CERC Finalizes DVC Transmission Tariffs For 2019-24 True-Up And 2024-29 Period

The Central Electricity Regulatory Commission has issued a key order dated March 24, 2026, finalizing the transmission tariffs for Damodar Valley Corporation. The decision, under Petition No. 382/TT/2025, covers both the financial true-up for the 2019–24 period and the tariff determination for the 2024–29 cycle.

The case focuses on five new elements of DVC’s transmission and distribution network in the Eastern Region. These include the 132 kV Biada substation along with multiple 220 kV and 33 kV transmission lines. These assets were commissioned between 2014 and 2019 and were combined into a single asset group for tariff purposes starting April 1, 2019.

For the 2019–24 period, the Commission approved Annual Fixed Charges that change each year. The approved charges start at around ₹2206 lakh in 2019–20 and gradually decline to about ₹1915 lakh in 2023–24. These figures are lower than the amounts originally claimed by DVC, which had reached up to ₹2423 lakh in the first year. The approved tariff includes key cost components such as depreciation, interest on loans, return on equity, and operation and maintenance expenses.

For the upcoming 2024–29 control period, the Commission has determined the combined capital cost of these assets at around ₹13,472 lakh as of April 1, 2024. In addition, DVC has proposed further capital expenditure of about ₹350 lakh for 2024–25. This additional spending is mainly related to statutory payments to the Forest Department for the Koderma-Giridih transmission line.

The order also highlights the unique structure of DVC’s operations. Unlike many utilities that handle only transmission, DVC runs an integrated system that supplies electricity to pooled consumers in parts of West Bengal and Jharkhand. Because of this structure, it is difficult to directly link specific consumers to individual transmission assets. To improve transparency, the Commission had earlier directed DVC to clearly separate its existing and new assets for regulatory purposes.

During the proceedings, consumer associations from Jharkhand and West Bengal raised objections. They expressed concern over the lack of proper segregation between transmission and distribution assets. According to them, this could lead to consumers bearing overlapping or unfair costs. The Commission acknowledged these concerns but stated that wider issues related to asset segregation are being handled separately under another ongoing petition.

The Commission also clarified that recovery of transmission charges will follow the 2020 Sharing Regulations. Under this system, charges will be collected from designated interstate customers through a centralized mechanism. This ensures that the cost of transmission infrastructure is fairly shared among all beneficiaries using the network.

Overall, the order aims to balance cost recovery for the utility while maintaining transparency and protecting consumer interests.