- (1.) THE petitioner in the present application has sought to be allowed recovery of the cost of initial spares on actuals in the capital cost of transmission projects relating to Fixed and Thyristor Controlled Series Compensation and for issue of necessary amendment to Clause (1) of Regulation 52 of the Central Electricity Regulatory Commission (Terms and onditions of Tariff) Regulations, 2004 (the tariff regulations).
(2.) The background for making the present application is the order dated 27.10.2006 in Petition No. 11/2005, filed by the petitioner for approval of transmission charges for Fixed and Thyristor Controlled Series Compensation for 400 kV Raipur- Rourkela Transmission Line at Raipur in Western Region for the period 1.11.2004 to 31.3.2009. In the said petition, the petitioner had claimed gross block Rs. 11678.36 lakh, including initial spares amounting to Rs. 405.16 lakh as on the date ofcommercial operation. The tariff was allowed at a gross block of Rs. 12187.64 lakh as on 1.4.2005, including initial spares of Rs. 182.82 lakh, over he gross block of Rs. 11456.02 lakh on the date of commercial operation. The initial spares were considered @ 1.5% of the capital cost in accordance with Clause (1) of Regulation 52 of the tariff regulations. While arriving at the above gross block, the Commission in para 14 of this order dated 27.10.2006 observed as under: 14. On scrutiny of the details submitted by the petitioner, it is found that value of initial spares is Rs. 424.35 lakh which works out to about 3.41% of the project cost of Rs. 12429.17 lakh, as on 31.3.2005 being considered presently. However, the cost of initial spares is to be restricted to 1.5% of the capital cost as on 31.3.2005 claimed by the petitioner. At the hearing, the representative for the petitioner prayed for relaxation of norm for initial spares laid down under Clause (1) of Regulation 52 of the 2004 regulations on the ground that the initial spares limited to 1.5% of the project cost are inadequate to meet requirementsof the transmission assets. The petitioner is at liberty to make appropriate application with proper justification for amendment of the relevant provisions. The amendment proposed by the petitioner, if notified, if otherwise found to be in order will apply prospectively. It would thus be seen from extract of Para 14 above that: (a) The petitioner's prayer for relaxation of norms on the initial spares laid down under Regulation 52 on the ground that initial spares limited to 1.5% of the project cost were inadequate to meet the requirements of the transmission assets, was turned down. (b) The Commission had contemplated amendment of the tariff regulations based on an application made by the petitioner. (c) The Commission decided that the amendment, if any, will apply prospectively.
(3.) IN view of the above order of the Commission, relaxation of the relevant provisions of Regulation 13 of the tariff regulations though adverted to by the petitioner in the present application, is ruled out and the benefit of the additional cost of initial spares can be granted only prospectively on amendment of the tariff regulations.;