In the matter of Approval of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) “Transmission System for connectivity of Essar Power Gujarat Limited” in the Western Region – EQ

Summary:

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## Key Correction Details

| Asset | Original (Incorrect) Date | Corrected Date |
|——-|————————–|—————-|
| **Asset-1:** Extension of 400 kV Bachau Substation with line reactor + associated line bays | 9 August 2021 (unchanged) | 9 August 2021 (unchanged) |
| **Asset-2:** Essar Gujarat TPS – Bachau 400 kV D/C (triple) line | **2 June 2024** ❌ | **2 June 2022** ✅ |

### Correction in Plain Language

> In paragraph 107 of the original order, the phrase *”transmission charges of Asset-1 w.e.f. 9.8.2021 and for Asset-2 w.e.f. 2.6.2024″* was incorrect.
> It shall be read as:
> **”transmission charges of Asset-1 w.e.f. 9.8.2021 and for Asset-2 w.e.f. 2.6.2022.”**

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## Business Implications

### For Power Grid Corporation of India Limited (Petitioner)

– **Asset-2 transmission charges** now apply from **2 June 2022** instead of 2 June 2024 – i.e., **approximately 2 years earlier**.
– This significantly increases the **total recoverable transmission charges** for Asset-2, as the tariff period now covers a much longer duration.
– PGCIL can now bill beneficiaries for Asset-2 from mid-2022 rather than mid-2024.

### For Respondents (State DISCOMs / Power Management Companies)

– **Higher cumulative liability** for transmission charges for Asset-2.
– May need to **revise past payment calculations** if any interim payments were made based on the incorrect 2024 date.
– Potential **cash flow impact** due to retrospective application of charges from 2022.

### For the Original Order (Unchanged Portions)

All other aspects of the 2 February 2026 order remain **unaltered**, including:
– Determination of tariff under the **2019 Tariff Regulations**.
– The period covered (from COD to 31 March 2024).
– Any other asset-specific or respondent-specific directions.

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## Legal/Regulatory Basis

The correction was issued under **Regulation 66 of the CERC (Conduct of Business) Regulations, 2023**, which permits the Commission to correct clerical or typographical errors in its orders.

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## Practical Takeaways

| Stakeholder | Action Required |
|————-|—————-|
| **PGCIL** | Revise invoices for Asset-2 to reflect the correct effective date (2 June 2022). Update tariff calculations for the period 2022–2024. |
| **DISCOMs / Respondents** | Verify past payments for Asset-2. Anticipate supplementary billing for the additional 2-year period. |
| **Auditors / Regulators** | Ensure that any tariff true-up or audit of PGCIL’s accounts reflects the corrected effective date. |

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