Author: PPD Team Date: 12/03/2025
CERC approves charge creation over assets for TP Bikaner III Neemrana II Transmission Limited
The Central Electricity Regulatory Commission (CERC) has granted approval to TP Bikaner III Neemrana II Transmission Limited to create a charge over its assets in favor of Axis Bank, Kotak Mahindra Bank, and ICICI Bank. This decision, dated February 26, 2025, allows the petitioner to secure financial facilities for the construction of a 765 kV double-circuit transmission line, part of the Rajasthan Renewable Energy Zone (REZ) Phase IV project.
The petitioner, a special purpose vehicle (SPV) acquired by Tata Power Company Limited, sought approval under Section 17(3) of the Electricity Act, 2003, and Regulation 6(8) of the CERC Transmission License Regulations, 2024. The project involves building a 765 kV transmission line with switchable reactors and bays at Bikaner-III and Neemrana-II substations, with a total project cost of Rs 153.4 billion. The funding includes Rs 38.4 billion from promoters and Rs 115 billion from lenders.
The CERC’s approval permits the creation of a first pari passu charge on movable assets, current assets, bank accounts, and project documents, including the transmission license. The lenders will share the security on an equal basis. In case of default, the lenders can enforce the security and may seek to assign the transmission license to a nominee, subject to CERC’s approval.
The Commission emphasized that any assignment of the transmission license or transfer of assets to the lenders’ nominee would require prior approval, ensuring the nominee meets the necessary qualifications and expertise in transmission projects.
Petition No: 414/MP/2024 | Read the full order here.
CERC rules in favor of TPDDL, mandates NHPC to apply rebates on instalment payments
The Central Electricity Regulatory Commission (CERC) has ruled in favor of Tata Power Delhi Distribution Limited (TPDDL) in a dispute with NHPC Limited over the application of rebates on payments made in instalments. The dispute arose after NHPC unilaterally altered its rebate policy, effective from October 1, 2023, which TPDDL argued was contrary to the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019.
TPDDL had challenged NHPC’s decision to allow rebates only on payments made within 30 days of the presentation of the bill, rather than on each instalment payment. TPDDL contended that this change was inconsistent with the regulatory framework and past practices, where rebates were applied to each instalment. NHPC, on the other hand, argued that Regulation 58 of the 2019 Tariff Regulations, which governs rebates, should be interpreted literally and applies only to consolidated bills, not instalments.
The CERC, in its order dated March 3, 2025, held that NHPC’s unilateral alteration of the rebate methodology was arbitrary and contrary to the regulatory framework. The Commission ruled that the term “presentation of the bill” in Regulation 58 should be interpreted as the date of each instalment, and rebates should be applied accordingly. The CERC emphasized that the purpose of allowing instalments under Regulation 13(4) of the 2019 Tariff Regulations would be negated if rebates were not applied to each instalment.
The Commission directed NHPC to allow rebates on each instalment payment made by TPDDL and permitted TPDDL to recover the rebate amounts not allowed since October 1, 2023, along with carrying costs. The carrying cost will be calculated based on the rate of interest on working capital as per the applicable CERC Tariff Regulations or the Late Payment Surcharge rate as per the Power Purchase Agreement (PPA), whichever is lower.
Petition No: 31/MP/2024 | Read the full order here.
TNERC dismisses petition against TANGEDCO officials over financial mismanagement
The Tamil Nadu Electricity Regulatory Commission (TNERC) has dismissed a petition alleging financial mismanagement and non-compliance in tariff classification by officials of the Tamil Nadu Generation and Distribution Corporation (TANGEDCO). The order, issued on March 4, 2025, ruled that the petition was not maintainable under the Commission’s jurisdiction.
The petitioner, Thiru S. Neelakanta Pillai, claimed that TANGEDCO officials failed to implement the proper reclassification of service connections from the domestic category to the “common supply under Tariff ID.” According to the complaint, only 0.3 million service connections had been converted, whereas approximately 0.8 million should have been reclassified. This partial implementation, the petitioner argued, resulted in a revenue shortfall and an additional financial burden of Rs 122.16 billion for the Tamil Nadu government in the financial year 2022-23.
The petition invoked Sections 128, 142, 149, and 150 of the Electricity Act, 2003, as well as Regulation 54 of the TNERC Conduct of Business Regulations, 2004. It alleged corruption, bribery, and financial misappropriation among TANGEDCO officials, including the Director of Finance, Director of Distribution, and Chief Financial Controller, as well as the Secretary of TNERC.
TNERC, however, ruled that the issues raised did not fall within its jurisdiction. The Commission stated that its powers under Section 142 of the Electricity Act, 2003, are limited to addressing specific cases of non-compliance, not broad allegations combining multiple claims. It also noted that Sections 149 and 150, which deal with criminal offenses, do not fall within its authority.
As a result, the Commission determined that the petition was not maintainable and dismissed it accordingly.
Petition No: P.R.C. No. 1 of 2025 | Read the full order here.
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