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2025 Supreme(Online)(CERC) 97

CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, CJ, Shri Ramesh Babu V., J, Shri Harish Dudani, J
Powerica Limited – Appellant
Versus
Central Transmission Utility of India Limited – Respondent
Petition No. 187/MP/2022 | IA No. 70/2022



Advocates:
For the Appellants/Petitioners: Shri Venkatesh, Shri Bharat Gangadharan, Shri Ashutosh Srivastava, Shri Nihal Bhardwaj
For the Respondents: Ms. Suparna Srivastava, Ms. Divya Sharma, Shri Arshia, Shri Ranjeet Rajput, Ms. Priyanshi Jadia, Shri Gajendra Sinh, Shri Alok Mishra

Transmission charge liability arises when the transmission system is deemed in operation, irrespective of generational delays due to force majeure, maintaining obligations under the Transmission Service Agreement and applicable regulations.

Headnote:(A) Electricity Act, 2003 - Sections 79(1)(c) and (f) - Transmission Service Agreement dated 23.10.2019 - Deemed commercial operation date declared by JKTL on 12.04.2022 was set aside, with COD determined as 27.04.2022. Petitioner is liable to pay transmission charges from 27.04.2022 until the COD of its generation capacity due to delay in commissioning caused by unscheduled outages of transmission lines, which were not the fault of the petitioner. Quashing of bilateral bill dated 02.06.2022 ordered. (Paras 1, 38, 49, 66, 94)

Facts of the case:
The Petitioner filed for relief against JKTL's deemed COD and billing for transmission charges without completion of all system elements or proper notice, citing various delays and force majeure conditions impacting commissioning.

Findings of Court:
The court found the deemed COD of JKTL improperly declared without necessary completion and notice requirements, concluding the Petitioner should only bear proportionate billing charges for its operational capacity as defined in regulations.

Issues: Key issues included the legality of JKTL's COD declaration, the timing of transmission charge liability for the Petitioner, and whether compensation for generation losses was warranted due to outages.

Ratio Decidendi: The court articulated that the liability for transmission charges arose concurrently with the transmission system's readiness independent of asserted force majeure conditions and specified proportional charges therein.

Result: Petition granted; the disputed bill was quashed, with directions to recalculate the transmission charges based on revised responsibilities.

Table of Content
1. introduction of the case background and parties. (Para 1 , 2)
2. petitioner’s claims and prayers regarding transmission charges. (Para 3)
3. court's requests for information and status on various parties. (Para 4 , 6 , 7)
4. issues of force majeure and readiness of transmission system. (Para 5 , 8 , 9 , 10)
5. responses and clarifications by ctuil and jktl. (Para 11 , 12)
6. details on procedural adherence and claims for transmission costs. (Para 13 , 14 , 15)
7. analysis leading to the court's decision on deemed cod. (Para 16 , 17 , 18)
8. legal basis for determining financial responsibilities. (Para 19 , 20)
9. review of regulatory framework supporting the judgment. (Para 21 , 22 , 23)
10. conclusion on the transmission costs assessment. (Para 24 , 25)

ORDER

Powerica Limited (hereinafter to be referred as ‘Petitioner’), has filed the present Petition under Section 79 (1)(c) and (f) of the Electricity Act, 2003 (‘the Act’) read with the Transmission Service Agreement dated 23.10.2019 executed between Jam Khambaliya Transco Limited (hereinafter referred to as ‘JKTL’) and the Petitioner, and the Long-Term Access Agreement dated 17.10.2019 executed between Power Grid Corporation of India Ltd. (hereinafter referred to as ‘PGCIL’). The Petitioner has made the following prayers:

(a) Quash the Bilateral Bill dated 02.06.2022 raised by CTU/Power Grid as being illegal and unlawful and declare that the Petitioner is not liable to pay the transmission charges/losses contained in the Bilateral Bill dated 02.06.2022;

(b) Declare that the Petitioner is not liable to pay transmission charges/losses until the extended SCOD and in any event, not prior to the start date of the LTA or until all elements in the TSA are operationalized, whichever is later;

(c) Set aside the deemed COD declared by JKTL in its letter dated 20.04.2022;

(d) Direct CTU/JKTL to grant extension in the timelines under the TSA and the LTA Agreement in alignment with the period of extension granted by SECI for commissioning of the Project;

(e) Direct JKTL to pay Rs. 1.48 Crores for the generation losses suffered by the Petitioner due to unscheduled outage of 400kV JKTL-Bhachau line by JKTL from 17.05.2022 to 31.05.2022.;

(f) As an interim measure, direct CTU/JKTL to not take any coercive and precipitative action against the Petitioner including new bills being issued by them for the period of May and onwards along with applicability of any penalties, interests etc. under the TSA and the LTA Agreement; including but not limited to encashment of any letter of credit and/or payment security; and

(g) Pass such further order or orders as this Hon'ble Commission may deem just and proper in the circumstances of the case.

2. The Petitioner has also filed an IA No 70/2022 seeking a stay on the invoices raised by CTU and restraining the CTU and POSOCO from taking any coercive actions against the Petitioner. The Petitioner has made the following prayers:

(a) Grant an ex-parte ad-interim stay on the invoices raised by CTU/Respondent No. 1 and letters issued by CTU/Respondent No. 1 and POSOCO under the LPS Rules; Restrain the CTU/Respondent No. 1 and POSOCO from taking any coercive actions against the Applicant, including but not limited regulation and/or reduction of LTA granted to it;

(b) Direct CTU/Respondent No. 1 and POSOCO to remove the name of the Applicant from the list of payment defaulters, including but not limited to, removal of name from all the “Statement of Trigger” list as well as from any other record, whether maintained online or otherwise; AND/OR (c) Pass any other/further direction(s)/order(s) in the interest of justice and equity

Submissions of the Petitioner:

3. The Petitioner has made the following submissions:

(a) On 21.12.2018, SECI issued RfS for setting up of 1200 MW ISTS connected Wind Power Projects (Tranche-VI) on ‘Build Own Operate’ basis. The Petitioner submitted the bid for the Wind Power Project of 50.6 MW to be developed in Dwarka, Gujarat.

(b) On 16.04.

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