The Rajasthan Electricity Regulatory Commission (RERC) has issued a significant order finalizing the truing-up of financial parameters for FY 2024-25 and approving the Annual Revenue Requirement (ARR) along with transmission tariffs for Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN) for FY 2026-27. The order was finalized after a detailed public hearing process involving power sector stakeholders, distribution companies, and consumer representatives. The decision is expected to play an important role in balancing transmission infrastructure expansion with financial discipline in Rajasthan’s power sector.
According to the order, RVPN achieved a transmission system availability of 99.31% during FY 2024-25, which was higher than the normative benchmark of 98% fixed by the Commission for full recovery of transmission charges. Due to this strong operational performance, the utility became eligible for an incentive amounting to ₹25.43 crore. The Commission observed that the utility maintained reliable grid operations during the year, supporting uninterrupted electricity transmission across the state.
The utility also reported actual transmission losses of 4.25%, which remained lower than the approved target of 4.50%. While appreciating the lower loss level, the Commission advised RVPN to further improve efficiency by studying transmission systems in neighboring states where lower loss levels are being maintained. The Commission directed the utility to develop a roadmap for reducing losses in the coming years.
During the truing-up exercise, the Commission made several financial adjustments to the utility’s claims. RVPN had proposed large asset capitalization additions, but after regulatory scrutiny, the approved Net Gross Fixed Asset additions were reduced to ₹1,099.82 crore. The Commission also disallowed an insurance claim of ₹0.09 crore related to transmission properties, stating that the claim did not specifically cover core transmission line assets.
In another major decision, the Commission rejected the Return on Equity claim of ₹187.15 crore for FY 2024-25 by referring to earlier state government guidelines. However, considering the importance of grid reliability, the Commission allowed an additional ₹22.52 crore above the normative Operation and Maintenance expenses. This amount was approved for implementing an Emergency Restoration System intended to minimize risks of prolonged grid failures and improve system recovery during emergencies.
After considering all revisions and adjustments, the Commission finalized the trued-up Annual Transmission Charges for FY 2024-25 at ₹3,092.98 crore, which was lower than the utility’s original projections.
For FY 2026-27, Rajasthan’s transmission sector is expected to witness major infrastructure growth due to rising electricity demand. The projected peak transmission demand from Discoms and Open Access consumers is expected to reach 22,190.21 MW. To support this increasing demand, RVPN plans significant transmission network expansion, including the commissioning of 1,918 circuit-km of 220 kV lines and 2,127 circuit-km of 132 kV lines. The Commission finally approved Annual Transmission Charges of ₹3,779.89 crore for FY 2026-27 against RVPN’s claim of ₹4,605.71 crore, aiming to ensure affordable consumer tariffs while supporting grid modernization and expansion across Rajasthan.
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