Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(CERC) 85

CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, CJ, Shri Ramesh Babu V., J
Approval under Regulation 86 of CERC (Conduct of Business) Regulations 1999 and CERC (Terms and Conditions of Tariff) Regulations 2019 for the determination of transmission tariff from COD to 31.3.2024 for Asset-I: Combined Asset of (1) LILO of one circuit of Bamnauli-Jattikalan 400 kV D/C line along with associated bays at Dwarka-I Sub-station (2) 400/200 kV 500 MVA ICT-I II & III along with associated bays at Dwarka-I Sub-station (3) 400 kV 125 MVAR bus reactor along with associated bay at Dwarka-I Sub-station; Asset-II: 400/200 kV 500 MVA ICT-IV along with associated bays at Dwarka-I Sub-station; Asset-III: LILO of circuit-2 of 400 kV D/C Bawana-Mandola line at Maharanibagh Sub-station along with associated bays; Asset-IV: LILO of circuit-1 of 400 kV D/C Bawana-Mandola line at Maharanibagh Sub-station along with associated bays; and Asset-V: By passing of LILO of one circuit of 400 kV Dadri–Ballabhgarh D/C line at Maharanibagh (existing) (to be used during emergency) under “Creation of 400/220 kV Sub-stations in NCT of Delhi during 12th plan period (Part-A)” in the Northern Region. Power Grid Corporation of India Limited
Petition No. 132/TT/2023

Advocates:
For the Appellants/Petitioners: Shri Vivek Kumar Singh, Shri V.C. Sekhar

The order addresses the regulatory framework for determining transmission tariffs under CERC regulations, emphasizing compliance with operational standards and approvals for capitalization of assets throughout their operational period.

Headnote:(A) Central Electricity Regulatory Commission (CERC) (Terms and Conditions of Tariff) Regulations, 2019 - Determination of Transmission Tariff - Approval sought for transmission tariff for various assets from COD to 31.3.2024 - Petitioner is a deemed transmission licensee - Regularization of costs and approvals for various assets, including capital expenditure adjustments and tariff recoveries. (Paras 1-102)

(B) Methodology for approval of Date of Commercial Operation (COD) - The Commission affirmed the necessity of evidence for COD determination and scrutinized substantial delays due to land allocation, forest clearances, and COVID-19 impacts, approving extensions in virtually all cases. (Paras 10-76)

(C) The Commission emphasized the relevant laws and frameworks for capital costs, interest on loans, and operational management, strictly adhering to stipulated limits set within the operational manuals regulating these determinations. (Paras 86-126)

(D)

Result: Petition partly allowed, outlining the specific approved transmission charges and operational mechanisms. (Paras 130-132)

Table of Content
1. approval for tariff determination (Para 1 , 2 , 3 , 4 , 5)
2. petitioner's claims and submissions (Para 6 , 7 , 8 , 11)
3. review of regulatory compliance and considerations (Para 12 , 13 , 14)
4. determination of time overrun and capital costs (Para 26 , 27 , 28)
5. final decision on claims and approvals (Para 44 , 45 , 46)
6. conclusion and order for recovery of dues (Para 59 , 127 , 129 , 132)

ORDER

The instant Petition has been filed by the Petitioner, Power Grid Corporation of India Limited, a deemed transmission licensee, for determination of tariff under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations , 2019 (hereinafter referred to as “the 2019 Tariff Regulations”) for the period from COD to 31.3.2024 in respect of the following assets under “Creation of 400/220 kV Sub-stations in NCT of Delhi during the 12th plan period (Part-A)” in the Northern Region.”:

Sl. No.	Asset No	Asset Name	COD
1	Asset-I	Combined Asset of (1) LILO of one circuit of Bamnauli- Jattikalan 400 kV D/C line along with associated bays at Dwarka-I Sub-station, (2) 400/200 kV, 500 MVA ICT-I, II & III along with associated bays at Dwarka-I Sub-station, (3) 400 kV, 125 MVAR bus reactor along with associated bay at Dwarka-I Sub-station	10.2.2022
2	Asset-II	400/200kV, 500 MVA ICT-IV along with associated bays at Dwarka-I Sub-station	1.4.2022
3	Asset-III	LILO of circuit-2 of 400 kV D/C Bawana-Mandola line at Maharanibagh Sub-station, along with associated bays	31.3.2022
4	Asset-IV	LILO of circuit-1 of 400 kV D/C Bawana-Mandola line at Maharanibagh Sub-station, along with associated bays	10.4.2022
5	Asset-V	By passing of LILO of one circuit of 400 kV line at Maharanibagh Dadri–Ballabhgarh D/C (existing) (to be used during emergency)	25.2.2023

2. The Petitioner has made the following prayers in the instant Petition:

“

1) Admit the capital cost as claimed in the Petition and approve the Additional Capitalisation incurred/projected to be incurred.

2) Approve the Transmission Tariff for the tariff block 2019-24 block for the asset covered under this petition, as per para –8.4 above.

3) 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 Regulation 2019 as per para 8 above for respective block.

4) Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation 70 (1) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations , 2019, and other expenditure ( if any) in relation to the filing of petition.

5) Allow the petitioner to bill and recover Licensee fee and RLDC fees and charges, separately from the respondents in terms of Regulation 70 (3) and (4) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations , 2019.

6) 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 2019-24 period, if any, from the beneficiaries.

7) 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 8.9 above.

8) Allow the petitioner to claim the capital spares at the end of tariff block as per actual.

9) 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.

10) Allow interim tariff in ac

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