- (1.)THE petitioner, NLC Ltd., has filed these petitions seeking appropriate directions of the Commission for revision of the Annual Fixed Charges of its generating stations due to increase in O&M expenses on account of wage revision and other pay hikes during the period from 2005 -06 to 2008 -09. The petitioner has submitted that the Commission has specified the norms for O & M expenses in respect of the generating stations of NLC for the period 2004 -09 in Regulation 21(iv)(d) of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 (hereinafter "2004 Tariff Regulations"). The petitioner has submitted that while fixing the O&M norms for the tariff period 2004 -09 in respect of the generating stations of the petitioner, the Commission has not taken into account the factors prior to 1.1.2007 and after 1.1.2007 as their payments related to later developments but these expenditures are now required to be considered by the Commission. The petitioner has submitted that additional expenditures incurred prior to 1.1.2007 included grant of two increments with effect from 1.1.2006 and ex -gratia to all workmen following announcement of the same by Minister for Coal, Government of India on the occasion of occasion of Golden Jubilee Celebration of NLC; enhanced conveyance allowance consequent to rise of fuel cost effective from 1.1.2005; payment of enhanced wages with effect from 28.3.2004 in terms of the award of Central Government Industrial Tribunal; and implementation of the recommendations of the 6th Central Pay Commission in respect of the CISF personnel deployed at the generating stations and mines of NLC. The petitioner has further submitted that the additional expenditures from 1.1.2007 included merger of 50% of Dearness Allowance with the basic pay with effect from 1.1.2007 on account of the implementation of the recommendations of 2nd Pay Revision Committee and implementation of pay revision/wage revision of the employees of CPSE with effect from 1.1.2007.
(2.)THE petitioner has submitted that as the norms of O&M expenses for the period 2004 -09 did not account for the expected employee cost increase due to salary/wage revision, the petitioner filed Petition Nos. 162/2008, 164/2008 and 165/2008 in which the petitioner has sought upward revision of O&M expenses and the annual fixed charges already approved. The petitioner has submitted that the Commission in its order dated 5.2.2009 in the said petitions issued the following directions:
The question raised in these petitions is in regard to revision of O&M expense for the period prior to 1.4.2009, primarily on account of revision of salaries and wages w.e.f. 1.1.2007. This is an issue which universally affects other central power sector utilities as well. Therefore, a holistic view needs to be taken in the matter in accordance with law and by involving all the stakeholders. For this reason, the present petitions are considered premature.

The petitioner has submitted that subsequently the wage/pay revision was implemented as per the guidelines of Department of Public Enterprises and Ministry of Coal which has resulted in substantial increase in employee cost. The petitioner has prayed for revision of O&M expenses norms due to increase in employee cost and consequent increase of Annual Fixed Charges for the generating stations of the petitioner for the years 2005 -06, 2006 -07, 2007 -08 and 2008 -09. The petitioner has further submitted that the Commission has considered 50% increase in employee cost for wage revision and 5.72% escalation every year while deciding the norms for O&M expenses for the period 2009 -14 which is insufficient to meet the annual increments and dearness allowance of the employees of the petitioner.

(3.)THE Petitioner has submitted that the Commission has power under Regulation 12 to remove difficulty and under Regulation 13 the power to relax any of the provisions of the 2004 Tariff Regulations. The petitioner has prayed that the additional O&M cost on account of pay/wage revision may be allowed under Regulations 12 and 13 of the 2004 Tariff Regulations.