- (1.) THIS application has been filed by the petitioner, National Hydroelectric Power Corporation Ltd, (NHPC), a generating company, for review of order dated 9.5.2006 in Petition No. 175/2004, determining the tariff in respect of Rangit Hydroelectric Project, for the period 1.4.2004 to 31.3.2009.
(2.) The petitioner has contended that there are certain fundamental errors in the said order dated 9.5.2006 and accordingly has sought review of the order on certain aspects, discussed in the succeeding paras. INTEREST ON LOAN The Commission in its order dated 9.5.2006 held that when depreciation recovered in a year exceeded the amount of repayment during that year, the entire amount of depreciation was to be considered as repayment of loan for computation of interest on loan component of tariff. According to the petitioner, the conclusion arrived at by the Commission in this regard is in derogation of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations 2004 (hereinafter referred to as "the 2004 regulations").
(3.) WE have considered the submission made by the petitioner. The Commission in the order dated 9.5.2006 in Petition No. 197/2004 after elaborate discussion of the historical background, the provisions of the 2004 regulations, including the regulations relied upon by the petitioner, as discussed in paras 8 to 22 of the said order dated 9.5.2006 concluded that the entire amount of depreciation was considered as repayment of loan for tariff computation when depreciation recovered in a year was more than the amount of repayment during that year. This methodology has been applied uniformly in all cases of tariff determination for the period 2004-09, including Rangit Hydroelectric Project.;