The determination of transmission tariff requires strict adherence to regulatory frameworks, with liabilities for mismatch periods attributed to the generator. Exemptions for delays due to force majeure are narrowly defined and do not absolve financial responsibilities.

ORDER

The Petitioner, Power Grid Corporation of India Limited, has filed the instant Petition 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 commercial operation date (COD) to 31.3.2024 for Asset-I: 1x500 MVA, 400/220 kV ICT (3rd) along with the associated bays and 2 Nos. 220 kV Bus Sectionalizer Bay (Hybrid/MTS) at Indore (POWERGRID) Sub-station, and Asset-II: 1 No. 220 kV Hybrid/MTS Line Bay at Indore Sub-station (hereinafter referred to as “the transmission assets”) under the “Connectivity and LTA for 325 MW Wind Project of M/s SBESS Services Projects Private Limited” (hereinafter referred to as “the transmission project”) in the Western Region.

2. The Petitioner has made the following prayers:

“1) Condone the delay in the commissioning of assets covered under this petition.

2) Approve DOCO of Asset-2 as 30.04.2022 and allow to recover the tariff of the mismatch period from SBESSSPTPL.

3) Approve the Transmission Tariff for the tariff block 2019-24 block for the assets covered under this petition, as per para –8.0 above.

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

5) 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.

6) 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.

7) 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.

8) 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.

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.

and pass such other relief as Hon’ble 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. The Investment Approval (IA) of the project was accorded by the competent authority of the Petitioner on 10.7.2021, vide Memorandum No. C/CP/PA2122-04-0I- IA008 dated 12.7.2021, with an estimated cost of ₹4465 lakh, including Interest During Construction (IDC) of ₹99 lakh based on the December 2020 price level.

b. The transmission project was approved in the 2^nd meeting of the Western Regional Power Committee on Transmission Planning (WRPCTP) held on 4.9.2020, and the 4^th meeting of the National Committee on Transmission (NCT) held on 20.1.2020 and 28.1.2020.

c. The Long Term Access (LTA) was granted to Respondent No. 9, M/s SBESS Services Project Two Private Limited (hereinafter referred to as