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2025 Supreme(Online)(CERC) 181
CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, CJ, Shri Ramesh Babu V., J, Shri Harish Dudani, J
Power Grid Corporation of India Limited – Appellant
Versus
West Bengal State Electricity Distribution Company Limited – Respondent
Petition No. 45/TT/2023
For the Appellants/Petitioners: Ms. Swapna Seshadri, Shri Utkarsh Singh, Ms. Sneha, Ms. Rohini Prasad, Shri Mohd. Mohsin, Shri Zafrul Hasan, Shri Arjun Malhotra
For the Respondents: Not explicitly stated
The court affirmed the importance of transparent communication regarding delays and the necessity of thorough documentation to substantiate claims related to transmission tariff adjustments and associated capital costs.
Headnote:(A) Electricity Act, 2003 - Section 68 - Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 - Approval of Transmission Tariff - The petitioner sought approval for tariff determination linked to transmission assets from commercial operation to March 2024. The Commission evaluated factors leading to delays including forest clearances, law and order issues, and COVID-19 impacts. The project total cost was acknowledged within the revised capital expenditure norms. The petitioner's claims for additional capital and interest adjustments were partially accepted based on substantiated evidence, while claims lacking documentation were scheduled for further review. Performance metrics were established to monitor ongoing compliance and delays. (Paras 4-57)
(B) Delay Condonation - The court evaluated timelines and reasons attributed to time overruns involving various uncontrollable factors such as statutory clearances and public grievances. An allowance for established delays due to uncontrollable factors was acknowledged. (Paras 25-56)
| Table of Content |
|---|
| 1. determination of transmission tariff (Para 1 , 2 , 3) |
| 2. cost variation and approval (Para 20 , 21 , 23) |
| 3. time overrun approval (Para 28 , 30 , 31) |
| 4. return on equity and capital cost (Para 79) |
ORDER
The instant Petition has been filed by Power Grid Corporation of India Limited for the determination of transmission tariff under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 (hereinafter referred to as the 2019 Tariff Regulations) from the proposed COD to 31.3.2024 for Asset: 400kV D/C (quad) Alipuduar-Jigmeling Transmission Line (Indian Portion) and 2 Nos. 400kV line bays at Alipurduar Substation under "Transmission System Strengthening in Indian System for Transfer of Power from Mangdechhu Hydroelectric Project in Bhutan”.
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
8.40 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.
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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 claim the overall security expenses and consequential IOWC on that security expenses separately 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 accordance with Regulation 10 (3) of Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 for purpose of inclusion in the PoC charges.
11) Allow the entire initial spares as claimed in the instant petition on project level.
12) Condone the delay in completion of subject assets on merit of the same being out of the control of Petitioner in line with CERC Regulations’2019 and pass such other relief as the Commission deems fit and appropriate under the circumstances of the case and in the interest of justice.”
Background
3. The brief facts of the case are as follows:
a. Punatsangchhu-I (1200MW), Punatsangchhu II (990MW), Mangdechhu (720MW), and Wangchhu (570MW) are hydro generating stations being developed in Bhutan and are at various stages of development. Generations from these projects would be transferred to India after meeting small local demand in Bhutan. The associated transmission systems evolved as part of the National Transmission Grid Master Plan (NTGMP) for B
