No. L-1/44/2010-CERC. Case: In Re: Central Transmission Utility (CTU) and APTRANSCO Vs. Central Electricity Regulatory Commission

Case NumberNo. L-1/44/2010-CERC
JudgesPramod Deo, Chairperson, S. Jayaraman, V.S. Verma and M. Deena Dayalan, Members
IssueElectricity Act
Judgement DateJune 02, 2011
CourtCentral Electricity Regulatory Commission


  1. The Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010 (hereinafter "Sharing Regulations") were notified on 15th June 2010. These Regulations shall come into effect from 1.7.2011.

  2. The Central Transmission Utility (CTU) has been entrusted with the responsibility for billing, collection and disbursement of Point of Connection (PoC) charges under the Sharing Regulations. The CTU, vide its letters No. C/02/Tr. Sh. dated 28th February, 2011 and No. C/02/Tr. Sh. dated 4th April, 2011 has approached the Commission under Regulation 21(1) of the Sharing Regulations for removal of certain difficulties which are being encountered for giving effect to the various provisions of the said regulation. The CTU has pointed out that a number of difficulties, as enumerated below, have arisen, which need to be dealt with before operational sing the provisions of the Sharing Regulations:

    (a) Yearly Transmission Charges (YTC) considered for the computation of PoC Charges;

    (b) Dedicated lines owned by Central Transmission Utility for PoC charges;

    (c) Interest on bill No. 2 (adjustment of additional MTOA and STOA) and Bill No. 3;

    (d) Raising of supplementary bill to take care of Annual Reconciliation;

    (e) Billing to distribution companies;

    (f) Date of billing for Bill No. 1.

  3. Transmission Corporation of Andhra Pradesh (APTRANSCO) vide its letters dated 1.3.2011, 18.3.2011 and 23.3.2011 has requested the Commission that in place of APTRANSCO, four Distribution Companies of Andhra Pradesh or Andhra Pradesh Power Coordination Committee (APCC) may be allowed to sign the Transmission Service Agreement (TSA) with the CTU and bills for transmission charges be allowed to be raised on them.

  4. We have carefully considered the submission of CTU and APTRANSCO with regard to the difficulties being encountered by them. Our decisions/directions on these points are discussed in the succeeding paragraphs.

    (A) Yearly Transmission Charges considered for the computation of PoC Charges

  5. This issue was earlier raised by the Implementing Agency. The Commission in its order dated 4.4.2011 has decided the issue as under:

  6. We have considered the submission of the Implementing Agency. We notice that under the existing system, the transmission charges are billed from the month following the month in which the tariff for any transmission system is determined, whereas the PoC charges under the Sharing Regulations are to be calculated once in the beginning of the year. Since the tariff of all transmission assets have not yet been determined, the YTC may have to be revised from time to time when the fresh tariff orders are issued. We are of the view that the definition of YTC does not prevent revision of YTC from time to time in line with the issue of tariff orders by the Commission. In order to operational the Sharing Regulations, it would be prudent to revise the YTC initially on a six monthly basis i.e. on 1st April and 1st October each year and later on three monthly basis, i.e. on 1st April, 1st July, 1st October and 1st December to represent season-wise demarcation.

    (B) Sharing of transmission charges for dedicated lines owned by the CTU

  7. CTU has pointed out that certain assets of POWERGRID such as Faridabad-Palla, Kayamkulam transmission system etc., are used for evacuation of power from Central Generating Station for consumption within the State. Even though these transmission lines are dedicated to a particular State, nevertheless they should be included in the Inter-State Transmission System (ISTS) for the purpose of calculation of PoC charges as they are part of the ISTS in accordance with Section 2(36)(iii) of the Electricity Act 2003 (the Act). It has been submitted that any asset owned by the CTU shall be a part of the ISTS and their charges should be considered for the purpose of computation of PoC charges. However, the Implementing Agency has not included the same for the calculation of the PoC charges.

  8. We have examined the suggestion of the CTU. Though the definition of "Inter-State Transmission System" in Section 2(36)(iii) of the Electricity Act, 2003 includes "the transmission of electricity within the territory of a State on a system built, owned, operated maintained or controlled by Central Transmission Utility". The tariff of such lines owned by Power grid for evacuation of power from a power station dedicated to any particular state is presently being borne only by the State concerned. These transmission lines are akin to the state lines except that it is owned, controlled and operated by Power grid. Since the transmission charges of these lines are not shared by any other State, we are of the view that the existing arrangement should continue under the Sharing Regulations also.


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