Petition of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for truing up and determination of the transmission tariff with Tehri Transmission System in the Northern Region – EQ

Summary:

—-

**1. Document Nature & Core Issue:**
* This is a consolidated **regulatory proceeding record** from the **Central Electricity Regulatory Commission (CERC)**, covering two related tariff petitions filed by the Power Grid Corporation of India Limited (PGCIL).
* **Petitions Involved:**
* **Petition No. 602/TT/2025:** For determination of tariff for the **2024-29 period** for Combined Assets under the Tehri Transmission System in the Northern Region.
* **Petition No. 529/TT/2025:** For **truing up** the tariff for the **2019-24 period** and determining the tariff for the **2024-29 period** (an amended petition has been filed).
* **Core Business Issue:** **PGCIL is seeking regulatory approval for its revenue requirements**—both to finalize past accounts (truing up) and to set future tariffs for critical transmission assets.

**2. Current Status & Commission’s Directive:**
* A hearing was held on **21st January 2026**.
* The Commission has **initiated the formal process** but has **not granted any approval**. It has identified significant deficiencies in PGCIL’s submissions.
* The Commission issued clear directives for procedural steps and, more importantly, for PGCIL to rectify and clarify its financial filings.
* The next consolidated hearing is scheduled for **27th February 2026**.

**3. Commission’s Directives & Required Actions:**

**A. Procedural Directives:**
1. Issue notices to all respondents.
2. **Tight Reply Timeline:** Respondents have only **one week** to file replies, and PGCIL has **one further week** to file a rejoinder. This indicates the Commission is pushing for an expedited process.

**B. Substantive Information Requests (To be filed by PGCIL within 2 weeks):**
The Commission’s requests highlight **serious concerns about the accuracy, clarity, and reconciliation of PGCIL’s financial data**. This is a major red flag for a company of PGCIL’s stature.

**For Petition 602/TT/2025 (Future Tariff – Tehri System):**
1. **Form 7(B) and Form 4(B):** Submit the correct statutory forms for the transmission project. These forms detail capital expenditure, financing, and cost allocations.
2. **Liability Flow Statement (Excel):** Provide a detailed, reconciled statement in Excel format linking claimed **Additional Capital Expenditure (ACE)** to actual liabilities. This demands transparency in future spending plans.
3. **Corrected Tariff Forms (Excel):** Re-submit all tariff forms in Excel, as the uploaded versions **”do not match the claims as per the Petition.”** This is a direct indictment of data inconsistency.

**For Petition 529/TT/2025 (Truing Up & Future Tariff):**
1. **Form 10(B) – Clarified:** Re-submit this form, **clearly stating the date of de-capitalization of assets.** This is crucial for accurately calculating the asset base and depreciation for the truing-up exercise.
2. **Form 4(B):** Submit the required form.
3. **Liability Flow Statement (Excel):** Similar to the other petition, provide a reconciled statement for ACE claims.

**4. Implications for Business & Stakeholders:**

* **For PGCIL (Petitioner):**
* **Reputational & Process Risk:** The Commission’s finding of mismatched data and unclear filings is unusual for PGCIL and indicates potential internal process failures. This could affect the regulator’s trust.
* **Revenue & Cash Flow Risk:** Any delay in tariff approval disrupts revenue certainty. Inaccuracies in the truing-up petition (529) could lead to **disallowance of past costs**, resulting in financial penalties or lower future revenue streams to compensate over-recoveries.
* **Urgent Remediation Required:** PGCIL’s legal and finance teams must prioritize creating flawless, fully reconciled Excel-based submissions. The quality of this correction will heavily influence the final tariff award.

* **For Respondent Discoms (UPPCL, Bihar State Power, etc.):**
* The **tight one-week reply window** puts pressure on them to quickly analyze PGCIL’s (soon-to-be-submitted) corrected data and formulate their objections.
* Their role is to scrutinize PGCIL’s capital costs and ACE claims to **minimize the tariff burden passed on to their consumers**.

* **For the Electricity Market:**
* The **Tehri Transmission System** is a key infrastructure for power flow in Northern India. The approved tariff will influence the final transmission charges (POC) for a wide range of generators and consumers in the region.
* This proceeding serves as a signal that CERC is intensifying scrutiny of **capital expenditure claims and data integrity**, even from the central transmission utility.

—-

For more information please see below link: