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2025 Supreme(Online)(CERC) 158
CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, CJ, Shri Ramesh Babu, J, Shri Harish Dudani, J
Ratnagiri Gas and Power Private Limited – Appellant
Versus
Maharashtra State Electricity Transmission Company Limited – Respondent
Petition No. 344/MP/2020
For the Appellants/Petitioners: Ms. Swapna Seshadri, Ms. Ritu Apurva, Ms. Rucha Pande, S. P. Kesarwani
For the Respondents: Shri Shaida Dass, Shri Akash Lamba
The regulatory commission lacks jurisdiction for determining transmission charges in the absence of a formal agreement identifying the contract path for inter-state power transmission, directing parties to approach the state regulatory commission instead.
Headnote:(A) Electricity Act, 2003 - Sections 79(1)(c) and (f) - Adjudication of transmission charges by state transmission utility - Petition by gas-based power plant seeking directional relief on transmission charges for inter-state power flow to Indian Railways - Claims based on WRPC communication of 17.08.2010, seeking charges at Rs. 0.73 Lakhs/MW/month and refunds of excess charges with interest from 01.04.2017. (Paras 28, 30, 34)
(B) Jurisdiction of commission - Appropriate forum to determine transmission charges - Contention that no formal contract exists between petitioner and state transmission utility leads to dismissal of petition and reliance on state regulatory commission for tariff determinations. (Paras 30, 40)
Facts of the case:
The petitioner seeks directions against the Maharashtra State Electricity Transmission Company Limited for charging certain inter-state transmission rates as per a prior communication and claiming refunds for excess charges paid for 330 MW power allocated to Indian Railways since 01.04.2017. (Paras 4(d), 28, 30)
Findings of Court:
The court found that there is no contractual relationship between the petitioner and the state transmission utility for determining the transmission charges. Jurisdiction lies within the domain of the state regulatory commission. (Paras 30, 40)
Issues: The primary questions were whether the regulatory commission has the authority to adjudicate the transmission charges in the context of an alleged lack of a contract identifying the delivery path for electricity. (Paras 32, 34)
Ratio Decidendi: The court concluded that disputes related to inter-state power transmission must be adjudicated by the appropriate regulatory commission, especially in absence of agreed contracts outlining specific transmission paths or rates. (Paras 40, 41)
Result: Petition dismissed, with parties directed to seek relief with the state regulatory commission regarding transmission charges.
ORDER
The present Petition is filed under Section 79 (1) (c) and (f) of the Electricity Act, 2003 with the following prayers:
(a) Direct MSETCL to charge the transmission charges on 330 MW inter-state power from RGPPL to Indian Railways at Rs. 0.73 Lakhs/MW/month in the terms of the WRPC communication dated 17.8.2010.
(b) Direct MSETCL to refund the transmission charges levied in excess of Rs. 0.73 Lakhs/MW/month for the period from 01.04.2017 onwards and continuing till date.
(c) Direct MSETCL to refund the above amounts along with the interest of SBI MCLR Rate applicable plus 4 %.
(d) Direct that in future, MSETCL shall levy transmission charges on the 330 MW RGPPL power flowing on inter-state basis based on Rs. 0.73 Lakhs /MW/month.
(e) Pass such other further orders which the Hon’ble Commission may deem just in the facts and circumstances of the present case.
Submissions of Petitioner:
2. The Petitioner has mainly submitted as follows:
(a) Petitioner RGPPL operates a 1967.08 MW gas-based combined cycle power project consisting of three power blocks of capacity, namely Power Block-1 of 640MW (2*205+1*230), Power Block 2 & 3 of 663.54 MW (2*213+1*237.54) each, respectively. While 95% of the electricity is allocated to the Maharashtra State Electricity Distribution Company Limited (MSEDCL), the remaining 5% is allocated to the Union Territories of Daman & Diu (DD), Dadra & Nagar Haveli (DNH), and Goa. 540 MW of capacity has been allocated to Indian Railways out of Maharashtra’s share for 5 years commencing on 01.04.2017.
(b) RGPPL is seeking directions to the Respondent No. 1 to charge transmission charges on 330 MW inter-state power from RGPPL to Indian Railways at Rs. 0.73 Lakhs/MW/month in terms of the WRPC communication dated 17.8.2010 and to refund the transmission charges levied in excess of Rs. 0.73 Lakhs/MW/month for the period from 01.04.2017 onwards and continuing till date with the interest of SBI MCLR Rate applicable plus 4%.
(c) Transmission charges for inter-state power levied by Maharashtra State Electricity Transmission Company Limited (MSETCL) on Indian Railways are, in turn, recovered by Indian Railways from RGPPL. The transmission charges are for the use of 400 KV lines of MSETCL, namely, Dabhol - Nagothane lines, which were set-up more than 20 years ago and are being used for the conveyance of electricity of Indian Railways from RGPPL on an inter-state basis (330 MW) as an intervening transmission system.
(d) The Ministry of Power has allocated 540 MW of electricity from RGPPL to Indian Railways effective from 01.04.2017 onwards. The scheduling of this 540 MW allocation is being done by WRLDC as under:
| 210 MW | Central Railways |
| 90 MW | Western Railways |
| 85 MW | West Central Railways |
| 70 MW | South Eastern Railways |
| 50 MW | North Central Railways |
| 35 MW | South Western Railways |
(e) RGPPL has signed a Power Purchase Agreement (PPA) with Indian Railways on 29.03.2017. PPA was signed after the intervention of GoI to ensure the sustainability of RGPPL. It is stated that the PPA was entered into with an understanding that MSETCL would waive off STU charges and losses in the state system. This proposal has been approved by the Maharashtra Cabinet and is pending consideration by the Maharashtra Electricity Regulatory Commission. This should not affect the Petitioner’s right to claim a waiver. It was stated that the present Petition is without prejudice to RGPPL’s rights to claim waiver on the STU transmission charges and losses.
(f) The transmission of power beyond the bus-bar of RGPPL’s station up to the interface point, as well as the transmission charges for the utilisation of the transmission system owned by the STU/CTU, shall be borne by RGPPL, if not waived. The mechanism that operates is that the Indian Railways pays the bills raised by STU/CTU and deducts the amount from the next bill paid to the RGPPL. As and when Indian Railways receives any refund from CTU/STU, the said amount gets refunded to RGPPL.
(g) There are only two lines that are bein
