NATIONAL THERMAL POWER CORPORATION LTD Vs. MADHYA PRADESH STATE ELECTRICITY BOARD
LAWS(ET)-2006-1-22
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on January 25,2006

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 Kawas Gas Power Station (Kawas GPS).
(2.) The petitioner had filed Petition No.31/2001 for approval of tariff for Kawas GPS 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 an amended petition on 7.2.2002, 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 7.4.2005 by applying the terms and conditions notified by the Commission, for the period 1.4.2001 to 31.3.2004. The petitioner has now pleaded that it had actually incurred an expenditure of Rs. 20073 lakh under O&M during the period 1.4.2001 to 31.3.2004, though the Commission had approved O&M expenses amounting to Rs. 12331 lakh, leaving an uncovered gap of Rs. 7742 lakh. Accordingly, the petitioner has sought revision of O &M expenses allowed by the Commission, since according to the petitioner, less recovery of O&M expenses will be a cause of great hardship and large amounts will remain unrecovered. According to the petitioner, the difference between the expenses actually incurred and those allowed is on account of the fact that the base "employee cost" considered for the generating station and the corporate office was inadequate. The petitioner has also pointed out that the actual expenses under the head "Repairs and Maintenance" far exceed the expenses allowed by the Commission. The petitioner has submitted that the actual expenses were necessary for sustaining the operating performance of the generating station.
(3.) THE petitioner in support of its claim for revision of O&M expenses has relied upon the observations made in the Commission's order dated 21.12.2000, which according to the petitioner granted it liberty to approach the Commission for reimbursement of actual expenses with proper justification.;


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