Regulatory Developments in Power Transmission Sector: June 2, 2025

APTEL rejects CERC order, says developers not liable for abandoned Vemagiri transmission costs

On 27 May 2025, the Appellate Tribunal for Electricity (APTEL) set aside a 2015 order by the Central Electricity Regulatory Commission (CERC) that had directed gas-based power developers—Samalkot Power Ltd and Spectrum Power Generation Ltd—to reimburse 80% of the acquisition cost of the Vemagiri Transmission System Ltd (VTSL) to Power Grid Corporation of India Ltd (PGCIL). The Tribunal held the order exceeded CERC’s jurisdiction and violated principles of fairness and contractual obligations.

The case arose after PGCIL acquired VTSL in 2012 under a transmission service agreement (TSA) linked to projects by Samalkot and Spectrum. However, due to a Ministry of Power (MoP) circular warning developers not to proceed with domestic gas-based generation until gas availability was confirmed, both developers deferred their commissioning. The transmission system was never built. Despite this, CERC allowed PGCIL’s request—through an interim application—to recover Rs 182.8 million from the developers.

APTEL found that CERC overstepped its jurisdiction under Sections 14 and 63 of the Electricity Act, 2003, by granting cost reimbursement in proceedings it had already declared infructuous. The Tribunal held that the relief granted went beyond the scope of the original petitions, which only sought licence and tariff adoption.

It further held that both developers had already invested significantly—Rs 89 billion by Samalkot alone—and that they should not be penalised for PGCIL’s failure to develop the transmission system. The Tribunal noted that the cancellation of the project was due to the government’s own gas policy, and any acquisition cost incurred by PGCIL or its agent REC Transmission Projects Company Ltd (RECTPCL) was without adequate consultation or legal mandate.

APTEL concluded that the direction to reimburse acquisition costs lacked legal basis, especially when PGCIL did not pursue claims against RECTPCL. It also confirmed that neither the TSA nor the BPTA imposed such liability in the circumstances that followed.

Appeal No. 128 OF 2015, 171 OF 2015 & 60 OF 2017 | Read the full order here.

APTEL allows Jindal Power’s review plea, orders recalculation of transmission charges under CERC norms

The Appellate Tribunal for Electricity (APTEL) has allowed a review petition filed by Jindal Power Limited (JPL), correcting a key finding in its 2 December 2024 judgment in Appeal No. 279 of 2016. The judgment had wrongly assumed that Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) had been using JPL’s transmission line since 20 October 2023 without challenge from JPL, limiting CSPDCL’s liability for transmission charges to that date onward.

In Review Petition No. 2 of 2025, JPL argued that the finding was based on a factual error: CSPDCL’s claim regarding its usage date first appeared in its written submissions filed on 27 September 2024—after hearings had concluded and after JPL had already filed its own submissions. As a result, JPL had no opportunity to contest the claim before judgment was reserved.

The dispute stems from CSPDCL’s challenge to the Central Electricity Regulatory Commission’s (CERC) 2015 tariff order, which had approved final transmission charges for JPL’s 400 kV Tamnar–Raipur line for FY 2009–14. While APTEL upheld JPL’s transmission licence in Appeal No. 210 of 2016, it had partially allowed Appeal No. 279 of 2016 by restricting CSPDCL’s payment obligation to post-October 2023 use.

JPL contended this was a misreading of the Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010, which require all designated ISTS customers to pay from the date of licence grant, not only from actual physical use.

Agreeing with JPL, the Tribunal revised its earlier ruling and held that CSPDCL’s liability for transmission charges must now be determined strictly under the 2010 CERC Sharing Regulations. It struck down the earlier finding that charges apply only from 20 October 2023 and directed CERC to apply its regulatory framework to determine dues.

The appeal was disposed with these fresh directions, affirming that procedural fairness had been compromised in the original ruling.

REVIEW PETITION NO.2 OF 2025 | Read the full order here.

CERC approves Rs 1,077 million annual tariff for Bijapur REZ transmission project

The Central Electricity Regulatory Commission (CERC) has approved the adoption of Rs 1,077 million per annum as the levelized transmission charges for the Bijapur Renewable Energy Zone (REZ) transmission scheme in Karnataka. The decision, issued on 15 May 2025 in Petition No. 248/AT/2025, marks the final step in a tariff-based competitive bidding (TBCB) process conducted by PFC Consulting Ltd.

The scheme, implemented on a Build, Own, Operate and Transfer (BOOT) basis, aims to integrate renewable energy from the Bijapur REZ into the Inter-State Transmission System. G R Infraprojects Limited was declared the successful bidder, quoting the lowest tariff, which is around 19% below the benchmark levelized tariff of Rs 1,333.55 million determined using CERC norms.

Although five qualified bidders were shortlisted for the e-reverse auction phase, none submitted revised bids. As per the bidding guidelines, the lowest initial offer was adopted as final. The project scope includes a 400/220 kV pooling station near Bijapur with five 500 MVA ICTs, a 400 kV double circuit line to Raichur, and two 125 MVAr 420 kV bus reactors at the pooling station. These assets are scheduled to be commissioned by 16 January 2027, 24 months from the date of SPV acquisition.

The Commission confirmed that the entire bidding process, including bid evaluation and final selection, complied with the Guidelines issued by the Ministry of Power under Section 63 of the Electricity Act, 2003. The Bid Evaluation Committee also certified that the discovered tariff is reflective of prevailing market rates and that the process was transparent.

The adopted tariff will remain applicable for the full term of the Transmission Service Agreement and will be recovered in accordance with the CERC Sharing of Inter-State Transmission Charges and Losses Regulations, 2020.

Petition No. 248/AT/2025 | Read the full order here.

CERC dismisses Adani Power’s plea on Gujarat transmission charges for lack of standing

The Central Electricity Regulatory Commission (CERC) on 19 May 2025 dismissed Adani Power Limited’s (APL) petition challenging the imposition of State transmission charges and losses by Gujarat Energy Transmission Corporation Limited (GETCO) for power supplied to MPSEZ Utilities Limited (MUL). The Commission held that APL lacked the legal standing to contest the charges since they were levied on and paid by MUL.

APL had sought a declaration that no State transmission charges were applicable on its supply to MUL, arguing that the supply used only a dedicated 220 kV line connected to the inter-State transmission system, and not GETCO’s intra-State network. It also sought a refund of over Rs 21 crore collected from 2018 to 2023.

CERC rejected this claim, stating that since the No Objection Certificates (NOCs) were issued to MUL and charges were paid by it, only MUL had the locus to challenge their applicability. APL, being indirectly affected through reimbursement obligations, could not be considered the aggrieved party under regulatory law.

The Commission refrained from examining the jurisdiction and limitation issues raised, having found the petition procedurally untenable. However, it expressed displeasure at Gujarat SLDC’s shifting stance—initially confirming in 2016 that State charges were not applicable, but reversing its position in 2018 without adequate explanation.

Petition No: 263/MP/2023  | Read the full order here.

CERC allows RIL’s GNA request through Torrent’s DGEN switchyard 

The Central Electricity Regulatory Commission (CERC) has approved Reliance Industries Ltd’s (RIL) request for General Network Access (GNA) to its Dahej Petrochemical Plant through Torrent Power Ltd’s (TPL) DGEN switchyard and dedicated transmission line, despite the absence of explicit regulatory provisions for such an arrangement.

RIL had applied for 200 MW of GNA as a bulk consumer under Regulation 17.1(iii) of the GNA Regulations, proposing to connect to the ISTS through a 15 km line from DGEN, rather than the 100 km alternate route to the South Olpad GIS substation. However, GNA Regulations 2022 did not explicitly allow sharing of transmission assets between injecting entities (like generators) and drawee entities (like bulk consumers), leading to regulatory uncertainty.

CERC acknowledged the absence of enabling provisions but invoked its powers under Regulation 42 of the GNA Regulations to remove this difficulty. The Commission observed that allowing such connectivity would optimize land and infrastructure use, and would not violate any existing provisions.

CERC directed CTUIL to process RIL’s GNA application subject to an agreement with TPL for sharing the DGEN switchyard and dedicated transmission line. It clarified that this line would remain a dedicated asset and not be treated as part of the ISTS. The Commission also required WRLDC and CTUIL to finalize the metering and accounting arrangements and mandated separate regional entity treatment for both RIL and the DGEN station to ensure compliance with grid codes and CEA standards.

Petition No.246/MP/2024 | Read the full order here.

CERC approves tariff revision for PGCIL transmission assets in Gujarat

The Central Electricity Regulatory Commission (CERC) has approved the final transmission tariff for two Power Grid Corporation of India Limited (PGCIL) assets in Gujarat for the 2019–24 period and set the tariff for the 2024–29 period. The order was issued in Petition No. 57/TT/2025 on 19 May 2025.

Asset-1 involved converting 2×63 MVAR line reactors at the Bhachau end of the Bhachau–EPGL 400 kV double circuit line into switchable reactors. Asset-2 comprised a 220 kV GIS line bay at Bhuj Pooling Station to support renewable energy evacuation. Both assets were completed in 2021 and are located in the Western Region.

For the 2019–24 period, the Commission trued up the transmission charges, allowing PGCIL to recover costs under depreciation, interest on loan, return on equity, operation and maintenance (O&M), and working capital. CERC approved Rs 198.63 million as the final capital cost for Asset-1 and Rs 512.05 million for Asset-2. The Commission admitted the additional capital expenditure claimed based on final vendor payments.

The tariff for the 2024–29 period was determined for the combined assets, with an effective date of commercial operation as 14 September 2021. The Commission allowed a total capital cost of Rs 843.59 million, including Rs 132.91 million in additional capital expenditure during 2024–29.

CERC allowed a return on equity grossed up using a tax rate of 17.472 percent based on notified Minimum Alternate Tax (MAT) rates. The Commission directed that future adjustments in return on equity, if any, due to income tax assessments, should be handled through direct recovery or refund from beneficiaries on a year-to-year basis.

No objections were received from the public. Madhya Pradesh Power Management Company Limited (MPPMCL) raised concerns on additional capital expenditure, tax treatment, and prudence checks. These were addressed in the order, and the Commission approved the tariff based on applicable regulations and final project costs.

Petition No. 57/TT/2025 | Read the full order here.

CERC approves revised tariff for PGCIL’s ICT-4 transformer at Amritsar ISTS substation

The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission charges for 2019–24 and determined the tariff for 2024–29 for Power Grid Corporation of India Ltd’s (PGCIL) 400/220/33 kV, 500 MVA ICT-4 transformer and associated bays at the Amritsar (Balachak) substation under the Inter-State Transmission System (ISTS).

PGCIL filed Petition No. 205/TT/2025 seeking approval under the CERC Tariff Regulations, 2019 and 2024. The investment was initially sanctioned in March 2020 at an estimated cost of Rs 248.7 million and later revised to Rs 290.4 million in 2021. The transformer was commissioned on 3 November 2020 after a delay of 87 days, which the Commission had earlier condoned due to COVID-19 disruptions.

In its final order dated 22 May 2025, the Commission admitted a capital cost of Rs 262.4 million as of 31 March 2024. For the 2019–24 control period, the trued-up annual fixed charges (AFC) increased from Rs 23.0 million in FY21 to Rs 68.5 million in FY24. For the 2024–29 period, CERC has determined the AFCs starting at Rs 58.9 million in FY25 and gradually tapering to Rs 58.6 million by FY29.

The Commission accepted PGCIL’s claims related to return on equity, interest on loan, depreciation, and O&M expenses based on applicable norms and effective MAT (Minimum Alternate Tax) rates. It also allowed reimbursement of statutory expenses including petition filing fees, publication costs, and regulatory charges. The order further permits recovery of GST and other future statutory levies, if imposed.

Petition No. 205/TT/2025 | Read the full order here.

CERC approves tariff for PGCIL’s communication assets in Southern Region

The Central Electricity Regulatory Commission (CERC) has approved transmission tariffs for 19 communication assets developed by Power Grid Corporation of India Ltd (PGCIL) under the “Reliable Communication Scheme under Central Sector for Southern Region.” The approved tariffs cover the period from the commercial operation dates (COD) of the assets to 31 March 2024.

The assets, which include fibre optic links and associated communication infrastructure, were commissioned between March 2021 and June 2023. While several assets met scheduled timelines, others were delayed by 81 to 574 days. PGCIL attributed the delays to COVID-19 restrictions, unseasonal rainfall, and right-of-way (RoW) issues. A key delay was in Bangalore Rural district, where RoW disputes led to a legal battle that was ultimately resolved in PGCIL’s favour.

CERC found these delays to be due to uncontrollable circumstances and accepted PGCIL’s explanations. The Commission approved a final capital cost of Rs 12.89 billion, lower than the originally sanctioned Rs 17.39 billion. The Commission also allowed projected additional capital expenditure and confirmed that PGCIL can recover applicable statutory charges, taxes, and regulatory fees.

Petition No. 326/TT/2023 | Read the full order here.

CERC approves Rs 5979.29 million tariff for Rajasthan REZ transmission project

The Central Electricity Regulatory Commission (CERC) on 24 May 2025 approved the adoption of Rs 5979.29 million as the annual transmission charges for the inter-State transmission system to evacuate 3.5 GW of renewable energy from Rajasthan Renewable Energy Zone Phase-IV (Part-4: Part A). The tariff was discovered through a transparent competitive bidding process under Section 63 of the Electricity Act, 2003.

The project will be implemented by POWERGRID Ghiror Transmission Limited, a wholly owned subsidiary of Power Grid Corporation of India Limited. The bidding process was conducted by REC Power Development and Consultancy Limited (RECPDCL), and three bidders—Power Grid, Adani Energy Solutions, and Sterlite Grid 32—participated. Power Grid emerged as the lowest bidder with a final offer of Rs 5979.29 million, below the estimated cost-based tariff of Rs 7383.75 million.

The Bid Evaluation Committee confirmed that the bidding process complied with the Ministry of Power’s guidelines. CERC found the discovered tariff to be competitive and in line with prevailing market rates. It adopted the tariff subject to the grant of a transmission licence to the petitioner.

The Commission also approved the change of name of the implementing entity from Rajasthan IV 4A Power Transmission Limited to POWERGRID Ghiror Transmission Limited. The order directed that transmission charges be shared as per the 2020 CERC regulations on inter-State transmission charges and losses.

Petition No. 236/AT/2025 | Read the full order here.

CERC adopts transmission charges for Powergrid’s Khavda Phase-IV evacuation project

The Central Electricity Regulatory Commission (CERC) has approved the adoption of transmission charges for the Khavda Phase-IV (7 GW): Part B transmission project. The project, undertaken by POWERGRID South Olpad Transmission Limited (a wholly owned subsidiary of Power Grid Corporation of India Limited), aims to evacuate power from the renewable energy-rich Khavda region in Gujarat.

The transmission system, developed on a Build, Own, Operate, and Transfer (BOOT) basis, was awarded through a transparent tariff-based competitive bidding process managed by PFC Consulting Limited (PFCCL), designated as the Bid Process Coordinator. POWERGRID emerged as the successful bidder, quoting the lowest transmission charge of Rs 5,566.86 million per annum in the e-reverse auction held on July 24, 2024, significantly lower than competing bids from Adani Energy Solutions Limited and Sterlite Grid 25 Limited.

The bid drew attention due to a 16.33% deviation above the levelised tariff estimated under CERC norms (Rs 4,785.52 million). This disparity was attributed to a revision in the Right of Way (RoW) compensation guidelines by the Government of Gujarat in March 2024, which significantly raised compensation rates from earlier guidelines factored into CERC’s cost assumptions.

The CERC, satisfied with the transparency of the bidding process and in accordance with Section 63 of the Electricity Act, 2003, adopted the discovered tariff. The Commission also confirmed the validity of the transmission charges throughout the term of the Transmission Service Agreement (TSA), subject to the grant of a transmission licence to the petitioner.

Petition No. 493/AT/2024 | Read the full order here.

CERC approves final transmission tariff for POWERGRID’s assets in Eastern and Southern Regions

The Central Electricity Regulatory Commission (CERC) has approved the final transmission tariff for several assets under POWERGRID’s Eastern and Southern Region expansion projects. These include assets under the transmission system for the Kudgi STPS (Stage-I), transmission strengthening schemes in the Southern Region, and transmission lines associated with the Maithon Right Bank TPS.

The tariff approval covers the 2014–19 and 2019–24 tariff periods. POWERGRID had filed the petition seeking determination of final tariffs for 12 assets, including 400 kV transmission lines, substations, and associated bays commissioned between 2016 and 2018.

CERC accepted the capital cost and additional capitalization claims after prudence checks and allowed recovery of tariffs accordingly. The Commission applied benchmarking norms, adjusted for de-capitalization, asset-wise timelines, and funding details. It disallowed part of the projected additional capitalization for some assets due to inadequate justification.

The Commission also directed revision of tariff calculations where delays in commissioning led to IDC and IEDC adjustments. It emphasized that transmission charges would be shared by beneficiaries in line with the 2020 Sharing Regulations.

CERC ordered the implementation of Asset Accounting Codes for each transmission element and instructed POWERGRID to submit revised tariff forms incorporating the allowed costs. The order ensures proper cost recovery for POWERGRID while protecting consumer interests through strict capital scrutiny.

Petition No. 86/TT/2024  | Read the full order here.

CERC approves tariff for WBSETCL’s deemed ISTS lines for 2014–19  

The Central Electricity Regulatory Commission (CERC) has approved the transmission tariff for two deemed inter-State transmission lines owned by the West Bengal State Electricity Transmission Company Ltd (WBSETCL) for the 2014–19 period. The lines are the 400 kV Kolaghat–Baripada single circuit line (ISTS portion) and the 220 kV Santaldih–Chandil single circuit line.

The tariff petition was filed belatedly—over 4.5 years after the deadline—despite multiple CERC directions since 2017. CERC condoned the 1,681-day delay on account of WBSETCL’s partial earlier submissions and technical constraints, while clarifying this should not set a precedent.

WBSETCL had earlier continued to receive PoC charges without an approved tariff, relying on the previous period’s tariff. In 2022, the Central Transmission Utility of India Ltd (CTUIL) sought a refund of Rs 171.03 crore for overpaid charges. CERC declined interim relief on CTUIL’s refund demand, citing absence of approved tariff for the relevant period.

In its final order dated May 29, 2025, CERC approved tariffs using a normative methodology, as WBSETCL lacked audited capital cost data. The Commission fixed yearly transmission charges (YTC) for the 2014–19 block as follows: Rs 219.60 lakh in 2014–15, gradually reducing to Rs 216.63 lakh by 2018–19. It also allowed a capital cost of Rs 1,223 lakh for the 400 kV line and Rs 231.76 lakh for the 220 kV line, derived on a normative basis.

CERC reiterated that recovery of transmission charges without a valid tariff order is impermissible and advised CTUIL to adjust excess payments after finalisation of tariff for subsequent periods.

Petition No: 309/TT/2023 alongwith I.A. No. 87/2023 | Read the full order here.

CERC approves tariff for Powergrid’s Yelahanka GIS assets in Southern Region

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 Ltd’s (PGCIL) assets under the “System Strengthening–XII” project in the Southern Region. These include a 400/220 kV GIS substation at Yelahanka, associated lines, transformers, reactors, and bays.

The two main components—LILO of 400 kV lines at Yelahanka with 2×500 MVA ICTs, 1×63 MVAR bus reactor, and 220 kV bays (Assets 1&2), and four 220 kV bays (Asset 3)—were commissioned on April 1, 2018, against a scheduled COD of June 25, 2012. CERC had earlier condoned the 2,106-day delay due to various implementation challenges.

For 2019–24, the trued-up capital cost allowed was Rs 304.06 crore for Assets 1&2 and Rs 8.34 crore for Asset 3. Annual fixed charges (AFC) for Assets 1&2 declined from Rs 53.54 crore in FY 2019–20 to Rs 50.18 crore in FY 2023–24. For Asset 3, AFCs ranged from Rs 2.31 crore to Rs 2.30 crore. CERC accepted the claimed additional capital expenditure of Rs 4.98 crore for Asset 1&2 under Regulation 24(1)(a), and allowed RoE at a grossed-up rate of 18.782% based on MAT rates.

For 2024–29, the approved combined AFC begins at Rs 49.34 crore in FY 2024–25 and declines to Rs 44.92 crore by FY 2028–29. This includes depreciation, interest on loan, RoE, O&M expenses, and interest on working capital. The Commission also permitted recovery of GST, RLDC fees, and other statutory charges, if applicable.

Petition No. 391/TT/2025 | Read the full order here.

CERC disposes of Amp Energy’s plea for transmission deadline extension as infructuous

The Central Electricity Regulatory Commission (CERC) on 29 May 2025 disposed of a petition filed by Amp Energy Green Private Limited seeking recognition of multiple delays as force majeure events affecting the construction timeline of its dedicated transmission line. The Commission ruled that the petition had become infructuous due to the subsequent completion of the transmission line and the transition to the new General Network Access (GNA) regulations.

Amp Energy had sought a six-month extension to construct the line, citing delays caused by the non-issuance of a Letter of Award (LoA) by NTPC, the Great Indian Bustard (GIB) order, and COVID-19 disruptions. The company argued these were events beyond its control and akin to force majeure under connectivity regulations.

During proceedings, CERC took note of submissions confirming that the 220 kV dedicated line was completed and energised with Central Electricity Authority (CEA) approval granted on 19 October 2023. CTUIL and the petitioner both confirmed that connectivity and Long-Term Access (LTA) had been transitioned to the GNA regime, which no longer mandates separate timelines for dedicated transmission line construction.

Acknowledging that the project had achieved compliance and that no mismatch issues remained, the Commission concluded that the petition’s reliefs no longer survived.

Petition No. 66/MP/2023 | Read the full order here.

CERC adopts Rs 1,966.91 million annual tariff for Powergrid’s Koppal-Gadag transmission project

The Central Electricity Regulatory Commission (CERC), in its order dated 26 May 2025, approved the adoption of annual transmission charges of Rs 1,966.91 million for the Koppal-II and Gadag-II augmentation project. This follows a successful tariff-based competitive bidding process under Section 63 of the Electricity Act, 2003.

The transmission system, aimed at strengthening inter-State connectivity for integrating renewable energy (RE) projects, will be executed on a Build, Own, Operate and Transfer (BOOT) basis. The bidding was coordinated by PFC Consulting Limited (PFCCL) with Power Grid Corporation of India Limited (PGCIL) emerging as the lowest bidder after 109 rounds of e-reverse auction, beating Sterlite Grid 32 Ltd by a narrow margin.

The discovered tariff is approximately 6.75% lower than the estimated levelised tariff of Rs 2,109.28 million calculated as per CERC norms.

The transmission assets include large-scale augmentations at Koppal-II and Gadag-II substations with multiple 765/400kV and 400/220kV ICTs and 220kV line bays, with scheduled commercial operation spanning from December 2025 to June 2027.

The Commission noted that the bidding process complied fully with the Ministry of Power’s competitive bidding guidelines. Accordingly, it adopted the tariff, subject to the grant of transmission licence to the petitioner, now renamed POWERGRID Koppal Gadag Augmentation Transmission Limited.

CERC also directed that the approved charges be recovered as per the CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020.

Petition No. 250/AT/2025 | Read the full order here.

CERC adopts Rs 35,570 million tariff for Adani’s Rajasthan REZ transmission project

The Central Electricity Regulatory Commission (CERC) on 26 May 2025 approved the adoption of Rs 35,570 million as the annual transmission charges for the “Transmission System for Evacuation of Power from REZ in Rajasthan (20 GW) under Phase-III Part I,” developed by Adani Energy Solutions Ltd.

Rajasthan Part I Power Transmission Ltd, an SPV of REC Power Development and Consultancy Ltd (RECPDCL), filed the petition under Section 63 of the Electricity Act, 2003. The project will be developed on a Build, Own, Operate and Transfer (BOOT) basis.

The first bidding round was annulled after the discovered tariff of Rs 37,000 million exceeded the estimated cost of Rs 17,088.98 crore by 55.41%. The revised estimate was Rs 22,676.31 crore, accounting for updated inflation, land, and Right of Way compensation based on 2024 cost data and new Ministry of Power guidelines.

Four bidders participated in the re-bid: Adani Energy Solutions Ltd, Sterlite Grid 37 Ltd, IndiGrid 2 Ltd, and Power Grid Corporation of India. Adani quoted the lowest tariff of Rs 35,570 million. No bids were submitted in the e-reverse auction, making Adani’s initial offer final.

The Bid Evaluation Committee confirmed adherence to competitive bidding guidelines and deemed the tariff reasonable. CERC found the bidding process transparent and adopted the discovered tariff, subject to the grant of a transmission licence. Charges will be shared as per CERC’s 2020 sharing regulations.

Petition No. 253/AT/2025 | Read the full order here.

CERC adopts Rs 596.21 million tariff for Reliance’s Lakadia transmission project

The Central Electricity Regulatory Commission (CERC) on 26 May 2025 adopted Rs 596.21 million as the annual transmission charges for the augmentation of transformation capacity at the 765/400 kV Lakadia substation in Gujarat under WRSS XXI(A) Part B.

The project, implemented on a Build, Own, Operate and Transfer basis, was awarded to Reliance Industries Ltd through a tariff-based competitive bidding process conducted by REC Power Development and Consultancy Ltd. The process involved three qualified bidders—Reliance, Adani Energy Solutions Ltd, and Power Grid Corporation of India.

Reliance emerged as the lowest bidder in the e-reverse auction held on 24 December 2024, quoting Rs 596.21 million, down from its initial offer of Rs 651 million. The discovered tariff is significantly below the estimated tariff of Rs 988.69 million as per CERC norms.

The project involves transformer augmentation and installation of new bays at the Lakadia substation to facilitate power evacuation from renewable developers including TEQ Green, ArcelorMittal Nippon Steel, and Juniper Green Energy.

The Commission found the bidding process transparent and compliant with the Ministry of Power’s guidelines. The Bid Evaluation Committee confirmed the validity of the discovered tariff. CERC approved the tariff subject to the grant of a transmission licence. Charges will be recovered from ISTS customers under the 2020 sharing regulations.

Petition No. 299/AT/2025 | Read the full order here.

CERC disposes of Kanchanjunga Power’s plea as transmission tariff dispute resolved by courts

The Central Electricity Regulatory Commission (CERC) on 29 May 2025 disposed of a long-standing petition filed by Kanchanjunga Power Company Pvt Ltd (KPCPL) concerning the terms and charges imposed for using the 220 kV transmission infrastructure in Himachal Pradesh, after the matter was settled by judicial pronouncements.

KPCPL had filed Petition No. 124/MP/2017 seeking relief against what it termed unjust and arbitrary terms in interim transmission agreements with Himachal Pradesh Power Transmission Corporation Ltd (HPPTCL) and Allain Duhangan Hydro Power Ltd (ADHPL). The company sought declaration of certain transmission lines as part of the inter-State Transmission System (ISTS), enabling the use of PoC-based charges regulated by CERC.

The dispute revolved around the 220 kV Fozal pooling station and associated lines. CERC had earlier directed KPCPL to pay 80% of the outstanding charges, pending final resolution. Parallel litigation ensued, with KPCPL also challenging CERC’s earlier orders in the Appellate Tribunal for Electricity (APTEL), which ruled in 2022 that the ADHPL line must follow PoC-based recovery. CERC accordingly ordered inclusion of the AD Line under the Sharing Regulations.

However, APTEL later upheld that the HPPTCL assets—specifically the Fozal pooling station and line to the LILO point—were not part of the ISTS, citing non-certification by the NRPC. The Supreme Court affirmed this ruling in May 2024, confirming that regulatory certification processes must be followed, and such declarations cannot be automatic.

Following these outcomes, KPCPL submitted that the issues raised in its petition were now resolved and requested disposal of the case. CERC accepted this and marked Petition No. 124/MP/2017 as infructuous.

Petition No: 124/MP/2017 | Read the full order here.

HERC notifies revised DSM Regulations 2025 to tighten grid discipline

The Haryana Electricity Regulatory Commission (HERC) has issued its final order on the Deviation Settlement Mechanism (DSM) Regulations, 2025, to reinforce grid discipline and aligning with national norms.  

While broadly aligned with the Central Electricity Regulatory Commission’s (CERC) DSM framework, the new regulations address state-level concerns. One major clarification is the application of DSM charges at the unit level instead of the station level. Solar and wind generators remain exempt, continuing under the 2019 renewable DSM rules.

HERC rejected Haryana Power Generation Corporation Limited’s (HPGCL) request for a 12-month trial, allowing a four-month implementation period post-gazette notification. The Commission stressed timely compliance to support grid reliability.

Deviation charges will be based on the highest of three prices: weighted average day-ahead market (DAM) price, real-time market (RTM) price, or a composite including ancillary services. Frequency-linked penalties will apply, with rates up to 200% of the normal rate (NR) for severe frequency breaches.

For instance, overdrawals below 49.90 Hz will attract penalties of 150% to 200% of NR, while underdrawals earn 100%. At 50.00–50.05 Hz, overdrawals incur 75%–100% penalties, and underdrawals 50%–90% incentives.

A State Deviation Pool Fund will be maintained, with 90% of surpluses allocated to grid upgrades. The State Load Despatch Centre (SLDC) must publish weekly deviation accounts for transparency.

The 2025 regulations repeal the 2019 DSM framework but retain past actions under it. HVPNL and HPPC received clarifications on loss-sharing, while renewable developers secured exemptions for long-term contracts.

Case No. HERC/P. No. 03 of 2025 | Read the full order here.

RERC approves Rajasthan SLDC true-up petition for FY 2023-24 with Rs 0.76 crore revenue surplus

The Rajasthan Electricity Regulatory Commission (RERC) has approved the true-up petition for FY 2023-24 filed by the Rajasthan State Load Despatch Centre (SLDC), resulting in a revenue surplus of Rs 0.76 crore. The order, issued on 26 May 2025, addressed key stakeholder concerns related to operational expenses, depreciation, and return on equity (RoE).

SLDC had sought approval for Rs 33.24 crore in aggregate revenue requirements (ARR), but the Commission sanctioned Rs 27.51 crore after disallowing certain claims. Operation and maintenance (O&M) expenses were approved at Rs 19.87 crore against SLDC’s claim of Rs 23.91 crore. Depreciation was significantly reduced from Rs 1.98 crore claimed to Rs 0.44 crore approved. The Commission accepted the full Rs 6.96 crore claimed for Regional Load Despatch Centre (RLDC) fees and charges, along with the Rs 0.15 crore return on equity.

Stakeholders raised concerns about inflated repair and maintenance costs, unexplained asset additions, and non-compliance with asset classification guidelines. As a result, the Commission directed SLDC to refund the Rs 0.76 crore revenue surplus to distribution companies (DISCOMs) and open-access customers in the next billing cycle.

Petition No: RERC/2287/2025 | Read the full order here.

RERC approves Rs 5,073 crore investment plan for RVPN and SLDC for FY 2025-26

The Rajasthan Electricity Regulatory Commission (RERC) has approved an investment plan of Rs 5,073 crore for Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN) and the State Load Despatch Centre (SLDC) for the financial year 2025-26. The order, issued on 26 May 2025, incorporates key stakeholder concerns while sanctioning critical transmission and system-strengthening projects.

RVPN had initially proposed Rs 6,050 crore, including additional schemes announced in the state budget, but the Commission approved a lower amount after excluding expenditures considered non-capital. Of the approved funds, Rs 3,665.53 crore is allocated for 192 ongoing projects, while Rs 552.30 crore is earmarked for new schemes, including Rs 81.60 crore for the urgent 400 kV GSS Kumher project, which was exempted from Tariff-Based Competitive Bidding (TBCB). An augmentation budget of Rs 600 crore has also been sanctioned for system upgrades, with instructions to submit detailed project reports for future proposals.

Certain major projects were disallowed, such as the Rs 3,150 crore 765 kV GSS Jaisalmer and Jodhpur schemes, which the Commission ruled must be executed under TBCB mode. Additionally, non-transmission expenses totaling Rs 977 crore, including office construction and relay procurement, were reclassified as operation and maintenance costs.

To enhance transparency, RVPN was directed to improve documentation related to asset replacements and project phasing. The Commission also expressed concern over delays in projects initiated before 2023 and mandated the creation of a dedicated monitoring cell to control time and cost overruns. Funding sources were revised, with state equity reduced from Rs 1,210 crore to Rs 402.53 crore, the remainder to be raised through loans and grants.

The order instructs RVPN to accelerate delayed projects and submit timely completion reports, while SLDC is required to file separate investment petitions going forward. Future proposals must be supported by detailed feasibility studies and board approvals to ensure regulatory compliance and efficient implementation.

Petition No. RERC/2280/2024 | Read the full order here.

UPERC releases draft SLDC fee regulations for 2025–30 with revised charges and financial norms

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has released the draft UPERC (Fees & Charges of State Load Despatch Centre and Other Related Matters) Regulations, 2025, proposing a new framework to govern the financial and operational functioning of the Uttar Pradesh State Load Despatch Centre (UPSLDC). The regulations, intended to replace the 2020 framework, will be applicable from April 1, 2025, to March 31, 2030.

A key highlight of the draft is the revision of registration fees for various entities. Distribution companies and intra-state transmission licensees will now pay Rs 10 lakh, while generating companies and standalone storage systems will pay between Rs 0.5 lakh and Rs 10 lakh, depending on their capacity. Short-term open access users will face an increased application fee of Rs 0.07 lakh, and green energy open access users will be charged operating fees capped at Rs 4 per kW per day.

To enhance financial transparency, the regulations propose a consolidated approach to recovering Operation and Maintenance (O&M) expenses, allowing UPSLDC to recover either normative benchmarks or actual costs—whichever is lower. The draft also underscores the importance of investments in automation, IT infrastructure, and cybersecurity, subject to prior approval from the Commission.

The depreciation schedule has been updated, with distinct rates for assets commissioned before and after March 31, 2025. IT equipment and underground cables will now have a nil salvage value, reflecting faster obsolescence. Additionally, the interest rate on working capital has been reduced to SBI MCLR plus 200 basis points, down from the previous 250 bps, in line with prevailing economic trends.

Clarifications have also been issued regarding income tax on return on equity, which will be linked to pre-tax rates and reconciled annually based on actual tax outgo. Non-tariff income such as rent and scrap sales must be deducted from the Aggregate Revenue Requirement (ARR).

Stakeholders have until June 12, 2025, to submit their feedback, with a public hearing scheduled for June 16, 2025.

Read the full order here.

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