Omnicore Weekly #250 - 13 March 2026

Dear Patrons & Readers, 

In the matter of: Approval under Section 62 read with Section 79 (1)(d) of the Electricity Act, 2003 and under Regulation 15 (1)(a) and Regulation 23 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023 for truing up of the transmission tariff for the 2019-24 tariff period under the Central Electricity Regulatory Commission (Terms and Condition of Tariff Regulations) 2019 and the determination of transmission tariff for the 2024-29 tariff period under the Central Electricity Regulatory Commission (Terms and Condition of Tariff Regulations) 2024 for the transmission assets under “Barh Transmission System” in the Northern, Eastern and Western Region

Power Grid Corporation of India Limited

Versus

Bihar State Power (Holding) Company Limited,  West Bengal State Electricity Distribution Company Limited, Grid Corporation of Orissa Limited & 21 Others

Background:

The instant Petition has been filed by Power Grid Corporation of India Limited (hereinafter referred to as “the Petitioner / PGCIL”), for truing-up of the transmission tariff for the 2019-24 period, under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 (hereinafter referred to as “the 2019 Tariff Regulations”), and for the determination of transmission tariff for the 2024-29 period, under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024 (hereinafter referred to as “the 2024 Tariff Regulations”), with respect to the following assets (hereinafter referred to as “the transmission assets / Combined Asset”) under “Barh Transmission System” (hereinafter referred to as “the transmission system / transmission project") in the Northern, Eastern and Western Region.

2. The Petitioner has made the following prayers in the instant Petition: a) “Approve the trued-up Transmission Tariff for 2019-24 block and transmission tariff for 2024-29 block for the assets covered under this petition, as per para 20 & 21 above.

b) Approve the Additional capitalization claimed for 2019-24 block and for 2024-29 block for the assets covered under this petition.

c) Approve the initial spares claimed on project level computation.

d) Allow the petitioner to recover the shortfall or refund the excess Annual Fixed Charges, on account of Return on Equity due to change in applicable Minimum Alternate/Corporate Income Tax rate as per the Income Tax Act, 1961 (as amended from time to time) of the respective financial year directly without making any application before the Commission as provided in Tariff Regulations, 2019 and Tariff Regulations, 2024 as per para 20 and 21 above for respective block.

e) Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation 94 (1) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024, and other expenditure (if any) in relation to the filing of petition.

f) Allow the petitioner to bill and recover RLDC fees & charges and Licensee fee, separately from the respondents in terms of Regulation 94 (3) and (4) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024.

g) Allow the petitioner to bill and adjust impact on Interest on Loan due to change in Interest rate on account of floating rate of interest applicable during 2024-29 period, if any, from the respondents 

h) Allow the petitioner to file a separate petition before the Commission for claiming the overall security expenses and consequential IOWC on that security expenses as mentioned at para 27 above.

i) Allow the petitioner to file a separate petition before the Commission for claiming the overall insurance expenses and consequential IOWC on that insurance expenses as mentioned at para 27 above.

j) Allow the petitioner to file a separate petition before the Commission for claiming the overall capital spares at the end of tariff block as per actual as mentioned at Para 27 above.

k) Allow the petitioner to claim expenses of CTUIL borne by POWERGRID through a separate petition as mentioned at para 28 above.

l) Allow the petitioner to continue the recovery of annuity payment (Land Compensation) as allowed by the Commission vide order dated 08.02.2021 in Petition No. 84/TT/2020.

m) Allow the Petitioner to bill and recover GST on Transmission Charges separately from the respondents, if GST on transmission is levied at any rate in future. Further, any taxes including GST and duties including cess etc. imposed by any statutory/Govt./municipal authorities shall be allowed to be recovered from the beneficiaries.

and pass such other relief as the Commission deems fit and appropriate under the circumstances of the case and in the interest of justice.”

3. The brief facts of the case are as follows:

a) The Investment Approval (IA) for the implementation of the transmission system was accorded by the Ministry of Power (MoP), Government of India vide letter dated 12.12.2005 at an estimated cost of ₹377945 lakh including an IDC of ₹17941 lakh. Further, Revised Cost Estimate (RCE) of the transmission system was approved by the Board of Directors (BoD) of the Petitioner vide Memorandum Ref. No. C/CP/RCE dated 23.1.2012 at an estimated cost of ₹428259.00 lakh including an IDC of ₹41326.00 lakh based on the 1st Quarter 2011 price level.

b) The entire scope of the work as per the IA is completed and covered under the instant transmission system. The details of the same are as under:

Transmission line:

i. LILO of Bina - Nagda at Shujalpur;

ii. LILO of Kahalgaon-Patna 400 kV D/C (Quad) line at Barh;

iii. Barh-Ballia 400 kV D/C (Quad) line; iv. Ballia-Bhiwadi 2500 MW± 500 kV HVDC Bipole line;

v. Seoni-Bina 765 kV S/C line (to be initially charged at 400 kV);

vi. 2 Nos. of the 66 kV Earth Electrode lines (one each at Balia and Bhiwadi 2 conductors of Twin Moose for each line).

Sub-stations:

i. Ballia 400 kV Sub-station Extension;

ii. Bhiwadi 400/220 kV Sub-station Extension;

iii. Seoni 400 kV Sub-station Extension;

iv. Bina 400 kV Switching Station Extension;

v. Ballia and Bhiwadi Converter Stations including Earth Electrode

vi. Stations and Repeater Stations;

vii. Barh 400 kV Switchyard extension (NTPC) – Provision of Power Line Carrier Communication.

c) The details of the date of commercial operation (COD) of the transmission assets along with the time over-run covered under the instant Petition.

d) The Commission vide its order dated 20.1.2014 in Petition No. 150/TT/2013, allowed the transmission tariff from its COD to 31.3.2014 for Asset-I (part of the instant Combined Asset-1). Further, the Commission had determined the transmission tariff vide its order dated 4.2.2014 in Petition No. 96/TT/2012 for Asset-II (part of the instant Combined Asset-1); order dated 18.2.2014 in Petition No. 152/TT/2013 for Asset-III (part of the instant Combined Asset-2); order dated 8.6.2011 in Petition No. 238/2010 for Asset-IV (part of the instant Combined Asset-2); and order dated 30.6.2015 in Petition Nos. 267/2010 and 227/TT/2013 for Asset-V (part of the instant Combined Asset-2).

e) The Commission vide its order dated 30.6.2015 in Petition No. 267/2010 and Petition No. 227/TT/2013, revised the final transmission tariff for Asset-V based on the admitted capital cost of ₹73594.00 lakh as on COD. The Additional Capital Expenditure (ACE) of ₹300.70 lakh and ₹400 lakh claimed for the FYs 2012-13 and 2013-14 respectively, was disallowed and restricted to the revised approved apportioned cost, i.e., ₹73594.00 lakh.

f) Subsequently, the Commission vide its order dated 30.3.2016 in Petition No. 31/TT/2015, had trued-up the transmission tariff for the 2009-14 tariff period and determined the transmission tariff for the 2014-19 tariff period with respect to Asset-I, Asset-II, Asset-III and Asset-IV. Further the commission vide its order dated 31.10.2017 in Petition No. 91/TT/2017 had trued-up the transmission tariff for the 2009-14 tariff period and determined the transmission tariff for the 2014-19 tariff period with respect to Asset-V.

g) The Commission vide its order dated 8.2.2021 in Petition No. 84/TT/2020, had trued-up the transmission tariff for the Combined Asset-I (comprising Asset-I & Asset-II) and Asset-III, Asset-IV and Asset-V on an individual basis for the 2014-19 tariff period and determined the transmission tariff with respect to the Combined Asset-I (comprising Asset-I & Asset-II) & Combined Asset-II (comprising Asset-III, Asset-IV and Asset-V) for the 2019-24 tariff period.

h) The Petitioner has filed the instant Petition for truing up of the transmission tariff for the 2019-24 tariff period and the determination of the transmission tariff with respect to the transmission assets for the 2024-29 tariff period.  

4. The Respondents are the Distribution Licensees and Power Departments, and Designated Inter State Transmission Customers, mainly beneficiaries of the Northern, Eastern and Western Region, who are procuring transmission services from the Petitioner.

5. The Petitioner has served a copy of the Petition on the Respondents, and notice regarding the filing of this Petition has also been published in the newspapers in accordance with Section 64 of the Electricity Act, 2003 (hereinafter referred to as “the Act”). However, no comments or suggestions have been received from the general public in response to the aforesaid notices published in the newspapers by the Petitioner.

6. The Respondent No. 13, Uttar Pradesh Power Corporation Limited (UPPCL), has filed its reply vide affidavit dated 3.7.2025 and has raised the issues with respect to inadequate justification for the Additional Capital Expenditure (ACE), violation of the cutoff date norms, incorrect fee adjustment and Petition costs and non-compliance with Regulation 34 of the 2024 Tariff Regulations with respect to the Auditor’s Certificate reconciliation documents validation. The Petitioner vide its affidavit dated 3.10.2025 has filed the rejoinder to the reply of UPPCL.

7. The final hearing in the matter were held on 20.11.2025 and the order was reserved.

8. This order is being passed considering the Petitioner’s affidavit dated 16.10.2024, 16.5.2025, 30.7.2025, 9.9.2025 & the UPPCL’s reply filed vide affidavit dated 3.7.2025 and the Petitioner’s rejoinder affidavit dated 3.10.2025 to the reply of the UPPCL.

9. Having heard the Petitioner’s representatives and perused the material on record, we proceed to dispose of the Petition in the succeeding paragraphs