its transmission system as 12 April 2022. Powerica challenged this, citing missing regulatory clearances and contract violations. CERC accepted the objection and ruled that the COD would be considered valid only from 27 April 2022, following confirmation of approvals.

Powerica was held liable for transmission charges from 27 April to 2 June 2022 for 50.6 MW and from 3 June to 18 August 2022 for the remaining 26.3 MW. CERC rejected JKTL’s original bills and directed the Central Transmission Utility of India Limited (CTUIL) to revise the calculations as per the updated COD.

Powerica’s demand for Rs 14.8 million in compensation for generation losses during a 15-day outage in May 2022 was dismissed. CERC found the outage was approved by the Western Regional Load Despatch Centre (WRLDC), and Powerica had failed to notify its commissioning schedule in advance. The order clarifies procedural compliance for ISTS connectivity and affirms proportional liability in shared transmission use.

Petition No. 187/MP/2022 along with 70/IA/2022 | Read the full order here.

CERC approves tariffs for PGCIL’s Odisha Phase-II transmission assets

The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for Power Grid Corporation of India Limited (PGCIL) for the 2019–24 period and set the tariff for 2024–29 for assets associated with Odisha’s Phase-II generation projects. The order covers 765 kV line bays at Jharsuguda and Raipur substations, including switchable line reactors.

For the 2019–24 period, CERC allowed additional capital expenditure (ACE), including adjustments for liquidated damages recovered from contractors. The approved cost structure maintained a 70:30 debt-equity ratio. The assets’ useful life was set at 25 years. Components like interest on working capital, return on equity (RoE), and operations and maintenance (O&M) expenses were assessed as per prevailing norms. RoE was grossed up at 18.782%, based on Minimum Alternate Tax (MAT) rates.

For the 2024–29 period, CERC approved the projected tariff without further ACE. The debt-equity structure was retained, and O&M expenses were fixed in line with tariff regulations.  

Petition No. 17/TT/2025 | Read the full order here.

CERC approves tariffs for PGCIL assets in southern region power import project

The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for the 2019–24 period and set the tariff for 2024–29 for Power Grid Corporation of India Limited (PGCIL). The order relates to assets under the transmission system associated with substation works for system strengthening in the Southern Region to facilitate power imports from the Eastern Region.

The Commission reviewed key components including capital cost truing-up, depreciation, interest on loans, return on equity (RoE), and operational expenses. PGCIL’s claims for additional capital expenditure (ACE), filing fee reimbursement, RLDC charges, and license fees were evaluated against the 2019 and 2024 Tariff Regulations.

CERC approved a trued-up capital cost of Rs 10,313.34 million as of 31 March 2024. Annual fixed charges for 2019–24 were finalised based on audited financials and regulatory benchmarks. For the 2024–29 period, tariffs were determined using projected costs, maintaining a 70:30 debt-equity ratio and applying updated operational norms.

Petition No. 19/TT/2025 | Read the full order here.

CERC adopts Rs 303.68 million annual tariff for NERGS-I transmission project

The Central Electricity Regulatory Commission (CERC) has adopted Rs 303.68 million as the annual transmission charges for the “North Eastern Region Generation Scheme-I (NERGS-I)” project, following a reverse auction under Section 63 of the Electricity Act, 2003. 

NERGS-I Power Transmission Limited, a special purpose vehicle (SPV), filed the petition after Techno Electric & Engineering Company Limited emerged as the lowest bidder in 59 bidding rounds. The quoted tariff was 24.41% higher than the Commission’s estimated levelized charges of Rs 244.10 million.

Despite the deviation, the Commission accepted the tariff. The Bid Evaluation Committee (BEC) cited the region’s difficult terrain, high logistics cost, and the strict December 2026 deadline as reasons for the higher bid. It also noted that the Cost Committee’s estimates were lower than those of the National Committee on Transmission (NCT).

CERC had initially raised concerns about the absence of re-bidding. The Bid Process Coordinator, REC Power Development and Consultancy Limited (RECPDCL), clarified that there is no formal mandate to re-tender and highlighted the urgency of timely project completion.

The Commission was satisfied that the bidding process complied with Ministry of Power guidelines. It adopted the tariff, conditional on the grant of a transmission licence to the petitioner. The transmission charges will fall under the CERC (Sharing of inter-State Transmission Charges and Losses) Regulations, 2020.

The project involves setting up a 400 kV switching station and related works in Bokajan, Assam.

Petition No. 319/AT/2024 | Read the full order here.

UPERC approves Rs 171.5 million tariff for TTL transmission project

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved annual transmission charges of Rs 171.5 million for the Tirwa Transmission Limited (TTL) project. The project involves a 220/132/33 kV substation in Tirwa (Kannauj) and associated transmission lines, including the loop-in loop-out (LILO) of a 400 kV double-circuit line at THDC’s Khurja thermal power plant.

Megha Engineering & Infrastructures Ltd. (MEIL) emerged as the successful bidder, quoting the lowest tariff during the e-reverse auction. The Commission adopted the tariff under Section 63 of the Electricity Act, 2003, validating the transparent bidding process conducted by PFC Consulting Limited (PFCCL).

The TTL project, developed on a build–own–operate–transfer (BOOT) basis, aims to strengthen intra-state transmission infrastructure in Uttar Pradesh. 

Petition No. 2105 of 2024 | Read the full order here.

UPERC approves Rs 221.9 million tariff for Meerut–Shamil transmission line

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved annual transmission charges of Rs 221.9 million for the Meerut (765 kV) – Shamil 400 kV double-circuit transmission line. 

The project, developed by Meerut Shamil Power Transmission Limited (MSPTL) under the Build, Own, Operate, and Transfer (BOOT) model, was conducted through a competitive bidding process conducted by REC Power Development and Consultancy Limited (RECPDCL), which acted as the Bid Process Coordinator (BPC). 

UPERC adopted the tariff under Section 63 of the Electricity Act, 2003, validating the transparency of the bidding process.

The final order approved the discovered tariff for 35 years, subject to licence renewal after 25 years.  

Petition No. 2098 of 2024 | Read the full order here.

GERC allows GETCO’s review on forex loss and depreciation, rejects capitalisation plea

The Gujarat Electricity Regulatory Commission (GERC) has partially allowed a review petition by Gujarat Energy Transmission Corporation Ltd. (GETCO) related to its FY 2021–22 tariff order. GERC corrected earlier disallowances on foreign exchange loss and depreciation but upheld the rejection of Rs 92.33 crore capitalisation tied to the Raghanesda solar park evacuation project.

GETCO’s petition challenged three disallowances: Rs 11.26 crore in forex loss, Rs 1.31 crore in depreciation, and exclusion of capitalisation for the 220/33 kV substation and line at Raghanesda.

GERC acknowledged errors in the forex and depreciation calculations. It corrected the forex entry, increasing approved finance charges to Rs 398.66 crore. Approved depreciation was raised from Rs 1,260.12 crore to Rs 1,261.43 crore.

However, the Commission rejected GETCO’s request to include the Rs 92.33 crore capitalisation. It reaffirmed that Gujarat Power Corporation Limited (GPCL) had developed the assets using Upfront Development Charges (UDC) and Central Financial Assistance (CFA). Since developers had accounted for UDC in their tariffs, including these costs in GETCO’s tariff would result in double recovery.

The petition was partially allowed. The corrected figures will be reflected in future truing-up.

Petition No: 2220 of 2023 | Read the full order here.

For more regulatory updates, read the latest orders covered on Power Peak Digest: Energy Regulatory Updates – Power Peak Digest 

Featured photograph is for representation only.