The Uttarakhand Electricity Regulatory Commission (UERC) has clarified that the Power Transmission Corporation of Uttarakhand (PTCUL) is not required to execute a separate connection agreement directly with consumers seeking a new EHV connection, an enhancement or reduction of load, or a change in the distribution licensee.

It also held that no fee for connectivity, power system study, or technical feasibility should be charged to such consumers, while addressing the concerns of Kashi Viswanath Steels (KVSPL), Kashipur.

On Uttarakhand Power Corporation Limited’s (UPCL) levy of ₹40,000 (~$420.43) as a registration-cum-processing fee, the Commission found that such a fee should not have been levied in this case because the consumer had sought an enhancement of load at the same voltage level.

However, it noted that the fee was adjustable in the final demand note and, therefore, no financial harm would be caused to the consumer.

Background

The case arose from a complaint submitted by KVSPL regarding the levy of connectivity charges for load enhancement.

The company had an existing 21,500 kVA electricity connection at 132 kV and applied to UPCL on February 26, 2024, to increase the load by 12,000 kVA at the same voltage level. It deposited ₹40,000 (~$420.43) with UPCL towards registration-cum-processing fee.

UPCL later informed the consumer that PTCUL had sought ₹100,000 (~$1,051) as a processing fee for a technical feasibility report to enhance the load from 21,500 kVA to 33,500 kVA.

Subsequently, PTCUL directed UPCL to ensure that the consumer deposits the balance of ₹400,000 (~$4,204.3) towards the execution of a connectivity agreement.

Taking cognizance of the complaint, the Commission initiated suo motu proceedings and issued a show-cause notice to PTCUL, seeking an explanation for levying the charges.

PTCUL argued that the enhancement sought by KVSPL constituted a substantial increase in load and could require modification in the existing transmission system.

It also stated that, according to the Intra-State Open Access Regulations, 2015, the consumer was required to submit a grid connectivity application along with a connectivity fee of ₹500,000 (~$5,255), of which ₹100,000 (~$1,051) had already been deposited.

UPCL defended the levy of ₹40,000 (~$420.43), stating that it was charged in accordance with the UERC Electricity Supply Code Regulations, 2020.

Commission’s Analysis

The Commission identified three main issues: whether a separate connection agreement was required for consumers seeking new EHV connection or enhancement of load through the distribution licensee; whether connectivity, power system study, or technical feasibility charges could be levied on such consumers; and whether UPCL was correct in charging ₹40,000 (~$420.43) as registration-cum-processing fee from KVSPL.

On the first issue, the Commission noted that the first category consists of applicants seeking direct connectivity from the transmission licensee for open access and who are not, or do not intend to be, embedded consumers of the distribution company.

For such applicants, the Commission noted that Regulation 5 of the UERC Intra-State Open Access Regulations, 2015 provides for a non-refundable fee of ₹500,000 (~$5,255) payable to PTCUL, and such applicants are required to sign a connectivity agreement directly with the transmission licensee.

The second category comprises existing or prospective consumers of the distribution company who may also seek open access in the future. For such applicants, which include KVSPL, the Commission observed that they submit applications to the distribution company, which in turn obtains connectivity from the transmission licensee before availing of the connection.

In such cases, there is no direct interface between the applicant and the transmission licensee, and the distribution company acts as a facilitator. Therefore, no connectivity, power system study, or technical feasibility charges are applicable in such cases.

The Commission referred to its earlier order, which stated that PTCUL is not required to execute a separate connection agreement directly with consumers seeking a new EHV connection, or an enhancement or reduction of load, and that no charges towards connectivity, power system study, or technical feasibility are required in such cases.

On UPCL’s levy of ₹40,000 (~$420.43), the Commission noted that a consumer seeking enhancement or reduction of load at the same voltage level must apply in the correct format, which does not provide for the deposit of registration-cum-processing fee.

It added that since KVSPL sought enhancement of load at the same voltage level of 132 kV, the company had to apply under Annexure VII, and that the registration-cum-processing fee should not have been levied.

However, the Commission also observed that the registration-cum-processing fee deposited by the consumer is adjustable in the final demand note.

This April, UERC raised tariffs for some industrial-category power consumers and retained tariffs for commercial-category power consumers for the financial year (FY) 2027.

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