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2024 Supreme(Online)(APTEL) 1

APPELLATE TRIBUNAL FOR ELECTRICITY
Mr. Justice Ramesh Ranganathan, CJ, Smt. Seema Gupta, J
TAMIL NADU TRANSMISSION CORPORATION LTD. – Appellant
Versus
CENTRAL ELECTRICITY REGULATORY COMMISSION & Ors – Respondent
APL 140 2024



Advocates:
S. Vallinayagam for App. 1, Poorva Saigal, Shubham Arya, Pallavi Saigal, Ravi Nair, Reeha Singh, Anumeha Smiti for Res. 2, S. Senthilnathan, T. Harishkumar for Res. 3

The court affirmed that both the generator and the transmission utility share liability for transmission charges due to mutual delays in commissioning, upholding the CERC's regulatory authority.

Headnote:(A) Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 - Regulation 86 - Tariff Regulations, 2014 - Sharing of Transmission Charges Regulations, 2010 - Appeal against CERC order directing Appellant to pay 50% transmission charges for non-commissioning of substation - Appellant contended that liability should rest solely on generator due to non-commissioning - CERC held that both generator and Appellant share liability due to mutual delays - CERC's earlier orders on tariff determination upheld. (Paras 1, 10, 32, 47)

(B) Regulatory Powers - CERC has authority to determine sharing of transmission charges based on operational readiness of both generator and transmission lines - Liability can be shared if both parties are at fault for non-commissioning. (Paras 36, 44)

(C) True-Up Process - CERC's true-up process does not allow for re-evaluation of initial tariff principles - Appellant's challenge to CERC's earlier findings deemed final. (Paras 22, 46)

Facts of the case:
The Appellant, Tamil Nadu Transmission Corporation Limited, appealed against a CERC order mandating it to pay 50% of transmission charges for a period due to delays in commissioning its substation, which was necessary for connecting evacuation lines from a generator.

Findings of Court:
The court upheld the CERC's decision, affirming that both the generator and the Appellant share responsibility for the delays, and thus the transmission charges should be equally shared.

Issues: The main issues included the liability for transmission charges due to delays in commissioning and whether the CERC's orders were consistent with applicable regulations.

Ratio Decidendi: The court reasoned that both parties' delays justified the shared liability for transmission charges, and the CERC's earlier determinations were final and binding.

Result: Appeal dismissed.

JUDGMENT

(PER HON’BLE MRS. SEEMA GUPTA, TECHNICAL MEMBER)

1. The Appellant-Tamil Nadu Transmission Corporation Limited has preferred present appeal against the Order passed by the 1st Respondent- Central Electricity Regulatory Commission dated 05.12.2022 in Petition No. 19/TT/2022, whereby the Appellant was directed to pay 50% of the transmission charges to the 2nd Respondent for the period 01.04.2014 to 28.02.2019, on the ground that the Appellant failed to commission its sub- station, for providing two bays, to connect the evacuation lines commissioned by the 2nd Respondent, for evacuating power from the 3rd Respondent generator.

2. The facts involved in the appeal, in brief, are as under:

The Appellant is the State Transmission Utility i.e. Tamil Nadu Transmission Corporation Limited. The 1st Respondent is the Central Electricity Regulatory Commission (in short referred as “CERC/ Central Commission”). The 2nd respondent is the Power Grid Corporation of India Ltd., (in short referred as “POWERGRID”) the inter-State transmission service provider. The 3rd Respondents is the generator-Bharatiya Nabhikiya Vidyut Nigam Limited (in short referred as “BHAVINI”), connected to the evacuation line built by the 2nd Respondent.

3. The present appeal relates to true-up of tariff relating to 230 kV D/C Kalpakkam PFBR-Kanchipuram transmission line and 2 Nos. 230 kV Bays at Kanchipuram Sub-Station of Appellant under the transmission system associated with Kalpakkam PFBR (500 MW) Project.

4. Following transmission elements, was agreed in the 20th Standing Committee Meeting on Power system Planning in Southern Region (SR) held on 07.10.2004 for evacuation of power from the proposed 500MW PFBR Reactor proposed to be installed by 3rd Respondent - BHAVINI at Kalpakkam i.e KPFBR .

(I) Transmission Lines: -

i) KPFBR – Sirucheri 230kV D/C line [Asset I]

ii) KPFBR – Arni 230 kV D/C line [Asset II]

iii) KPFBR – Kancheepuram 230kV D/C line [Asset III]

iv) KPFBR – MAPS 230kV S/C (With one spare phase)

5. The 2nd Respondent filed Petition No.105/TT/2012 for determination of tariff for the above system for the period 2009-2014 under the CERC Tariff Regulations, 2009. 1st Respondent-CERC directed the 2nd Respondent to submit the usage of the lines and whether they have been included in the PoC charges and provisions under which DOCO for the transmission lines has been declared. The 2nd respondent vide affidavit dated 13.11.2014 submitted that Asset-I and Asset-II have been included in PoC charges since 01.04.2012 and Asset-III has been included in PoC charges since 01.09.2012.

6. The 1st Respondent-CERC vide its order dated 29.04.2015 in 105/TT/2012 determined the tariff for two of the three D/C evacuation lines from the BHAVINI generator to the sub-stations of the 2nd Respondent herein, at Arani and Sirucheri ( Asset I and Asset II). In respect of the third line from the BHAVINI generator to sub-station of the Appellant at Kancheepuram, CERC did not grant tariff, on the ground that the line was not put to beneficial use due to non-commissioning of the 3rd Respondent’s generator BHAVINI as well as bays at Kanchipuram Substation of Appellant herein. Aggrieved by the said order of the CERC, the 2nd Respondent herein filed an Appeal 168 of 2015 before this Tribunal.

7. This Tribunal in its judgement dated 20.09.2018 in Appeal 168 of 2015 accepted the findings of CERC and held as under:

“8.10. Keeping all these aspects in view, we are of the considered opinion that the findings of the Central Commission in the impugned order pertaining to the COD of Asset-3 as 01.09.2012 are consistent with various judgments and its Tariff Regulations, 2009. As the Appellant has completed all the works under its scope of work and a considerable time of more than six years has elapsed, the Appellant deserves a liberty to file an application before the Central Commission seeking grant of approval in terms of the Tariff Regulations, 2014 to enable the tariff determination for Asset-3 with capi

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