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 Central Electricity Regulatory Commission (Conduct of Business) Regulations 2023 for determination of the transmission tariff for the 2024-29 tariff period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations 2024 from COD to 31.3.2029 for 400/220 kV 1x500 MVA ICT 4th along with associated bays at Nalagarh Sub-Station under “Augmentation of Transformation Capacity at 400/220 kV Nalagarh Sub-Station by 400/220 kV 1x500 MVA ICT (4th) in the Northern region”. Power Grid Corporation of India Limited

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(CERC) 428

CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI

PETITION NO. 1003/TT/2025

Coram:
Shri Jishnu Barua, Chairperson
Shri Ramesh Babu V., Member
Shri Harish Dudani, Member
Shri Ravinder Singh Dhillon, Member

Date of Order: 02.09.2026

In the matter of:
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 Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023 for determination of the transmission tariff for the 2024-29 tariff period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024 from COD to 31.3.2029 for 400/220 kV, 1x500 MVA ICT 4th along with associated bays at Nalagarh Sub-Station under “Augmentation of Transformation Capacity at 400/220 kV Nalagarh Sub-Station by 400/220 kV, 1x500 MVA ICT (4th) in the Northern region”.

And in the matter of:
Power Grid Corporation of India Limited,
Katwaria Sarai, New Delhi. 110016.
Corporate Centre: ‘Saudamini’, Plot No-2, Sector-29, Gurgaon-122 001 (Haryana).
......Petitioner

Versus
1. Uttar Pradesh Power Corporation Limited,
Shakti Bhawan, 14, Ashok Marg
Lucknow - 226 001.
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 Sub- Station Building, Caligiri Road, Malviya Nagar,
Jaipur-302017 (Rajasthan).
4. Jodhpur Vidyut Vitran Nigam Limited,
New Power House, Industrial Area, Jodhpur – 342 003
(Rajasthan).
5. Himachal Pradesh State Electricity Board Limited,
Vidyut Bhawan Kumar House Complex Building II
Shimla-171 0046.
6. Punjab State Power Corporation Limited,
The Mall, PSEB Head Office, Patiala - 147 0017.
7. Haryana Power Purchase Centre,
Shakti Bhawan, Sector-6
Panchkula (Haryana) 134 1098.
8. Jammu Kashmir Power Corporation Limited,
220/66/33 kV Gladni Ss SLDC Buliding
Narwal, Jammu
9. BSES Yamuna Power Limited,
B-Block, Shakti Kiran, Bldg. (Near Karkardooma Court),
Karkardooma 2nd Floor, 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
16. Central Transmission Utility of India Limited,
Saudamini Plot no. 02,
Sector 29, Gurugram -122001.
…. Respondent(s)

For Petitioner: Shri Zafrul Hasan, PGCIL Shri Angaru Naresh Kumar, PGCIL
Shri Swapnil Verma, CTUIL

Sd/- Sd/- Sd/- Sd/-

(Ravinder Singh Dhillon) (Harish Dudani) (Ramesh Babu V.) (Jishnu Barua)
Member Member Member Chairperson

CERC Website S. No. 451/2026

ORDER

The instant petition has been filed by Power Grid Corporation of India Limited(Power Grid), for determination of tariff under Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024 (hereinafter referred to as “the 2024 Tariff Regulations”) of the period from COD to 31.3.2029 in respect of the following asset for 400/220 kV, 1x500 MVA ICT 4th along with associated bays at Nalagarh Sub- Station under “Augmentation of Transformation Capacity at 400/220 kV Nalagarh Sub-Station by 400/220 kV, 1x500 MVA ICT (4th) in the Northern region.

Asset No.	Asset Name	SCOD	COD
Asset-1	400/220 kV, 1x500 MVA ICT 4th along with associated bays at Nalagarh Sub-Station	7.6.2025	3.8.2025

2. The details of SCOD, COD in respect of the instant transmission asset covered in the instant petition is as follows:

Asset	SCOD	COD	Delay (in days)
Asset-1	7.6.2025	3.8.2025	57

3. The Petitioner has claimed the following annual transmission charges with respect to the transmission asset for the 2024-29 tariff period as under:

(₹ in lakh)

Asset	COD	2025-26 (Pro-rata 241 days)	2026-27	2027-28	2028-29
400/220 kV, 1x500 MVA ICT 4th along with associated bays at Nalagarh Sub-station	3.8.2025	438.11	945.87	1080.38	1073.23

4. As per Regulation 10(3) of the 2024 Tariff Regulations, the Commission may grant an interim tariff in case of new transmission projects that have filed the application under Regulation 9(1) of the 2024 Tariff Regulations. However, as per Regulation 10(3) of the 2024 Tariff Regulations, the Commission may grant an interim tariff up to 90% of the tariff claimed in case of new transmission projects under the aforesaid Regulation.

5. We have considered the Petitioner’s submissions for the grant of an interim tariff.

6. Regulation 10 of the 2024 Tariff Regulations provides as under:

“10. Determination of tariff:…………

(3) If the information furnished in the petition is in accordance with these regulations, the Commission may consider granting an interim tariff of up to ninety per cent (90%) of the tariff claimed in the case of a new generating station or unit thereof or transmission system, or element thereof during the first hearing of the application for billing purposes till the final tariff is determined by the Commission:

Provided that in case the final tariff determined by the Commission is lower than the interim tariff by more than 10%, the generating company or transmission licensee shall return the excess amount recovered from the beneficiaries or long term customers, as the case may be, with simple interest at 1.20 times of the rate worked out on the basis of 1 year SBI MCLR plus 100 basis points prevailing as on 1st April of the financial year in which such excess recovery was made.

(5) The Commission shall grant the final tariff in the case of existing and new projects after considering the replies received from the respondents and suggestions and objections, if any, received from the general public and any other person permitted by the Commission, including consumers or consumer associations.

(6) Subject to Sub-Clause (7) below, the difference between the tariff determined in accordance with clauses (3) and (5) above and clauses (4) and (5) above, shall be recovered from or refunded to, 29 the beneficiaries or the long term customers, as the case may be, with simple interest at the rate equal to the 1 year SBI MCLR plus 100 basis points prevailing as on 1st April of the respective year of the tariff period, in a maximum of six equal monthly instalments;

Provided further that such interest, including that determined as per sub-clause (7) of this regulation shall be payable till the date of issuance of the Order and no interest shall be allowed or levied during the period of six-monthly instalments. Provided further that in case where money is to be refunded and there is a delay in the raising of bills by the generating company or tr

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