Author: PPD Team Date: 21/04/2025
GERC approves transmission tariff and ARR for GETCO till FY 2029-30
The Gujarat Electricity Regulatory Commission (GERC) has issued its final order on Case No. 2419 of 2024, approving the truing up for FY 2023-24 and determining the Aggregate Revenue Requirement (ARR) and transmission tariff for Gujarat Energy Transmission Corporation Limited (GETCO) for the Multi-Year Tariff (MYT) control period from FY 2025-26 to FY 2029-30.
For FY 2023-24, GETCO reported total transmission charges of Rs 6,480 crore against the approved Rs 6,183 crore. The Commission approved an ARR of Rs 5,591 crore after adjustments for incentives, non-tariff income, and capitalised expenses. The utility faced a net revenue gap of Rs 575 crore. The gap includes Rs 755 crore of losses under uncontrollable factors and Rs 181 crore of gains under controllable factors, of which only one-third will be passed to consumers.
For the MYT period, GERC approved GETCO’s revised capital investment and O&M projections after accounting for public objections. Key objections included excess capitalisation, high pay commission-related costs, cyclone repair expenses, and mismatch in asset funding. GERC scrutinised and accepted GETCO’s explanations for project delays, ROW (Right of Way) issues, and retrospective depreciation treatment linked to consumer-contributed assets.
The approved ARR grows from Rs 7,044 crore in FY 2025-26 to Rs 14,286 crore in FY 2029-30. Transmission tariffs will be recovered through a combination of long-term charges (Rs/MW/day) and short-term wheeling charges (paise/kWh). The approved long-term transmission charge for FY 2025-26 is Rs 4,524 per MW per day, and short-term charges start at 45.62 paise/kWh.
The Commission retained the return on equity method at 15%, allowed interest on working capital, and recognised cyclone-related restoration as uncontrollable. The new tariffs will be applicable from 1 April 2025.
Petition No: Case No. 2419/2024 | Read the full order here.
Gujarat SLDC tariff approved for FY 2025–30, revenue gap from FY 2023–24 to be recovered
The Gujarat Electricity Regulatory Commission (GERC) has issued its final order in Case No. 2420 of 2024, approving the truing up of expenses for FY 2023–24 and determining the Aggregate Revenue Requirement (ARR) and fees for the State Load Despatch Centre (SLDC) for the Multi-Year Tariff (MYT) control period from FY 2025–26 to FY 2029–30.
For FY 2023–24, SLDC’s total ARR stood at Rs 3,584 million, compared to the approved Rs 3,510 million. A revenue gap of Rs 529 million was identified. This includes Rs 757 million in losses due to uncontrollable factors and Rs 228 million in gains from controllable factors. The Commission approved the recovery of this net gap, with one-third of controllable gains and the full amount of uncontrollable losses to be passed on to users.
O&M costs for FY 2023–24 were Rs 3,074 million. Though employee costs were below estimates, repair and maintenance exceeded the approved amount due to AMC contracts. Depreciation rose to Rs 701 million, up from Rs 433 million approved. Interest and finance charges were Rs 77 million against Rs 48 million approved. All variations were assessed under prudence and categorized under controllable or uncontrollable heads.
For the MYT period, the Commission approved SLDC’s ARR projections, increasing from Rs 6,308 million in FY 2025–26 to Rs 12,769 million in FY 2029–30. Approved SLDC fees and charges for FY 2025–26 are Rs 6,927 million, including recovery of the FY 2023–24 revenue gap and carrying cost. Charges will fund O&M, depreciation, interest costs, return on equity, and development of the Load Despatch Centre (LDC) fund.
The order maintains the 15% return on equity method and requires compliance with prior directives. No objections were received during the public hearing process.
Petition No: Case No. 2420 of 2024 | Read the full order here.
UPERC approves amendment to SEUPPTCL’s transmission license for infrastructure changes
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved an amendment to the transmission license of South-East UP Power Transmission Corporation Limited (SEUPPTCL), allowing modifications to its infrastructure projects under a revised agreement. This decision follows SEUPPTCL’s petition to amend its original 2013 license, which was granted under a public-private partnership model.
SEUPPTCL, initially developed by Isolux Corsan Concesiones S.A., faced significant delays and financial difficulties, which led to insolvency proceedings. In 2022, the National Company Law Tribunal approved a resolution plan by Resurgent Power Ventures Pte. Ltd. (RPVL), transferring ownership to a consortium including Tata Power, ICICI Bank, and sovereign funds from Kuwait and Oman.
The approved amendments include the restructuring of the 400 kV Tanda-Gonda transmission line into two separate lines: Tanda-Gonda and Basti-Gonda. Additionally, project components have been reclassified into Group-1, Group-2A, and Group-2B categories. UPERC stated that these changes align with approvals from the state government and Uttar Pradesh Power Transmission Corporation Limited (UPPTCL), ensuring system efficiency without impacting functionality.
While the Commission has conditionally approved the amendment, it has set a requirement for SEUPPTCL to obtain No Objection Certificates (NOCs) from relevant authorities, including the Airport Authority of India and the forest department. SEUPPTCL is required to submit these clearances within three months, or it may face regulatory action.
Petition No: 2068 of 2024 | Read the full order here.
UPERC closes land compensation case after petitioner receives settlement from NHAI
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has closed a land compensation dispute after the petitioner, Nazmul Hasan of Siddharth Nagar, withdrew his petition upon receiving payment from the National Highway Authority of India (NHAI). The matter involved a challenge to a 2022 order by the district magistrate concerning compensation for land acquisition related to power transmission infrastructure.
The petitioner had approached UPERC under Rule 3(3) of the Licensees Rules, 2006, seeking to overturn the district authority’s order and claim compensation from the Uttar Pradesh Power Transmission Corporation Limited (UPPTCL). During the hearings, the petitioner’s counsel confirmed that compensation had been received from NHAI, making the petition redundant.
UPPTCL, which had filed its reply, raised no objections to the withdrawal. UPERC allowed the petition to be withdrawn and disposed of the case without further proceedings.
Petition No: 1979 of 2023 | Read the full order here.
CERC approves Rs 8,151.03 lakh tariff for Farakka-III transmission asset for FY 2024–29, trues up past charges
The Central Electricity Regulatory Commission (CERC) has approved the transmission tariff for Power Grid Corporation of India Limited’s (PGCIL) asset under the Farakka-III Transmission System in the Eastern Region for the 2024–29 control period. The Commission also finalized the true-up of tariffs for the 2019–24 period. The asset, which includes the 400 kV D/C Farakka-Kahalgaon line and associated bays, was commissioned on September 1, 2011.
For the 2024–29 period, the Commission approved a total tariff of Rs 8,151.03 lakh over five years. No additional capital expenditure (ACE) was claimed during the period. The tariff includes depreciation, return on equity, interest on loan, interest on working capital, and O&M expenses. The approved Annual Fixed Charges (AFC) are:
For the 2019–24 period, the true-up exercise confirmed a total recovery of Rs 8,720.88 lakh. The trued-up figures were nearly identical to those allowed earlier, affirming PGCIL’s compliance with regulatory expectations. No ACE was incurred during this period, and the capital cost remained at Rs 12,534.05 lakh.
Key parameters such as return on equity (18.78%), interest on loan, and depreciation were based on applicable tariff regulations. The interest on working capital was adjusted annually based on prevailing SBI MCLR plus a 350 basis point margin.
The Commission allowed future recovery of taxes, GST, licensee fees, and RLDC charges. PGCIL was also granted liberty to file separate petitions for security, insurance, or capital spares costs if incurred.
No objections were received from stakeholders during the public notice period. The order under Petition No. 470/TT/2024 marks the final approval for this asset’s tariff framework up to FY 2028–29.
Petition No: 470/TT/2024 | Read the full order here.
CERC approves Rs 30.87 crore tariff for PGCIL’s Gangtok LILO transmission asset for FY 2024–29, finalizes true-up for past period
The Central Electricity Regulatory Commission (CERC) has approved a transmission tariff of Rs 30.87 crore for the control period FY 2024–29 for Power Grid Corporation of India Limited’s (PGCIL) transmission asset comprising the LILO of one circuit of the 132 kV double circuit Siliguri–Rangit line at Gangtok. The Commission also completed the truing-up exercise for the FY 2019–24 period.
The asset, which became operational on October 1, 2005, had a capital cost of Rs 43.69 crore with no additional capital expenditure claimed for either the past or future periods. For FY 2024–29, the approved tariff includes depreciation, return on equity, interest on normative loan, interest on working capital, and operation and maintenance (O&M) expenses. The tariff begins at Rs 6.05 crore for FY 2024–25 and rises incrementally to Rs 6.32 crore by FY 2028–29.
For the 2019–24 period, the Commission finalized annual fixed charges at about Rs 6.45 crore per year, with only minor adjustments made to previously approved amounts. PGCIL’s submissions were largely accepted, including depreciation and interest cost calculations based on actual loan portfolios and income tax assessments under the MAT regime. The return on equity was maintained at a grossed-up rate of 18.782 percent.
The Commission reiterated that no additional capital expenditure was incurred and acknowledged that the entire project cost remains unchanged since 2019. The approved debt-equity ratio stood at 70:30, and the remaining depreciable value was spread over the remaining useful life of the asset in accordance with applicable regulations.
PGCIL is allowed to recover regulatory costs such as GST, licensee and RLDC fees, and may file separate petitions to claim insurance, security, or spares expenses, if incurred. No objections or public comments were received. The decision, issued under Petition No. 471/TT/2024, ensures continued cost recovery and stable transmission charges for beneficiaries in the Eastern Region.
Petition No: 471/TT/2024 | Read the full order here.
CERC amends RTM licence for POWERGRID Bikaner to include Rs 82.6 crore projects at Bikaner-II substation
The Central Electricity Regulatory Commission (CERC) has approved an amendment to the existing Regulated Tariff Mechanism (RTM) transmission licence granted to POWERGRID Bikaner Transmission System Limited (PBTSL), a wholly owned subsidiary of Power Grid Corporation of India Limited. The amendment includes two key projects at the 400/220 kV Bikaner-II Pooling Station in Rajasthan: implementation of a 400 kV bus sectionalizer and augmentation of transformation capacity by adding a ninth 500 MVA interconnecting transformer (ICT).
The total estimated cost of the projects is Rs 82.6 crore, with Rs 28 crore allocated for the bus sectionalizer and Rs 54.6 crore for the ICT augmentation. These projects were assigned to PBTSL by the Central Transmission Utility of India Limited (CTUIL) under RTM, referencing the Ministry of Power’s order dated October 28, 2021.
The Commission held that PBTSL, already licensed for inter-State transmission and previously granted an RTM licence for related works at the Bikaner-II substation, was eligible for the licence amendment. No objections were received during the public notice period following the Commission’s preliminary order dated March 10, 2025.
The bus sectionalizer is deemed essential for integrating busbar protection systems after the fifth ICT at Bikaner-II. CTUIL and the petitioner both confirmed that system protection integration would not be feasible without this addition.
The Commission’s order confirms that the amended licence will remain valid for 25 years, subject to standard conditions such as compliance with grid standards, prohibition on power trading, and submission of competitive bidding details for EPC contracts. CTUIL and the Central Electricity Authority (CEA) are tasked with monitoring implementation progress.
While a clarification from the Ministry of Power regarding central government approval for projects below Rs 100 crore is still awaited, the Commission decided not to delay the project and granted the amendment to facilitate its timely execution. The petition stands allowed.
Petition No: 487/TL/2024 | Read the full order here.
CERC trues up Talcher-Kolar HVDC upgrade tariff and approves Rs 4.13 crore annual charges for FY 2024–29
The Central Electricity Regulatory Commission (CERC) has approved the truing-up of transmission tariff for the 2019–24 period and determined the tariff for the 2024–29 period for Power Grid Corporation of India Limited’s (PGCIL) upgrade project of the Talcher–Kolar High Voltage Direct Current (HVDC) bipole system.
Commissioned in 2003, this inter-regional project was initially designed to transfer 2000 MW from Talcher-II in the Eastern Region to Southern Region beneficiaries. In 2005, PGCIL undertook an upgrade to increase the transfer capacity to 2500 MW. This involved installing additional filter banks, upgrading transformer cooling systems, and enhancing control mechanisms at the Talcher and Kolar terminals.
For the 2019–24 period, the Commission trued-up the annual fixed charges (AFC), allowing total annual charges ranging from Rs 12.68 crore in 2019–20 to Rs 8.33 crore in 2023–24. The fixed costs included depreciation, return on equity, interest on loans, and interest on working capital. No operations and maintenance (O&M) expenses were claimed or allowed for this period.
The capital cost was retained at Rs 104.99 crore, with no additional capital expenditure during the period. The Commission accepted a 70:30 normative debt-equity ratio and maintained the return on equity at a grossed-up rate of 18.782%, based on the applicable Minimum Alternate Tax (MAT) rate.
For the 2024–29 tariff block, the Commission approved an annual fixed charge of Rs 8.27 crore for each year from FY 2024–25 to FY 2028–29. Since the loan was fully repaid by FY 2023–24, no interest on loans was included in the tariff for the 2024–29 period.
No objections were received during the public consultation, and the Commission directed PGCIL to follow applicable regulations for any future claims, including taxes, insurance, or capital spares.
Petition No: 465/TT/2024 | Read the full order here.
KERC approves new transmission tariffs and investment capex in multi-year tariff order
Karnataka Electricity Regulatory Commission (KERC) has approved multi-year tariff order for FY2025-26 to FY2027-28 for the Karnataka Power Transmission Corporation Limited (KPTCL), distribution licensees (ESCOMs), and open access consumers.
KPTCL approved capital investment plan of Rs 5,000 crore annually over the three-year control period. This investment is aimed at strengthening grid infrastructure, supporting renewable energy integration through Green Energy Corridors (GEC), and improving voltage stability. The Commission emphasized that any individual scheme above Rs 250 crore must be executed through the Tariff Based Competitive Bidding (TBCB) route, as per revised norms.
The approved Annual Revenue Requirement (ARR) for KPTCL stands at Rs 7,067.44 crore in FY2025-26, Rs 7,360.25 crore in FY2026-27, and Rs 8,075.52 crore in FY2027-28. Accordingly, transmission charges for long-term open access customers, including ESCOMs, are set at Rs 2,29,093, Rs 2,38,585, and Rs 2,61,771 per MW/month for the three respective years. These figures reflect a rise from the previous control period, potentially impacting consumer tariffs downstream.
The SLDC charges have also been revised. For ESCOMs and long-term open access users, they are now Rs 2,436/MW/month for FY2025-26, Rs 1,941/MW/month for FY2026-27, and Rs 2,099/MW/month for FY2027-28. Short-term open access customers will pay Rs 80.09/MW/day, Rs 63.83/MW/day, and Rs 69.02/MW/day respectively over the same period.
Petition No: OP NO.41/2024 | Read the full order here.
GERC defers decision on SLDC’s AMC cost recovery to truing-up stage
The Gujarat Electricity Regulatory Commission (GERC) has disposed of a review petition filed by the State Load Despatch Centre (SLDC) seeking clarity on the classification of increased Annual Maintenance Contract (AMC) expenses under Repair and Maintenance (R&M) costs for FY 2023–24. The petition was filed under Regulation 72 of the GERC (Conduct of Business) Regulations, 2004.
SLDC contested the Commission’s earlier order dated March 31, 2023, which did not specify whether an additional Rs 293.50 lakh in AMC costs would be treated as controllable or uncontrollable during tariff determination. The petitioner argued that if classified as controllable, SLDC would have to absorb two-thirds of the cost overrun, leading to an 87% erosion in its Return on Equity (RoE) for the year. A similar situation in FY 2021–22 had also resulted in financial pressure due to unaccounted R&M expenses.
In its order dated March 28, 2025, GERC stated that AMC costs were not part of the normative R&M expenses approved for FY 2023–24. However, it confirmed that these costs would be assessed during the truing-up exercise based on actual expenditure. The Commission clarified that the final classification—controllable or uncontrollable—would be determined at that stage, as per the applicable regulatory framework.
The order maintains the earlier stance but leaves open the possibility of cost recovery through transmission tariffs, depending on the outcome of the truing-up process and regulatory evaluation.
Petition No: 2219 of 2023 | Read the full order here.
AERC approves MYT for AEGCL
The Assam Electricity Regulatory Commission (AERC) has issued its detailed tariff order for the Assam Electricity Grid Corporation Limited (AEGCL), covering the true-up for FY 2023-24, Annual Performance Review (APR) for FY 2024-25, Aggregate Revenue Requirement (ARR) for FY 2025-26 to FY 2029-30, and transmission tariff for FY 2025-26. The order, aligned with the MYT Regulations 2024, reflects regulatory continuity with minimal changes in transmission tariffs.
For the true-up of FY 2023-24, the Commission approved a net ARR of Rs 682.17 crore after adjustments, including an incentive of Rs 6.68 crore for high transmission availability and efficiency loss of Rs 23.30 crore due to higher transmission loss. Depreciation was approved at Rs 160.40 crore, with the return on equity at Rs 127.94 crore. The Commission also accepted contributions to the contingency reserve and higher pension trust fund costs. However, it deducted Rs 106.68 crore as non-tariff income and adjusted against lower short-term open access revenue of Rs 2.71 crore.
In the APR for FY 2024-25, AEGCL projected a revenue requirement of Rs 671.64 crore, factoring in depreciation of Rs 129.90 crore and return on equity of Rs 114.79 crore. The BST contribution to the Pension Trust Fund was pegged at Rs 261.13 crore. Non-tariff income was projected at Rs 110.70 crore, with a minimal revenue gap of Rs 1.01 crore. The Commission validated the projections, while noting that future truing-up will depend on audited actuals.
For the MYT period from FY 2025-26 to FY 2029-30, AERC approved steadily increasing ARRs from Rs 722.28 crore to Rs 987.86 crore. Major cost components include employee expenses, projected to grow from Rs 221.68 crore to Rs 285.30 crore, and pension fund contributions rising from Rs 273.84 crore to Rs 362.99 crore. The Commission also accepted Rs 312 crore in capital investments spread across AIIB schemes, NERPSIP, NESIDS, PSDF, and grid augmentation projects. Capitalisation is fully equity-funded, with depreciation and return on equity modeled accordingly.
The Commission set the transmission tariff for FY 2025-26 at Rs 719.86 crore, recovering the cumulative revenue gap and carrying costs from earlier periods. Open access users will continue to pay regulated wheeling charges. While BST charges for pension funding remain significant, AERC has reduced the rate from Rs 0.20/kWh to Rs 0.18/kWh for the control period.
Petition No: 23/2024 | Read the full order here.
CERC approves trued-up and projected tariffs for Koteshwar HEP transmission assets
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for the 2019–24 period and determined the tariff for 2024–29 for Power Grid Corporation of India Limited’s (PGCIL) assets under the “Transmission System associated with Koteshwar HEP” in the Northern Region.
PGCIL’s petition covered true-up of annual fixed charges, including depreciation, return on equity (RoE), interest, O&M expenses, and working capital interest for the 2019–24 period. CERC accepted the proposed adjustments for tax rate changes, RLDC charges, filing fees, and license fees, in line with the 2019 and 2024 Tariff Regulations.
For 2024–29, the tariff was based on an admitted capital cost of Rs 22,039.77 lakh. No additional capital expenditure was claimed. The debt-equity ratio was kept at 70:30, and depreciation was calculated over the remaining asset life. RoE was grossed up using the 17.472% Minimum Alternate Tax (MAT) rate. Normative O&M expenses were allowed per 2024 regulations.
CERC allowed recovery of filing fees and CTUIL charges through a separate petition and deferred decisions on security expenses, capital spares, and insurance costs to a consolidated future filing.
Petition No: 290/TT/2025 | Read the full order here.
CERC approves transmission tariff for PGCIL’s SCADA/EMS upgrades in Northern Region
The Central Electricity Regulatory Commission (CERC) has issued its final order on March 27, 2025, approving the trued-up transmission tariffs for the 2019–24 period and determining tariffs for 2024–29 for Power Grid Corporation of India Limited’s (PGCIL) SCADA/EMS (Supervisory Control and Data Acquisition/Energy Management System) upgrades at State Load Dispatch Centers (SLDCs) in the Northern Region.
The order applies to two asset groups. Asset-I includes new SCADA/EMS systems at the SLDCs of UPPTCL, RRVPNL, DTL, HVPNL, BBMB, PSPTCL, HPSEBL, and J&K PDD. Asset-II includes similar upgrades for UPPTCL and J&K PDD SLDCs.
For 2019–24, CERC trued-up the annual fixed charges (AFC) for both assets. Asset-I had fully recovered depreciation by FY 2022–23. Asset-II included depreciation recovery until FY 2023–24. In both cases, return on equity (RoE) was set at 15.5%, grossed up to 18.78% under the minimum alternate tax (MAT) regime. No operations and maintenance (O&M) expenses were claimed or approved for either asset.
For the 2024–29 period, both assets will recover only RoE and interest on working capital, since depreciation and loan repayments were completed earlier. RoE remains at 15.5% (18.78% pre-tax), and the working capital interest rate is based on the State Bank of India’s marginal cost of funds-based lending rate (MCLR) plus 325 basis points, currently at 11.9%.
Petition No: 293/TT/2025 | Read the full order here.
CERC approves tariff for PGCIL’s Dharamjaygarh substation assets for 2019–29
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for Power Grid Corporation of India Limited’s (PGCIL) 765/400 kV substation assets at Dharamjaygarh for the 2019–24 period and has determined the tariff for 2024–29. The order, issued in Petition No. 103/TT/2025, covers ICT-1 and ICT-2 along with associated bays under the Supplementary Transmission Scheme for Independent Power Producer (IPP) projects in Chhattisgarh’s Western Region.
The petition addressed issues related to truing-up of capital costs, additional capital expenditure (ACE), return on equity (RoE), and operation and maintenance (O&M) expenses. The Commission approved ACE of Rs 1.83 million for 2019–24, lower than the earlier sanctioned Rs 2.34 million, based on actual vendor payments. RoE was set at 18.782%, grossed up under the Minimum Alternate Tax (MAT) regime. O&M expenses were allowed in line with regulatory norms, with no changes to PGCIL’s claims.
For the 2024–29 period, annual fixed charges were approved starting at Rs 264.99 million for 2024–25 and gradually reducing to Rs 226.82 million by 2028–29, in accordance with the 2024 Tariff Regulations.
Petition No: 103/TT/2025 | Read the full order here.
CERC approves PGCIL’s trued-up tariff for Rampur HEP assets and sets 2024–29 charges
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for Power Grid Corporation of India Limited (PGCIL) assets linked to the Rampur Hydroelectric Project for 2019–24. It has also determined the tariff for the 2024–29 control period. The case concerned four combined transmission assets in the Northern Region, including transmission lines and substations associated with the project.
CERC addressed issues related to capital cost truing-up, additional capital expenditure (ACE), return on equity (RoE), and operation and maintenance (O&M) expenses. It approved an additional Rs 1.61 lakh for initial spares due to an earlier oversight. The RoE was set at a grossed-up rate of 18.782%, applying the Minimum Alternate Tax regime. O&M expenses were allowed as claimed by PGCIL, with no changes from regulatory norms.
For 2024–29, annual fixed charges were fixed at Rs 151.59 million for 2024–25, tapering slightly to Rs 150.10 million by 2028–29.
Petition No: 222/TT/2025 | Read the full order here.
CERC approves tariff revision for Kahalgaon Stage-II, Phase-I transmission system
The Central Electricity Regulatory Commission (CERC) has approved the truing-up of transmission tariffs for 2019–24 and determined tariffs for 2024–29 for the Kahalgaon Stage-II, Phase-I Transmission System. The order follows a petition filed by Power Grid Corporation of India Limited (PGCIL) under the Electricity Act, 2003, and applicable tariff regulations.
The transmission system covers the Eastern, Northern, and Western regions and includes 400 kV transmission lines, substations, and inter-regional links. The case reviewed annual fixed charges, depreciation, interest on loans, return on equity, and operation and maintenance expenses. It also considered de-capitalization, including the diversion of a 315 MVA interconnecting transformer (ICT) from Patna to Jeypore.
CERC approved the trued-up annual fixed charges for 2019–24, with Rs 3,539.52 million for 2019–20 and Rs 2,356.76 million for 2023–24. For 2024–29, charges range from Rs 2,259.75 million in 2024–25 to Rs 2,289.41 million in 2028–29.
Petition No: 287/TT/2025 | Read the full order here.
AERC approves SLDC ARR and charges for FY 2025–30 with true-up and APR revisions
The Assam Electricity Regulatory Commission (AERC) has issued its final tariff order for the State Load Despatch Centre (SLDC), approving the Aggregate Revenue Requirement (ARR) and SLDC charges for FY 2025–26 to FY 2029–30. The order, dated March 25, 2025, also covers the true-up for FY 2023–24 and an annual performance review (APR) for FY 2024–25, based on the Multi-Year Tariff (MYT) framework.
For FY 2023–24, AERC approved a net ARR of Rs 89.3 million, lower than the previously approved Rs 101 million, resulting in a revenue surplus of Rs 11.7 million. SLDC’s claim of Rs 76.5 million in employee costs was reduced to Rs 65.9 million, as a Rs 10 million provision for new recruitment was disallowed. R&M and A&G expenses were approved at Rs 3.6 million and Rs 3.9 million, respectively. Cyber-security costs were reviewed separately, and revisions were made to interest and depreciation based on audited accounts.
For FY 2024–25, the approved ARR was Rs 147.8 million, slightly lower than the projected Rs 150.4 million, creating a minor surplus of Rs 2.7 million. Normative O&M expenses were upheld, and employee cost growth will be reassessed during the next true-up.
For FY 2025–26 to FY 2029–30, SLDC projected a rising ARR from Rs 167.3 million to Rs 264.9 million, mainly due to increasing employee and maintenance costs. AERC approved the projections after prudence checks and applied normative allowances in line with the MYT Regulations, 2024.
Petition No: 24/2024 | Read the full order here.
CERC approves transmission tariff order for Rangit Transmission System
The Central Electricity Regulatory Commission (CERC) has issued an order in Petition No. 288/TT/2025 approving the truing-up of tariffs for the Rangit Transmission System for 2019–24 and setting tariffs for 2024–29. The petition was filed by Power Grid Corporation of India Limited (PGCIL) under the Electricity Act, 2003 and applicable tariff regulations.
The Rangit Transmission System, in operation since 1998, consists of 132 kV and 66 kV transmission lines and associated substations in the Eastern Region. PGCIL sought approval for trued-up tariffs for 2019–24 and proposed tariffs for 2024–29, covering depreciation, return on equity, operation and maintenance (O&M) expenses, and interest on working capital. Respondents included state utilities from Bihar, West Bengal, Odisha, Jharkhand, and Sikkim.
CERC upheld PGCIL’s claims and allowed an annual fixed charge in the range of Rs 565–582 million for both periods. It confirmed the capital cost of Rs 4387.65 million as of March 31, 2024. No additional capital expenditure was claimed. The commission maintained the debt-equity ratio at 53.39:46.61 and approved a pre-tax return on equity of 18.782%, factoring in the Minimum Alternate Tax (MAT) regime.
The order also permitted recovery of petition filing fees, publication expenses, and Central Transmission Utility of India Limited (CTUIL) expenses through a separate petition. However, the commission deferred its decision on Goods and Services Tax (GST) recovery, stating GST is not presently applicable to transmission services. PGCIL may file separate petitions for costs related to security, insurance, and capital spares.
Petition No: 288/TT/2025 | Read the full order here.
CERC approves tariff for PGCIL’s ERSS-I assets for 2019–29
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for Power Grid Corporation of India Limited’s (PGCIL) Combined Assets under the Eastern Region Strengthening Scheme-I (ERSS-I) for the 2019–24 period and determined the tariff for the 2024–29 period.
The assets include key transmission lines and substations located across Bihar, West Bengal, Odisha, Jharkhand, and Sikkim. PGCIL filed the petition under the Electricity Act, 2003 and relevant tariff regulations, seeking adjustments to cover depreciation, interest on loans, return on equity, and operational expenses for 2019–24.
The Commission accepted PGCIL’s claims, allowing a base return on equity of 15.5%, grossed up to 18.78% under the Minimum Alternate Tax (MAT) regime. Annual fixed charges approved for 2019–24 ranged from Rs 1,116.68 million to Rs 1,198.10 million.
For 2024–29, the tariff was determined in line with the 2024 Tariff Regulations, considering normative norms for depreciation, loan interest, and operational costs. Fixed charges were set between Rs 694.95 million and Rs 1,117.50 million for this period.
Petition No: 455/TT/2024 | Read the full order here.
CERC grants partial relief to PMJTL in ERSS-XVIII delay case
The Central Electricity Regulatory Commission (CERC) has ruled in favour of POWERGRID Medinipur-Jeerat Transmission Limited (PMJTL), allowing time extensions and partial compensation for delays in its 765 kV Eastern Region Strengthening Scheme-XVIII (ERSS-XVIII) project. PMJTL, a subsidiary of Power Grid Corporation of India, had cited Force Majeure events—including the Covid-19 pandemic, local agitations, and court cases—and Change in Law events such as the introduction of Goods and Services Tax (GST) and new regulatory mandates on bird diverters and aerospace safety equipment.
PMJTL requested a 760-day extension and compensation of Rs 2.89 billion due to increased project costs. CERC approved a 150-day extension for Covid-19-related disruptions, along with additional relief for delays from local disturbances and legal injunctions. The project, originally scheduled for completion by July 2020, was executed in three phases. Phase I was commissioned on February 11, 2021, Phase II on September 30, 2021, and Phase III on August 28, 2022.
The Commission accepted GST implementation as a valid Change in Law claim and approved recovery of costs related to post-bid regulatory requirements for bird diverters and night visual aids. However, CERC rejected compensation for claims related to tower design changes and truck movement restrictions.
CERC noted that PMJTL had taken reasonable steps to manage delays, including coordination with local authorities on right-of-way issues. It directed the petitioner to reconcile transmission charges with beneficiaries and make necessary adjustments. The ruling is consistent with prior decisions of the Appellate Tribunal for Electricity (APTEL) regarding relief for uncontrollable delays.
The Commission rejected PMJTL’s request for reimbursement of filing fees and legal expenses. Since the project was awarded through a tariff-based competitive bidding process under Section 63 of the Electricity Act and not through a cost-plus mechanism governed by Sections 62 and 64, the petition did not qualify as a tariff petition. Therefore, filing fee reimbursement was not applicable.
Petition No: 372/MP/2023 | Read the full order here.
CERC approves tariff for PGCIL’s Southern Region assets for 2019–29
The Central Electricity Regulatory Commission (CERC) approved the truing-up of tariff for the 2019–24 period and determined the tariff for the 2024–29 period for Power Grid Corporation of India Limited (PGCIL) assets under “System Strengthening-II” in the Southern Region. The assets include additional bays at Kolar and Hosur for the second circuit of the Kolar–Hosur 400 kV double circuit line and the 400 kV Hiryur substation with a 315 MVA transformer and LILO of the Davangere–Hoody line.
For the 2019–24 period, CERC trued-up the annual fixed charges as follows: Rs 819.20 lakh in 2019–20, Rs 824.43 lakh in 2020–21, Rs 830.04 lakh in 2021–22, Rs 840.93 lakh in 2022–23, and Rs 859.25 lakh in 2023–24. Key components included depreciation of Rs 121.24 lakh each year, return on equity of Rs 245.95 lakh annually, and O&M expenses increasing from Rs 406.18 lakh in 2019–20 to Rs 466.32 lakh in 2023–24. Interest on loan reduced to zero by 2023–24. Interest on working capital ranged from Rs 23.56 lakh to Rs 25.73 lakh across the years.
The opening capital cost considered was Rs 459.6 million, with no additional capital expenditure claimed. CERC maintained a debt–equity ratio of 71.51:28.49. Return on equity was grossed up using an effective MAT (Minimum Alternate Tax) rate of 17.472%, resulting in a rate of 18.782% across all five years.
For the 2024–29 period, the approved annual fixed charges were Rs 739.87 lakh in 2024–25, Rs 759.25 lakh in 2025–26, Rs 779.35 lakh in 2026–27, Rs 800.66 lakh in 2027–28, and Rs 823.37 lakh in 2028–29. Depreciation was fixed at Rs 121.24 lakh each year. Return on equity remained at Rs 245.95 lakh annually. O&M expenses increased from Rs 352.06 lakh in 2024–25 to Rs 432.12 lakh in 2028–29. Interest on loan was nil as the entire normative loan was repaid before April 2024. Interest on working capital rose from Rs 20.63 lakh to Rs 24.08 lakh over the tariff block.
Petition No: 468/TT/2024 | Read the full order here.
CERC approves incentive recovery for NLDC and RLDCs based on 2022–23 performance
The Central Electricity Regulatory Commission (CERC) has approved the performance-linked incentive (PLI) for the National Load Despatch Centre (NLDC) and Regional Load Despatch Centres (RLDCs) for the financial year 2022–23. The incentives are to be recovered from users of the load despatch centres as per Regulation 32 of the CERC Fees and Charges of RLDCs Regulations, 2019.
Grid Controller of India Limited (Grid-India), which operates NLDC and RLDCs, submitted detailed performance data and compliance documents as required by the Detailed Procedure approved by CERC on 20 May 2022. The submissions included verified KPI achievements, stakeholder satisfaction reports, system reliability metrics, ancillary services updates, training records, technology adoption, statutory compliance, and financial documents.
After reviewing the documentation, CERC found the marks verified by the heads of NLDC and RLDCs to be in order and approved the incentive percentages based on performance scores out of 1,000. The approved PLI percentages to be recovered as part of the annual LDC charges are:
- NLDC: 89.415% performance, 14.805% PLI
- NRLDC (Northern Region): 96.249% performance, 16.250% PLI
- WRLDC (Western Region): 92.607% performance, 15.571% PLI
- SRLDC (Southern Region): 97.768% performance, 16.554% PLI
- ERLDC (Eastern Region): 90.134% performance, 15.027% PLI
- NERLDC (North-Eastern Region): 95.091% performance, 16.018% PLI
CERC allowed the recovery of these incentives from users for 2022–23, subject to future true-up. The petition was disposed of accordingly.
Petition No: 83/MP/2024 | Read the full order here.
CERC approves trued-up and future fees for PGCIL’s communication asset under NLDC scheme
The Central Electricity Regulatory Commission (CERC) has approved the truing-up of fees and charges for the 2019–24 period and the determination of fees for the 2024–29 period for Power Grid Corporation of India Limited (PGCIL)’s communication scheme under the National Load Dispatch Center (NLDC) framework.
The Commission accepted PGCIL’s claims for annual fees and charges for 2019–24 as submitted, with the final allowed values being Rs 95.78 lakh for 2019–20, Rs 100.40 lakh for 2020–21, Rs 98.61 lakh for 2021–22, Rs 98.13 lakh for 2022–23, and Rs 99.93 lakh for 2023–24.
For the upcoming 2024–29 tariff period, the Commission approved a flat annual fee of Rs 13.05 lakh for each financial year from 2024–25 to 2028–29.
PGCIL had also sought approval to recover lease charges, income tax, filing and publication costs, RLDC and licence fees, GST (if imposed in future), and other statutory expenses. The Commission permitted recovery of these charges in line with regulatory provisions.
CERC allowed PGCIL to file a consolidated petition to claim security expenses, insurance costs, and capital spares individually costing more than Rs 10 lakh for the 2024–29 period, based on estimates, with truing up to follow.
The Commission clarified that charges for the 2019–24 period will be recovered monthly under Regulation 57(2) of the 2019 Tariff Regulations, and charges for 2024–29 will be governed by Regulation 78 of the 2024 Tariff Regulations.
Petition No: 291/TT/2025 | Read the full order here.
CERC approves tariff for PGCIL’s 50 MVA transformer at Malda for 2019–29
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for the 2019–24 period and determined the tariff for the 2024–29 period for Power Grid Corporation of India Limited (PGCIL)’s 50 MVA auto transformer at Malda in the Eastern Region.
For the 2019–24 period, the annual fixed charges (AFC) approved were lower than those claimed. The approved values were Rs 65.92 lakh for 2019–20, Rs 49.27 lakh for 2020–21, Rs 50.62 lakh for 2021–22, Rs 52.12 lakh for 2022–23, and Rs 53.94 lakh for 2023–24. The AFC had been claimed in the range of Rs 49.93 lakh to Rs 72.50 lakh.
For the 2024–29 period, the Commission approved AFCs of Rs 45.74 lakh for 2024–25, Rs 47.73 lakh for 2025–26, Rs 49.83 lakh for 2026–27, Rs 52.04 lakh for 2027–28, and Rs 54.35 lakh for 2028–29, against slightly higher claims made by PGCIL.
CERC also permitted PGCIL to submit a consolidated petition to claim security expenses, insurance costs, and capital spares exceeding Rs 10 lakh, in accordance with Regulation 36(3)(d) of the 2024 Tariff Regulations. These are to be trued up based on actual yearly expenses.
The billing, collection, and disbursement of transmission charges will be governed by the 2020 Sharing Regulations. Charges for the 2019–24 period will follow Regulation 57 of the 2019 Tariff Regulations, while those for 2024–29 will be in line with Regulation 78 of the 2024 Tariff Regulations.
Petition No: 274/TT/2025 | Read the full order here.
CERC approves tariff for SCADA/EMS system upgrade in Eastern Region for 2019–29
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for 2019–24 and the transmission tariff for 2024–29 for Power Grid Corporation of India Limited (PGCIL)’s combined assets under the expansion and upgradation of SCADA/EMS systems in the Eastern Region’s state load despatch centres (SLDCs).
For the 2019–24 period, the annual fixed charges (AFC) claimed and allowed by the Commission were identical. These were Rs 1,009.20 lakh for 2019–20, Rs 952.59 lakh for 2020–21, Rs 902.85 lakh for 2021–22, Rs 863.28 lakh for 2022–23, and Rs 848.32 lakh for 2023–24.
For the 2024–29 period, the Commission approved AFCs of Rs 635.33 lakh for 2024–25, and Rs 231.63 lakh annually from 2025–26 to 2028–29, except for 2027–28 where it slightly varied to Rs 231.62 lakh. These values matched the figures claimed by PGCIL.
CERC also permitted PGCIL to file a consolidated petition to separately claim security expenses, insurance costs, and capital spares exceeding Rs 10 lakh, as per Regulation 36(3)(d) of the 2024 Tariff Regulations. These are to be trued up based on actuals.
The recovery of transmission charges for 2019–24 will follow the 2020 Sharing Regulations and Regulation 57 of the 2019 Tariff Regulations, while charges for 2024–29 will be governed by Regulation 78 of the 2024 Tariff Regulations.
Petition No: 181/TT/2025 | Read the full order here.
CERC upholds CTUIL’s cancellation of connectivity for Avaada Energy over Conn-BG2 delay
The Central Electricity Regulatory Commission (CERC) has dismissed Avaada Energy Private Limited’s (AEPL) request to quash the cancellation of its in-principle connectivity for 50 MW and 150 MW capacities at Rajgarh substation. The connectivity had been revoked by Central Transmission Utility of India Limited (CTUIL) on 15 July 2024 due to non-submission of the required Conn-BG2 bank guarantees within the stipulated timeline.
AEPL argued that its connectivity did not involve additional ATS (associated transmission system) and should be treated as augmentation. It also claimed that similar projects at Rajgarh were granted connectivity without timely Conn-BG2 submissions. However, CTUIL submitted detailed records showing that all other applicants had provided Conn-BG2 for ATS as required.
CERC found that CTUIL acted in line with the General Network Access (GNA) Regulations, 2022, which impose strict timelines for submission of bank guarantees. The Commission held that AEPL’s failure to furnish Conn-BG2, despite reminders and additional time, justified the revocation. CERC also criticised AEPL’s approach of seeking regulatory relief without fulfilling its compliance obligations.
The Commission acknowledged CTUIL’s delay in revoking the connectivity, which may have contributed to AEPL’s mistaken assumption that further delays were permissible. While expressing displeasure with CTUIL’s delay, CERC clarified that it did not absolve AEPL from its regulatory responsibilities.
CERC rejected AEPL’s prayer to declare the Rajgarh substation as a common transmission system or augmentation without ATS, affirming that such identification is solely the responsibility of CTUIL under the regulations.
Petition No: 333/MP/2024 along with IA 82/2024 | Read the full order here.
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