CERC Orders NTPC To Pay Transmission Charges To PGCIL

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Central Electricity Regulatory Commission (CERC)has recently passed an order Approval on Regulation of conduct of Business Regulations, truing-up of transmission tariff of the 2014-19 period under Central Electricity Regulatory Commission and determination of transmission tariff of the 2019-24 period under Central Electricity Regulatory Commission  of 765 kV Line bays at Jabalpur Pooling Station for 765 kV D/C Gadarwara STPS (NTPC)-Jabalpur Pooling Station TL under POWERGRID Works associated with Part A of Transmission system for Gadarwara STPS of NTPC in Western Region.

Power Grid Corporation of India Ltd. filed petition against Electricity Department of Madhya Pradesh, Maharashtra , Gujarat, Goa, Daman & Diu, Chhattisgarh and POWERGRID Warora Transmission Limited for truing up of transmission tariff of 765 kV Line bays at Jabalpur Pooling Station for 765 kV D/C Gadarwara STPS (NTPC)-Jabalpur Polling Station TL under POWERGRID Works associated with Part A of Transmission system for Gadarwara STPS of NTPC in Western Region.

PGCIL made the following prayers: To allow the addcap for 2014-19 and 2019-24 tariff block, Approve the trued up Transmission Tariff for 2014-19 block and transmission tariff for 2019-24 block for the assets, Allow to recover the shortfall or refund the excess Annual Fixed Charges, on account of Return on Equity due to change in applicable Minimum Alternate/Corporate Income Tax rate as per the Income Tax Act, 1961, Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation of Central Electricity Regulatory Commission, Allow the Petitioner to bill and recover Licensee fee and RLDC fees and charges, separately from the beneficiaries, Allow to bill and adjust impact on Interest on Loan due to change in Interest rate on account of floating rate of interest applicable during 2019-24 period, Allow to file a separate petition for claiming the overall security expenses and consequential IOWC on that security expenses, Allow to claim the capital spares at the end of tariff block, Allow to bill and recover GST on Transmission Charges separately from the beneficiaries.

PGCIL has sought to recover GST on transmission charges separately with regards to this MPPMCL and MSEDCL have submitted that the GST is not applicable on transmission and distribution of electricity and hence, this prayer is premature. The Commission  has considered the request of both the parties hence it concluded that GST is not levied on transmission service at present.

Commission orders that the transmission charges of the instant asset shall be borne by NTPC from its COD, i.e., 31.5.2017 to 31.5.2019 and the billing, collection and disbursement of the transmission charges w.e.f. 1.6.2019 shall be governed by the provisions of Central Electricity Regulatory Commission (Sharing of InterState Transmission Charges and Losses) Regulations, 2010 from time to time.

To know more about the order please refer to the document below:

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