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 1X500 MVA 400/220 kV ICT (3rd) along with associated bays and equipment’s at Hassan Sub-station under “Augmentation of Transformation Capacity at 400/220 kV Hassan Sub-station in Karnataka by 400/220 kV 1x500 MVA ICT(3rd)” in the Southern Region. Power Grid Corporation of India Limited

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(CERC) 429

CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI

PETITION NO. 996/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 1X500 MVA, 400/220 kV ICT (3rd) along with associated bays and equipment at Hassan Sub-station under “Augmentation of Transformation Capacity at 400/220 kV Hassan Sub-station in Karnataka by 400/220 kV,1x500 MVA ICT(3rd)” in the Southern 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. Tamil Nadu Generation and Distribution Corporation Limited, (Now known as Tamil Nadu Power Distribution Corporation Limited) NPKRR Maaligai, 144, Anna Salai, Chennai - 600002.

2. Kerala State Electricity Board Limited (KSEBL), Vaidyuthi Bhavanam, Pattom, Thiruvananthapuram - 695004.

3. Electricity Department, Government of Goa, Vidyuti Bhawan, Panaji, Goa - 403001.

4. Electricity Department, Government of Pondicherry, 137, Netaji Subash Chandra Bose Salai Pondicherry - 605001.

5. Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL), P&T Colony, Seethmadhara, Vishakhapatnam, Andhra Pradesh.

6. Southern Power Distribution Company of Andhra Pradesh Ltd (APSPDCL), #19-13-65/A, Srinivasapuram, Tiruchanoor Road, Tirupati - 517503, Andhra Pradesh.

7. Andhra Pradesh Central Power Distribution Company Limited (APCPDCL), Corporate Office, Beside Polytechnic College, ITI Road, Vijayawada - 520008, Krishna District, Andhra Pradesh.

8. Southern Power Distribution Company of Telangana Limited (TSSPDCL), 6-1-50, Corporate Office, Mint Compound, Hyderabad - 500063, Telangana.

9. Northern Power Distribution Company of Telangana Limited (TSNPDCL) H.No 2-5-3 1/2, Vidyut Bhawan, Corporate Office, Nakkal Gutta, Hanamkonda, Warangal - 506001, Telangana.

10. Bangalore Electricity Supply Company Limited, (BESCOM) Corporate Office, K.R.Circle, Bangalore - 560001, Karanataka.

11. Gulbarga Electricity Supply Company Limited, (GESCOM) Corporate Office, Station Main Road, Opp. Parivar Hotel, Gulbarga (Kalburgi), Karnataka - 585102.

12. Hubli Electricity Supply Company Limited, (HESCOM) Navanagar, PB Road, Hubli, Karnataka - 580025.

13. Mangalore Electricity Supply Company Limited, (MESCOM) Corporate Office, 1st Floor, MESCOM Bhavan, Kavoor Cross Road, Bejai, Mangalore - 575 004, Karnataka.

14. Chamundeswari Electricity Supply Corporation Limited, (CESC) Corporate Office, #29, Vijayanagara 2nd Stage, Hinkal, Mysuru - 570017, Karnataka.

15. 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

INTERIM 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 under “Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase-II- Part-A1” in the Northern Region:

Sl. No.	Asset No.	Asset Name
1	Asset-I	equipment at Hassan Sub-station..

1X500 MVA, 400/220 kV ICT (3rd) along with associated bays and

2. The details of the transmission asset, including the Scheduled Commercial Operation Date (SCOD), Date of Commercial Operation (COD) claimed by the Petitioner, and time overrun are as under:

Asset No.	Asset	SCOD	COD	Delay
Asset-I	1X500 MVA, 400/220 kV ICT (3rd) along with associated bays and equipment at Hassan sub-station.	25.4.2025	3.8.2025	100

3. The hearing in this matter was held on 18.6.2026 and 22.7.2026.

4. 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-I	COD	2025-26 (Pro-rata 241 days)	2026-27	2027-28	2028-29
1X500 MVA, 400/220 kV ICT (3rd) along with associated bays and equipment at Hassan sub-station.	3.8.2025	444.94	742.68	761.52	761.87

5. 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.

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

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