Petition of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for theTransmission System associated with Farakka-I & II in the Eastern Region – EQ

Summary:

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**1. Case Overview**
– **Regulatory Body:** Central Electricity Regulatory Commission (CERC), New Delhi.
– **Petition Number:** 375/TT/2025.
– **Subject:** Petition for truing up of transmission tariff for the 2019–24 period and determination of tariff for the 2024–29 period for the 400 kV Transmission System associated with Farakka-I & II Super Thermal Power Stations (STPS) in the Eastern Region.
– **Petitioner:** Power Grid Corporation of India Limited (PGCIL).
– **Respondents:** Bihar State Power (Holding) Company Limited and Others.
– **Date of Hearing:** January 21, 2026 (virtual hearing).
– **Bench:** Shri Ramesh Babu V. and Shri Harish Dudani, Members.

**2. Petition Details**
– **Legal Basis:**
– **Section 62** read with **Section 79(1)(d)** of the Electricity Act, 2003.
– **CERC (Conduct of Business) Regulations, 2023** (Regulations 15(1)(a) and 23).
– **CERC (Terms and Conditions of Tariff) Regulations, 2019** for 2019–24 truing up.
– **CERC (Terms and Conditions of Tariff) Regulations, 2024** for 2024–29 tariff determination.
– **Asset:** 400 kV Transmission System linked to Farakka-I & II STPS in the Eastern Region.
– **Purpose:**
1. **Truing Up:** Adjustment and reconciliation of actual vs. approved transmission tariff for the period 2019–24.
2. **Tariff Determination:** Setting of transmission tariff for the next regulatory period (2024–29).

**3. Proceedings & Directions Issued**
– **PGCIL’s Request:** Sought six weeks to file an **amended petition**.
– **Commission’s Directions:**
1. **Petitioner (PGCIL)** to file an **amended petition within six weeks**.
2. **Notice** of the amended petition to be issued to all Respondents.
3. **Respondents** to file replies **within one week** of receiving the amended petition.
4. **Petitioner** may file a **rejoinder within one week** thereafter.
– **Additional Data Requirements:** PGCIL must submit the following **on affidavit within two weeks**:
– **Form 10(B)** – clearly indicating date of **de-capitalisation of assets**.
– **Form 4(B)** – related to capital cost and financing.
– **Liability Flow Statement** in Excel format, reconciled with the **Annual Capital Expenditure (ACE)** claimed.
– **Next Hearing Date:** **March 19, 2026**.

**4. Key Business & Regulatory Implications**
– **Truing Up Process:** Ensures that tariffs reflect actual costs incurred during 2019–24, allowing recovery of legitimate expenses and adjustments for any over/under-recovery.
– **Tariff Setting for 2024–29:** Establishes revenue framework for PGCIL’s transmission services, impacting cost recovery and investment planning.
– **Transparency & Compliance:** Submission of detailed financial forms (10(B), 4(B)) and liability statements ensures accountability and regulatory scrutiny.
– **Stakeholder Impact:** Tariff determination affects all beneficiaries and power utilities using the Farakka transmission system, including state discoms like Bihar State Power.

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