DEHRADUN, India — The Uttarakhand Electricity Regulatory Commission (UERC) has issued a ruling clarifying that the Power Transmission Corporation of Uttarakhand Ltd. (PTCUL) is not permitted to levy Connectivity, Power System Study, or Technical Feasibility Fees on consumers seeking load enhancement through a distribution licensee. The Commission further clarified that PTCUL is not required to execute a separate connection agreement directly with such consumers, as the distribution licensee acts as the facilitator for the connection.
In the same proceedings, the Commission set aside a ₹40,000 (~$420.43) Registration-cum-Processing Fee demanded by Uttarakhand Power Corporation Ltd. (UPCL). The ruling established that such fees are not leviable for load enhancements conducted at the same voltage level.
Case Background
The Complainant
The case originated from a complaint filed by M/s Kashi Vishwanath Steels Pvt. Ltd. (KVSPL), an HT industrial consumer located in the Narayan Nagar Industrial Estate, Bazpur Road, Kashipur.
The Dispute
On February 26, 2024, KVSPL applied to UPCL for a load enhancement of 12,000 kVA to its existing 21,500 kVA connection at the 132 kV level. This enhancement was intended to bring the total contracted load to 33,500 kVA at the same voltage level. During the application process, the following contested fees were identified:
- UPCL Registration Fee: A ₹40,000 (~$420.43) registration-cum-processing fee deposited by the consumer.
- PTCUL Connectivity Charges: A total demand of ₹500,000 (
5,255), comprising a ₹100,000 (~1,051) fee for a technical feasibility report and a ₹400,000 ($4,204.3) balance for the execution of a connectivity agreement.
PTCUL argued that the enhancement was a substantial increase falling under the UERC Intra-State Open Access Regulations, 2015, thereby requiring a direct connectivity application and fee.
Regulatory Reasoning
The Commission’s decision rested on the technical distinction between two categories of applicants as defined under the UERC Intra-State Open Access Regulations, 2015:
- Direct Open Access Applicants: Entities seeking direct connectivity from the transmission licensee (PTCUL) who are not embedded consumers of a distribution company. These applicants must pay the ₹500,000 (~$5,255) fee and execute a direct agreement.
- Embedded Consumers: Existing or prospective consumers of a distribution company, such as KVSPL, who manage their connection requirements through the distribution licensee.
The Commission determined that for an “Embedded Consumer,” the distribution company (UPCL) serves as the sole facilitator, and there is no direct interface with the transmission licensee. Consequently, connectivity and feasibility charges are not applicable. Regarding the UPCL registration fee, the Commission ruled that because the enhancement occurred at the same voltage level (132 kV), the application was governed by the specific regulatory format of Annexure VII, which contains no provision for a registration fee.
Regarding the specific financial impact of the UPCL fee, the Commission stated:
“However, it noted that the fee was adjustable in the final demand note and, therefore, no financial harm would be caused to the consumer.”
Key Implications for EHV Consumers
The Commission’s order establishes several direct regulatory outcomes for industrial and Extra High Voltage (EHV) consumers seeking load modifications:
- Fee Exemptions: Embedded consumers are legally exempt from paying Connectivity, Power System Study, or Technical Feasibility Fees to the transmission licensee (PTCUL) when applying through a distribution licensee.
- Agreement Requirements: No direct connection agreement with PTCUL is required for load enhancement or reduction for consumers connected via a distribution licensee.
- Voltage Level Precedent: Under the Annexure VII regulatory format, registration-cum-processing fees are not applicable for load enhancements that maintain the existing voltage level.
- Role of Licensee: The ruling reinforces the status of the distribution licensee as the primary interface for embedded consumers, removing the necessity for direct transmission-level agreements for load modifications.
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