Open Access: APTEL Clarifies On Onus Of Charges In ISTS Projects

The Appellate Tribunal for Electricity (APTEL) has settled a key jurisdictional tussle by ruling that the Odisha Electricity Regulatory Commission (OERC) — and not the Central Electricity Regulatory Commission (CERC) — is the right forum to decide transmission charges for Jindal Stainless Ltd’s (JSL) power transfers.

The case dates back to when JSL began moving electricity from its Odisha plant to Haryana. While this was an inter-state transaction, it relied on Odisha’s local transmission network at the starting point. The dispute was never about the inter-state part, but rather about how much should be paid for using Odisha’s grid.

State vs Centre: Who Decides?

OPTCL argued that only the central regulator had authority, but APTEL disagreed. It said OERC had clear powers under its own regulations framed in 2005 and 2006 to decide charges for using the state network. Even CERC’s own rules, APTEL pointed out, recognise that when state networks are involved, the state commission should set the charges if the parties don’t agree.

OPTCL’s Shifting Stand

The Tribunal also flagged inconsistencies in OPTCL’s approach. For years, it had charged companies based on OERC’s orders. But when JSL disputed the rate, OPTCL suddenly claimed OERC lacked jurisdiction. APTEL called this position contradictory.

Precedents and Practice

Backing its reasoning, the Tribunal cited earlier judgments — including cases from Chhattisgarh and Gujarat — where it had held that whenever state networks are used, the matter lies with the state commission. It also noted that even Odisha’s State Load Despatch Centre (SLDC), while clearing JSL’s transactions, had written in its No Objection Certificates that “state transmission losses and charges” would apply as per OERC orders.

The Takeaway

With this decision, APTEL has not only settled the JSL-OPTCL dispute but also reaffirmed the role of state commissions in regulating charges for their own grids, even when power flows out of the state.