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APTEL Dismisses Harison Hydel's Appeal Against HPERC's O&M Charge Ruling

In a recent verdict, the Appellate Tribunal for Electricity (APTEL) dismissed the appeal filed by M/s Harison Hydel Construction Co. (P) Ltd. against the Himachal Pradesh Electricity Regulatory Commission (HPERC). The company had challenged the Commission's decision on the calculation of Operation and Maintenance (O&M) charges for its interconnection facilities.

Background

The case dates back to HPERC's order on March 15, 2016, which upheld the O&M charges levied by the Himachal Pradesh State Electricity Board Ltd. (HPSEBL) for the period 2008-09 to 2014-15. The dispute arose over the number of feeders considered for calculating the charges.

Harison Hydel argued that the total number of feeders at the Jari Substation should be counted as nine, including Vacuum Circuit Breakers (VCBs) and station transformers. HPSEBL, however, maintained that only six feeders qualified under the guidelines issued in the Astha case.

Key Issues and Arguments

The appellant contended that VCBs and station transformers should be included in the feeder count, leading to a lower per-feeder O&M charge. On the other hand, HPSEBL asserted that the calculation should only include incoming and outgoing feeders used for electricity transmission.

APTEL agreed with HPSEBL's stance, reaffirming that VCBs and transformers do not qualify as feeders as they do not contribute to power conveyance. The tribunal further held that even if these components were hypothetically included, the O&M costs would still be proportionally distributed without changing the overall financial burden.

Penalty on Delayed Payments

The appeal also addressed penalties imposed on Harison Hydel for delayed payments. HPSEBL levied a penalty of 1.5% per month on unpaid O&M charges, as per the interconnection agreement. APTEL upheld the penalty, stating that the appellant was obligated to make timely payments, even if disputes existed.

Conclusion

With this ruling, APTEL reaffirmed the authority of HPERC in applying the Astha guidelines for O&M charge calculations. The decision highlights the importance of timely compliance with regulatory norms in the power sector.

The appeal was dismissed on March 20, 2025, with APTEL finding no merit in Harison Hydel's claims.