Author: PPD Team Date: 03/04/2025

 

UERC approves investment approval petition by PTCUL

The Uttarakhand Electricity Regulatory Commission (UERC) has approved the petition filed by Power Transmission Corporation of Uttarakhand Limited (PTCUL) for investment approval regarding the supply and erection of Substation Automation System (SAS) at 220/33 kV Substation Jafarpur and 220/132/33 kV Substation Kamaluaganja.

The commission acknowledged that installing SAS in 220 kV and above grid substations could enhance operational efficiency. However, it emphasized that the benefits should be practical and measurable rather than just theoretical. Accordingly, PTCUL has been directed to submit a detailed performance report after the SAS installations, including a comparative analysis of pre-SAS and post-SAS performance.

UERC has granted in-principle approval for the investment as detailed in the table below. PTCUL has been directed to proceed with the project, subject to strict compliance with the following conditions:

  1. Loan Conditions Compliance: All conditions set by the funding agency in their detailed sanction letter need to be strictly followed.

  2. Funding Confirmation: Within one month of the order, PTCUL shall submit a letter from the State Government or any documentary evidence confirming funding support, including relevant extracts from the Board of Directors (BoD) meeting minutes.

  3. Cost and Financing Details: Upon project completion, PTCUL shall submit a report detailing the final cost and financing of the projects.

  4. Performance Report: After SAS installation, a detailed performance report shall be submitted, along with a comparative analysis of pre-SAS and post-SAS performance.

  5. Cost Recovery: The project cost servicing will be considered in PTCUL’s Annual Revenue Requirement (ARR) after asset capitalization, subject to a prudence check and the outcome of the Statement of Reasons (SoR) matter pending before the Commission.

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

MPERC approves true-up of transmission tariff for MPPTCL

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has approved the petition filed by M.P. Power Transmission Company Limited (MPPTCL), Jabalpur, for the true-up of transmission tariff for the financial year (FY) 2023-24. The commission has determined a true-up amount of Rs 16,847.7 million, which will be adjusted in the bills of long-term open access customers as per the MPERC Regulations, 2020.

The detailed true-up adjustments approved by MPERC for FY 2023-24 are presented in the table below:

After deducting non-tariff income of Rs 744.40 million, the final true-up amount stands at Rs 16,847.7 million. The total expenditure allowed in this true-up order for FY 2023-24 is Rs 60,772.20 million, compared to Rs 43,924.50 million approved in the previous Multi-Year Tariff (MYT) order dated May 19, 2021.

Petition No: 68/2024 | Read the full order here.

RERC rejects Thar Power’s petition for a separate transmission licence

The Rajasthan Electricity Regulatory Commission (RERC) has rejected the petition filed by Thar Power Transmission Service Limited, Barmer Power Transmission Service Limited, and Hadoti Power Transmission Service Limited seeking a separate transmission licence under the regulated tariff mechanism (RTM) route.

The commission observed that the State Committee on Transmission (SCT) had initially proposed the augmentation of various transformers by the respective transmission service providers (TSPs). The SCT had also proposed a capital expenditure (capex) of Rs 459.7 million and suggested that the additional costs be recovered through incremental additions to the existing levelized tariff. However, in a later meeting, the SCT decided that Rajasthan Rajya Vidyut Prasaran Limited (RVPN) would undertake the augmentation works under the RTM mode.

RERC noted that the petition was filed based on the SCT’s initial recommendation, which was later revised in favor of RVPN handling the augmentation. Since the basis for the petition no longer exists, the applications were deemed infructuous and dismissed.

Petition No: RERC/2220/2024, 2221/2024 & 2222/2024 | Read the full order here.

MPERC approves MPPTCL’s multi-year transmission tariff for FY 2024-25 to FY 2028-29

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has approved the petition filed by M.P. Power Transmission Company Limited (MPPTCL), Jabalpur for the determination of multi-year transmission (MYT) tariff for the control period from FY 2024-25 to FY 2028-29.

The commission has determined the annual revenue requirement (ARR) for the control period based on updated figures submitted by MPPTCL, responses to the commission’s queries, and the provisions of the applicable regulations.

The approved charges for the control period are as follows:

Petition No: 54/2024 | Read the full order here.

APTEL approves Teestavalley Power Transmission’s appeal against CERC order

The Appellate Tribunal for Electricity (APTEL) has approved the appeal filed by Teestavalley Power Transmission Limited, challenging the order issued by the Central Electricity Regulatory Commission (CERC) on May 15, 2018, in petition no. 108/TT/2016. The petition concerned the approval of transmission tariff for the 400 kV D/C Teesta-III to Rangpo section up to the loop-in loop-out (LILO) point at Rangpo for the period FY 2014-19.

APTEL found that the CERC order lacked proper justification and failed to conduct the prudence check required under Section 64 of the Electricity Act, 2003. The tribunal ruled that the costs incurred by Teestavalley Power Transmission Limited were prudent and necessary for commissioning the project.

APTEL has allowed the following costs, including carrying costs:

  • Rs 18.46 million for design and engineering

    • Rs 5.17 million for circuit #1(a)

    • Rs 13.29 million for circuit #2

  • Rs 56.28 million for erection, stringing, and civil works (including foundation)

    • Rs 21.7 million for circuit #1(a)

    • Rs 34.58 million for circuit #2

APTEL has directed CERC to issue a consequential order within three months from the date of this judgment.

Petition No:  APPEAL NO. 356 OF 2018 | Read the full order here.

KSERC rejects Smart City (Kochi) Infrastructure’s capital investment plan for FY 2024-25

The Kerala State Electricity Regulatory Commission (KSERC) has rejected the petition filed by Smart City (Kochi) Infrastructure Private Limited, seeking approval for its capital investment plan for FY 2024-25.

The commission found that the proposed cost was higher than prevailing market rates and expressed concerns about underutilization of the investment. As a result, KSERC has deferred the approval of the proposal.

The commission has advised the licensee to explore the feasibility of interlinking the existing 11 kV lines from the two substations instead of installing a standby transformer at a high cost. The licensee has been directed to submit a detailed report on this alternative approach, including a cost-benefit analysis, as part of its mid-term review filing before the commission.

Petition No: OP 31/2024 | Read the full order here.

CERC rejects ReNew Surya Vihaan’s petition on removal of difficulty

The Central Electricity Regulatory Commission (CERC) has rejected the petition filed by ReNew Surya Vihaan Private Limited, which sought the commission’s intervention to “remove difficulty” arising from the operation of Regulation 42 of the CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022 (GNA Regulations, 2022) and its amendments.

The commission ruled that the case did not warrant the exercise of its powers under Regulation 42. It also dismissed the petitioner’s request to direct Central Transmission Utility of India Limited to return the construction bank guarantee at Rs 0.5 million per MW and to allow the submission of connectivity bank guarantees (conn-BG) in a revised structure—conn-BG 1 at Rs 5 million per MW and conn-BG 3 at Rs 0.2 million per MW.

As a result, all reliefs sought by ReNew Surya Vihaan Private Limited under this petition were rejected by the commission.

Petition No: 35/MP/2024 | Read the full order here.

CERC approves Powergrid Ramgarh Transmission’s petition for RTM licence amendment

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Powergrid Ramgarh Transmission Limited to amend its existing regulated tariff mechanism (RTM) transmission licence. The amendment includes the addition of the transmission project “Augmentation of transformation capacity at 400/220 kV Fatehgarh-III PS (Section-1) by 400/220 kV, 1×500 MVA ICT (5th).”

The commission noted that Central Transmission Utility of India Limited recommended the amendment through its letter dated November 7, 2024. Consequently, CERC has directed that the RTM transmission licence of Powergrid Ramgarh Transmission Limited be modified to incorporate this transmission scheme.

The amended licence will remain valid for 25 years, subject to compliance with the Transmission Licence Regulations and other regulatory conditions. The licensee must also ensure timely payment of the licence fee as per the Central Electricity Regulatory Commission (Payment of Fees) Regulations, 2012, as amended.

Petition No: 486/TL/2024 | Read the full order here.

CERC approves transmission charges for Powergrid Khavda PS1 and 3 Transmission

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Khavda PS1 and 3 Transmission Limited for the adoption of transmission charges related to its transmission system.

The commission noted that the selection of the successful bidder and the determination of annual transmission charges were conducted by the bid process coordinator (BPC) through a transparent competitive bidding process, in accordance with the guidelines issued by the Ministry of Power under Section 63 of the Electricity Act. The bid evaluation committee (BEC) confirmed that the process complied with these guidelines.

As per the BEC’s certification, Power Grid Corporation of India Limited emerged as the successful bidder in the e-reverse auction, offering the lowest annual transmission charges of Rs 1,077.25 million per annum. Based on this certification, CERC has approved and adopted the annual transmission charges, subject to the grant of a transmission licence to the petitioner. These charges will remain valid throughout the period covered under the standard transmission service agreement. The sharing of charges by designated inter-state transmission system customers will be governed by the CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020, as amended.

Additionally, the petitioner, through an affidavit dated February 13, 2025, informed the commission that its name has been changed from ‘Khavda PS1 and 3 Transmission Limited’ to ‘Powergrid Khavda PS1 and 3 Transmission Limited’ as of February 6, 2025. The Registrar of Companies, IMT Manesar, Haryana, issued a certificate confirming this change, which has been placed on record. CERC has taken note of the updated name.

Petition No: 508/AT/2024 | Read the full order here.

CERC grants transmission licence to Powergrid Kurawar Transmission

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Powergrid Kurawar Transmission Limited for the grant of a transmission licence to establish the inter-state transmission system for power evacuation from Rajasthan Renewable Energy Zone (REZ) Phase IV (Part-2: 5.5 GW) (Jaisalmer/Barmer Complex): Part H1. The project will be developed on a build, own, operate, and transfer basis.

Central Transmission Utility of India Limited recommended the grant of the transmission licence through a letter dated November 6, 2024. Based on this, CERC has directed that the transmission licence be granted to Powergrid Kurawar Transmission Limited, subject to the following conditions:

  1. The transmission licence will remain in force for 25 years from the date of issuance unless revoked earlier.

  2. The licensee must comply with the CERC (Procedure, Terms, and Conditions for Grant of Transmission Licence and Other Related Matters) Regulations, 2024, or any subsequent enactments.

  3. Two years before the expiry of the initial licence period, the licensee may apply for an extension in accordance with Regulation 9(2) of the 2024 Transmission Licence Regulations, which will be considered by CERC as per applicable laws.

  4. The licensee cannot engage in the business of electricity trading during the licence period.

  5. The licensee must pay the licence fee as per the CERC (Payment of Fees) Regulations, 2012, as amended. A delay or non-payment exceeding sixty days will be considered a breach of licence conditions.

Petition No: 491/TL/2024 | Read the full order here.

CERC approves AFC truing-up for Powergrid’s assets

The Central Electricity Regulatory Commission (CERC) has approved Power Grid Corporation of India Limited’s (Powergrid) petition for truing up the transmission tariff for the 2019-24 period and determining the transmission tariff for the 2024-29 period for various assets.

The approved annual fixed charges (AFC) for Powergrid’s assets during the 2024-29 tariff period are as follows (Rs million):

CERC approves Powergrid's assets

CERC approves security interest creation for Kohima-Mariani Transmission

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Kohima-Mariani Transmission Limited for the creation of a security interest in terms of the debenture trust deed. The petitioner sought approval to establish security through mortgage, hypothecation, charge, or assignment over its rights, title, interests, claims, and benefits under project documents and agreements—excluding fixed assets—in favor of Axis Trustee Services Limited. Additionally, the petitioner requested approval for documents related to the financing of the transmission project, which it builds, owns, operates, and maintains.

The commission observed that Axis Trustee Services Limited must be provided with security to safeguard the financial assistance extended by Axis Bank Limited. Therefore, it granted in-principle approval, allowing the petitioner to create a security interest in favor of Axis Trustee Services Limited, acting as the debenture trustee for the debenture holder and its successors. This will be executed through a mortgage or other security documents on project assets, including an indenture of mortgage and financing agreements. The commission directed the petitioner to submit a signed copy of the indenture of mortgage immediately after execution.

This approval is subject to conditions. The transmission licence granted to the petitioner cannot be assigned to the security trustee or lender’s nominee without prior CERC approval. If an assignment is proposed, the commission will assess the nominee’s expertise in developing, constructing, operating, and maintaining transmission lines before granting approval. The licensee, lender, security trustee, and nominee must jointly approach CERC for such approval.

In case of default in debt repayment, CERC may approve the assignment of the licence to a nominee upon a joint application from the licensee, lender, security trustee, and nominee. This approval will be subject to due diligence. Specific prior approval of the commission is mandatory for assigning the licence or transferring any assets to the security trustee or nominee. Additionally, the petitioner must submit financial documents and statements as directed by the commission.

Petition No: 429/MP/2024 | Read the full order here.

CERC rejects Maruti Clean Coal and Power’s petition for payment of dues

The Central Electricity Regulatory Commission (CERC) has rejected the petition filed by Maruti Clean Coal and Power Limited (MCCPL) seeking payment of outstanding dues related to the reimbursement of point of connection (POC) charges for power supplied to Rajasthan discoms through Power Trading Corporation of India (PTC). The claim was based on the power purchase agreement (PPA) dated November 1, 2013, between MCCPL and PTC (PTC-PPA) and the back-to-back PPA between PTC and Rajasthan Urja Vikas Nigam Limited (RUVNL) (procurers’ PPA), also dated November 1, 2013.

The commission noted that MCCPL admitted there was no provision for a late payment surcharge (LPS) on delayed reimbursements of transmission charges. As no invoice was raised by the petitioner on PTC for LPS, the commission ruled that MCCPL had failed to establish a prima facie case. Without issuing an invoice, the petitioner could not seek adjudication from CERC. Consequently, the request for LPS on delayed reimbursements of transmission charges was declined. Additionally, since the claim for LPS was rejected, the petitioner’s request for payment of interest and interest on working capital for delayed reimbursement was also denied.

Regarding the deduction of tax deducted at source (TDS) by PTC, the commission observed that MCCPL had not raised any formal dispute with PTC. In a letter dated March 2, 2020, MCCPL acknowledged PTC’s deduction of TDS but neither contested nor requested PTC to refrain from deducting it. Given the absence of any dispute, CERC ruled that the petitioner’s case lacked merit and dismissed the petition.

Petition No: 205/MP/2022 | Read the full order here.

CERC approves Powergrid Bikaner IV Transmission’s petition for adoption of transmission charges

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Powergrid Bikaner IV Transmission Limited for the adoption of transmission charges related to the transmission system established by Bikaner A Power Transmission Limited, a wholly owned subsidiary of Power Grid Corporation of India Limited.

The commission observed that the selection of the successful bidder and determination of annual transmission charges were conducted by the bid process coordinator (BPC) through a transparent competitive bidding process in accordance with the Guidelines issued by the Ministry of Power under Section 63 of the Electricity Act. The bid evaluation committee (BEC) certified that the bidding process complied with the Ministry of Power’s Guidelines.

As per the BEC’s certification, Power Grid Corporation of India Limited was declared the successful bidder after an e-reverse auction, with the lowest annual transmission charges of Rs 5,879.06 million per annum. Based on this certification, the commission approved and adopted these charges, subject to the grant of a transmission licence to the petitioner. The charges will remain applicable for the duration specified in the standard transmission service agreement. The sharing of these charges among designated inter-state transmission system customers will follow the provisions of the CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020, as amended.

Additionally, the petitioner submitted an affidavit dated March 13, 2025, informing the commission of its name change from ‘Bikaner A Power Transmission Limited’ to ‘Powergrid Bikaner IV Transmission Limited,’ effective March 5, 2025. The Registrar of Companies, Manesar, Haryana, issued the certificate of name change on March 5, 2025. The commission has recorded the change accordingly.

Petition No: 64/AT/2025 | Read the full order here.

CERC grants transmission license to Powergrid Jam Khambhaliya Transmission

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Powergrid Jam Khambhaliya Transmission Limited for the grant of a transmission licence to establish the inter-state transmission system for the “Augmentation of transformation capacity at Jam Khambhaliya PS (GIS)” on a build, own, operate, and transfer basis.

The commission noted that the Central Transmission Utility of India Limited, through its letter dated November 11, 2024, recommended granting the transmission licence to the petitioner. Based on this, the commission directed that a transmission licence be issued to Powergrid Jam Khambhaliya Transmission Limited, subject to the following conditions:

  • The licence will remain valid for 25 years unless revoked earlier.
  • The licensee must comply with the CERC (Procedure, Terms, and Conditions for Grant of Transmission Licence and Other Related Matters) Regulations, 2024, or any subsequent enactments.
  • Two years before the licence expires, the licensee may apply for renewal, which will be considered as per Regulation 9 (2) of the 2024 Transmission Licence Regulations.
  • The licensee cannot engage in electricity trading during the licence period.
  • The licensee must pay the licence fee in accordance with the Central Electricity Regulatory Commission (Payment of Fees) Regulations, 2012, as amended. Failure to pay for more than 60 days will be considered a breach of licence conditions.

Petition No: 489/TL/2024 | 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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