APTEL Allows HVPNL Appeal, Rules NTPC Solar Project Must Pay State Transmission Charges

The Appellate Tribunal for Electricity (APTEL) has partly allowed an appeal filed by Haryana Vidyut Prasaran Nigam Limited (HVPNL) in a case related to transmission charges for a solar power project developed by NTPC Limited. The dispute involved a 5 MW solar power plant installed at the Faridabad Gas Power Station in Haryana. Although the electricity generated from the solar plant was contracted to GRIDCO in Odisha, the power evacuation relied on transmission infrastructure connected to the Haryana state network.

The issue began when the Central Electricity Regulatory Commission (CERC) earlier ruled that NTPC was not required to pay state transmission charges. CERC had concluded that the solar power project used only the Inter-State Transmission System and that the Palla substation, which served as a key connection point, belonged to the Bhakra Beas Management Board (BBMB). Since BBMB is considered a deemed ISTS entity, the commission held that the project was operating through the inter-state transmission system and therefore, state-level transmission charges were not applicable.

However, HVPNL challenged this decision and argued that the Palla substation was owned and operated by the Haryana state transmission utility. The company also maintained that the solar project should be classified as an intra-state entity and therefore, must pay applicable state transmission charges and losses for using the state transmission network.

After reviewing the case, APTEL found several factual and regulatory errors in the earlier order issued by CERC. The tribunal clarified that the Palla substation is in fact owned and operated by HVPNL and not by BBMB. Because electricity from the solar plant passes through this substation, the power is transmitted through the Haryana state transmission system.

The tribunal also examined the operational status of the project and noted that the principal generator, the Faridabad gas power station, is an intra-state entity. It is scheduled by the Haryana State Load Dispatch Centre, which means that the associated solar project should also be treated as an intra-state entity under applicable regulations.

Another key issue in the case was the role of the No Objection Certificate issued by the state transmission utility. The tribunal disagreed with CERC’s earlier view that the NOC was only a formality required for scheduling power. APTEL stated that when an intra-state entity seeks long-term access to the inter-state transmission system, it must comply with the conditions set by the state utility, including the payment of transmission charges.

At the same time, the tribunal observed that the connectivity agreements signed between HVPNL and NTPC did not have legal standing because the Central Transmission Utility is the only authorized agency to grant such connectivity. Despite this, the tribunal ruled that HVPNL is still entitled to receive transmission charges and losses for the use of its network. The order concluded that the state transmission utility should be compensated for the utilization of its system since the commissioning of the solar project.