Himachal Pradesh Power Transmission Corporation seeks tariff revision for key interstate supply lines

The Himachal Pradesh Power Transmission Corporation Limited (HPPTCL) has approached the Central Electricity Regulatory Commission (CERC) seeking a comprehensive revision of transmission tariffs for three major Inter-State Transmission System (ISTS) assets under its ownership. The petition covers “truing up” of tariffs for the 2019-24 control period and determination of fresh tariffs for the 2024-29 block.

The assets in question include the 220 kV single-circuit Jasoor-Ranjit Sagar transmission line, the 220 kV double-circuit Majri-Khodri line and the 220 kV double-circuit Kunihar-Panchkula line. These transmission corridors are integral to the northern regional grid, facilitating bulk power transfer across state boundaries and strengthening interstate connectivity.

Under the Electricity Act and CERC tariff regulations, truing up is a mandatory regulatory exercise. It reconciles the capital expenditure, debt servicing, interest liabilities and operational costs originally approved by the regulator with the actual expenditure incurred during the control period. The HPPTCL has contended that such revision is necessary to bridge the gap between projected and real costs and to ensure sustainable revenue for operation and maintenance of these critical transmission assets.

While admitting the petition, the CERC has sought additional documentary evidence from the utility. The commission has directed HPPTCL to substantiate its claim of a 10 per cent Weighted Average Rate of Interest (WAROI) on loans with detailed justification. It has also asked for updated auditor-certified statements validating the capital cost and financing structure of the projects.

Further, the HPPTCL has been instructed to furnish income tax returns and assessment orders for 2022–24. These documents will help the regulator verify the applicability of Minimum Alternate Tax (MAT) and assess its impact on the calculation of return on equity, a crucial component in tariff determination.

The Himachal Pradesh State Electricity Board Limited (HPSEBL), named as the lead respondent, is expected to scrutinise the claims closely. Any upward revision in transmission charges would directly influence power procurement costs and could eventually reflect in consumer tariffs.

The commission has granted respondents two weeks to file replies and objections. The matter is scheduled for further hearing on February 19, when CERC will conduct prudence checks to determine whether HPPTCL’s financial claims align with regulatory norms.