HERC Defers HVPNL’s INR 104.61 Crore Transmission Charge Pass-Through Claim To ARR Proceedings

The Haryana Electricity Regulatory Commission (HERC) has disposed of a petition filed by Haryana Vidyut Prasaran Nigam Limited (HVPNL) seeking approval for the pass-through of inter-state transmission charges payable to Power Grid Corporation of India Limited (PGCIL).

The petition was related to a Central Electricity Regulatory Commission (CERC) order dated June 20, 2025, under which HVPNL was made responsible for transmission charges associated with certain PGCIL assets because the corresponding downstream transmission systems in Haryana were not commissioned on time.

CERC had approved the Commercial Operation Date of four line bays at Khatkar in Jind from December 2, 2023, and two line bays at Naggal in Panchkula from October 1, 2023. As HVPNL’s connecting transmission lines were delayed, the state utility became liable to pay the transmission charges from the respective operational dates until the downstream systems were completed.

HVPNL estimated its indicative liability at around Rs. 104.61 crore over the 25-year useful life of the assets. This included approximately Rs. 66.70 crore related to the Jind project and Rs. 37.91 crore for the Naggal project.

During the proceedings, HVPNL submitted that the delays were caused by circumstances beyond its control. The utility cited disputes over land compensation with farmers, right-of-way protests, slow progress by contractors and delays in shifting 11 kV feeders by Uttar Haryana Bijli Vitran Nigam Limited (UHBVN).

It also pointed to delays in obtaining statutory clearances from authorities, including the Forest Department, National Highways Authority of India and PGCIL. HVPNL maintained that the requested pass-through would not impose an additional financial burden on consumers. According to the utility, it was primarily a statutory liability concerning the payment of transmission charges during the period before the assets were integrated into the national point-of-connection billing mechanism.

The matter was heard by HERC on September 7, 2026, by Officiating Chairman Mukesh Garg and Member Shiv Kumar.

After considering the submissions, HERC decided that the actual financial liability should be examined through the Annual Revenue Requirement (ARR) and true-up proceedings for the relevant financial year. The Commission allowed HVPNL to submit its detailed claims during those proceedings along with actual bills, payment receipts, project commissioning details and tariff calculations.

However, HERC clarified that granting this liberty does not amount to advance approval of the claimed amount. The prudence of the expenditure, total liability and any potential impact on consumers will be examined during the ARR and true-up process, after considering stakeholder comments.