Regulatory Developments in Power Transmission Sector: March 20, 2025

WBERC reviews APR order for WBSETCL, adjusts Rs 258.23 million recoverable amount

The West Bengal Electricity Regulatory Commission (WBERC) has passed an order on the petition filed by West Bengal State Electricity Transmission Company Limited (WBSETCL) for the review of the Annual Performance Review (APR) order for FY 2019-20 in Case No. APR-85/21.

The commission observed that in its APR order for FY 2014-15 (Case No. APR(R)-18/22-23), the consumer contribution of Rs 121.58 million, reflected in the opening value of 2012-13, was adjusted with the asset addition of 2012-13 to determine the admissible equity. This adjustment affects the computation of return on equity from FY 2012-13 onwards.

Additionally, WBERC noted that the actual interest paid for working capital in FY 2019-20 was lower than the normative working capital interest allowed in the original APR order. Since the tariff regulations allow only the lower of the two amounts, there will be no impact on the admissible interest on working capital due to this review. However, the revision impacts the admissible incentive in fixed costs.

The commission has determined that an additional recoverable amount of Rs 258.23 million may be adjusted in the Aggregate Revenue Requirement (ARR) for a subsequent period or any other ensuing year, or through a separate order, as decided by the commission.

Petition No: CASE NO: APR(R)-20/22-23  | Read the full order here.

WBERC passes order on WBSETCL’s petition for review of APR order in Case No. APR-84/20-21

The West Bengal Electricity Regulatory Commission (WBERC) has issued an order on the petition filed by West Bengal State Electricity Transmission Company Limited (WBSETCL) seeking a review of the annual performance review (APR) order in Case No. APR-84/20-21.

The commission observed that while reviewing the APR order for 2014-15, it had adjusted the consumer contribution of Rs 121.58 million, reflected in the opening value of 2012-13, with the asset addition of the same year to determine the admissible equity. This adjustment was recorded in the commission’s order in Case No. APR(R)-18/22-23.

Additionally, WBERC noted that the actual interest paid for working capital during 2018-19 was lower than the normative working capital interest allowed in the APR order. Since the commission admits the lower of actual and normative interest in APR calculations, the review will not impact the admissible interest on working capital.

As per tariff regulations, the additional recoverable amount of Rs 226.73 million, or a portion thereof, may be adjusted with the aggregate revenue requirement of a subsequent period or any other ensuing year. Alternatively, it may be addressed through a separate order, as determined by the commission.

Petition No: CASE NO: APR(R)-21/22-23 | Read the full order here.

WBERC passes order on WBSETCL’s petition for review of APR order in Case No. APR-69/18-19

The West Bengal Electricity Regulatory Commission (WBERC) has issued an order on the petition filed by West Bengal State Electricity Transmission Company Limited (WBSETCL) seeking a review of the annual performance review (APR) order in Case No. APR-69/18-19.

WBSETCL submitted that certain issues raised in its appeals for APR reviews of 2010-11 and 2011-12 before the Appellate Tribunal for Electricity (APTEL) are identical to those in the current petition for reviewing the APR order for 2017-18. Since APTEL has already passed its judgment on the previous appeals, WBSETCL filed the current review petition in line with APTEL’s order in Appeals No. 20 of 2015 and 21 of 2015.

The commission also noted that the actual interest paid for working capital during 2017-18 was lower than the normative working capital interest allowed in the APR order. As the commission admits the lower of the actual and normative interest in APR calculations, this review will not impact the admissible interest on working capital.

As per tariff regulations, the additional recoverable amount of Rs 151.81 million, or a portion thereof, may be adjusted with the aggregate revenue requirement of a subsequent period or any other ensuing year. Alternatively, it may be addressed through a separate order, as determined by the commission.

Petition No: CASE NO: APR(R)-15/22-23 | Read the full order here.

WBERC approves WBSETCL’s petition for review of APR order in Case No. APR-66/17-18

The West Bengal Electricity Regulatory Commission (WBERC) has approved the petition filed by West Bengal State Electricity Transmission Company Limited (WBSETCL) for reviewing the annual performance review (APR) order in Case No. APR-66/17-18 for the financial year 2016-17. The commission has admitted the application for review of the APR order for 2016-17.

WBERC observed that the actual interest paid for working capital during 2016-17 was lower than the normative working capital interest allowed in the APR order. Since the commission admits the lower of actual and normative interest in APR calculations, this review will not impact the admissible interest on working capital. However, the impact on admissible incentives, considering the reviewed fixed costs, has been computed in the order.

As per tariff regulations, the additional recoverable amount of Rs 87.02 million, or a portion thereof, may be adjusted with the aggregate revenue requirement of a subsequent period or any other ensuing year. Alternatively, it may be addressed through a separate order, as determined by the commission.

Petition No: CASE NO: APR(R)-16/22-23 | Read the full order here.

WBERC passes order on WBSETCL’s petition for review of APR order in Case No. APR-57/16-17

The West Bengal Electricity Regulatory Commission (WBERC) has issued an order on the petition filed by West Bengal State Electricity Transmission Company Limited (WBSETCL) for reviewing the annual performance review (APR) order in Case No. APR-57/16-17, dated April 28, 2022.

The commission noted that, in view of the order issued by the Appellate Tribunal for Electricity (APTEL) and subsequent review orders for APRs of 2010-11, 2011-12, and 2014-15, it has decided to revisit the issue to ensure the impact of these orders is reflected in the APR orders of subsequent years.

WBERC observed that in the impugned APR order, the interest on working capital was capped at the normative level. The admissible normative interest on working capital remains unchanged, as the additional amount admitted for interest on normative debt, amortization of accumulated losses (AAO), and return on equity (ROE) under this review will first be added to the gross revenue requirement and subsequently deducted as per regulatory provisions during the computation of normative interest on working capital for 2015-16.

As per tariff regulations, the additional recoverable amount of Rs 122.26 million, or a portion thereof, may be adjusted with the aggregate revenue requirement of a subsequent period or any other ensuing year. Alternatively, it may be addressed through a separate order, as determined by the commission.

Petition No: CASE NO: APR(R)-14/22-23 | Read the full order here.

WBERC passes corrigendum to order dated December 27, 2024

The West Bengal Electricity Regulatory Commission (WBERC) has issued a corrigendum to its order dated December 27, 2024, in Case No. APR(R)-18/22-23. The order pertains to the review of the annual performance review (APR) order dated June 28, 2021, for the financial year 2014-15 concerning West Bengal State Electricity Transmission Company Limited (WBSETCL).

WBERC observed that certain inadvertent errors and omissions had occurred in its previous order. Since these errors were evident on the face of the order, they were deemed reviewable. Accordingly, the commission has rectified them suo motu by issuing a corrigendum.

The commission has now finalized the total recoverable amount at Rs 394.48 million. As per tariff regulations, this amount, or a portion thereof, may be adjusted with the aggregate revenue requirement of a subsequent period or any other ensuing year. Alternatively, it may be addressed through a separate order, as determined by the commission.

Read the full order here.

WBERC approves PCBL’s petition seeking directions for grant of open access

The West Bengal Electricity Regulatory Commission (WBERC) has approved the petition filed by Phillips Carbon Black Limited (PCBL) seeking directions for the grant of open access for power transmission from the AB Zone substation through a 132 kV line.

The commission observed that the directive in its first order dated June 12, 2024, requiring relevant agreements to be revised to reflect the dedicated nature of the line, remains unimplemented. It also noted that the Appellate Tribunal for Electricity (APTEL) has not granted any interim relief or stay that would impede the operation of open access. Further, the response from West Bengal State Electricity Distribution Company Limited (WBSEDCL) indicates that the primary issue under appeal concerns the classification of the PCBL-to-AS Zone substation line—whether it is a dedicated line or a service line—and the applicability of wheeling charges. However, this does not affect PCBL’s right to avail open access. The commission held that withholding open access under the current circumstances is not justified.

WBERC ruled that PCBL is entitled to open access on a non-discriminatory basis, and the pending finalization of the revised connectivity agreement should not be a reason to deny it. The commission directed WBSETCL and the State Load Despatch Centre (SLDC) to ensure that PCBL is granted open access immediately, subject to network capacity, technical feasibility, and required metering arrangements.

Additionally, WBERC mandated that all necessary steps, including the signing of revised connectivity agreements, updating ancillary agreements, and finalizing metering protocols, must be completed within 15 days from the date of the order. If the required agreements are not signed within this period, except in cases of delay attributable to the petitioner, it will be considered deemed connectivity by SLDC, allowing PCBL to access open access facilities.

Petition No: CASE NO:  OA-504/24-25 | Read the full order here.

CERC determines tariff for Powergrid’s assets in western region

The Central Electricity Regulatory Commission (CERC) has approved Power Grid Corporation of India Limited’s (Powergrid) petition for truing-up of transmission tariff for the 2019-24 period under the CERC (Terms and Conditions of Tariff) Regulations, 2019. The commission has also determined the transmission tariff for the 2024-29 period under the CERC (Terms and Conditions of Tariff) Regulations, 2024 for the “Transmission System associated with 400 kV Bina-Nagda D/C Line” in the Western Region.

The transmission charges approved for the 2024-29 tariff period are as follows (Rs million):