Petition for Truing up and determination of the transmission tariff for under “Inter- regional System Strengthening Scheme in WR and NR Part-B)” as per PGCIL – EQ
Summary:
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## General Directives (Both Petitions)
| Direction | Timeline |
|———–|———-|
| PGCIL to submit information **on affidavit** with copy to Respondents | Within **2 weeks** (by ~2 April 2026) |
| Respondents to file replies (if not already filed) | Within **1 week** thereafter |
| PGCIL may file rejoinder | Within **1 week** after replies |
| **Next hearing date** | **14 May 2026 at 2:30 PM** |
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# Business Points & Implications
| Business Aspect | Implication |
|—————-|————–|
| **OPGW Revenue Opportunity** | If dark fibers exist, PGCIL may lease/sell them to third parties (telecom operators, ISPs). CERC scrutiny on cost sharing ensures only actual used portion is capitalized; spare fiber revenue may reduce transmission charges for DISCOMs. |
| **Regulatory Precedent on OPGW** | The 50% cost sharing provision (from 2022 order) is being re-examined. Outcome will set precedent for all future transmission projects with OPGW. |
| **ICT Replacement – Capital Cost Reduction Risk** | CERC’s “Power to Remove Difficulty” allows using **book value of spare ICT** instead of new replacement cost. If applied, PGCIL’s regulated asset base (and thus RoE) would be significantly lower. PGCIL’s justification for not following this methodology will be critical. |
| **DISCOM Benefit** | UPPCL and other respondents can argue for lower transmission charges if: (a) OPGW cost is partially disallowed, (b) dark fiber revenue is netted off, (c) ICT replacement uses book value. |
| **Investor Impact** | Any disallowance of ACE or forced use of book value for ICT replacement reduces PGCIL’s regulated equity → lowers Return on Equity (~15.5%) → affects dividend and bond servicing capability. |
| **Compliance Burden on PGCIL** | PGCIL must reconcile OPGW accounting across two tariff periods (2019-24 and 2024-29) and justify deviation from ICT methodology – requires internal coordination between finance, transmission, and telecom teams. |
| **Next Hearing Date (14 May 2026)** | Provides ~2 months for compliance, replies, and rejoinder. Final tariff order likely by mid-2026. |
| **Virtual Hearing Efficiency** | Continued use of virtual hearings reduces legal and travel costs for all parties. |
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## Stakeholder-Specific Takeaways
| Stakeholder | Action / Implication |
|————-|———————-|
| **PGCIL** | Submit detailed OPGW fiber utilization data; justify 50% sharing provision; explain deviation from ICT book value methodology; prepare for possible disallowance. |
| **UPPCL & Other DISCOMs** | File replies challenging any inflated ACE/OPGW costs; argue for netting off dark fiber revenue; support application of ICT book value methodology. |
| **Telecom Operators** | Opportunity to lease dark fibers from PGCIL if spare capacity exists – monitor outcome of fiber utilization disclosure. |
| **Other Transmission Licensees** | This case will guide future OPGW cost treatment and ICT replacement capitalization across sector. |
| **Investors (PGCIL Bonds/Equity)** | Watch for final order – adverse ruling could reduce regulated RoE and asset base. |
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