JUDGEMENT
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(1.) THE petitioner, NTPC Limited, had filed this petition for approval of tariff in respect of Jhanor Gandhar Gas Power Station (657.39 MW) (hereinafter referred to as "the generating station") for the period from 1.4.2004 to 31.3.2009 in terms of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 (hereinafter referred to as "the 2004 regulations"). On completion of pleadings and after hearing the parties, final tariff in respect of the generating station for the said period was awarded vide the Commission's order dated 15.12.2006. THE summary of the Annual Fixed Charges awarded is given hereunder:
JUDGEMENT_281_TLET0_20070.htm
(2.) The target availability for the full recovery of above annual fixed charges was 80% in terms of the 2004 regulations. The same norm was also used for working out the fuel cost component of the working capital.
The petitioner had filed a separate Petition No. 46/2005 seeking relaxation of target availability norms in respect of the generating station as well as Kawas GPS. The petitioner's contention was that despite its best efforts, it was not possible to procure sufficient quantity of gas to enable these generating stations to operate at the normative capacity. It had further stated that the beneficiaries were not requisitioning the power from Kawas GPS generated by using Naphtha, because of the very high cost of generation. Accordingly, the petitioner sought to be allowed to treat Kawas GPS and Gandhar GPS as single integrated unit for the purpose of recovery of capacity charges on the "unit" achieving 80% machine availability at individual station and 65% combined PLF. The prayer in Petition No. 46/2005 was adopted from the order dated 1.11.2002 in Petition No. 86/2002 wherein a one-time dispensation was made for the period upto 31.3.2004. The request of the petitioner was rejected vide order dated 16.2.2006 with the following observations:
7. The relaxation in the normative target availability level granted by order dated 1.11.2002 was "one time" act. This, inter alia, was for the reason that target availability level for recovery of capacity (fixed) charges was increased from 62.78% to 80% with effect from 1.4.2001. While granting relaxation, the Commission had noted that the special dispensation being allowed was to be reviewed, while considering revision of norms for the period beyond 31.3.2004. The terms and conditions for determination of tariff for the period 1.4.2004 onwards have already been notified. The target availability of 80% has been retained in respect of the generating stations belonging to the petitioner except for Tanda TPS. When specifying the fresh norms for tariff determination applicable from 1.4.2004, the Commission did not consider it appropriate to provide for relaxed target availability for any generating station in case of inability of the petitioner to obtain sufficient quantity of fuel. Sufficient time was available with the petitioner to make necessary arrangements for supply of gas from alternative sources after grant of relaxation by order-dated 1.11.2002. The petitioner as a commercial entity has to bear the responsibility to ensure that its generating stations are available to the respondents who do not have any role in arranging availability of fuel for the generating stations in question. Therefore, considering the totality of the circumstances we do not consider it to be a fit case for grant of relaxation in target availability, as prayed for, by invoking powers under regulation 13. The petitioner is, however, at liberty to divert gas supply from Kawas GPS to Gandhar GPS in terms of the consent already given by the beneficiaries in the Western Region. The petitioner is also at liberty to declare availability of Kawas GPS based on liquid fuel for which also the beneficiaries have given their consent.
(3.) AGGRIEVED by the said order dated 16.2.2006, the petitioner filed Appeal No 89 of 2006 before the Appellate Tribunal for Electricity (hereinafter "the Tribunal"). The Tribunal, vide its judgment dated 22.1.2007 disposed of the appeal with the following directions:
42. Looking to the average combined PLF for the two stations together for the years 2000-2001; 2001-2002; 2002-2003; 200304 and 2004-2005, we are of the view that the recovery of full capacity charges in respect of Kawas and Gandhar GPS should be permitted on their together achieving 80% machine availability and 72% PLF.
43. Having regard to the aforesaid discussion, the appeal is allowed and the impugned order passed by the CERC is set aside. In relaxation of the norms, the combined target availability for the years April 1, 2004 to March 31, 2008, for recovery of full capacity charges for Kawas and Gandhar GPS together, is fixed at 72% PLF. Thereafter, no relaxation will be available to the appellant.;
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