Petition of CERC (Sharing of Inter-State Transmission Charges and losses) and (Connectivity and General Network Access to the Inter- State Transmission System) Regulations – EQ

Summary:

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## **Key Business Implications**

### 1. **Liability for Transmission Charges Despite GNA Not Being Effective**

| Generator Argument | CERC Ruling |
|——————-|————–|
| GNA not yet effective, so no transmission charges payable | **Rejected.** Liability under Regulation 13(3) of 2020 Sharing Regulations is linked to **ATS achieving COD**, not GNA effectiveness. |

**Business Impact:** Even if your long-term access/GNA is not formally “effective,” you may still owe transmission charges once the **immediate evacuation system** is ready.

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### 2. **Definition of Associated Transmission System (ATS) – Critical Narrowing**

– **Petitioners’ view:** Entire transmission system listed in LTA grant (including common transmission system for 8.1 GW/8.9 GW SEZ schemes) should be considered ATS.
– **CERC’s ruling:** Under **GNA Regulations 2022**, ATS means only the **augmentation required for immediate evacuation of power** (excluding terminal bays). Not the entire common transmission system.

| Project | ATS (as per CERC) | COD of ATS |
|———|——————-|————-|
| ReNew, Adani, Altra Xergi at Fatehgarh-III PS | PRTL’s system: 4×500 MVA ICTs + 400 kV D/c lines to Fatehgarh-II & Jaisalmer-II | **December 24, 2023** |

**Business Impact:** Transmission developers (CTUIL) can carve out a smaller “ATS” and start charging generators even if the larger common transmission system is incomplete.

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### 3. **Calculation of Liability – Pro-rata Basis**

– ATS capacity: **4 x 500 MVA = 2000 MVA** (shared among multiple generators).
– Total generation capacity utilizing ATS: **1980 MW** (RSRPL 400 + RSAPL 300 + RSVPL 300 + AXPPL 380 + AREHSL 600).
– Charges are to be apportioned **pro-rata** among all users.

**Business Impact:** Charges are not based on full ATS cost but on **pro-rata share** – important for cost forecasting.

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### 4. **Period of Liability – From ATS COD to Generator COD**

| Generator | ATS COD | Generator COD (full/parts) | Liability Period |
|———–|———|—————————-|——————|
| RSAPL (300 MW) | 24.12.2023 | 290 MW on 31.03.2024; 10 MW on 08.06.2024 | 24.12.2023 to 08.06.2024 |
| RSRPL (400 MW) | 24.12.2023 | 285 MW on 11.04.2024; 115 MW on 21.06.2024 | 24.12.2023 to 21.06.2024 |
| RSVPL (200 MW) | 24.12.2023 | 175 MW on 24.02.2024; 22 MW on 02.04.2024; 3 MW on 18.05.2024 | 24.12.2023 to 18.05.2024 |
| RSVPL (100 MW) | 24.12.2023 | 98 MW on 31.03.2024; 2 MW on 22.05.2024 | 24.12.2023 to 22.05.2024 |
| AXPPL (380 MW) | 24.12.2023 | 259.6 MW on 31.01.2024; 120.4 MW on 09.02.2024 | 24.12.2023 to 09.02.2024 |
| AREHSL (600 MW) | 24.12.2023 | **Not yet declared COD** (expected Feb-Mar 2026) | Continuing liability until COD |

**Business Impact:** Delays in project commissioning directly extend the period of transmission charge liability. Once COD is declared, liability ceases for that capacity.

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### 5. **No Relief from SECI’s SCOD Extensions**

– Petitioners argued that SECI (their PPA counterparty) had extended their Scheduled COD, so they were not “delayed.”
– **CERC Rejected:** SCOD extension under PPA has **no bearing** on transmission charge liability under CERC regulations. The start date for transmission liability is determined by the **LTA/Connectivity start date** (as sought by generator in its own application), not by SECI’s extension.

**Business Impact:** Separate contracts (PPA vs. transmission access) create separate liabilities. Generators cannot rely on PPA extensions to avoid transmission charges.

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### 6. **Waiver of Transmission Charges for RE – Applies Only Post-COD**

– Ministry of Power orders waived ISTS charges for solar/wind projects commissioned by certain dates.
– **CERC Clarified:** Waiver applies **only after** the generator achieves COD. For the period between ATS COD and generator COD, charges are payable.

**Business Impact:** No “free ride” during delay period. Budget for transmission charges even for RE projects.

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