NTPC LIMITED Vs. GRIDCO LIMITED AND ORS.
LAWS(ET)-2016-1-15
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on January 25,2016

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) The Commission in exercise of its powers under Sec. 61 read with Sec. 178(2)(s) of the Electricity Act, 2003 (Electricity Act) has specified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 (2014 Tariff Regulations) for determination of tariff of the generating companies and transmission licensees regulated by the Commission for the tariff period 2014 -19. The Petitioner, NTPC Limited (hereinafter referred to as 'NTPC')aggrieved by certain provisions of the 2014 Tariff Regulations has filed Writ Petition No. 1641 of 2014 before the Hon'ble High Court of Delhi. Association of Power Producers (APP), Lanco Amarkatak Power Limited (LAPL) and Udupi Power Corporation Limited (UPCL) have also filed writ petitions in the Hon'ble High Court of Delhi challenging some of the provisions of the 2014 Tariff Regulations.
(2.) One of the provisions of the 2014 Tariff Regulations challenged in the writ petitions is the computation of Gross Calorific Value of Coal (GCV of Coal) under Regulation 30(6) which provides as under: "(6) Energy charge rate (ECR) in Rupees per kWh on ex -power plant basis shall be determined to three decimal places in accordance with the following formula: a. For coal based and lignite fired stations ECR = {(GHR - SFC x CVSF) X LPPF/CVPF + SFC x LPSFi + LC x LPL} x 100/(100 - AUX) b. For gas and liquid fuel based stations ECR = GHR x LPPF x 100/{CVPF x (100 - AUX)} Where, AUX = Normative auxiliary energy consumption in percentage. CVPF = Weighted Average Gross calorific value of coal as received, in kCal per kg for coal based stations. c. Weighted Average Gross calorific value of primary fuel as received, in kCal per kg per litre or per standard cubic meter, as applicable for lignite, gas and liquid fuel based stations".
(3.) Caloric Value of Primary Fuel or CVPF has been defined in the above formula as equal to the "the weighted average Gross calorific value of coal as received, in kCal per kg for coal based stations". According to NTPC and other the writ petitioners, the measurement of GCV of coal should be on 'as fired basis' instead of 'as received basis'. During the course of the proceedings before the Hon'ble high Court, an issue has arisen as to the stage at which the GCV of coal on "as received basis" has to be measured i.e. whether from the wagons on its arrival at the generating station or at the stage after the crusher installed in the premises of the generating station. The Hon'ble High Court in their order dated 7.9.2015 have directed the Commission to decide the issue i.e. at what stage the GCV of coal on "as received basis" should be measured and pass appropriate order. The order of the Hon'ble High Court has been extracted as under: "1. The petitioner - NTPC Ltd. which is a Government of India undertaking, is engaged in the business of generation and supply of electricity. 2. The main writ petition is filed with a prayer to declare certain provisions of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 notified by the Central Electricity Regulatory Commission (CERC) in exercise of the powers conferred under the Electricity Act, 2003 for determination of tariff for the Power Generating Stations as ultra vires the Electricity Act, 2003 apart from being violative of Article 14 of the Constitution of India. 3. Along with the main petition, the petitioner also filed CM C.M. No. 3421/2014 seeking stay of the operation of the impugned Tariff Regulations, 2014. However, no such relief is granted and this court by order dated 03.03.2015 made it clear that the participation of the petitioners in the tariff proceedings shall be without prejudice to their rights in the main petition.;


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