MADHYA PRADESH POORVA KSHETRA Vs. MADHYA PRADESH ELECTRICITY
CENTRAL ELECTRICITY REGULATORY COMMISSION
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V.J.TALWAR, J. -
(1.)"Should the State Commission revise any formula or otherwise the tariff in the middle of the tariff year after having determined the revenue requirements and consequently the tariff to meet the revenue requirements and that too retrospectively which may cause financial burden/cash flow problems to the Licensee including the cost reflecting tariff will not be recovered by the licensees - This is the question posed for consideration in this Appeal.
(2.)THE Appellants are the distribution Licensees in the State of Madhya Pradesh. Madhya Pradesh Electricity Regulatory Commission (State Commission) is the 1st Respondent herein. 2nd and 3rd Respondents are the consumers of electricity.
(3.)AGGRIEVED by the Order dated 7.10.2010 passed by the State Commission the Appellants have filed this Appeal.
Brief Facts of the Case are as under:
a. On 18.5.2010, the State Commission passed an Order determining the total Annual Revenue Requirements (ARR) of the Appellants for the year 2010 -11 and consequently the tariff to be charged to different categories of consumers including Industrial consumers to meet such revenue requirements.
b. Like the earlier Tariff Orders, the State Commission had formulated the Incentive Schemes for higher Load Factor and Power Factor in this Tariff Order also and had also laid down the formulae for calculation of the load factor and Power Factor of the consumer. However, the formula for calculation of load factor was modified c. Subsequently, on a review petition filed by 2nd and 3rd Respondents, the State Commission reverted back to the formula that was used in the earlier orders for calculation of consumer load factor retrospectively by the impugned Order passed on 7.10.2010.
d. Aggrieved by the revision of formula for calculation of load factor of the consumer, the Appellants have filed this Appeal.
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