The court confirmed the adoption of transmission charges under Section 63 of the Electricity Act, 2003, affirming that the bidding process was transparent and compliant with regulatory guidelines.

Headnote:(A) Electricity Act, 2003 - Section 63 - Adoption of transmission charges for inter-state transmission system for the project in Khavda area of Gujarat - The Commission found that the competitive bidding process was transparent and compliant with the guidelines issued by the Ministry of Power. (Paras 5, 28)

(B) Bid Evaluation Committee - Certification of bid process - The BEC confirmed that the lowest annual transmission charges were discovered through a transparent process of bidding. (Paras 26, 27)

Facts of the case:
The Petitioner sought adoption of transmission charges for a project discovered via competitive bidding. The BPC was directed to submit relevant documents, and no replies were filed by the Respondents.

Findings of Court:
The bidding process was confirmed to be transparent, and the annual transmission charges of Rs. 5089.66 million were adopted.

Issues: Whether the bidding process adhered to the guidelines and resulted in a fair tariff.

Ratio Decidendi: The court determined that the guidelines were followed, and the process was transparent, thus validating the discovered tariff.

Result: Petition allowed.

ORDER

The Petitioner, Khavda IV A Power Transmission Limited (hereinafter referred to as “Petitioner/ KIVAPTL”), has filed the present Petition under Section 63 of the Electricity Act, 2003 (hereinafter referred to as “the Act”) for the adoption of transmission charges in respect of “Transmission scheme for evacuation of power from potential renewable energy zone in Khavda area of Gujarat under Phase-IV

(7GW): Part A” on a Build, Own, Operate and Transfer Basis. The Petitioner has made the following prayers:

“a) Adopt the Transmission Charges for Inter-state transmission system for “Transmission scheme for evacuation of power from potential renewable energy zone in Khavda area of Gujarat under Phase-IV (7GW): Part A" the Project discovered through competitive bidding process. b)

Allow the sharing and recovery of transmission charges for inter-state transmission system of “ Khavda IVA Power Transmission Limited " as per CERC (Sharing of Inter-state Transmission Charges and Losses Regulations) Regulation, 2020 and any other amendments thereon issued from time to time by Hon’ble Commission.

c) Condone any inadvertent errors omissions/errors/shortcomings and permit the Petitioner to add/change/modify/alter these filings and make further submissions as may be required at a future date.

d) Pass any such other order / orders, as may be deemed fit and proper in the facts and circumstances of the case.”

Submission of the Petitioner

2. On receipt of the present Petition, the Bid Process Coordinator (hereinafter referred to as “the BPC”), REC Power Development and Consultancy Limited (hereinafter referred to as “RECPDCL”) vide letter dated 16.10.2024, was directed to submit the relevant documents regarding the complete process of the competitive bidding. The necessary details have been filed by the BPC vide affidavit dated

24.10.2024.

Hearing dated 28.10.2024

3. During the course of the hearing on 28.10.2024, the representative of the Petitioner, reiterated the submissions made in the pleadings and requested the Commission for the adoption of the tariff for establishing the Transmission Scheme for Evacuation of Power from Potential Renewable Energy Zones in Khavda area of Gujarat under Phase IV (7 GW): Part A.

4. Vide Record of Proceedings for the hearing dated 28.10.2024, the Respondents/Beneficiaries were directed to file their replies/comments on the Petition, if any. However, no reply has been filed by them.

5. We have considered the submissions of the Petitioner, BPC, and CTUIL, and perused the documents available on record. Section 63 of the Act provides as under:

“Section 63: Determination of tariff by bidding process: Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government.”

6. The Government of India, the Ministry of Power, has notified the “Tariff based Competitive-bidding Guidelines for Transmission Service” and “Guidelines for Encouraging Competition in Development of Transmission Projects‟ (hereinafter referred to as “the Guidelines‟) under Section 63 of the Act vide Resolution No. 15/1/2017-Trans dated 10.8.2021, as amended from time to time. The salient features of the Guidelines are as under: (a) The Guidelines are applicable for the procurement of transmission services for transmission of electricity through the tariff based competitive bidding for selection of the Transmission Service Provider (TSP) for new transmission system on a Build, Own, Operate and Transfer basis.

(b) For procurement of the transmission services required for any inter-State transmission Project, the Central Government shall notify the CTUIL or any Central Government Organization/ Central Public Sector Undertaking or its wholly owned subsidiary (Special Purpose Vehicle) to be the Bid Process Coordinator (BPC), who would be responsible for the coordinating t

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