Decided on March 01,2012



M.KARPAGA VINAYAGAM, J. - (1.)HARYANA Power Generation Corporation Limited has filed this Appeal as against the impugned order dated 16.4.2010 approving the ARR and fixing the tariff for generation and sale of electricity to distribution licensee as well as the Review Order dated 3.5.2011 passed by the Haryana Electricity regulatory Commission (State Commission.) The short facts are as follows:
(i) The Appellant being a Generating Company filed Generation Tariff Application on 30.10.2009 before the State Commission for the Financial Years 2010 -14.

(ii) The State Commission called for clarifications and information from the Appellant.

(iii) Accordingly, on 11.2.2010, the Appellant submitted the said information and clarifications. In the meantime, the State Commission received some objections from the public.

(iv) On 15.2.2010, the Appellant filed a reply to the said objections. Thereupon, public hearing was held. Ultimately on 16.4.2010, the State Commission passed the impugned Tariff Order with some modifications to the tariff proposal submitted by the Appellant.

(v) Aggrieved by this order dated 16.4.2010, the Appellant filed a Review Petition before the State Commission. After hearing the parties, the State Commission by the order dated 3.5.2011 allowed only the benefit of revision of Station Heat Rate upwards in respect of Panipat TPS and the upward revision of ROE and transformation loss in the case of WYC Kakroi (Hydro).

(vi) However, the State Commission rejected rest of the claims. Hence, the Appellant has filed this Appeal challenging both the order dated 16.4.2010 and 3.5.2011 in respect of disallowed claims.

(2.)IN this Appeal, the following issues have been raised.
(i) Operating Norms

(ii) Transit Loss of Coal

(iii) Operation and Maintenance Expenses

(iv) Return on Equity

(v) Fuel Price Adjustment and Carrying Cost thereof. (vi) Carrying cost on pay revision arrears

(3.)BEFORE proceeding further we would like to mention that the Appellant, in this Appeal has stated that the State Commission has not followed the guidelines laid down by the Central Electricity Regulatory Commission and principles laid down by the Tariff Policy issued by the Government of India in accordance with Section 3 of the 2003 Act. It further states that Section 61(d) of Act 2003 requires that the State Commissions, while fixing tariff, shall be guided by the principle under which recovery of cost of electricity is ensured in a reasonable manner. Section 61(i) of the Act mandates that the State Commission shall be guided by the National Electricity Policy and Tariff Policy. According to the Appellant, the State Commission has neither followed the principles and methodology neither specified by the Central Commission nor followed the provisions of Tariff Policy and National Electricity Policy.
In this context it would be desirable to refer to Section 61 of the Act which reads as under:

61. Tariff regulations. - -The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely: - -

(a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees;

(b) the generation, transmission, distribution and supply of electricity are conducted on commercial principles;

(c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments; (d) safeguarding of consumers' interest and at the same time, recovery of the cost of electricity in a reasonable manner;

(e) the principles rewarding efficiency in performance; (f) multi -year tariff principles;



(i) the National Electricity Policy and tariff policy: Provided that the terms and conditions for determination of tariff under the Electricity (Supply) Act, 1948 (54 of 1948), the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and the enactments specified in the Schedule as they stood immediately before the appointed date, shall continue to apply for a period of one year or until the terms and conditions for tariff are specified under this section, whichever is earlier.


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.