The Central Electricity Regulatory Commission (CERC) has issued new regulations outlining the process for obtaining a transmission license in India. The notification was issued on May 23, 2024.
Eligibility
- Only companies selected through competitive bidding or entities chosen by the government can apply for a license for interstate transmission of electricity.
- Distribution licensees and bulk consumers developing dedicated transmission lines are exempt from needing a license.
Application Process
- Applications must be submitted electronically to the CERC with supporting documents and fees.
- A public notice will be published, inviting comments and objections.
- The Central Transmission Utility (CTUIL) will provide recommendations on the application.
- The applicant can submit comments on the CTUIL’s recommendations and any public objections.
- The CERC will consider all input before granting or rejecting the license.
License Terms and Conditions
- Licenses are valid for 25 years with the possibility of renewal.
- Licensees must comply with various regulations, including grid code standards and directions from load dispatch centers.
- Non-discriminatory open access to the transmission system must be provided.
- Licensees must pay applicable fees, maintain insurance, and operate efficiently.
- Activities like electricity trading by the licensee are prohibited.
License Renewal
- Licenses granted after competitive bidding require renewal applications two years before expiry.
- Renewal for a period less than 25 years may be considered by the CERC.
- The CERC may issue directions for continued operation if a licensee doesn’t apply for renewal.
Transmission Tariff
- Tariff for competitively bid projects will be adopted by the CERC based on the Transmission Service Agreement.
- For other projects, the CERC will determine the tariff according to applicable regulations.
- Tariff for assets beyond the initial license period will be determined based on specific regulations.
Revocation of License
- The CERC can revoke a license for various reasons, including breaches of terms, financial issues, or project abandonment.
- Revocation requires providing a notice with grounds and considering the licensee’s response.
Additional Points
- The licensee is responsible for maintaining separate accounts for different business activities.
- The CERC and authorized personnel can inspect accounts and request information from the licensee.
- The licensee must report major ownership changes and agreements affecting the project.
This is a simplified overview of the new regulations. For detailed information, please refer to the official CERC notification.
