Petition of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for truing up and determination of the transmission tariff for “Eastern Region Strengthening Scheme-VII (ERSS-VII)” – EQ
Summary:
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# **1. Overview of Petitions Heard Together**
CERC conducted a combined hearing for **five tariff petitions** filed by **Power Grid Corporation of India Ltd. (PGCIL)** for **truing-up of existing tariffs (2019–24)** and **approval of new tariffs (2024–29)** under various regional transmission schemes.
### The petitions relate to the following schemes:
### **Eastern Region**
1. **Petition 474/TT/2024** – ERSS-VII
2. **Petition 16/TT/2025** – Transmission System for Phase-I Generation Projects (Jharkhand & West Bengal), Part A1
3. **Petition 190/TT/2025** – Baharampur (India) – Bheramara (Bangladesh) 400 kV D/C line (Indian portion)
4. **Petition 387/TT/2025** – ERSS-XVIII
### **Western Region**
5. **Petition 267/TT/2025** – WRSS-IX Combined Assets
Respondents include state utilities such as **Bihar State Power Holding Co. Ltd., MPPMCL**, and **Bangladesh Power Development Board**.
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# **2. Petitioner’s Submissions (POWERGRID)**
PGCIL submitted the following during the proceedings:
* All **information earlier sought** by CERC (via RoP dated 26.08.2025) has now been furnished.
* Petitions cover both:
* **True-up of tariff** for FY **2019–24**, and
* **Fresh tariff determination** for FY **2024–29**.
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# **3. Directions Issued by CERC**
CERC issued **three major directions**:
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## **A. Respondent Filings**
* Respondents must file their **replies within one week**, if not already submitted.
* PGCIL may file **rejoinders**, if any, within one week thereafter.
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## **B. Additional Information Required from PGCIL (Mandatory Affidavit)**
For **Petitions 16/TT/2024 and 267/TT/2025**, PGCIL must submit:
### **1. Form-4A**
* Required to finalize **trued-up tariff** for the 2019–24 period.
### **2. Reconciliation Statement (Where COD is before 1.4.2019)**
CERC directed PGCIL to provide reconciliation between:
* **Gross Block (accrued basis)** as of 31.03.2019
* **Closing Capital Cost (cash basis)** claimed in the 2014–19 tariff true-up
* **Cumulative capital cost disallowed** till 31.03.2014
* **Outstanding liabilities** as of 31.03.2019 (IDC, IEDC, spares, etc.)
CERC even prescribed a **standard table format** for submission.
This ensures consistency between regulatory filings and accounting records.
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## **C. Order Reserved**
* After submissions, CERC **reserved orders** for all five petitions.
* Final tariff orders will be issued after reviewing replies and additional data.
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# **4. Regulatory & Business Implications**
### **For POWERGRID**
* Final tariff approval for 2024–29 is pending, affecting:
* Annual transmission charges (ATC)
* Cash flow projections
* Transmission revenue recovery
* True-up for 2019–24 will adjust:
* Allowed capital cost
* O&M expenses
* Interest on loan and equity returns
### **For Respondents / Beneficiaries**
* Must comply with strict timelines for replies
* Future PoC charges and transmission bills may change based on final tariff outcomes
### **For Cross-Border Transmission (Bangladesh Line)**
* Petition 190/TT/2025 has international implications
* Tariff approval impacts India–Bangladesh power transfer arrangements
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# **5. Conclusion**
The hearing consolidated key tariff petitions across Eastern and Western regions. CERC has sought crucial reconciliations and data to ensure regulatory accuracy before issuing final tariff orders.
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