The Central Electricity Regulatory Commission (CERC) has initiated suo motu proceedings against several inter-state transmission licensees (TRANSCOs) following extensive non-compliance with mandatory performance reporting requirements under the regulatory framework.

The Commission expressed serious concern about what it described as a near-total failure by transmission companies to comply with the Standards of Performance rule, intended to ensure transparency, accountability, and consumer protection in the operation of the national transmission network.

As a result, CERC has issued show-cause notices to 129 TRANSCOs, warning of penal action under the Electricity Act, 2003.

The proceedings arise from violations of the CERC (Standards of Performance of Inter-State Transmission Licensees) Regulations, 2012. Regulation 8 of the framework, read with Section 59 of the Electricity Act, requires licensees to periodically disclose operational performance metrics, including service reliability parameters, the number of cases where compensation was paid to users, and the aggregate compensation amount.

While the regulations originally mandated half-yearly reporting, this requirement was modified through a suo motu order issued in January 2022, which required TRANSCOs to submit performance data for the preceding financial year (FY) by April 30.

In addition to regulatory filings, licensees were also required to publish monthly performance data and compensation details on their websites and maintain public disclosure of actual performance against prescribed standards.

However, CERC’s review of compliance records revealed widespread disregard of these obligations. Of the 162 inter-state transmission service providers examined, 25 had not achieved commercial operation and were therefore not required to comply.

Among the remaining operational entities, performance data was received from only 30 TRANSCOs, and even these submissions covered only the period from April 2022 to March 2024.

Data for the financial year 2024–25 was entirely absent, and most transmission companies failed to submit any information.

The Commission also noted that despite a specific circular issued on May 8, 2025, directing licensees to explain their non-compliance and submit pending information within 15 days, most TRANSCOs failed to respond.

CERC relied on data obtained from the National Load Despatch Centre and the Central Electricity Authority to independently assess compliance levels, concluding that almost all inter-state TRANSCOs had contravened Regulation 8 of the Standards of Performance Regulations.

Expressing strong displeasure, the Commission observed that performance reporting is not a procedural formality but a core regulatory requirement that underpins effective oversight and safeguards grid users and beneficiaries. Such persistent non-compliance, it said, weakens transparency in a sector critical to ensuring reliable and secure electricity supply.

Consequently, CERC has directed the 129 defaulting TRANSCOs to submit their replies to the show-cause notices within 15 days of the order dated December 25, 2025.

The licensees must furnish all pending compliance reports for the financial years 2021–22 through 2024–25, indicate whether and when any reports were previously filed, and provide detailed reasons for the delay in submission.

Failure to comply could invite penalties under Section 142 of the Electricity Act, 2003.

The matter has been scheduled for hearing on February 6, 2026, when the Commission will examine the responses and determine further action.

In October, the Central Electricity Regulatory Commission admitted petitions from solar developers seeking compensation for power generation and financial losses resulting from power curtailment caused by inadequate transmission systems.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.