Author: PPD Team Date: 03/04/2025

APTEL partially approves GUVNL and Essar Power’s appeals against GERC order

The Appellate Tribunal for Electricity (APTEL) has partially approved the cross-appeals filed by Gujarat Urja Vikas Nigam Limited (GUVNL) and Essar Power Limited against the Gujarat Electricity Regulatory Commission’s (GERC) order dated December 27, 2019, in Petition No. 972 of 2009. The case pertains to the determination of recoverable amounts and delayed payment charges by GUVNL, as directed by the Supreme Court in its judgment dated August 9, 2016.

APTEL observed that GERC erred in computing diverted energy on a half-hourly basis. It held that energy diversion should be calculated on an hourly basis, as per the directions in the 2009 GERC order. However, APTEL upheld the commission’s methodology for determining the units for compensation, stating that it correctly calculated the difference between the actual supply to Essar Steel and its proportionate share in actual plant availability. Additionally, APTEL found no error in the commission’s consideration of the HTP-1 energy tariff minus variable costs.

APTEL remanded the matter back to GERC for a fresh review of certain issues, including:

  • Computation of energy diversion based on half-hourly data

  • Quantification of the actual amount deducted by GUVNL

  • Inclusion of Rs 22 million in the claim for refund of the deemed generation incentive

GERC has been directed to reconsider these aspects after allowing both parties a reasonable opportunity to present their case.

Petition No: APPEAL No. 138 OF 2021 & APPEAL No. 201 OF 2023 & IA No. 1630 OF 2023 & IA No. 1693 OF 2023 | Read the full order here.

APTEL approves Brahmani Thermal Power’s appeal against CERC order

The Appellate Tribunal for Electricity (APTEL) has approved the appeal filed by Brahmani Thermal Power Private Limited, challenging the Central Electricity Regulatory Commission’s (CERC) order dated April 12, 2017, in Petition No. 317/MP/2013.

CERC had earlier ruled that Brahmani Thermal Power had abandoned its power project due to delays in obtaining clearances, which was deemed impermissible under Article 9.0 of the Bulk Power Transmission Agreement (BPTA) dated June 7, 2010, between the company and Power Grid Corporation of India Limited.

APTEL, however, set aside CERC’s order and ruled that the company’s relinquishment of the long-term access agreement under the BPTA was due to force majeure events beyond its control. Therefore, Brahmani Thermal Power is not liable to pay any transmission charges to the Central Transmission Utility of India Limited (CTUIL).

Further, APTEL directed CTUIL to return the bank guarantee of Rs 360 million (issued by Axis Bank Limited on July 21, 2010) to Brahmani Thermal Power within two weeks.

Petition No: APPEAL No. 235 of 2017 | Read the full order here.

CERC approves DVC’s request to extend true-up petition deadline

The Central Electricity Regulatory Commission (CERC) has approved Damodar Valley Corporation’s (DVC) petition seeking an extension of the deadline for filing the true-up petition for the 2019-24 period for Chandrapura Thermal Power Station, Unit-III (130 MW). The deadline has been extended from November 30, 2024, to August 30, 2025.

CERC noted that DVC has not been able to finalize the true-up petition due to ongoing decommissioning activities at the site, which have led to several costs still being unsettled. Considering these difficulties, the commission extended the filing period.

However, CERC stated that DVC’s entitlement to recover expenses incurred in operating the unit until its decommissioning, as well as the applicability of carrying costs for the delayed filing, will be reviewed in accordance with the law when the petition is submitted.

Petition No: 174/MP/2025 | Read the full order here.

CERC determines tariff for NTPC’s Gadarwara Super Thermal Power Station

The Central Electricity Regulatory Commission (CERC) has approved NTPC Limited’s petition for tariff determination of the Gadarwara Super Thermal Power Station (1,600 MW) for the period from June 1, 2019, to March 31, 2024.

For the year 2019-20 (June 1, 2019, to March 31, 2020), NTPC had claimed Rs 13,201.83 million in annual fixed charges, while CERC approved Rs 13,134.45 million. In 2020-21 (April 1, 2020, to February 28, 2021), the claimed amount was Rs 13,763.81 million, whereas the approved amount stood at Rs 13,697.72 million. For the period from March 1, 2021, to March 31, 2021, NTPC sought Rs 23,284.29 million, but CERC approved Rs 22,549.26 million.

In 2021-22, NTPC claimed Rs 23,217.46 million, but CERC allowed Rs 22,482.24 million. For 2022-23, the claimed amount was Rs 23,892.59 million, while the approved amount was Rs 22,546.13 million. In 2023-24, NTPC had claimed Rs 24,914.17 million, and CERC approved Rs 23,101.86 million.

Petition No: 181/GT/2019 | Read the full order here.

CERC approves NHPC’s review petition on tariff determination for Teesta Low Dam-IV power station

The Central Electricity Regulatory Commission (CERC) has approved NHPC Limited’s petition seeking a review of its order dated December 8, 2023, in Petition No. 223/GT/2021. The petition pertains to the truing-up of the tariff for 2014-19 and the determination of tariff for 2019-21 for the Teesta Low Dam-IV power station (160 MW).

Following the review, the annual fixed charges (AFC) for the generating station for the period from March 11, 2016, to March 31, 2019, have been revised as follows:

The tariff for the period 2019-21 was determined through the December 8, 2023, order and was subsequently revised via a corrigendum order on January 9, 2024. While the closing capital cost as of March 31, 2019, remains unchanged, any tariff impact due to revisions in cumulative depreciation and cumulative repayment for 2019-21 will be addressed during the true-up process for 2019-24.

Petition No: 6/RP/2024 in Petition No. 223/GT/2021 | Read the full order here.

MPERC approves BLA Power’s tariff true-up for 2×45 MW coal-based thermal power project

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has approved BLA Power Private Limited’s petition for the true-up of tariff for its 2×45 MW coal-based thermal power project at Niwari, Gadarwara, Narsinghpur district, for the financial year (FY) 2023-24. The tariff was initially determined in the Multi-Year Tariff (MYT) Order dated June 13, 2023, under Petition No. 14 of 2023.

The true-up order revises the annual capacity (fixed) charges allowed for FY 2023-24 compared to the MYT order. The details are as follows:

Petition No: 63 of 2024 | Read the full order here.

RERC disposes of Rajasthan Urja Vikas and IT Services’s petition for approval of PPA

The Rajasthan Electricity Regulatory Commission (RERC) has disposed of the petition filed by Rajasthan Urja Vikas and IT Services Limited (RUVITL) seeking approval for the power purchase agreement (PPA) for procurement of power from Nabinagar STPS Stage-II (3×800 MW), which is to be allocated by the Ministry of Power, Government of India, to Rajasthan State.

The Commission observed that the petitioner had not submitted the provisional or tentative tariff, along with justification for the reasonability of the cost of power to be allocated, nor the required or tentative quantum of power to be procured from Nabinagar STPS Stage-II (3×800 MW) in the petition.

For the Commission to approve the PPA, it must first scrutinize these points. Without the necessary provisional or tentative tariff and details on the required or tentative quantum of power, the Commission is unable to undertake a prudence check and cannot approve the PPA at this stage.

As a result, the Commission has allowed the petitioner to file a fresh petition with the required provisional or tentative tariff, justification for the cost of power to be allocated, and details of the quantum of power to be procured from Nabinagar STPS Stage-II (3×800 MW) when such information becomes available.

Petition No: RERC-2294/2025 | Read the full order here.

RERC notifies RERC (Terms and Conditions for Determination of Tariff) Regulations, 2025

The Rajasthan Electricity Regulatory Commission (RERC) has announced the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2025, which will govern the tariff determination for various entities in the electricity sector.

The commission will determine tariffs and charges for matters outlined in Regulation 3, based on applications submitted by generating companies, licensees, or the State Load Dispatch Centre (SLDC) during the control period beginning April 1, 2025. These regulations apply to generating companies, transmission licensees, SLDCs, and distribution licensees.

Under the new regulations, the RERC may set a trajectory for key variables such as transmission losses, distribution losses, and collection efficiency, reflecting past performance. Applicants are required to incorporate these trajectories into their forecasts of the aggregate revenue requirement and expected revenue from tariffs and charges, as outlined in Regulation 11.

Additionally, the aggregate revenue requirement and the expected revenue from tariffs and charges for each generating station/unit of generating companies, licensees, and SLDCs will be subject to truing up during the control period, as specified by the regulations.

Read the full order here.

WBERC passes order in matter of APR and FPPCA for Haldia Energy  

The West Bengal Electricity Regulatory Commission (WBERC) has issued an order regarding the annual performance review (APR) and fuel and power purchase cost adjustment (FPPCA) for the generating station of Haldia Energy Limited (HEL) for the years 2017-18, 2018-19, and 2019-20.

The commission noted that the capacity charge recovery for a thermal power plant depends on its plant availability factor (PAF). Therefore, adjusting the previous recoverable or refundable amounts with the annual revenue requirement (ARR) of the subsequent period could lead to over- or under-recovery, depending on the actual PAF achieved. As a result, the commission decided to adjust the net refundable amount separately through 12 equal monthly installments starting April 1, 2025.

The commission has directed HEL to refund a total of Rs 2,453.7 million to its sole beneficiary, CESC Limited, in 12 equal monthly installments of Rs 204.47 million, beginning April 1, 2025, along with the monthly energy bills. HEL is also required to separately reflect this refundable amount in its monthly bills to CESC Limited.

Both HEL and CESC Limited are directed to take note of this order, and CESC shall account for this adjustment when computing its monthly variable charge adjustment (MVCA).

Petition No: CASE NO. B- 117/3 | Read the full order here.

WBERC passes order on tariff application of CESC Limited for 2025-26

The West Bengal Electricity Regulatory Commission (WBERC) has issued an order regarding the tariff application of CESC Limited for the year 2025-2026, in accordance with section 64(3)(a) read with sections 62(1) and 62(3) of the Electricity Act, 2003.

The commission has calculated the average cost of supply for the year 2025-26 as follows:

The commission has worked out the average cost of supply during the year 2025-26

The commission observed that the admitted average tariff for 2025-26 remains unchanged from 2024-25 at Rs 7.31 per kWh. As a result, the tariff schedule will remain unaltered for the year. Any variations related to fuel, power purchase costs, or other factors will be governed by the relevant provisions of the Tariff Regulations.

Petition No: CASE NO. TP-102/22-23 | Read the full order here.

WBERC passes order on DVC’s petition for review of January 11, 2024 order

The West Bengal Electricity Regulatory Commission (WBERC) has passed an order regarding the application submitted by Damodar Valley Corporation (DVC) for the review of the order dated January 11, 2024, concerning the year 2019-20.

The commission noted that, following the empirical formula proposed by DVC for the interest computation of differential annual fixed cost (AFC), it has reviewed its stance and decided to rectify the formula for interest computation in the Annual Performance Review (APR) order for 2019-20. The carrying cost will now be applied to the difference between the AFC determined in the tariff order of WBERC and the AFC determined under this review order, using the interest rate specified by the Central Electricity Regulatory Commission (CERC) regulations.

Since the actual AFC recovery by DVC depends on actual sales to consumers, the AFC admitted in the Tariff Order (based on projected sales) has been adjusted accordingly.

In line with the Tariff Regulations, the additional recoverable amount of Rs 474.09 million may be adjusted with the aggregate revenue requirement for a subsequent period or for any other ensuing year, or through a separate order, as decided by the commission.

Petition No: CASE NO: APR(R)-33/23-24 | Read the full order here.

WBERC approves DVC’s petition for review and rectification of 2023 order

The West Bengal Electricity Regulatory Commission (WBERC) has approved the petition filed by Damodar Valley Corporation (DVC) seeking a review and rectification of the order dated December 11, 2023 (the impugned order) in Case No. APR-107/22-23. This order pertained to the annual performance review of DVC’s distribution activities in West Bengal for FY 2018-19. The Commission admitted the petition on February 20, 2024.

The Commission considered DVC’s proposed empirical formula for computing interest on the differential annual fixed charges (AFC). After reviewing the matter, WBERC decided to rectify the formula used in the FY 2018-19 APR order. The revised order allows the carrying cost on the difference between the AFC determined in the original Tariff Order and the AFC as determined in this review, applying the interest rate as per CERC Regulations.

Since the actual AFC recovery by DVC depends on the actual sale to consumers, the AFC approved in the tariff order, which was based on projected sales, has been trued up based on actual sales. This adjustment reflects the difference between the projected and actual sales to DVC consumers in West Bengal.

After reviewing the issues raised in the petition, the Commission determined that certain points did not merit further consideration. However, errors identified in issues ‘4C’ and ‘40’ from the previous order were rectified and decided in the affirmative. Based on the rectifications and review, the Commission has admitted an additional amount of Rs -562.54 million.

Petition No: CASE NO: APR(R)-31/23-24 | Read the full order here.

WBERC approves DVC’s petition for review and rectification of 2017-18 APR order

The West Bengal Electricity Regulatory Commission (WBERC) has issued an order on Damodar Valley Corporation’s (DVC) petition seeking a review and rectification of the order passed in Case No. APR 106/22-23. This order pertains to the annual performance review (APR) of DVC’s distribution activities in West Bengal for FY 2017-18.

After reviewing DVC’s submission, the Commission decided to admit the empirical formula proposed by DVC for interest computation. Accordingly, the carrying cost has been allowed on the difference between the annual fixed cost (AFC) determined in the original tariff order and the AFC determined in this review order, applying the interest rate as per Central Electricity Regulatory Commission (CERC) regulations.

Since AFC recovery by DVC is based on actual sales to consumers, the AFC approved in the tariff order—initially determined based on projected sales—has now been trued up in accordance with actual sales to DVC consumers in West Bengal.

As per Tariff Regulations, the additional refundable amount of Rs 1,553.85 million, or a portion thereof, may be adjusted against the aggregate revenue requirement for a subsequent period, any ensuing year, or through a separate order.

Petition No: CASE NO: APR(R)-29/23-24 | Read the full order here.

HPERC approves HPSEBL’s ARR and tariff determination for 5th MYT control period

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the petition filed by Himachal Pradesh State Electricity Board Limited (HPSEBL) for the approval of the annual revenue requirement (ARR) and tariff determination for its generation business for the 5th multi-year tariff (MYT) control period from FY 2024-25 to FY 2028-29.

The approved annual fixed charge (AFC) for HPSEBL’s 13 hydroelectric projects (HEPs) during the control period is as follows:

Generation and Energy Availability (MU)

Annual Fixed Charges (AFC) (Rs million)

Petition No: Case No. 117/2024 | Read the full order here.

HPERC sets free power sale rate for FY 2025-26

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued a suo moto order setting the rate of sale of free power from the Government of Himachal Pradesh (GoHP) to Himachal Pradesh State Electricity Board Limited (HPSEBL) for FY 2025-26.

The commission has determined the free power rate using the same methodology as in FY 2024-25. For HPSEBL’s own generating stations, the ex-bus rates set by the commission have been applied.

For Ranjeet Sagar Dam and Shanan hydro projects, the ex-bus rates remain the same as those determined by the Punjab State Electricity Regulatory Commission (PSERC) in its tariff order for FY 2024-25, issued on June 14, 2024.

For private small hydroelectric plants (HEPs), the ex-bus rates follow their respective power purchase agreement (PPA) rates as approved by GoHP or HPERC. In cases where a specific tariff is unavailable, the commission has considered an ex-bus rate of Rs 2.60 per unit, based on HPSEBL’s average pooled power purchase cost (APPC) for FY 2024-25, determined in the tariff order dated March 15, 2024.

The notional cost of free power for HPSEBL in FY 2025-26 has been calculated by taking the higher of:

  • The average power purchase rate of Rs 2.64 per unit for FY 2024-25, estimated by HPERC.

  • The ex-bus rate of the respective station, APPC, or PPA rate.

This value is then multiplied by the estimated free power quantum available to HPSEBL from each source in FY 2024-25. Based on this methodology, the rate of free power for FY 2025-26 is set at Rs 2.70 per unit.

The order is effective from April 1, 2025, to March 31, 2026, unless extended or modified by HPERC.

Petition No: Suo Moto Petition No. 02/2025 | 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.

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