Power Grid Corporation does not expect proposed changes in operation and maintenance (O&M) charge norms by the Central Electricity Regulatory Commission (CERC) to have any impact on the corporation, a top company official said.

The company is in discussions with the regulator.

Draft regulations suggest altering the prior 75:25 (sub-station vs transmission line) O&M cost distribution to a 65:35 ratio, increasing transmission line charges, while decreasing substation charges.

Chairman and managing director Ravindra Kumar Tyagi claimed that the “net impact is almost zero”, with overall O&M charges maintained.

“They have added one more element, ‘reactor’. Earlier, we were not incurring any O&M charges for reactors. Now, reactor charges have been added per Mega Volt-Ampere Reactive (MVAR), similar to transformer charges per MVA capacity such as Rs 20 lakh or so per MVA.

“However, the net impact is negligible, almost zero. We are going to receive the same O&M charges as before,” he told investors during an analyst call.

PowerGrid is optimistic that final norms on equity won’t adversely affect the company’s revenue or profitability.

PTI