Regulatory Developments in Power Transmission Sector: April 29, 2025

For the 2024–29 period, the Commission approved a projected ACE of Rs 3.00 lakh related to compensation payments under Regulation 25(1)(d) of the 2024 Tariff Regulations. The opening capital cost of Rs 5,137.74 lakh and closing cost of Rs 5,140.74 lakh were accepted. The tariff determination included depreciation, interest on loan, return on equity, O&M expenses, and interest on working capital, with the first year’s AFC set at Rs 795.14 lakh, gradually reducing to Rs 704.26 lakh by 2028–29.

Petition No: 3/TT/2025 | Read the full order here.

CERC approves O&M cost recovery for ULDC scheme in Southern Region

The Central Electricity Regulatory Commission (CERC) has approved trued-up transmission tariff for 2019–24 and determined tariff for 2024–29 under the Unified Load Dispatch and Communication Scheme (ULDC) in the Southern Region. Power Grid Corporation of India Limited (PGCIL) filed the petition against various state distribution companies and electricity departments.

The case addressed recovery of operational and maintenance (O&M) expenses and interest on working capital (IWC) for the non-microwave portion of the communication system. Capital costs were fully recovered by 2017–18. PGCIL sought approval for trued-up O&M expenses and IWC for 2019–24 and proposed a normative 2% of original project cost for O&M expenses during 2024–29.

CERC approved the trued-up figures, with O&M expenses ranging from Rs 1.08 million in 2020–21 to Rs 15.13 million in 2023–24. For 2024–29, the Commission allowed annual O&M expenses of Rs 15.53 million, subject to truing-up based on actuals.

Petition No: 286/TT/2025 | Read the full order here.

CERC approves tariff truing-up for ULDC scheme in Eastern Region

The Central Electricity Regulatory Commission (CERC) has approved the truing-up of fees and charges for 2019–24 and determined tariffs for 2024–29 under the Unified Load Dispatch and Communication Scheme (ULDC) in the Eastern Region. The petition was filed by Power Grid Corporation of India Limited (PGCIL) against various state distribution companies and transmission licensees.

The case involved recovery of operational and maintenance (O&M) expenses and interest on working capital (IWC) for the non-microwave portion of the communication system. Capital costs had been fully recovered by August 2020. PGCIL sought approval for trued-up O&M expenses and IWC for 2019–24, citing significant year-on-year variations. For 2024–29, PGCIL proposed a normative 2% of the original project cost for O&M expenses, in line with the 2024 Tariff Regulations.

CERC approved the trued-up figures, with O&M expenses ranging from Rs 34.03 million in 2019–20 to Rs 42.90 million in 2023–24. For 2024–29, the Commission allowed annual O&M expenses of Rs 10.11 million, subject to truing-up based on actual spending.

Petition No: 294/TT/2025 | Read the full order here.

CERC approves trued-up tariff for Krishnapatnam UMPP Part-C1 system

The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for Power Grid Corporation of India Limited (PGCIL) for the Krishnapatnam UMPP Part-C1 transmission system in the Southern Region. The order, dated 2 April 2025, covers the tariff periods 2019–24 and 2024–29 and addresses annual fixed charges including depreciation, loan interest, return on equity, and operational expenses.

PGCIL sought truing-up for 2019–24 and tariff determination for 2024–29, citing capital cost, tax adjustments, and debt-equity ratios. CERC validated the capital cost at Rs 3.10 billion as of 31 March 2024 and allowed additional capital expenditure of Rs 2.84 million for SCADA system upgrades. The approved debt-equity ratio remained 70:30, with return on equity fixed at 15.5%, grossed up to 18.782% based on Minimum Alternate Tax (MAT) rates.

CERC approved depreciation to be adjusted annually, spreading the remaining depreciable value beyond 12 years. Interest on loans was calculated based on actual rates, averaging 8.01% for 2024–25. O&M expenses for 2024–25 were set at Rs 125.23 million as per the 2024 Tariff Regulations.

Petition No: 107/TT/2025 | Read the full order here.

CERC finalizes transmission tariff for Muzaffarpur substation under ERSS-VI

The Central Electricity Regulatory Commission (CERC) has finalized the transmission tariff for two 400 kV line bays at the Muzaffarpur substation under the Eastern Region Strengthening Scheme-VI (ERSS-VI) for the 2019–24 and 2024–29 periods. Executed by Power Grid Corporation of India Ltd. (PGCIL), the project provides connectivity with the Muzaffarpur-Darbhanga 400 kV D/C (Triple Snowbird) line.

Commissioned on 21 April 2017, the project initially had an investment approval of Rs 12.50 crore, later revised to Rs 16.87 crore. CERC accepted a capital cost of Rs 14.10 crore as of 31 March 2019 and approved an additional capitalization (ACE) of Rs 2.75 crore for the 2019–24 period, bringing the total capital cost to Rs 16.85 crore by 31 March 2024.

CERC considered the ACE justified as it remained within the original project scope and revised cost estimate. The delay in commissioning was attributed to force majeure conditions affecting the downstream TBCB line, as noted by the Appellate Tribunal for Electricity (APTEL).

The approved trued-up annual fixed charges (AFC) for 2019–24 are:

• 2019–20: Rs 2.95 crore
  
  
• 2020–21: Rs 3.08 crore
  
  
• 2021–22: Rs 3.19 crore
  
  
• 2022–23: Rs 3.19 crore
  
  
• 2023–24: Rs 3.18 crore
  
  

For 2024–29, the Commission approved the following AFC without any additional capitalization:

• 2024–25: Rs 2.99 crore
  
  
• 2025–26: Rs 2.95 crore
  
  
• 2026–27: Rs 2.90 crore
  
  
• 2027–28: Rs 2.82 crore
  
  
• 2028–29: Rs 2.78 crore

Petition No: 29/TT/2025 | Read the full order here.

CERC approves truing-up of transmission charges for Fibre Optic Communication System in Southern Region

The Central Electricity Regulatory Commission (CERC) has issued its final order, approving the truing-up of transmission charges for the 2019–24 tariff block and determining the tariff for 2024–29 for assets under the Fibre Optic Communication System project implemented by Power Grid Corporation of India Ltd. (PGCIL) in the Southern Region. This system replaces the earlier Unified Load Dispatch and Communication (ULDC) microwave links.

The project includes eight fibre optic links spanning approximately 847 km across state and central sectors, with commissioning dates ranging from 2013 to 2018.  

For Assets 1 to 5, CERC approved the trued-up annual charges for the 2019–24 period. The approved charges for 2023–24 are:

• Asset 1: Rs 1.05 crore
  
  
• Asset 2: Rs 0.80 crore
  
  
• Asset 3: Rs 2.50 crore
  
  
• Asset 4: Rs 0.47 crore
  
  
• Asset 5: Rs 0.18 crore
  
  

For Assets 6 to 8, similar truing-up was conducted, with Asset 8 incurring the highest cost due to central sector responsibilities, totalling Rs 0.17 crore for 2023–24, including O&M and financing costs.

Petition No: 285/TT/2025 | Read the full order here.

CERC approves tariff truing-up for Sasan UMPP transmission system

The Central Electricity Regulatory Commission (CERC) has issued an order approving the truing-up of tariffs for the 2019–24 period and determining transmission charges for the 2024–29 block for the transmission system associated with the Sasan Ultra Mega Power Project (UMPP).

The system, developed by Power Grid Corporation of India Ltd. (PGCIL), includes over 45 interconnected assets, such as 765 kV transmission lines, reactors, ICTs, and substations across Madhya Pradesh, Uttar Pradesh, and surrounding regions.

CERC confirmed that the final capital cost as of March 31, 2019, stood at Rs 5458.42 crore, with no additional capitalization during the 2019–24 period. The Commission approved the following trued-up annual fixed charges (AFC) for the combined assets:

• 2019–20: Rs 866.90 crore
  
  
• 2020–21: Rs 840.34 crore
  
  
• 2021–22: Rs 818.11 crore
  
  
• 2022–23: Rs 803.57 crore
  
  
• 2023–24: Rs 788.81 crore
  
  

A return on equity was granted at a grossed-up rate of 18.782%, consistent with the Minimum Alternate Tax (MAT) regime applied throughout the 2019–24 period. The Commission also maintained a debt-equity ratio of 70:30.

For the 2024–29 period, PGCIL projected capital costs without any additional capitalization. CERC approved the following annual fixed charges:

• 2024–25: Rs 734.31 crore
  
  
• 2025–26: Rs 508.36 crore
  
  
• 2026–27: Rs 505.77 crore
  
  
• 2027–28: Rs 503.06 crore
  
  
• 2028–29: Rs 502.36 crore

Petition No: 207/TT/2025 | Read the full order here.

CERC approves truing-up and tariff determination for Maheshwaram pooling station

The Central Electricity Regulatory Commission (CERC) has issued an order approving the truing-up of transmission tariffs for the 2019–24 period and determining tariffs for the 2024–29 period for the Combined Asset under the Maheshwaram (Hyderabad) 765/400 kV Pooling Station scheme in the Southern Region.

The petition was filed by Power Grid Corporation of India Limited (PGCIL) against 15 respondents, including state electricity distribution companies and transmission licensees. The case involved two key assets: two 400 kV GIS line bays at Nizamabad and two at Maheshwaram, combined for tariff determination.

CERC allowed the trued-up capital cost of Rs 5,311.96 lakh for the Combined Asset and permitted recovery of filing fees and publication expenses from beneficiaries.

For the 2019–24 period, CERC approved annual fixed charges covering depreciation, interest on loan, return on equity, and operation and maintenance expenses. The return on equity was grossed up at 18.782%, considering the Minimum Alternate Tax (MAT) rate of 17.472%. 

Petition No: 34/TT/2025 | Read the full order here.

CERC approves truing-up and tariffs for ULDC transmission system

The Central Electricity Regulatory Commission (CERC) has issued an order approving the truing-up of transmission tariffs for Power Grid Corporation of India Limited (PGCIL) for the 2019–24 period and determining tariffs for the 2024–29 period. This case pertains to the Unified Load Despatch & Communication Scheme (ULDC) in the Western Region, focusing on assets retained by PGCIL after the formation of POSOCO.

Key issues in the petition included the recovery of capital costs, operation and maintenance (O&M) expenses, and interest on working capital (IWC) for non-microwave communication systems. CERC noted that the capital cost for these assets had been fully recovered by FY 2020-21, leaving only O&M and IWC charges applicable for the 2024–29 period. Claims for self-insurance, professional charges, and advertisement expenses were disallowed, resulting in minor adjustments to the approved O&M costs.

For the 2019–24 period, the trued-up fees and charges for the non-microwave central portion were approved at Rs 1,180.96 lakh for 2019–20, decreasing to Rs 87.93 lakh by 2023–24. For the 2024–29 period, a flat annual charge of Rs 166.45 lakh was approved, covering O&M and IWC. No charges were applicable for the state portion after 2020–21, as its costs were fully recovered earlier.

Petition No: 295/TT/2025 | Read the full order here.

CERC disposes of petition on sharing Kolar-Somanahalli transmission line corridor

The Central Electricity Regulatory Commission (CERC) has disposed of a petition filed by Power Grid Corporation of India Limited (PowerGrid) seeking approval to share a 24.2 km corridor of its 400 KV Kolar-Somanahalli transmission line with Karnataka Power Transmission Corporation Limited (KPTCL). The proposal aimed to enable KPTCL to construct multi-circuit and double-circuit lines to enhance power supply to substations in Mylasandra and Dommasandra, Bangalore.

PowerGrid and KPTCL had referenced a 2021 agreement for a similar project, but CERC identified discrepancies in the current proposal, particularly regarding O&M cost claims and beneficiary protections. The Commission emphasised that the scheme was incomplete without a finalised mutual agreement between the parties.

CERC directed PowerGrid to refile a comprehensive proposal under Section 17(3) of the Electricity Act, 2003, addressing these gaps. The Commission highlighted that the existing petition lacked details on asset ownership, O&M modalities, and regulatory compliance. The filing fee for the current petition will be adjusted against the refiled application.

Petition No: 418/MP/2024 | Read the full order here.

CERC approves trued-up tariffs and new rates for PowerGrid’s Southern Region assets

The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariffs for Power Grid Corporation of India Limited (PowerGrid) for the 2019–24 period and determined new tariffs for the 2024–29 period for its Southern Region transmission assets under the “System Strengthening – X” scheme. The order, dated 9th April 2025, covers assets such as the LILO of the Neelamangala-Somhanhalli 400 kV line, bus reactors, and transformers at the Bidadi substation.

Key highlights of the order include:

• Capital Cost Approval: CERC allowed a trued-up capital cost of Rs 19,928.05 lakh for the 2019–24 period, including Rs 56.19 lakh for arbitration-related liabilities. No additional capital expenditure was approved for the 2024–29 period.
  
  
• Tariff Components: The annual fixed charges for the 2019–24 period were adjusted for depreciation, interest on loans, return on equity (RoE), and operation and maintenance (O&M) expenses. The RoE was grossed up at 18.782% based on Minimum Alternate Tax (MAT) rates.
  
  
• 2024–29 Tariffs: CERC approved a declining tariff structure, with annual fixed charges reducing from Rs 2,910.29 lakh in 2024–25 to Rs 2,300.18 lakh by 2028–29, reflecting lower depreciation and interest costs.

Petition No: 33/TT/2025 | Read the full order here.

CERC approves trued-up transmission tariff for PGCIL’s ULDC system

The Central Electricity Regulatory Commission (CERC) has issued an order approving the trued-up transmission tariff for Power Grid Corporation of India Limited (PGCIL) for the 2019-24 period regarding the Unified Load Despatch & Communication Scheme (ULDC) in the Northern Region. The order, dated 9th April 2025, addresses the recovery of operational and maintenance (O&M) expenses and interest on working capital (IWC) for the Non-Microwave System Central Portion of communication assets retained by PGCIL after POSOCO’s formation.

Key Highlights

• Capital Cost Recovery: CERC noted that the entire capital cost of the Non-Microwave System Central Portion was recovered by FY 2017-18. As a result, only O&M expenses and IWC were considered for the 2019-24 tariff period.
  
  
• O&M Expenses: PGCIL submitted actual O&M expenses for FYs 2019-20 to 2021-22, totaling Rs 157.02 lakh, Rs 108.52 lakh, and Rs 22.46 lakh, respectively. No claims were made for FYs 2022-23 and 2023-24 as the existing system was replaced under the “Reliable Communication for Central Sector Portion” project. CERC approved these claims based on audited submissions.
  
  
• Interest on Working Capital (IWC): IWC was calculated at rates of 12.05% (2019-20), 11.25% (2020-21), and 10.50% (2021-22), with approved amounts of Rs 6.84 lakh, Rs 4.42 lakh, and Rs 0.85 lakh, respectively.
  
  

CERC approved the trued-up annual fixed charges for 2019-24 as follows:

• 2019-20: Rs 163.86 lakh
  
  
• 2020-21: Rs 112.94 lakh
  
  
• 2021-22: Rs 23.31 lakh
  
  
• 2022-23 & 2023-24: Rs 0.00 lakh

Petition No: 292/TT/2025 | Read the full order here.

CERC finalizes trued-up transmission tariffs for PGCIL’s Western Region assets

The Central Electricity Regulatory Commission (CERC) has finalized the trued-up transmission tariffs for Power Grid Corporation of India Limited’s (PGCIL) Western Region assets for the 2019–24 period and determined new tariffs for the 2024–29 cycle. The order covers combined assets, including 765 kV line bays and reactors at substations in Vadodara, Jabalpur, Indore, and Aurangabad, which are crucial for maintaining grid stability in the region.

Key Highlights

• Trued-Up Tariffs (2019–24):
  The approved annual fixed charges (AFC) for the 2019–24 period averaged Rs 1,980 lakh annually, with adjustments for depreciation, interest on loans, return on equity (RoE), operational and maintenance (O&M) expenses, and working capital interest. RoE was grossed up to 18.78% based on Minimum Alternate Tax (MAT) rates, while interest on loans was recalculated using weighted average rates of 8.18–8.30%.
• 2024–29 Tariff Determination:
  For the new cycle, the AFC starts at Rs 2,005 lakh for 2024–25, gradually decreasing to Rs 1,493 lakh by 2027–28 as depreciation reduces. O&M expenses were set at normative rates, with Rs 41.34 lakh per 765 kV bay for 2024–25, escalating annually.
• Debt-Equity Structure:
  The debt-equity ratio remains at 70:30, with no additional capital expenditure claimed for the 2024–29 period.

Petition No: 289/TT/2025 | Read the full order here.

CERC approves trued-up transmission charges for NERSS-VIII assets

The Central Electricity Regulatory Commission (CERC) has approved the truing-up of transmission charges for the 2019–24 period and set tariffs for the 2024–29 cycle for five assets under the “North Eastern Region Strengthening Scheme-VIII” (NERSS-VIII), developed by Power Grid Corporation of India Ltd. (PGCIL). These assets, consisting of major upgrades and ICT (Installed Capacitor Transformer) additions at six sub-stations in the Northeast, are vital for enhancing grid stability and capacity in the region.

The project involved the upgradation of 132 kV substations to Gas Insulated Switchgear (GIS) configurations at Jiribam, Haflong, Kumarghat, and Aizawl, along with extensive redevelopment at Dimapur and additional ICT capacity installation at Mokokchung. Commissioning for these assets took place between August 2021 and March 2022.

The total approved capital expenditure as of March 31, 2024, across the five assets is Rs 16,623.53 lakh. The capital cost per asset is as follows:

• Asset-1: Rs 3,545.12 lakh
  
  
• Asset-2: Rs 2,066.32 lakh
  
  
• Asset-3: Rs 1,868.92 lakh
  
  
• Asset-4: Rs 6,966.81 lakh
  
  
• Asset-5: Rs 2,226.36 lakh
  
  

CERC accepted an Additional Capital Expenditure (ACE) totalling Rs 3,528.23 lakh during the 2019–24 period and recognised Interest During Construction (IDC) and Incidental Expenditure During Construction (IEDC) costs, as verified by auditors. Time overruns for three of the five assets were partially condoned due to disruptions caused by the COVID-19 pandemic.

Petition No: 136/TT/2025 | Read the full order here.

CERC approves trued-up transmission tariff for 2019-24 and 2024-29 periods

The Central Electricity Regulatory Commission (CERC) has issued an order approving the trued-up transmission tariff for the 2019-24 period and determining the tariff for the 2024-29 period. The decision pertains to combined assets under the “Conversion of Fixed Line Reactors to Switchable Line Reactors” in the Southern Region. The petition was filed by the Power Grid Corporation of India Limited (PGCIL) against several state electricity distribution companies and power departments.

The key issues in the case included the truing-up of additional capital expenditure (ACE), interest on loan (IoL), return on equity (RoE), and operational expenses. Kerala State Electricity Board Limited (KSEBL) raised concerns about the prudence of PGCIL’s claims, particularly regarding ACE and IoL, and requested detailed documentation.

For the 2019-20 period, CERC approved an ACE of Rs 40.62 lakh, which aligned with the original project scope. The interest on loan was calculated based on PGCIL’s actual loan portfolio, with the weighted average rate of interest applied.

The return on equity (RoE) was grossed up to 18.782% for the 2019-24 period, considering the Minimum Alternate Tax (MAT) rate of 17.472%. Operational and maintenance (O&M) expenses were approved in accordance with regulatory norms, with no deviations from PGCIL’s claims.

For the 2024-29 period, the Commission determined the tariff based on the 2024 Tariff Regulations. The debt-equity ratio was maintained at 70:30, and O&M expenses were approved in line with prescribed norms.

The Commission approved the trued-up annual fixed charges for the 2019-24 period, ranging from Rs 807.44 lakh to Rs 861.70 lakh. For the 2024-29 period, the projected charges range from Rs 731.15 lakh to Rs 814.01 lakh.

Petition No: 459/TT/2024 | Read the full order here.

CERC approves trued-up transmission tariff for Vizag HVDC System

The Central Electricity Regulatory Commission (CERC) has issued an order approving the trued-up transmission tariff for the 2019-24 period and determining the tariff for the 2024-29 period for spare converter transformers under the Vizag HVDC System in the Southern Region. The petition was filed by the Power Grid Corporation of India Limited (PGCIL) against multiple state electricity distribution companies.

The key issues in the case included the truing-up of capital costs, additional capital expenditure (ACE), interest on loans (IoL), and return on equity (RoE). The Commission approved a capital cost of Rs 5,057.71 lakh for the combined assets, including ACE adjustments for liquidated damages recovered from contractors. The RoE was grossed up to 18.782%, considering the Minimum Alternate Tax (MAT) rate of 17.472%.

For the 2019-24 period, the annual fixed charges (AFC) for Asset-1 (201 MVA transformer) ranged from Rs 3.92 lakh to Rs 376.90 lakh, while for Asset-2 (234 MVA transformer), the AFC ranged from Rs 271.64 lakh to Rs 414.36 lakh. For the 2024-29 period, the combined AFC for both assets was set between Rs 660.76 lakh and Rs 738.46 lakh.

Petition No: 35/TT/2025 | Read the full order here.

CERC allows MUML to recover Rs 39.86 crore in Change in Law compensation

The Central Electricity Regulatory Commission (CERC) has permitted Mumbai Urja Marg Limited (MUML) to recover Rs 39.86 crore in additional costs as Change in Law compensation. This amount is related to increased statutory liabilities incurred during the construction of Part D of its North Eastern Region Strengthening Scheme–IX transmission project in Arunachal Pradesh. The recovery is authorized under Rule 3(7) and 3(8) of the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021.

MUML, previously known as Vapi-II North Lakhimpur Transmission Limited, had approached CERC seeking an adjustment in its monthly transmission charges due to statutory changes that occurred after the bidding process. The Commission clarified that while the Change in Law Rules allow licensees to recover such costs, disputes about the nature of the claimed events must still be addressed under the Electricity Act.

The key Change in Law events included:

• A revision of Net Present Value (NPV) rates for forest land diversion, which increased from Rs 9.39 lakh to Rs 14.36 lakh per hectare following a 2022 notification from the Ministry of Environment, Forest, and Climate Change. This revision led to an additional cost of Rs 2.06 crore.
  
  
• Land and surface damage compensation demanded by local authorities for forest dwellers affected by transmission towers in the Papum Pare and Itanagar districts. The compensation amounted to Rs 26.91 crore and Rs 10.89 crore, respectively, under a 2022 notification from the Department of Power, Arunachal Pradesh.
  
  

Despite objections from several distribution companies, including MSEDCL and GUVNL, CERC held that these costs were triggered by post-bid government notifications and constituted legitimate Change in Law events under the Transmission Service Agreement (TSA) and the CIL Rules.

The Commission directed that the verified impact of Rs 39.86 crore be recovered by MUML through monthly transmission charges, starting in February 2024. Additionally, the petition for carrying costs was approved, aligning with Rule 3(1) of the CIL Rules and Article 12 of the TSA. This decision aims to restore MUML’s financial position to what it would have been without the Change in Law events.

Petition No: 131/MP/2024 | Read the full order here.

CERC approves transmission tariff and truing-up for PGCIL communication assets

The Central Electricity Regulatory Commission (CERC) has approved the transmission tariff and truing-up for the 2014–19 period and set the tariffs for 2019–24 for 11 communication assets established by Power Grid Corporation of India Ltd. (PGCIL). These assets were part of the expansion and upgradation of SCADA/EMS systems at State Load Dispatch Centres (SLDCs) in the Eastern Region, specifically for BSPTCL.

The assets, which include Optical Ground Wire (OPGW) and PLCC communication links, were implemented in phases between April 2017 and March 2019. The Commission approved a total capital cost of Rs 2,628.81 lakh across the assets as of March 31, 2019, along with Rs 116.38 lakh in additional capitalization (ACE) for the 2018–19 period.

While Asset-I was commissioned ahead of schedule, the other 10 assets faced delays ranging from 5 to 16.5 months. These delays were mainly attributed to scope changes initiated by BSPTCL, as well as issues such as unavailability of shutdowns, entry permissions, space constraints, and civil work readiness at substations. CERC accepted PGCIL’s explanation that these delays were beyond its control and condoned the time overruns.

The Commission approved the following Annual Fixed Charges (AFC) for key assets in 2018–19:

• Asset-II: Rs 182.03 lakh
  
  
• Asset-IV: Rs 124.68 lakh
  
  
• Asset-V: Rs 78.06 lakh
  
  
• Asset-VIII: Rs 27.82 lakh
  
  
• Asset-XI: Rs 0.89 lakh
  
  

CERC found no cost overruns in relation to the Revised Cost Estimate (RCE) of Rs 9,216 lakh, which included Interest During Construction (IDC) and Foreign Exchange Rate Variance (FERV) adjustments. Initial claims of cost escalation over the Feasibility Report (FR) estimates were justified by increased link quantities and currency fluctuations.

Objections raised by Bihar State Power Holding Co. Ltd. (BSPHCL) regarding issues such as Return on Equity (RoE), ACE details, and delays were reviewed. The Commission upheld PGCIL’s claims, emphasizing that the delays were primarily due to BSPTCL’s delayed readiness of the project components.

Petition No: 1/TT/2022 | Read the full order here.

APERC rules in favor of Aurobindo Pharma Ltd. in O&M charges dispute with APTRANSCO

The Andhra Pradesh Electricity Regulatory Commission (APERC) has ruled in favour of Aurobindo Pharma Ltd. (APL) in a dispute against APTRANSCO regarding the levy of illegal operation and maintenance (O&M) charges for transmission lines and substation bays. The case involved two units: HT SC No. SKL-139, a pharmaceutical manufacturing plant, and HT SC No. SKL-423, a 30 MW solar captive power plant.

APL had constructed the 132 kV transmission lines and bays at its own cost and handed them over to APTRANSCO in 2023. However, APTRANSCO demanded O&M charges retrospectively—Rs. 46.05 lakh for SKL-139 (from 2011 to 2022) and Rs. 2.36 lakh for SKL-423 (from 2017 to 2023). APL argued that the demands were illegal, citing that the assets had been vested with APTRANSCO, which was responsible for maintenance under clause 5.3.2.2 of the General Terms and Conditions of Supply (GTCS). APL also referenced an earlier APERC order (OP No. 61 of 2023) that had quashed similar charges.

APTRANSCO contended that the assets were not formally transferred until 2023, justifying the O&M charges. However, the commission rejected this argument, ruling that APTRANSCO had no statutory or contractual authority to levy such charges. It also noted that the doctrine of delay and laches barred the demands, as they were raised several years after the lines had been commissioned.

In its final order, APERC directed APTRANSCO to refund the collected charges within one month and prohibited future demands for similar charges. However, the commission denied interest on the refund, considering APTRANSCO’s status as a public utility.

Petition No: O.P No. 28 of 2024 | Read the full order here.

CERC approves transmission tariffs for Southern Region bus reactors

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 bus reactors installed at substations in the Southern Region. The order follows a petition by Power Grid Corporation of India Limited (PGCIL) seeking tariff approval for assets at the Cuddapah, Nellore, Kurnool, Raichur, and Thiruvalam substations. These include 765 kV and 400 kV bus reactors.

The Commission addressed several matters including the truing-up of additional capital expenditure (ACE), return on equity (RoE), interest on loans, and operational expenses. Kerala State Electricity Board Limited (KSEBL) questioned the prudence of ACE claims and requested documentation. CERC accepted ACE of Rs 160.26 million for Asset-1 and Rs 204.55 million for Asset-2, based on actual payments made.

The return on equity was retained at a grossed-up rate of 18.782%, based on a Minimum Alternate Tax (MAT) rate of 17.472%. For 2019–24, annual fixed charges for Asset-1 ranged from Rs 220.68 million in 2019–20 to Rs 217.09 million in 2023–24. Asset-2 charges ranged from Rs 120.31 million to Rs 152.15 million across the same years.

For 2024–29, the Commission approved a combined tariff for both assets. The annual fixed charges begin at Rs 390.35 million in 2024–25 and decline to Rs 355.35 million by 2028–29.

Petition No: 460/TT/2024 | Read the full order here.

CERC approves Rs 5.56 billion tariff for Rajasthan REZ Phase-IV Part B

The Central Electricity Regulatory Commission (CERC) has adopted an annual transmission charge of Rs 5.56 billion for the Rajasthan Renewable Energy Zone (REZ) Phase-IV (Part B: 3.5 GW) project. The tariff was discovered through an e-reverse auction, with Dineshchandra R. Agrawal Infracon Private Limited emerging as the successful bidder.

The project, developed by Rajasthan IV 4B Power Transmission Limited (a subsidiary of REC Power Development & Consultancy Limited), includes a 765/400 kV substation at Merta and transmission links to Barmer-I, Dausa, and Beawar. Commissioning is scheduled for 30 December 2026.

The bidding process followed the Ministry of Power’s Tariff-Based Competitive Bidding Guidelines. RECPDCL coordinated the bid, and four participants were shortlisted. The auction reduced the lowest bid from Rs 6.22 billion to Rs 5.56 billion. 

Petition No: 176/AT/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 

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