P.S.DATTA J. - (1.) THIS appeal has been preferred by the Kerala State Electricity Board (KSEB) against the order dated 15th May, 2010 passed by the Kerala State Electricity Regulatory Commission, the respondent herein in connection with truing up of accounts of KSEB for the years 2003 -2004 and 2004 - 2005 in terms of the judgement on remand dated 12th Nov 2009 passed by this Tribunal in Appeal No. 94 of 2008.
(2.) THE KSEB filed two petitions namely TP No. 20 of 2006 in relation to the financial year 2003 -04 seeking for adjustment for the revenue gap of Rs1007.44crore, and TP No. 22 of 2006 in relation to the FY 2004 -05 for adjustment of revenue gap of Rs342.77crore. The Commission by order dated 24 -11 -2007 disallowed a total sum of Rs87.33crore for the yr 2003 -04 and Rs.124.29crore for the yr 2004 -05 based on the C&AG audited accounts. Aggrieved by the order dated 24 -11 -2007 the Board preferred an appeal before this Tribunal, being appeal no.94 of 2008 which was decided by this Tribunal by a judgement and order dated 12th Nov 2009. By the said judgement this Tribunal remanded the matter to the Commission for determination of certain issues after affording the Board an opportunity of being heard. Accordingly, the Commission upon hearing the Board partly readmitted Rs.11.26 crore out of Rs 87.33crore in respect of the FY 2003 -04 and Rs 62.55crore out of Rs124.29crore for the year 2004 -05.
(3.) AGAINST the order dated 15th May 2010 the KSEB again preferred this appeal to ventilate certain issues which according to the appellant were not decided by the Commission in terms of the order dated 12th Nov 2009 passed by this Tribunal in Appeal No. 94 of 2008. The Commission did not fix any target of T&D loss reduction for the year 2003 -04 but the Board offered a target to reduce the loss from 29.08% to 26.5% for the year 2002 -03 and this Tribunal by the judgement dated 12th Nov 2009 directed the Commission to accept the T&D target offered by the Board as the target for the year 2003 -04. The actual loss level achieved by the Board was 27.45% which was 0.85% less than the target approved. The Commission arrived at the excess power purchase cost due to non -achievement of T&D loss reduction target for the whole year at 104 MU and did not allow Rs22.26crore from the cost of power purchased for the whole year of 2003 -04. The Commission issued the Tariff order for the FY 2003 -04 only on 31st Dec 2003, that is at the fag end of the FY 2003 -04 and there was hardly less than months left out in that FY to comply with the directions of the Commission. So, if penalty is imposed for under achievement of T&D loss for the year 2003 -04 it could be made applicable only for the remaining three months of the FY 2003 -04. Therefore, the excess power purchase cost which was not allowed on account of the under achievement of T&D loss reduction target should be 1/4th of the excess power purchase of 104MU for the whole year, i.e, 26MU for the yr 2003 -04 applicable from 1st January -2004 to 31st March -2004.;