REIMBURSEMENT OF APPLICATION FEE AND PUBLICATION CHARGES TO CENTRAL POWER SECTOR UTILITIES Vs. STATE
LAWS(ET)-2005-11-10
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on November 22,2005

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) UNDER Section 64(1) of the Electricity Act, 2003, an application for determination of tariff made by a generating company or a licensee is to be accompanied by such fee as may be determined by the Commission by regulations. Sub-section (2) of Section 64 further lays down that every applicant shall publish the application in such abridged form and manner as may be specified by the Commission.
(2.) Under Regulation 5 of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff), Regulations, 2004, the generating company or the transmission licensee, as the case may be, is required to make an application for fixation of tariff in respect of the completed units of the generating station or the lines or the sub-station of the transmission system. The regulation further provides that the generating company or the transmission licensee may make an application for determination of provisional tariff in advance of the anticipated date of completion of the project based on capital expenditure actually incurred up to the date of making of the application of a date prior to the making of the application, duly audited and certified by the statutory auditors. This regulation further provides that in case of a generating station or the transmission system declared under commercial operation on or after 1.4.2004, a generating company or the transmission licensee shall make a fresh application for determination of final tariff based on actual expenditure incurred up to the date of commercial operation of the generating station or the transmission system. Every application made under Regulation 5 by a generating company is to be accompanied by a fee of Rs. 25 lakh and a fee of Rs. 5 lakh when made by the transmission licensee. The Commission has, by regulations, specified the manner of publication of application made for approval of tariff. In accordance with these regulations, the proposals for approval of tariff are required to be published by the applicant in the newspapers having circulation in the beneficiary States.
(3.) IN the proceedings before the Commission, the question of reimbursement of fee paid for making the application for approval of tariff, is often raised. The question of reimbursement of expenditure incurred on publication of notices is also raised. The Commission feels that a view on these matters need to be taken after an opportunity of hearing to all concerned, that is, Central Power Sector Utilities as also the beneficiary States.;


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