Regulatory Developments in Power Transmission Sector: May 7, 2025
Author: PPD Team Date: 07/05/2025
APTEL directs WBERC to reconsider HEL’s disallowed transmission costs
The Appellate Tribunal for Electricity (APTEL) has ruled in favour of Haldia Energy Limited (HEL), setting aside key cost disallowances by the West Bengal Electricity Regulatory Commission (WBERC) related to a 400 kV dedicated transmission project. APTEL directed WBERC to revise its 2020 order and re-evaluate several claims, while allowing others outright.
The case involved HEL’s appeal against WBERC’s disallowance of Rs 45.44 crore from the final project cost of Rs 594.80 crore for a line evacuating power from HEL’s 2×300 MW thermal plant. The disallowed components related to delays triggered by regulatory changes, right-of-way (RoW) disputes, and weather-related construction challenges.
APTEL upheld Rs 4 crore for retaining a jack-up barge (JUB) and Rs 5.65 crore for river-crossing tower work. It treated both as “change in law” costs arising from revised norms issued by the Kolkata Port Trust and the Directorate General of Shipping. A tax variation claim of Rs 0.75 crore was sent back for reassessment due to insufficient evidence.
For RoW costs of Rs 27.63 crore, APTEL accepted HEL’s submission that severe local resistance and legal hurdles constituted force majeure. WBERC has been directed to reassess this head. Additional claims of Rs 0.70 crore for head-loading and Rs 0.34 crore for approach road construction were approved, citing adverse monsoon conditions. The interest during construction (IDC) of Rs 6.61 crore was also permitted.
The tribunal held that the cited delays and cost increases were due to uncontrollable regulatory and force majeure events. WBERC must issue a revised tariff order within three months.
Appeal No. 95 of 2020 | Read the full order here.
APTEL partially allows Delhi Transco’s appeal against DERC’s 2015 tariff order
The Appellate Tribunal for Electricity (APTEL) has partially upheld Delhi Transco Limited’s appeal against the Delhi Electricity Regulatory Commission (DERC)’s 2015 tariff order. The ruling, dated April 30, 2025, remands several issues, particularly transmission tariffs for FY 2012–2016, for fresh review.
Delhi Transco had contested DERC’s rejection of claims, including a Rs 239 crore debt-to-equity conversion and an Rs 80 crore equity infusion in FY 2010–11. APTEL found DERC’s omission of these issues “untenable” and instructed a new assessment.
The tribunal also remanded issues like Rs 31.37 crore in foreign exchange losses and income tax calculations, citing procedural issues in DERC’s evaluation. It deferred the decision on pension trust dues pending Delhi High Court cases but upheld the classification of Rs 11.71 crore as non-tariff income.
APTEL accepted some operational concerns, ordering a reassessment of operation and maintenance expenses for the new infrastructure. It also clarified that income tax should apply only to Return on Equity (RoE), not the broader Regulated Rate Base (RRB).
Of the 13 issues raised, five were resolved, three remanded for reassessment, and one remains pending. The tribunal also directed Delhi Transco to submit necessary tax documents to DERC for final adjudication.
Appeal No.8 of 2016 | Read the full order here.
CERC grants transmission licence to POWERGRID Mandsaur for Greenko PSP
The Central Electricity Regulatory Commission (CERC) has approved a 25-year transmission licence for POWERGRID Mandsaur Transmission Limited (formerly Rajasthan IV C Power Transmission Limited).
The licence covers the construction of two 400 kV line bays at the Mandsaur substation to evacuate power from Greenko MP01 IREP Pvt. Ltd.’s 3×504 MW pumped storage plant (PSP).
The Rs 304.6 million project will operate under the Regulated Tariff Mechanism (RTM). The Central Transmission Utility of India Ltd. (CTUIL) awarded the project in October 2024 with a revised completion deadline of 15 October 2026. The transmission scheme includes a 400 kV double-circuit interconnection line.
Petition No: 298/TL/2025 | Read the full order here.
CERC grants transmission licence for Bikaner REZ Phase-IV evacuation
The Central Electricity Regulatory Commission (CERC) has granted a 25-year transmission licence to POWERGRID Bikaner IV Transmission Limited, a subsidiary of Power Grid Corporation of India. The licence is for developing the evacuation infrastructure for the Rajasthan Renewable Energy Zone (REZ) Phase-IV (Part-3), targeting the evacuation of 6 GW of renewable energy from the Bikaner complex.
The project was awarded through a competitive bidding process conducted by REC Power Development and Consultancy Limited (RECPDCL). It involves the construction of a 765/400 kV pooling station, installation of STATCOM (Static Synchronous Compensator) systems, and two 765 kV double-circuit transmission lines to connect Bikaner-IV with Siwani and Fatehabad.
The winning bid quoted the lowest annual transmission charges at Rs 5,879.06 crore. The project is scheduled for completion within 24 months from the date of the special purpose vehicle (SPV) transfer.
Petition No. 63/TL/2025 | Read the full order here.
CERC grants licence for 3.5 GW REZ Phase-IV (Part-4) transmission project
The Central Electricity Regulatory Commission (CERC) has granted a 25-year transmission licence to Rajasthan IV 4B Power Transmission Limited, a subsidiary of Dineshchandra R. Agrawal Infracon Private Limited.
The licence supports the evacuation of 3.5 GW of renewable energy under Rajasthan Renewable Energy Zone (REZ) Phase-IV (Part-4).
The project includes a 765/400 kV Merta-II substation, 2x±300 MVAr STATCOM systems, and 765 kV double-circuit lines linking Merta-II to Barmer-I, Dausa, and Beawar. The lowest bid quoted annual transmission charges of Rs 5,556.25 crore, with a target completion date of 30 December 2026, within 24 months of SPV transfer.
Petition No. 175/TL/2025 | Read the full order here.
CERC approves trued-up and future tariffs for POWERGRID’s Bilaspur assets
The Central Electricity Regulatory Commission (CERC) has finalized the trued-up tariffs for POWERGRID’s Bilaspur Pooling Station assets (Asset-A and Asset-B) for 2019–24 and set tariffs for the 2024–29 block. The order ensures cost recovery for the Western Region transmission system.
For the 2019–24 period, the approved capital cost stood at Rs 892.67 million, including Rs 160.2 million in additional capitalization. Annual fixed charges (AFC) averaged Rs 157.26 million per year, covering depreciation (Rs 45.82 million), interest on loan (Rs 36.88 million), and return on equity (RoE) at a grossed-up rate of 18.78%, based on a minimum alternate tax (MAT) rate of 17.47%.
For 2024–29, the AFC decreases from Rs 163.01 million in 2024–25 to Rs 154.03 million in 2028–29, driven by loan repayments. Operation and maintenance (O&M) expenses increased from Rs 33.2 million to Rs 40.8 million over the same period, following CERC norms.
The Commission approved Rs 160.2 million in additional capital expenditure for 2019–24, mainly for balance payments and interest during construction (IDC). Working capital interest was fixed at 11.90%, based on SBI’s marginal cost of funds-based lending rate (MCLR) plus 325 basis points.
Objections raised by MPPMCL regarding RoE levels and the prudence of additional capitalisation were dismissed. CERC confirmed adherence to tariff regulations. Requests for GST-related cost recovery were also denied, citing the absence of current GST on transmission services.
Petition No: 6/TT/2025 | Read the full order here.
CERC approves tariffs for three MePTCL transmission lines, rejects two
The Central Electricity Regulatory Commission (CERC) has ruled on Meghalaya Power Transmission Corporation Limited’s (MePTCL) petition (Petition No. 73/TT/2024) seeking tariff determination for five transmission lines. CERC approved annual fixed charges (AFC) for three lines and rejected tariff claims for two others due to lack of evidence supporting interstate usage.
MePTCL had filed the petition in compliance with a 2012 CERC directive, which requires tariff approval for interstate transmission system (ISTS) lines to be included in Point of Connection (POC) charges.
Assets I to III — operational since 1960–1990 — were accepted as ISTS lines. However, Assets IV and V, which began service in 2011 and 2015 respectively, lacked certification under the 2010 Sharing Regulations. While MePTCL cited load flow studies and earlier NERPC endorsements showing 10–26% interstate usage, CERC held that these were not formally certified and rejected the claims.
Approved AFC for 2014–19 (Rs in lakh)
Approved AFC for 2019–24 (Rs in lakh)
Petition No. 73/TT/2024 | Read the full order here.
CERC approves tariffs for PGCIL’s Nabinagar-Sasaram line for 2019-29
The Central Electricity Regulatory Commission (CERC) has finalized the trued-up tariff for Power Grid Corporation of India Limited’s (PGCIL) 400 kV Nabinagar-Sasaram line for 2019–24 and has determined tariffs for 2024–29. The asset, part of the evacuation system for Nabinagar Thermal Power Station, serves Bihar, West Bengal, Odisha, and other eastern states.
Trued-Up AFC for 2019-24 (Rs lakh)
Approved AFC for 2024-29 (Rs lakh)
Petition No: 132/TT/2025 | Read the full order here.
CERC approves truing-up transmission tariff for PGCIL’s Eastern Region assets
The Central Electricity Regulatory Commission (CERC) has approved the truing-up of the transmission tariff for the 2019-24 period and determined the tariff for the 2024-29 period for Power Grid Corporation of India Limited’s (PGCIL) assets under the Augmentation of Transformation Capacity and Reactive Compensation in the Eastern Region. The assets include a 400 kV bus reactor at Biharsharif Sub-station and two 220/132 kV transformers at Purnea Sub-station.
CERC allowed a capital cost of Rs 2,373.23 lakh as of 31 March 2024 and approved an additional Rs 267.72 lakh for the 2024-29 period. The debt-equity ratio was maintained at 70:30, in line with tariff regulations.
For the 2019-24 period, the trued-up annual fixed charges (AFC) are as follows:
For the 2024-29 period, the approved AFC is:
Petition No: 85/TT/2025 | Read the full order here.
CERC approves transmission tariff for Delhi power grid upgrades
The Central Electricity Regulatory Commission (CERC) has approved a total of Rs 17,996 crore in tariffs for Power Grid Corporation of India Limited (PGCIL) covering five transmission assets in Delhi for the 2019–24 period. The order includes decisions on asset classification, delays, cost overruns, and operational norms for substations at Dwarka and Maharanibagh.
Asset-III (LILO of Bawana–Mandola line Circuit-2) and Asset-IV (Circuit-1) have been consolidated into a single asset with a common commercial operation date of 10 April 2022. Their tariffs will be merged during the truing-up process.
For 2023–24, approved tariffs (in Rs lakh) include Rs 6,197.38 for Asset-I, Rs 1,128.54 for Asset-II, Rs 3,359.51 for Asset-III, Rs 3,617.37 for Asset-IV, and Rs 18.73 for Asset-V. Normative operation and maintenance expenses were allowed, including Rs 834.6 lakh for Asset-I and Rs 156.49 lakh for the combined Asset-III/IV. Interest on working capital ranged from 10.5% to 12%, linked to the State Bank of India’s marginal cost of funds-based lending rate (MCLR).
The Commission capped tariff recovery for Asset-IV pending further justification. PGCIL is required to submit revised cost details during truing-up.
Petition No: 132/TT/2023 | Read the full order here.
CERC approves transmission tariff for PGCIL’s Nellore line project
The Central Electricity Regulatory Commission (CERC) has approved the trued-up transmission tariff for 2019–24 and determined tariffs for 2024–29 for Power Grid Corporation of India Limited’s (PGCIL) project to control high loading on the Nellore (PG)–Nellore PS 400 kV line in the Southern Region. The order, dated 1 May 2025, addresses PGCIL’s petition on capital cost adjustments, additional expenditure, and cost recovery.
The Commission addressed issues including truing-up of capital cost, additional capital expenditure (ACE), and time over-runs. PGCIL reported a delay of 110 days in commissioning Asset-1. As a result, Rs 21.97 lakh in interest during construction (IDC) and incidental expenditure during construction (IEDC) was disallowed. This amount was adjusted using liquidated damages recovered from contractors. The Commission accepted PGCIL’s treatment in line with the 2019 Tariff Regulations.
For the 2019–24 period, the final capital cost approved was Rs 446.94 lakh. Annual fixed charges (AFC) approved are as follows:
Trued-up AFC for 2019–24 (Rs in lakh)
Approved AFC for 2024–29 (Rs in lakh)
Petition No: 457/TT/2024 | Read the full order here.
APERC directs APTRANSCO to refund Rs 48.42 lakhs to Aurobindo Pharma
The Andhra Pradesh Electricity Regulatory Commission (APERC) has ordered the Transmission Corporation of Andhra Pradesh (APTRANSCO) to refund Rs 48.42 lakhs to Aurobindo Pharma Ltd (APL). The charges were collected as Operation and Maintenance (O&M) costs for 132 kV transmission lines and substation bays connected to two of APL’s service connections.
The order resolves a dispute over retrospective levies imposed on HT SC No. SKL-139 (for consumption) and HT SC No. SKL-423 (for solar captive generation). APTRANSCO had raised O&M charges from 2011 to 2023 for SKL-139, and from 2017 to 2023 for SKL-423, despite the infrastructure being built by APL under turnkey agreements.
APL argued that the levies lacked legal or contractual basis. It cited Clause 5.3.2.2 of the General Terms and Conditions of Supply (GTCS), which states that once service lines are commissioned, they become the licensee’s property and should be maintained at its cost.
For HT SC No. SKL-139, the commission found APTRANSCO’s charges unjustified, citing a 10-year delay in raising the demand and ruling that the infrastructure was the licensee’s responsibility under GTCS. For HT SC No. SKL-423, the commission held that GTCS did not apply since the line was used for captive solar power evacuation. It rejected APTRANSCO’s reliance on internal guidelines (TOO No. 20) as lacking legal authority.
APERC referred to its 2023 order in Sarda Metals vs. APTRANSCO and a 2015 APTEL judgment, applying the doctrine of laches to dismiss the delayed demands.
APTRANSCO is required to refund Rs 46.05 lakhs for SKL-139 and Rs 2.37 lakhs for SKL-423 within one month. The commission denied interest on the refund to avoid impacting consumers.
Petition No: O.P No. 28 of 2024 | Read the full order here.
UERC approves Rs 779 million investment for three substations in Haldwani
The Uttarakhand Electricity Regulatory Commission (UERC) has granted in-principle approval to Uttarakhand Power Corporation Ltd (UPCL) for constructing three 33/11 kV substations and related infrastructure in Haldwani, Nainital district. The total project cost is Rs 779 million.
The substations will be located in Kathgodam, Dahariya (near Govt. ITI), and Jaipur-Padli. Each will have a 2×12.5 MVA capacity. The projects are expected to be completed within 12 months, though Jaipur-Padli is pending land acquisition.
Kathgodam will replace an overloaded substation on PTCUL-owned land, diverting 619A load from four feeders. Dahariya will reduce the load on Kamaluaganj and Kathghariya substations and benefit 8,000 consumers experiencing low voltage (8.5–9.5 kV). Jaipur-Padli will shift 305A load from Kamaluaganj, but progress depends on land transfer from the state revenue department.
The Commission directed UPCL to secure land for Jaipur-Padli within six months or submit a new application. It also excluded Rs 30 million in annual maintenance costs from the capital budget, citing non-compliance with prudency norms.
All substations need to comply with the “N-1” contingency standard outlined in UERC’s 2018 Distribution Code. The funding structure includes 70% from Rural Electrification Corporation (REC) loans and 30% state equity, with procurement through competitive bidding.
UERC flagged inconsistencies in UPCL’s revised load growth estimate, from 1% to 10%, and cautioned against poor planning. Voltage irregularities were confirmed through meter reading instrument (MRI) data.
The Commission’s conditional approval requires adherence to Central Electricity Authority (CEA) 2023 safety standards, timely completion, and a post-commissioning cost-benefit audit.
Petition No. 39 of 2025 | Read the full order here.
UPERC approves Rs 221.9 million transmission charges for Meerut–Shamil line
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved annual transmission charges of Rs 221.9 million for the Meerut (765 kV)–Shamil 400 kV double-circuit line project, developed by Meerut Shamil Power Transmission Limited (MSPTL) under a tariff-based competitive bidding (TBCB) process. The order finalizes tariff adoption and addresses procedural delay concerns.
The project, awarded to Megha Engineering & Infrastructures Ltd. (MEIL) as the lowest bidder, aims to strengthen intra-state transmission capacity. MEIL’s bid of Rs 221.9 million per year was significantly lower than Power Grid Corporation’s second-lowest bid of Rs 455.4 million.
UPERC approved the tariff under Section 63 of the Electricity Act, 2003, affirming that the bidding process followed central guidelines. The adopted tariff will be applicable for 35 years, subject to license renewal after 25 years.
U.P. Power Corporation Ltd. (UPPCL) raised objections to MSPTL’s 118-day delay in petition filing, arguing for penalties under the Transmission Service Agreement (TSA). MSPTL attributed the delay to regulatory bottlenecks and cited deadline extensions by the Bid Process Coordinator, REC Power Development and Consultancy Ltd. (RECPDCL). UPERC rejected the penalty request, stating the delay was procedural and not MSPTL’s fault.
The Commission also clarified that RECPDCL retained authority to extend deadlines until 6 April 2024, the date MEIL acquired MSPTL. All extensions granted before that date were deemed valid.
Petition No: 2098 of 2024 | Read the full order here.
TGERC revises ARR and SLDC charges for TGTransco for FY 2025–26
The Telangana Electricity Regulatory Commission (TGERC) has issued its order on the Aggregate Revenue Requirement (ARR) and revised State Load Despatch Centre (SLDC) charges for FY 2025–26. The order, dated 29 April 2025, also reviews the annual performance for FY 2023–24.
The Transmission Corporation of Telangana Limited (TGTransco) had proposed an ARR of Rs 76.56 crore and SLDC charges of Rs 2,594.98 per MW/month. After review, the commission approved a higher ARR of Rs 82.37 crore and revised SLDC charges to Rs 2,938.55 per MW/month. These rates will be effective from 1 May 2025 to 31 March 2026.
TGTransco reported a revenue shortfall of Rs 7.07 crore in FY 2023–24, mainly due to higher employee costs from pay revisions and arrears. TGERC allowed these expenses but rejected certain capital cost claims due to the absence of loan backing. For FY 2025–26, the approved ARR includes Rs 61.56 crore for operations and maintenance, Rs 8.52 crore for depreciation, and Rs 1.92 crore for return on equity.
The commission approved a capital investment of Rs 31.08 crore for new projects. This includes system upgrades under SCADA/EMS and implementation of the Scheduling and Accounting, Metering and Settlement of Transactions (SAMAST) project. A major part of the capital expenditure will go towards setting up a Backup SLDC in Warangal, targeted for commissioning in FY 2026–27.
Petition No: O.P.No.20 of 2025 & I.A.No.02 of 2025 | Read the full order here.
TGERC approves revenue surplus and revises ARR, capex, and tariffs for TGTransco
The Telangana Electricity Regulatory Commission (TGERC) has issued its final order on TGTransco’s true-up for FY 2023–24 and the revised Aggregate Revenue Requirement (ARR) and transmission tariffs for FY 2025–26.
TGTransco reported a revenue surplus of Rs. 1,608.87 crore for the fourth control period (FY 2019–20 to FY 2023–24), citing lower-than-expected capitalisation and depreciation costs. TGERC approved the surplus but rejected additional income tax claims, allowing only Rs. 39.72 crore for FY 2023–24.
For FY 2025–26, TGTransco sought approval for a capital expenditure of Rs. 5,032.55 crore—nearly five times the Rs. 1,029.73 crore approved in the earlier Multi-Year Tariff (MYT) order. The Commission allowed a capitalisation of only Rs. 1,769.60 crore, noting lack of adequate justification.
TGERC approved an ARR of Rs. 1,840.91 crore for FY 2025–26, down from TGTransco’s proposal of Rs. 2,080.50 crore. This reduction was based on expense rationalisation and adjustments for non-tariff income.
Revised transmission tariffs have been set at Rs. 68.64 per kW/month for long-term users and Rs. 0.09 per kW/hour for short-term users. The approved contracted capacity stands at 22,351.33 MW. The Commission retained the transmission loss target at 2.46% (±0.2%) for FY 2025–26, urging TGTransco to further improve operational efficiency.
Petition No: O.P.No.19 of 2025 & I.A.No.1 of 2025 | Read the full order here.
CERC approves renaming of Patran Transmission Company
The Central Electricity Regulatory Commission (CERC) has approved the renaming of Patran Transmission Company Limited to Patran Transmission Company Private Limited. The order, dated 26 April 2025, states that the change will not affect the company’s inter-state transmission licences or regulatory obligations.
The company converted to private limited status after receiving approval from the Ministry of Corporate Affairs on 6 March 2024. A revised Certificate of Incorporation was issued on 16 May 2024.
Patran Transmission holds two licences from CERC—one from 2014 for a 400 kV sub-station and another from 2023 for capacity augmentation.
Petition No: 518/RC/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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