Petition of CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for determination of transmission tariff for 2014-19 tariff period – EQ
Summary:
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**BACKGROUND:**
– **Remand Order:** Appellate Tribunal for Electricity (APTEL) remanded back CERC’s earlier order dated 29.6.2018.
– **Reason for Remand:** APTEL directed re-determination of tariff based on:
1. Actual capital cost
2. Legitimate weighted average interest on loan (WAROI)
3. Grossed-up return on equity based on true effective tax rates
4. Correct useful life of assets
**KEY PROCEEDINGS:**
1. **BRPL’s Request:** Respondent No. 12 (BRPL) sought time to file written submissions.
2. **CERC Directions:**
– All parties to file written submissions **after exchanging copies** with each other.
– **Petitioner (DTL) directed to submit on affidavit within a week:**
a. **Income Tax Returns/Assessment Orders** (in sealed envelopes) for 2014–19 tariff period.
b. **Form 9C** with detailed loan portfolio, Weighted Average Rate of Interest (WAROI), and supporting Excel sheet.
3. **Next Hearing:** Listed for **15.1.2026**.
**BUSINESS IMPLICATIONS:**
– **Tariff Impact:** Remand ensures tariff is recalculated on **actual financials**, not normative assumptions.
– **Financial Transparency:** DTL must substantiate tax rates, interest costs, and capital expenditures.
– **Regulatory Scrutiny:** Focus on accurate capital cost, WAROI, and tax gross-up may affect final tariff and revenue recovery for 2014–19.
– **Precedent:** Outcome may influence future tariff petitions and remand proceedings.
**NEXT STEPS:**
– DTL to submit affidavit with ITR/Form 9C.
– All parties to file and exchange written submissions.
– Hearing on 15.1.2026 for final arguments/tariff determination.
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