Transmission Projects and Tariff Determination

  • Transmission Projects Overview
    • Executed by HP Power Transmission Corporation Limited (HPPTCL)
    • C&M Wing files petitions before Hon’ble Himachal Pradesh Electricity Regulatory Commission (HPERC)
    • Purpose: Determine Capital Cost and Tariff (Aggregate Revenue Requirement – ARR)
    • Capital Cost & Tariff Determination Process:
    • HPERC determines the Year-wise Recoverable ARR for each Control Period (typically 5 years).
    • Currently in the 5th Control Period: Covering FY 2024-25 to FY 2028-29.
    • The approved ARR is recovered from HPPTCL’s Long-Term Open Access (LTOA)/Transmission Service Agreement (TSA) and Medium-Term Open Access (MTOA) customers based on contracted capacity (MW).
    • Higher contracted capacities bear higher charges.

Status of Tariff Petitions Before HPERC


  • Table Overview:

Sr. No.Date of FilingPetition TitleDescriptionRemarks
113.02.2026HPPTCL Vs HPSEBLApproval of Capital Cost and Tariff for 220/66/33kV Heiling Substation along with S/C LILO of 220kV D/C Bajoli Holi to Lahal Transmission lineFiled before HPERC
213.03.2026HPPTCL Vs JSW EnergyApproval of Capital Cost and Transmission Tariff for S/C LILO of 400 kV D/C Lahal to Chamera lineFiled before HPERC
……………
825.07.2025HPPTCL Vs HPSEBLApproval of Capital Cost and Tariff for period from COD to FY 2028-29 for LILO of 132kV Dehan-Bassi LinePublic Hearing yet to be conducted

Review Petitions Before Hon'ble HPERC

  • Review Petitions Overview:
    • Petitions Filed: Requests for review of previous orders regarding capital cost and tariff determinations.
    • Examples of Review Petitions:
      • 1: Filed on 05.10.2024 - HPPTCL Vs HPSEBL: Review of Order dated 12.06.2024 for 66kV Urni Substation.
      • 2: Filed on 25.02.2025 - HPPTCL Vs HPSEBL: Review of Order dated 21.01.2025 for 66/22 kV Substation Nirmand.

Miscellaneous Petitions Before Hon'ble HPERC

  • Miscellaneous Requests Overview:
    • Detail specific petitions related to disputes, payment directions, and approvals necessary for operational issues.
  • Examples of Miscellaneous Petitions:
    • Date: 08.10.2024
      • Description: Direction for HPSEBL to pay transmission charges.
    • Date: 04.01.2025
      • Description: Interim relief to recover transmission charges.

Status of Tariff Petitions Before CERC

  • CERC Tariff Determination Overview:
  • Petition Examples:
    • Date: 07.01.2023
    • HPPTCL Vs HPSEB & Ors: Petition for inclusion of GIS Pooling Sub-Station Wangtoo under PoC (Point of Connection) mechanism. Order issued on 20.03.2025.
    • Date: 28.11.2024
    • Petition for truing-up of transmission tariff for 2019-24 period and determination of tariff for 2024-29 period.

Status of Tariff Petitions Before APTEL

  • APTEL Appellate Process Overview:
    • Appeals related to CERC orders challenging liabilities and tariff assessments.
    • Example: 07.02.2020 HPPTCL vs CERC regarding transmission charges from March 31, 2019, till commissioning of 220kV line.

Invoicing and Payment Structure

  • Invoice Issuance:
    • Monthly basis, first week of the month for the previous period.
    • Payment due in 45 days.
    • Surcharge: Imposed if payments are overdue.
    • Payments are first applied to surcharges then offset against old principal dues.
  • Monthly Invoicing Factors:
    • Based on Transmission Availability Factor (TAFM), number of days in the month, and calendar year.

Status of LTOA/TSA and MTOA Customers

  • Customer Overview:
    • List of key customers and their contracted capacities in MW and the type of open access (LTOA or MTOA).
  • Customer List:
    • 1: HPSEBL - 1372 (TSA)
    • 2: ACC Ltd (Gaggal) - 27 (MTOA)
      • Total Contracted Capacity: 2333 MW

Details of ARR for 5th Control Period

  • Changes from Previous Control Period:
    • Consolidated ARR instead of asset-specific ARR starting from FY 2024-25.
    • Tariff order for the 5th control period issued on 22.01.2025.
    • Recoverable ARR for FY 2024-25: ₹ 93.73 Crores and for FY 2025-26: ₹ 112.17 Crores.
  • Current Tariff Rates: Approximately ₹ 52,000 per MW per month.

Interim Tariff Approved for 5th MYT

  • Recent Orders:
    • Orders dated 05.03.2026 and 10.03.2026 approving interim tariff.
    • Approved ARR for FY 2024-25: ₹ 9.97 Crores
    • Approved ARR for FY 2025-26: ₹ 9.86 Crores

Detailed Beneficiary ARR Charges

  • Beneficiary Contribution: Detailed contribution of each beneficiary for FY 2024-25 and FY 2025-26
    • Examples Include:
    • HPSEBL: FY 2024-25: ₹ 72,31,84,816, FY 2025-26: ₹ 77,97,75,345
    • M/s KPCPL: FY 2024-25: ₹ 1,07,52,895, FY 2025-26: ₹ 1,15,94,328

Invoicing under Interim Agreement (IA)

  • Purpose and Examples:
    • IA executed with two HEPs for billing where tariff was not available.
    • Details include:
    • BHHPPL: ₹ 45 Crores (FY 2024-25) and ₹ 33.75 Crores (FY 2025-26) for 400/220/33 kV Lahal
    • SJVNL: ₹ 7.2 Crores (FY 2024-25) and ₹ 4.2 Crores (FY 2025-26) for associated elements.

ARR Issued versus Assets Involved

  • Current Gaps:
    • ARR issued by HPERC concerns only certain assets resulting in cumulative arrears.
    • Two categories of assets:
    • A: Previously determined tariffs for now-excluded assets.
    • B: Petitions filed, but no tariff orders yet issued.

Critical Issues in Billing

  • Challenges Encountered:

    • Assets accumulating arrears due to delayed tariff determination, leading to billing concerns.
    • Proposed interim agreements not accepted by all beneficiaries, leading to unresolved billing issues.
    • Existing disputes with HPSEBL regarding billing reconciliations and acceptance of past agreements.

  • Conclusion:

    • Recommended actions include exploring interim agreements and resolving outstanding billing disputes to ensure smooth cash flow for HPPTCL and stakeholder satisfaction.