Author: PPD Team Date: 07/05/2025
CERC approves tariff for NTPC’s Tanda Thermal Power Station Stage-II
The Central Electricity Regulatory Commission (CERC) has approved the tariff for NTPC Limited’s Tanda Thermal Power Station Stage-II (1320 MW) for the period from Unit-I’s commercial operation date (7 November 2019) to 31 March 2024.
The Tanda station, located in Ambedkar Nagar, Uttar Pradesh, consists of two 660 MW units. Unit-I achieved COD on 7 November 2019, and Unit-II on 1 July 2021. The capital cost was set at Rs. 81,714.97 crore as of Unit-II’s COD, with an additional Rs. 15,152.30 crore approved for the period up to 31 March 2024.
The CERC approved a debt-equity ratio of 70:30, a return on equity at a base rate of 15.5%, grossed up with an effective tax rate of 17.472%, and depreciation at a weighted average rate of 4.58–4.61%. Interest on loans was allowed based on the weighted average rate of interest.
Petition No: 281/GT/2020 | Read the full order here.
JSERC approves revised tariff and fixed costs for Adhunik Power’s 540 MW plant
The Jharkhand State Electricity Regulatory Commission (JSERC) has issued its final order on Adhunik Power and Natural Resources Limited’s (APNRL) tariff petition. It approved the true-up for FY 2023–24 and the annual performance review for FY 2024–25. The order applies to APNRL’s 540 MW thermal power plant in Jharkhand and defines the operational and financial framework for the period.
JSERC reviewed and revised APNRL’s proposed annual fixed costs for FY 2024–25, adjusting key components to meet regulatory standards. The approved values differ from the utility’s Multi-Year Tariff (MYT) petition across several cost heads.
Revised annual fixed cost for FY 2024–25 (Rs crore):
The Commission upheld the power purchase agreement’s tariff split. APNRL will supply 12% of its contracted 122.85 MW (58.968 MW) at variable costs only, with an energy charge rate of Rs 3.04/kWh for both units. The remaining 13% (63.882 MW) will be billed at full tariff, including fixed charges of Rs 1.24 crore/MW for Unit-1 and Rs 1.25 crore/MW for Unit-2.
APNRL had claimed a revenue gap of Rs 5.39 crore and Rs 5.27 crore for Units 1 and 2. After factoring in a Shakti coal discount of Rs 1.39 crore, JSERC approved Rs 5.27 crore for both units.
The Commission accepted a weighted average coal price of Rs 3,630/MT for FY 2023–24 and dismissed concerns over price volatility. It noted the financial strain from 12% supply at variable costs but stressed adherence to contractual terms. APNRL received operational efficiency incentives for achieving an 86.02% Plant Availability Factor (PAF), exceeding the 85% benchmark.
JSERC directed APNRL to achieve 100% ash utilization in line with environmental norms. Water charge disputes were referred to the High Court. The 12% cost-recovery issue must be addressed through negotiations or further regulatory filings.
Read the full order here.
HPERC approves final true-up tariff for Baspa II hydro project for FY23 and FY24
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the final true-up tariff for the 300 MW Baspa II Hydro Electric Project (HEP) operated by JSW Hydro Energy Limited.
Baspa II is a diurnal peaking project supplying power to Himachal Pradesh State Electricity Board Ltd (HPSEBL). The true-up was based on actual performance, including high plant availability of 96.81% in FY23 and 96.93% in FY24, and 127.44 million units (MU) of secondary energy generation in FY23. HPERC approved incentives of Rs. 9.83 crore annually for plant availability and Rs. 40.41 crore for secondary energy in FY23.
Stakeholders, including HPSEBL and the state government, raised objections to the inclusion of incentives in working capital calculations and delays in filing. HPERC upheld JSW Hydro’s methodology, citing provisions in the power purchase agreement (PPA) and earlier rulings. However, the Commission rejected the proposal to exclude the cost of the Karcham Wangtoo–Jhakri transmission line, as the Central Electricity Regulatory Commission (CERC) denied its conversion into an interstate asset.
HPERC set the final trued-up annual fixed charges (AFC) at Rs. 280.62 crore for FY23 and Rs. 236.10 crore for FY24. HPSEBL is required to pay a revenue gap of Rs. 11.18 crore, including carrying costs, within three months.
Petition No: 155/2024 | Read the full order here.
UERC approves Rs 16.33 billion cost for Vyasi hydro project
The Uttarakhand Electricity Regulatory Commission (UERC) has approved a final capital cost of Rs 16.33 billion for UJVN Ltd.’s Vyasi Hydro Electric Project (2×60 MW). It has also allowed UJVN Ltd. to recover Rs 419.9 million from Uttarakhand Power Corporation Ltd. (UPCL) for FY 2022–23 in 12 monthly instalments starting April 2025.
The project was commissioned in two phases—Unit 2 on April 22, 2022, and the full project on May 24, 2022. UERC approved a hard cost of Rs 13.07 billion for the full project, against Rs 13.45 billion claimed. It approved IDC and financing charges of Rs 2.37 billion, compared to Rs 4.34 billion claimed, and establishment costs of Rs 886.3 million, against Rs 1.38 billion claimed. The reductions reflect disallowances for price variations and delay costs deemed controllable.
For FY 2022–23, UERC approved Annual Fixed Charges (AFC) of Rs 3.08 billion compared to UJVN’s claim of Rs 3.62 billion. The Commission approved Rs 1.07 billion in interest on loan (claimed: Rs 1.19 billion), Rs 743.9 million in depreciation (claimed: Rs 873.4 million), Rs 723.9 million in return on equity (claimed: Rs 860.1 million), and Rs 512.6 million in O&M expenses (claimed: Rs 600.3 million). This led to a net gap of Rs 419.9 million, which UPCL must pay to UJVN in 12 equal monthly instalments starting April 2025.
UERC addressed multiple issues during the review. The project suffered delays of over seven years, attributed by UJVN to land transfer problems, geological difficulties, and COVID-19. However, the Commission condoned only 50% of the delay, citing avoidable lapses. Stakeholders raised concerns over high generation costs and funding inefficiencies, prompting UERC to disallow unsupported expenditures. Revised environmental flow norms led to a decrease in design energy from 375.24 million units (MU) to 353 MU. The Commission directed UJVN to ensure better project management and cost control in future to safeguard consumer interests.
Read the full order here.
UPERC approves UPPCL’s purchase of infirm power from Ghatanpur TPS at Rs 2.872/unit
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved U.P. Power Corporation Ltd.’s (UPPCL) petition to procure infirm power from Unit-1 of the Ghatanpur Thermal Power Station (3×660 MW) at a rate of Rs 2.872 per unit. This procurement will remain in effect until the unit’s commercial operation date (COD), declared as 12 December 2024.
UPPCL, the nodal agency for Uttar Pradesh’s power distribution companies (Discoms), signed a short-term power purchase agreement (SPPA) with Neyveli Uttar Pradesh Power Limited (NUPPL)—a joint venture of NLC and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL)—following synchronization of Unit-1 on 4 November 2023.
The approved tariff of Rs 2.872 per unit is significantly lower than UPERC’s benchmark short-term procurement rate of Rs 7.31 per unit for FY 2024–25. The Commission stated that the procurement aligns with Section 86(1)(b) of the Electricity Act, 2003, which authorizes state commissions to regulate power purchase terms.
UPERC had earlier approved long-term procurement of 1,487.28 MW from Ghatanpur TPS in October 2023.
Petition No. 2177 of 2024 | Read the full order here.
UPERC approves MYT and ARR for UPRVUNL’s Rihand and Matatila hydro plants
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the Multi-Year Tariff (MYT) and Annual Revenue Requirement (ARR) for U.P. Rajya Vidyut Utpadan Nigam Ltd.’s (UPRVUNL) Rihand (300 MW) and Matatila (30.6 MW) hydro power stations for the control period FY 2019–20 to FY 2023–24. The decision ensures cost recovery for UPRVUNL while maintaining tariff stability for procurers such as U.P. Power Corporation Ltd. (UPPCL) and Madhya Pradesh utilities.
For Rihand Hydro Power Station (HPS), fixed charges were approved in the range of Rs 56.75–60.64 crore per year, with energy charges between Rs 0.312 and Rs 0.333 per kWh. For Matatila HPS, fixed charges ranged from Rs 9.86–11.01 crore per year, and energy charges were set between Rs 0.405 and Rs 0.452 per kWh. A 15% return on equity was allowed in line with UPERC’s 2019 Generation Tariff Regulations.
Cost components were rationalized with depreciation based on historical asset values, including Rs 190.15 crore for Rihand’s gross fixed assets. Normative limits were applied to O&M expenses, with Rihand capped at Rs 33.56–39.94 crore per year. Interest on loans was set at 12.25% for both stations, with repayment schedules aligned with depreciation.
UPERC reaffirmed its regulatory authority over UPRVUNL’s tariff matters, addressing jurisdictional disputes raised by Madhya Pradesh utilities. The order disallowed any additional capitalization during the control period.
During public hearings, consumer representative Sh. Avdhesh Kumar Verma recommended a lower O&M escalation rate of 4.47%, but the Commission upheld UPRVUNL’s proposed normative rate of 6.64%.
The Commission directed UPRVUNL to finalise gross fixed asset balances and submit a true-up petition once the transfer scheme is completed. Statutory levies and applicable incentives will be recoverable as per existing regulations.
Petition No. 2074 of 2024 | Read the full order here.
TGERC approves FY26 ARR and tariff for TGGenco with Rs 7,366 crore in fixed charges
The Telangana Electricity Regulatory Commission (TGERC) has issued its order on the revised Aggregate Revenue Requirement (ARR) and tariff for Telangana Power Generation Corporation Limited (TGGenco) for FY 2025–26.
TGGenco had sought approval for fixed and energy charges in line with the Multi-Year Tariff (MYT) order issued on 28 October 2024. TGERC approved fixed charges of Rs 7,366.12 crore, which includes Rs 1,489.46 crore for additional pension liabilities and Rs 33.65 crore for water charges. Energy charges for thermal stations were approved as projected, ranging from Rs 3.16/kWh to Rs 4.19/kWh.
Stakeholders objected to the inclusion of additional pension liabilities, arguing that legacy issues of the former Andhra Pradesh State Electricity Board (APSEB) should not be passed on to consumers. TGERC upheld the inclusion but directed TGGenco to reclassify this item as “additional pension liability” instead of “interest on pension bonds” in future filings.
The commission also addressed the delay in determining the input price of coal from the Tadicherla-I integrated mine. A separate petition will be filed to resolve this, in line with Regulation No. 2 of 2023.
The approved tariff will apply from 1 May 2025 to 31 March 2026, maintaining continuity in Telangana’s power generation framework.
Petition No: O.P.No.25 of 2025 & I.A. No 09 of 2025 | Read the full order here.
TGERC approves lower tariff for SCCL’s STPP, disallows premium coal pricing
The Telangana Electricity Regulatory Commission (TGERC) has issued its order on the revised tariff and true-up petitions filed by Singareni Collieries Company Limited (SCCL) for the 2×600 MW Singareni Thermal Power Plant (STPP). The order covers the true-up for FY 2023–24 and revised tariffs for FY 2025–26.
For FY 2023–24, TGERC approved annual fixed charges (AFC) of Rs 1,394.08 crore, compared to SCCL’s claim of Rs 1,556.96 crore. Capitalisation was restricted to Rs 2.91 crore for land compensation, out of the Rs 49.29 crore sought. Operation and maintenance (O&M) costs were capped at Rs 234.22 crore, against the claimed Rs 314.28 crore. Depreciation was approved at Rs 399.83 crore. The energy charge rate (ECR) was set at Rs 3.224/kWh, lower than the claimed Rs 3.817/kWh, due to disallowed premium coal pricing.
For FY 2025–26, TGERC approved an AFC of Rs 1,326.43 crore and a base ECR of Rs 3.462/kWh. The commission rejected SCCL’s higher O&M and capitalisation claims related to flexible operation schemes that were not yet implemented. It directed SCCL to begin coal production from its Naini mine to reduce fuel costs.
TGERC disallowed SCCL’s claim for premium coal pricing under the bridge linkage policy, citing its earlier order dated 1 April 2024. This decision remains under appeal before the Appellate Tribunal for Electricity (APTEL).
The approved tariff will be applicable from 1 May 2025 to 31 March 2026, with interim charges valid until the order takes effect.
Petition No: O.P. No. 30 of 2024 | Read the full order here.
WBERC directed to reconsider Rs 2.2 billion disallowance
The Appellate Tribunal for Electricity (APTEL) has directed the West Bengal Electricity Regulatory Commission (WBERC) to re-examine its disallowance of Rs 2.2 billion in capital costs claimed by Haldia Energy Limited (HEL) for its 2×300 MW thermal power project.
WBERC had rejected HEL’s claims for interest during construction (IDC), boiler-turbine-generator (BTG), balance of plant (BOP), overheads, and enabling works. HEL challenged the disallowance, citing errors in WBERC’s interpretation of audited documents and cost justification.
APTEL found that WBERC had made several disallowances without detailed reasoning and failed to engage adequately with HEL’s submissions. The Tribunal directed WBERC to issue a fresh reasoned order within three months, considering HEL’s documents and responses.
The matter is remanded to WBERC and will not require re-hearing of parties.
Appeal No. 141 OF 2023 & IA NO. 1786 OF 2024 & 1629 OF 2022 | Read the full order here.
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