In a recent decision, the Appellate Tribunal has held that the imposition on transmission charges on a transmission utility for the upstream network for purportedly failing to build a downstream transmission system is untenable in the absence of a specific agreement for such levy. The Transmission Services Agreement is to be entered into with the beneficiaries, who have the liability to pay the transmission charges as per the Agreement. The transmission utility is not a user of the upstream transmission network and cannot be made liable to pay transmission charges for such upstream network. The Appellate Tribunal has relied on two previous decisions in the case of HPSEB and NRSS XXXI(B) Transmission Limited and clarified the previous decision of Patran Transmission Company.
This decision should put to rest the apprehensions of many State Transmission Utilities and also transmission licensees who had been imposed with the transmission charges for upstream network on the ground that the downstream transmission system is not built or is delayed.
Read the whole judgment at https://aptel.gov.in/sites/default/files/Jud2022/A109of21_15.09.22.pdf
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