Latest Regulatory Developments in Transmission Sector: February 18, 2025

APTEL passes order in KPTCL and HESCOM’s appeal against KERC tariff decision

The Appellate Tribunal for Electricity (APTEL) has issued an order regarding the appeal filed by Karnataka Power Transmission Corporation Limited (KPTCL) and Hubli Electricity Supply Company Limited (HESCOM) against the Karnataka Electricity Regulatory Commission (KERC) ruling in OP No. 20 of 2013, dated June 19, 2014. The KERC had fixed the tariff payable by KPTCL and HESCOM to Global Energy Private Limited (GEPL) at Rs 5.72 per unit for power supplied during April to June 2010 under Section 11(2) of the Electricity Act.

APTEL highlighted that the Rs 5.72 per unit rate was determined without discounting transmission charges from the weighted average market price for the specified period, despite APTEL’s earlier ruling that such deductions should be made. Additionally, APTEL pointed out that KERC had dismissed HESCOM’s claim for set-off of amounts owed to GEPL without providing any reasoning. Since KERC had not addressed the set-off issue, APTEL ruled it was not appropriate to consider this in the appellate proceedings.

APTEL has remanded the matter to KERC on two key points: HESCOM’s set-off claim and the calculation of transmission charges to be deducted from the weighted average market price. KERC is instructed to reconsider both aspects after providing both parties with a fair hearing, in line with the observations and directions in APTEL’s judgment.

Petition No: Appeal No. 272 of 2014 | Click here to read the full order.

APTEL partly allows PCKL and others’ appeal against KERC order

The Appellate Tribunal for Electricity (APTEL) has partly allowed the appeal filed by Power Company of Karnataka Limited (PCKL) and others, challenging the Karnataka Electricity Regulatory Commission (KERC) order in O.P. Nos. 40 and 41 of 2010, dated February 14, 2013.

APTEL observed that the state commission failed to determine the discount on transmission charges as previously directed in APTEL’s remand order. The appellants claimed that accounting for marketing and transmission charges appropriately would reduce the tariff by Rs 0.31 per unit. While KERC had already acknowledged Rs 0.10 per unit for marketing expenses, the appellants sought a transmission charge discount of Rs 0.21 per unit. However, the appellants conceded that the transmission charges could not exceed Rs 0.16 per unit. As such, APTEL ruled that the transmission charge discount could not exceed Rs 0.16 per unit, as agreed by the respondent.

As a result, APTEL directed the appellants to pay Himatsingka Seide Limited and J.K. Cement Works Rs 5.56 per unit, along with interest as per the original order. The payment is to be made promptly, within four months from the date of receipt of the judgment, to compensate for the adverse financial impact caused by the Government of Karnataka’s directions under Section 11(1) of the Electricity Act, requiring the supply of electricity during April to June 2010.

Petition No: Appeal No. 373 of 2024 & IA No. 1623 of 2024 | Click here to read the full order.

RERC notifies Rajasthan Electricity Grid Code Regulations, 2024

The Rajasthan Electricity Regulatory Commission (RERC) has notified the RERC (Rajasthan Electricity Grid Code) Regulations, 2024 (REGC), which will apply to users connected to the intra-state transmission system and state load despatch centre (SLDC) at 33 kV and above. These regulations will also be applicable to new connections and equipment for new works or replacements once the REGC becomes effective.

The regulations mandate SLDCs to develop a load despatch and system operation manual in alignment with REGC, and submit it to RERC for approval, after consulting with users. State transmission utilities (STUs) are required to ensure power evacuation from generating stations for distribution to electricity entities and open access consumers, and to facilitate power exchanges with other entities and through interconnections with the central transmission utility. The state power committee (SPC) will issue guidelines for implementing REGC and facilitating the rules and procedures under its provisions.

To promote operational transparency and reliability, the regulations introduce monitoring mechanisms such as self-audits, third-party audits, and periodic cyber security reviews. SLDCs are also tasked with conducting day-ahead, weekly, monthly, and yearly operational studies to assess and declare the total transfer capability and available transfer capability for electricity imports and exports. Additionally, operational planning studies will be performed to evaluate whether planned operations may lead to deviations from system operational limits as per REGC and Central Electricity Authority standards. Any deviations will be reviewed in monthly SPC meetings, with significant deviations being monitored for timely resolution.

Petition No: Petition No: No. RERC/Secy/Reg –155 | Click here to read the full order.

UERC disposes of PTCUL’s petition for investment approval

The Uttarakhand Electricity Regulatory Commission (UERC) has disposed of the petition filed by Power Transmission Corporation of Uttarakhand Limited (PTCUL) seeking investment approval for the detailed project report (DPR) on the augmentation of the 132 kV Purkul substation in Dehradun from 100 MVA (2×40 MVA + 1×20 MVA) to 120 MVA (3×40 MVA) at the 132/33 kV voltage level.

Initially, PTCUL sought approval for Rs 101 million for the proposed augmentation. However, UERC noted that PTCUL, through a letter dated December 19, 2024, submitted a revised petition with an updated DPR amounting to Rs 234.7 million. This revised proposal aims to increase the substation’s capacity from 80 MVA (2×40 MVA) to 160 MVA (2×40 MVA + 1×80 MVA) and was approved by PTCUL’s board of directors in its 96th meeting on November 25, 2024.

Given that the petitioner has already submitted a new petition for the revised augmentation plan with board approval, UERC concluded that the original petition has become infructuous and does not require further proceedings.

Petition No. 46 of 2024

UPERC grants transmission license to Meerut Shamli Power Transmission

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the petition filed by Meerut Shamli Power Transmission Limited for a transmission license to establish a transmission system for the construction of the Meerut (765 kV)-Shamli (400 kV) double-circuit line on a build, own, operate, and transfer basis.

UPERC noted that the project’s scope and objectives align with the broader public interest by improving the transmission network. The commission confirmed that the bidding process met the request for proposal conditions, including blacklisting requirements, and that all necessary declarations and certifications were submitted and evaluated by the bid evaluation committee.

The transmission license is granted under the following conditions:

• The license will remain valid for 25 years unless revoked earlier.
• If the transmission system remains operational beyond 25 years, the licensee may apply for a 10-year extension at least two years before expiry, subject to prevailing regulations.
• The licensee is prohibited from engaging in electricity trading during the license period.
• The licensee must comply with the Electricity Act, relevant regulations, the Indian Electricity Grid Code, the Uttar Pradesh Electricity Grid Code, standards set by the Central Electricity Authority, and any directives issued by UPERC.

Petition No. 2097 of 2024 | Click here to read the full order.

UPERC grants transmission license to Jewar Transmission

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the petition filed by Jewar Transmission Limited for a transmission license to establish a transmission system for the construction of multiple substations and associated lines on a build, own, operate, and transfer basis. The project includes:

• A 400/220 kV, 2×500 MVA GIS substation in Jewar
• A 220/33 kV, 2×60 MVA GIS substation in Cantt (Chaukaghat), Varanasi
• A 220/33 kV, 3×60 MVA GIS substation in Vasundhara, Ghaziabad
• A 220/132/33 kV, 2×160+2×40 MVA substation in Khaga, Fatehpur

UPERC noted that the project’s scope aligns with the public interest by improving the transmission network. The commission confirmed that the bidding process met the request for proposal conditions, including blacklisting requirements, and that all necessary declarations and certifications were submitted and evaluated by the bid evaluation committee.

The transmission license is granted under the following conditions:

• The license will remain valid for 25 years unless revoked earlier.
• If the transmission system remains operational beyond 25 years, the licensee may apply for a 10-year extension at least two years before expiry, subject to prevailing regulations.
• The licensee is prohibited from engaging in electricity trading during the license period.
• The licensee must comply with the Electricity Act, relevant regulations, the Indian Electricity Grid Code, the Uttar Pradesh Electricity Grid Code, standards set by the Central Electricity Authority, and any directives issued by UPERC.

Petition No. 2102 of 2024 | Click here to read the full order.

UPERC grants transmission license to Tirwa Transmission

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the petition filed by Tirwa Transmission Limited for a transmission license to establish a transmission system for the construction of the 220/132/33 kV Tirwa (Kannauj) substation with associated lines. The project also includes the looping-in and looping-out (LILO) of one circuit of the 400 kV double-circuit (D/C) Shamli-Aligarh transmission line at the THDC 2×660 MW Khurja Power Plant on a build, own, operate, and transfer basis.

UPERC observed that the project aligns with the public interest by strengthening the transmission network. The commission confirmed that the bidding process complied with the request for proposal conditions, including blacklisting requirements, and that all necessary declarations and certifications were reviewed by the bid evaluation committee.

The transmission license is granted under the following conditions:

• The license will remain valid for 25 years unless revoked earlier.
• If the transmission system remains operational beyond 25 years, the licensee may apply for a 10-year extension at least two years before expiry, subject to prevailing regulations.
• The licensee is prohibited from engaging in electricity trading during the license period.
• The licensee must comply with the Electricity Act, relevant regulations, the Indian Electricity Grid Code, the Uttar Pradesh Electricity Grid Code, standards set by the Central Electricity Authority, and any directives issued by UPERC.

Petition No. 2104 of 2024 | Click here to read the full order.

CERC approves NHPC’s petition for injection of infirm power

The Central Electricity Regulatory Commission (CERC) has approved NHPC Limited’s petition seeking permission to inject infirm power beyond September 30, 2024, for the commissioning of the 800 MW (4×200 MW) Parbati-II Hydroelectric Project in Himachal Pradesh.

The commission noted that the project, initially sanctioned to be completed by September 11, 2009, has faced multiple delays due to factors such as delayed forest clearance, natural calamities, strikes, adverse geological conditions, and the COVID-19 lockdown. The project is now expected to be completed by March 2025, reflecting a 186-month delay.

CERC, exercising its powers under Regulation 19(3) of the Grid Code, has granted approval for injecting infirm power into the grid for commissioning tests, including full-load testing of all four units, until March 31, 2025. NHPC has been directed to make all efforts to commission the project by the revised deadline.

Petition No: 112/MP/2025 | Click here to read the full order.

CERC determines tariff for Powergrid’s assets in Northern Region for 2024-29

The Central Electricity Regulatory Commission (CERC) has approved Power Grid Corporation of India Limited’s (Powergrid) petition for the truing-up of transmission tariff for the 2019-24 period and the determination of transmission tariff for the 2024-29 period. The approval is for the Combined Asset, which includes the 400 kV D/C Gorakhpur-Lucknow transmission line, its associated bays, and a 30 per cent fixed series compensation (FSC) at Lucknow under the “Northern Region System Strengthening Scheme-X.”

The approved transmission charges (Rs millions) for the 2024-29 tariff period are: