Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(CERC) 189

CENTRAL ELECTRICITY REGULATORY COMMISSION
Ramesh Babu V., Member, Harish Dudani, Member
Power Grid Corporation of India Limited – Appellant
Versus
Uttar Pradesh Power Corporation Limited – Respondent
Petition No. 541/TT/2025

Advocates:
For the Appellants/Petitioners: Shri Angaru Naresh Kumar, PGCIL, Shri Vivek Kumar Singh, PGCIL, Shri Vishal Sagar, PGCIL, Shri Ranjeet Pandey, PGCIL, Shri Piyush Avasthi, PGCIL, Ms. Suchitra, PGCIL, Shri Yatin Kalra, PGCIL
For the Respondents: None

Regulatory framework governs the approval of transmission tariffs, requiring justifications for capital and operational expenditures based on actual costs and adherence to stipulated regulations.

Headnote:(A) Electricity Act, 2003 - Sections 62 and 79(1)(d) - Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023 - Regulations 15(1)(a) and 23 - Truing-up of transmission tariff for the 2019-24 period and determination of tariff for the 2024-29 period for the Transmission System associated with Bairasuil in the Northern Region - Petitioner claims capital costs, operational expenses, and seeks approval for various capital and operational expenditures as per the Tariff Regulations. (Paras 1-105)

(B) Regulations concerning additional capitalization and depreciation - The Commission considers actual incurred expenditures and adherence to regulatory provisions for substantiating capital recovery claims. (Paras 19, 18, 33, 74)

(C) Reimbursement of application costs and publication expenses as per Regulation 94 - Petitioner entitled to recover costs associated with regulatory filings from beneficiaries. (Paras 87-89)

(D) Truing-up of transmission charges to be shared quarterly as per the sharing regulations. (Paras 102-104)

Findings of Court:
The trued-up Annual Fixed Charges and approved capital expenditures align with existing regulations, affirming the necessity for accurate and justifiable fiscal management in transmission tariffs.

Issues: The primary issues addressed were related to the justifications for capital expenditures and adherence to regulatory guidelines.

Ratio Decidendi: The court concluded that the claims submitted by the petitioner were consistent with the regulatory framework, allowing adjustments based on prudence checks and actual expenditures.

Result: Petition No. 541/TT/2025 disposed of in favor of the Petitioner, tariffs adjusted accordingly.

CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI Petition No. 541/TT/2025 Coram:

Shri Ramesh Babu V., Member Shri Harish Dudani, Member Date of Order: 18.03.2026 In the matter of:

Petition for approval under Section 62 read with Section 79 (1)(d) of the Electricity Act , 2003, and under Regulation 15(1)(a) and Regulation 23 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations , 2023, for the truing-up of the transmission tariff for the 2019-24 period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations , 2019, and the determination of the transmission tariff for the 2024-29 period under the , 2024, for the Transmission System associated with Bairasuil in the Northern Region.

And in the matter of:

Power Grid Corporation of India Limited, SAUDAMINI, Plot No.-2, Sector-29, Gurgaon-122001 (Haryana). ...Petitioner Versus

1. Uttar Pradesh Power Corporation Limited, Shakti Bhawan, 14, Ashok Marg, Lucknow – 226001.

2. Ajmer Vidyut Vitran Nigam Limited, Corporate Office, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road, Ajmer-305004 (Rajasthan).

3. Jaipur Vidyut Vitran Nigam Limited, 132 kV, GSS RVPNL Substation Building, Caligiri Road, Malviya Nagar, Jaipur-302017 (Rajasthan).

4. Jodhpur Vidyut Vitran Nigam Limited, New Power House, Industrial Area, Jodhpur – 342003 (Rajasthan).

5. Himachal Pradesh State Electricity Board Limited, Vidyut Bhawan, Kumar House Complex Building II, Shimla-171004.

6. Punjab State Power Corporation Limited, The Mall, PSEB Head Office, Patiala – 147001.

7. Haryana Power Purchase Centre, Shakti Bhawan, Sector-6, Panchkula -134109 (Haryana).

8. Jammu Kashmir Power Corporation Limited, 220/66/33 kV Gladni SS SLDC Building, Narwal, Jammu.

9. BSES Yamuna Power Limited, B-Block, Shakti Kiran Building, 2nd Floor, Near Karkardooma Court, Karkardooma, New Delhi-110092.

10. BSES Rajdhani Power Limited, BSES Bhawan, Nehru Place, New Delhi.

11. Tata Power Delhi Distribution Limited, 33 kV Substation Building, Hudson Lane, Kingsway Camp, North Delhi – 110009.

12. Chandigarh Electricity Department, Chandigarh Administration, Sector -9, Chandigarh.

13. Uttarakhand Power Corporation Limited, Urja Bhawan, Kanwali Road, Dehradun.

14. North Central Railway, Allahabad.

15. New Delhi Municipal Council, Palika Kendra, Sansad Marg, New Delhi-110002.

...Respondents For Petitioner : Shri Angaru Naresh Kumar, PGCIL Shri Vivek Kumar Singh, PGCIL Shri Vishal Sagar, PGCIL Shri Ranjeet Pandey, PGCIL Shri Piyush Avasthi, PGCIL Ms. Suchitra, PGCIL Shri Yatin Kalra, PGCIL For Respondents : None

ORDER

The instant Petition has been filed by Power Grid Corporation of India Limited (PGCIL) (hereinafter referred to as “the Petitioner”), a deemed transmission licensee, for the truing up of the transmission tariff for the 2019-24 period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations , 2019 (hereinafter referred to as “the 2019 Tariff Regulations”) and for the determination of the transmission tariff for the 2024-29 period under the , 2024 (hereinafter referred to as “the 2024 Tariff Regulations”) for the assets forming part of the Transmission System associated with Bairasuil in the Northern Region (hereinafter referred to as “the transmission system”).

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

“a) Approve the trued-up Transmission Tariff for 2019-24 block and transmission tariff for 2024-29 block for the assets covered under this petition, as per para 13 & 14 above. b) Admit the capital cost claimed, and additional capitalization incurred during 2019-24 and projected to be incurred during 2024-29.

c) 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 a