NATIONAL THERMAL POWER CORPORATION LTD Vs. MADHYA PRADESH STATE ELECTRICITY BOARD
LAWS(ET)-2005-8-1
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on August 11,2005

Appellant
VERSUS
Respondents

JUDGEMENT

Introductory Remarks - (1.) THE application is made by the petitioner, National THErmal Power Corporation Ltd. (NTPC) to seek revision of O&M expenses for the period 1.4.2001 to 31.3.2004 in respect of Korba Super THErmal Power Station (Korba STPS). Background
(2.) The petitioner had filed Petition No. 30/2001 for approval of tariff for Korba STPS for the period 1.4.2001 to 31.3.2004 on 28.5.2001. This petition was based on the terms and conditions for determination of tariff contained in Ministry of Power notification dated 30.3.1992. Subsequently, the petitioner filed the amended petition on 31.1.2002, based on the terms and conditions notified by the Commission under Section 28 of the Electricity Regulatory Commissions Act, 1998. The application was disposed of by order dated 6.8.2003 when the Commission determined the final tariff for the period in question. Petitioner's contention In the present application, the petitioner has pleaded that it had actually incurred an expenditure of Rs. 51673 lakh under O&M during the period 1.4.2001 to 31.3.2004, though the Commission has approved O&M expenses amounting to Rs. 47238 lakh, leaving an uncovered gap of Rs. 4435 lakh. Accordingly, the petitioner has sought revision of O&M expenses allowed by the Commission. According to the petitioner, the difference between the expenses actually incurred and those allowed is on account of the following factors, namely: (a) inadequacy in the base "employee cost" considered, and (b) actual O&M expenses incurred during 1995-2000 on ex gratia, incentive payments, professional charges, etc. but not allowed by the Commission in its order dated 6.8.2003, by taking as "abnormal" expenses, during the process of normalisation.
(3.) THE petitioner in support of its claim for revision of O&M expenses has relied upon the observations made in the order dated 21.12.2000 as also para 49 of the order dated 6.8.2003, which according to the petitioner granted it liberty to approach the Commission for reimbursement of actual expenses with proper justification.;


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