1. Petitioner sought additional initial spares based on overall project cost evaluation for the 2019-24 tariff period, citing an earlier judgment regarding combined transmission assets. (Para 1 )
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2026 Supreme(Online)(CERC) 498
CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI
Ramesh Babu V., Member, Harish Dudani, Member
Power Grid Corporation of India Limited – Appellant
Versus
Tamil Nadu Generation and Distribution Corporation Limited – Respondent
Petition No. 19/TT/2025
Important Points
The Commission exercised its power to rectify an inadvertent clerical error in a previous order to correctly account for Initial Spares in the capital cost for transmission tariff determination.
Subject
Energy - Tariff Determination
Act Referred
Electricity Act, 2003: S.62, S.79(1)(d)
Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023: Reg.15(1)(a), Reg.23, Reg.54, Reg.66
Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019: Reg.19(3)
Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024
Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023: Reg.15(1)(a), Reg.23, Reg.54, Reg.66
Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019: Reg.19(3)
Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024
Headnote
(Corrigendum Order) - (Transmission Tariff) - (Rectification of an inadvertent error regarding the non-consideration of Initial Spares of ₹13.38 lakh arising from changes in Plant and Machinery cost, resulting in the revision of capital cost and associated tariff tables). (Para 2, 3)
Issues: Whether the inadvertent error in the order dated 13.5.2025 regarding the calculation of Initial Spares required rectification.
Issues: Whether the inadvertent error in the order dated 13.5.2025 regarding the calculation of Initial Spares required rectification.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners:
For the Respondents:
For the Appellants/Petitioners:
For the Respondents:
Table of Contents
2. The petitioner contended that initial spares should be calculated on the overall project cost given the treatment of transmission assets as a combined asset. (Para 1 )
3. The Commission acknowledged an inadvertent error in the previous order which omitted the calculation of initial spares based on actual Plant and Machinery cost and project cost ceilings. (Para 2 , 3 )
4. Regulatory bodies possess inherent powers under the Conduct of Business Regulations to rectify inadvertent errors in tariff orders to ensure the correct application of capital cost calculations. (Para 3 )
5. The Commission rectified the order to reflect the correct calculation of initial spares and updated the relevant capital cost figures accordingly. (Para 3 , 4 )
6. Can an error in a tariff order regarding the calculation of initial spares be rectified by the Commission?
Yes, under Regulations 54 and 66 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023, the Commission has the power to rectify inadvertent errors in its previous orders. (Para 2 , 3 )
7. How are initial spares for transmission assets determined for the 2019-24 tariff period?
Initial spares are to be considered based on the overall project cost for those assets treated as a combined asset, provided the claimed amount remains within the specified ceiling. (Para 1 , 3 )
CORRIGENDUM ORDER
The Petitioner vide letter dated 22.5.2025, has submitted regarding grant of the additional Initial Spares in accordance with the APTEL’s judgement dated 14.9.2019 in Appeal No. 74 of 2017. The Petitioner has submitted that, since the transmission assets are considered as a Combined Asset and the overall project cost is determined for the 2019-24 tariff period, the Initial Spares for the said tariff period are required to be considered on the basis of the overall project cost.
2. It is observed that an inadvertent error crept into the order dated 13.5.2025 in Petition No. 19/TT/2025, as the Initial Spares of ₹13.38 lakh arising from the change in the actual Plant and Machinery (P&M) cost submitted in the truing-up Petition, was not considered while passing the order dated 13.5.2025 in Petition No. 19/TT/2025. Consequently, the Initial Spares were restricted to the amount already allowed vide the Commission’s order dated 31.1.2021 in Petition No. 515/TT/2019, along with an additional deduction of ₹10.00 lakh from the capital cost as claimed by the Petitioner, resulting in a total deduction of ₹23.38 lakh from the capital cost as on 31.3.2019.
3. It is further observed that the Initial Spares claimed by the Petitioner are within the specified ceiling based on the overall project cost. Accordingly, in exercise of the powers vested in the Commission under Regulation 54 and Regulation 66 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023, the inadvertent error occurring in various paragraphs of the order dated 13.5.2025 in Petition No. 19/TT/2025, is hereby rectified. Consequently, the relevant paragraphs / tables of the said order shall stand revised as under:
a) For Table under paragraph 14, the following table shall be substituted as follows: (₹ in lakh)
Transmission Line Asset-2 3657.83 14.81 1% 36.80 14.81 0.00
b) In Place of Paragraph 15, the following shall be substituted: “15. Therefore, the Capital cost allowed in accordance with Regulation 19(3) of the Tariff Regulations 2019 as on 1.4.2019 is ₹102394.86 lakh.”
c) For Table under paragraph 16, the following table shall be substituted: (₹ in lakh)
d) For Table under paragraph 22, the following table shall be substituted: (₹ in lakh)
e) For Table under paragraph 23, the following table shall be substituted: 
f) For Table under paragraph 24, the following table shall be substituted: (₹ in lakh)
g) For Table under paragraph 25, the following table shall be substituted: (₹ in lakh)
h) For Table under paragraph 26, the following table shall be substituted: (₹ in lakh)
i) For Table under paragraph 27, the following table shall be substituted: (₹ in lakh)
j) For Table under paragraph 31, the following table shall be substituted: (₹ in lakh)
k) For Table under paragraph 32, the following table shall be substituted: (₹ in lakh)
l) For Table under paragraph 38, the following table shall be: (₹ in lakh)
(in %)F Interest on Working Capital (D*E) 324.01 299.38 276.86 275.24 312.89
m) Table under paragraph 39 shall stand revised as follows: (₹ in lakh)
n) Table under paragraph 40 shall stand revised as follows: (₹ in lakh)
o) Table under paragraph 39 shall stand revised as follows: (₹ in lakh)
p) Table under paragraph 46 shall stand revised as follows: (₹ in lakh)
q) Table under paragraph 48 shall stand revised as follows: 
r) Table under paragraph 51 shall stand revised as follows: (₹ in lakh)
s) Table under paragraph 53 shall stand revised as follows: (₹ in lakh)
t) Table under paragraph 55 shall stand revised as follows: (₹ in lakh)
u) Table under paragraph 61 shall stand revised as follows: (₹ in lakh)
v) Table under paragraph 62 shall stand revised as follows: (₹ in lakh)
4. Except for the above, all other terms contained in the order dated 13.5.2026 in Petition No.19/TT/2025 shall remain unaltered
