The Central Electricity Regulatory Commission (CERC) ruled that 50% of the tariff for the Raigarh-Pugalur-Thrissur High Voltage Direct Current (HVDC) transmission corridor would be included in the national component and 50% would be borne by the southern beneficiaries, including Tangedco.
Tamil Nadu and other southern States have been seeking for 100% of the tariff to be included in the national component and said refusal to consider the request would have a huge impact on the southern region.
The Power Grid Corporation of India Limited is implementing this transmission corridor at a cost of about ₹20,000 crore to facilitate the transfer of surplus power from Raigarh in Chhattisgarh to the southern region. It is also a part of the green energy corridor for the transfer of renewable energy from the southern States to the rest of India.
Earlier, CERC had notified a tariff, which provided for 30% of the tariff to be included as a national component to be borne by all power distribution companies and the rest 70% to be borne by the southern beneficiaries.
In March 2022, Tamil Nadu Chief Minister M.K. Stalin submitted a memorandum to Prime Minister Narendra Modi requesting him to issue an instruction to declare the Raigarh-Pugalur-Thrissur line an asset of strategic and national importance. In May 2022, the Union Ministry of Power wrote to the CERC, recommending that the transmission charges of the Raigarh-Pugalur-Thrissur line be considered under the national component. However, in September 2022, the CERC ruled that it was not an appropriate forum to declare any transmission asset to be of national and strategic importance.
Tangedco moved the Appellate Tribunal for Electricity (Aptel) against the ruling. In July this year, Aptel ruled in favour of Tangedco and told CERC to pass a fresh order. The Supreme Court had also told CERC to dispose of the proceedings on or before October 31, 2023. CERC, in an order dated October 30, said 50% of the tariff would be included in the national component and 50% would be borne by southern beneficiaries.
The billing for the tariff in the 50:50 ratio will begin on October 27, 2023, Power Grid told investors in a recent meeting.
Tangedco had said the CERC, in its earlier decisions, had declared Biswanath Chariali/Alipurdwar (northeastern region) and Agra (northern region) HVDC, and iMundra (western region)—Mohindergarh (northern region) HVDC transmission systems as having strategic and national importance. The transmission tariff of these assets was recovered on an all-India basis, though the southern region did not benefit. Tangedco had paid a total of about ₹614.22 crore for these corridors without any usage.
Due to the refusal to declare the transmission system a national asset, Tamil Nadu alone incurs an expense of ₹500 crore a year, and this may pass on to consumers, P. Wilson, Senior Counsel, Tangedco, told The Hindu. He also said Tangedco is filing an appeal against the CERC order.
