MPERC trues up MPPTCL's FY2024-25 transmission ARR, allowing a net additional ₹338.96 crore over the MYT-approved ARR, to be recovered from Discoms, Railways and SEZ.
In the matter of petition filed by MP Power Transmission Co. Ltd., application of True-up of the Transmission Tariff for FY 2024-25. (Petitioner: 1) M P Power Transmission Company Limited)
Under MPERC's MYT order dated 20.3.2025 (Petition 54/2024), MPPTCL was required to file annual true-up of transmission tariff based on audited accounts. MPPTCL filed the true-up petition on 13.11.2025 for FY2024-25, claiming a total ARR of ₹5995.97 Cr against the ₹5356.32 Cr approved in MYT, seeking a true-up of ₹639.65 Cr, sharing of the amount among Discoms/WCR/MPIDC(SEZ) based on capacity, and recovery within six months of tariff determination per Clause 10.10 of Regulations 2024.
- Approved total FY2024-25 ARR of ₹5695.28 Cr (vs ₹5356.32 Cr in MYT order), yielding a net true-up of ₹338.96 Cr — lower than MPPTCL's claimed ₹639.65 Cr.
- Fully disallowed Interest on Working Capital (₹97.50 Cr reduced to nil) as normative claim was not justified.
- Allowed O&M expenses on actual basis at ₹571.39 Cr (vs ₹681.31 Cr normative), a reduction of ₹109.92 Cr.
- Allowed Pension/Terminal Benefits at actual ₹3447.08 Cr (vs provisional ₹2942.46 Cr), adding ₹504.62 Cr to ARR.
- Allowed Security Expenses at ₹36.29 Cr (net of SLDC share) and PPP Unitary Charges at actual ₹32.58 Cr (reduced from ₹37.80 Cr).
- Re-fixed trued-up Transmission System capacity at 21382.61 MW (vs 26151.32 MW considered in MYT order) for apportioning the true-up amount among beneficiaries.
- MPPTCL to implement the order after issuing public notice per Clause 1.30 of MPERC (Details & Fees) Regulations, 2004.
- MPPTCL to submit compliance information to the Commission confirming implementation.
- MPPTCL to upload the order, petition and annexures on its website.
- Recover the ₹338.96 Cr true-up amount from Discoms, WCR and MPIDC(SEZ) as per the capacity-based sharing table in the order.
- Recovery to be effected as per provisions of MPERC (Transmission Tariff) Regulations, 2024.
- Future true-up petitions to address any MAT/income tax liability not claimed in this filing.
- • Long-term open access consumers and Discoms will see an incremental transmission charge pass-through of ₹338.96 Cr, but this is materially lower than MPPTCL's original claim, easing the cost impact on ultimate consumers.
- • Sharp downward revision of transmission capacity (21382.61 MW vs 26151.32 MW) changes the proportional cost-sharing ratios among Discoms, Railways and SEZ — open access users tied to specific beneficiary capacities should re-check their allocated share.
- • Full disallowance of normative working capital interest and O&M savings signals stricter prudence checks by MPERC, which could similarly constrain future ARR claims and cap pass-through costs for C&I/OA consumers.
- • The large swing in pension/terminal benefit true-up (+₹504.62 Cr) shows continued volatility in transmission ARR linked to legacy liabilities — RE/storage developers and OA users should factor this recurring cost risk into long-term wheeling/transmission charge assumptions.
This is a routine but material true-up — MPERC has trimmed MPPTCL's claim by nearly ₹300 Cr through disallowance of working capital interest and O&M above actuals, while passing through the full pension/terminal benefit burden, which remains the single largest cost driver. For C&I open access users and Discoms, the net impact is manageable, but the capacity re-basing (down ~4,770 MW) is the sleeper issue — it resets cost-sharing ratios and could shift burden across beneficiary categories in subsequent tariff cycles. Developers relying on long-term OA capacity allocations should track how MPPTCL's capacity definition evolves, as it directly affects their share of transmission true-ups.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.