CERC Holds Interest Not Payable On Delayed Adjustment Of Excess Transmission Charges In Absence Of Regulatory Provision

CERC holds interest not payable on delayed adjustment of excess transmission charges in absence of regulatory provision CERC through its order dated 27.02.2026 in Sembcorp Energy India Limited v. Central Transmission Utility of India Limited¹ held that interest is not payable on the delayed adjustment of excess inter-State Transmission charges in the absence of a specific provision under the applicable regulations.

The Petition was filed seeking recovery of INR 2.26 crores towards interest from Central Transmission Utility of India Limited (“CTUIL”) on account of alleged delay in reimbursement of INR 19.40 crore paid as excess transmission charges for the months of October and November 2020 under the Point of Connection (“PoC”) billing mechanism. The Petitioner contended that CTUIL failed to adjust the excess amount within the timelines prescribed under the CERC Sharing of Inter-State Transmission Charges and Losses Regulations, 2020, resulting in financial prejudice and entitling it to interest based on principles of restitution and equity.

CERC rejected the claim and held that the delay in adjustment was not attributable to CTUIL but occurred due to the time taken by various Regional Power Committees to issue revised Regional Transmission Accounts following the notification of revised PoC rates. In the absence of any statutory or contractual provision permitting such interest, the Commission held that the petitioner’s claim was untenable and accordingly rejected the claim.

Footnote

1. Petition No. 315/MP/2022.

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