CERC Orders Refund of ₹711.44 Crore to Haryana Discoms in Transmission Charges Dispute; Recognises Entitlement to Interest
In an order dated 28.02.2026, the Central Electricity Regulatory Commission (CERC), on remand, has ruled in favour of the Haryana Discoms (UHBVNL and DHBVNL, through HPPC), directing refund of ₹711.44 crore along with applicable interest, in relation to transmission charges wrongly levied by Grid India.
This order marks the culmination of prolonged litigation spanning multiple rounds before the Appellate Tribunal for Electricity (APTEL) and the CERC, concerning the classification and charging of the 400 kV IGSTPS–Daulatabad transmission line.
1. Recognition of Intra-State Nature of Transmission Line
At the core of the dispute was whether the 400 kV transmission line from Indira Gandhi Super Thermal Power Station (IGSTPS) to Daulatabad constituted an transmission system (ISTS) or an intra-state line.
Reaffirming its earlier findings, the CERC held that the line is an intra-state transmission line and therefore not subject to ISTS charges under the PoC (Point of Connection) mechanism.
This classification formed the legal basis for holding that the levy of interstate transmission charges on Haryana Discoms was not sustainable.
2. Refund Limited to Period Within Limitation
Following remand by APTEL, the CERC confined the relief to the legally permissible period from 03.06.2014 to 04.05.2018, in line with the application of limitation principles to adjudicatory proceedings.
The Tribunal had clarified that claims prior to June 2014 were time-barred, while claims within the three-year window were maintainable.
3. Quantification of Refund and Inclusion of April 2018
A key issue before the Commission was the computation of the refund amount.
- The parties reconciled a principal sum of ₹691.34 crore for June 2014 to March 2018
- The Petitioners claimed an additional amount for April 2018
Rejecting CTUIL’s objection, the CERC held that the Petitioners were entitled to refund for April 2018 as well, bringing the total principal refund to ₹711.44 crore.
The Commission specifically noted that billing for April 2018 continued to include LTA quantum attributable to Haryana’s share, thereby warranting refund.
4. Directions for Recovery and Adjustment Mechanism
The CERC permitted phased recovery of the refund amount by the Petitioners:
- ₹483.50 crore (already allowed earlier in instalments)
- ₹207.84 crore (balance recovery in further instalments)
- Additional ₹20.10 crore (pertaining to April 2018)
These recoveries are to be adjusted through charges collected under the applicable Sharing Regulations.
5. Entitlement to Interest and Restitution
In line with APTEL’s directions, the CERC recognised that the Petitioners are entitled to interest/carrying cost as a measure of restitution for amounts illegally recovered.
The Commission is required to determine:
- Whether interest should be simple or compound
- The applicable rate of interest
- The methodology of computation (including rests, if compound)
This stems from APTEL’s finding that recovery of ISTS charges on an intra-State line was unlawful, thereby triggering restitutionary principles.
6. Consumer Adjustment Through Tariff Mechanism
The Commission recorded that the Haryana Discoms had passed on these charges to consumers.
Accordingly, any refund (principal and interest) is required to be adjusted in future tariff determination, ensuring that the ultimate benefit flows to end consumers.
