NTPC LIMITED Vs. UTTAR PRADESH POWER CORPORATION LTD
LAWS(ET)-2007-7-2
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on July 25,2007

Appellant
VERSUS
Respondents

JUDGEMENT

Bhanu Bhushan, - (1.) THIS petition has been filed for adjudication of the dispute arising between the petitioner and the respondents regarding payment of charges for energy supplied from various thermal generating stations of the petitioner in the Northern Region during the period 1.1.2000 to 30.6.2001. The petitioner has submitted that the respondents have not paid a part of the payable energy charges, on the alleged ground that the petitioner had generated and supplied (unwanted) electricity to the respondents under high frequency conditions during the above period.
(2.) The petitioner has stated that prior to introduction of Availability Based Tariff (ABT) on 1.12.2002 in Northern Region, the capacity and energy charges were payable on drawal basis, i.e. proportionate to energy drawn by the respective beneficiaries. Though there were many rounds of discussions on matters relating to backing down of the generating stations during high frequency conditions (a serious problem at that time), no consensus could be reached between the respondents on one side and the petitioner on the other. While NREB had envisaged a scheme of incentive and disincentive for curbing high / low frequency operation, and a mock exercise was also conducted in 1996, the petitioner found the scheme unfair and inequitable, and continuously kept opposing it. However, in spite of the petitioner's protests, the above scheme was implemented by NREB (now NRPC) from 1.1.2000, and payment of energy charges to the petitioner was curtailed. According to the petitioner, an amount of Rs. 31.8 crore has been unjustifiably withheld by the respondents (the beneficiaries in NR) pertaining to the period 1.1.2000 to 30.6.2001, on account of alleged excess generation at high frequency. As the petitioner has not been able to resolve the dispute with the respondents, it has made the application to the Commission to adjudicate in the matter.
(3.) THE petition was admitted by the Commission after hearing on 20.7.2006. A detailed reply dated 22.8.2006 was filed by NRPC Secretariat, which chronologically narrated the deliberations on this subject at NREB forum since early nineties. Some other respondents also filed their replies. Since a number of issues and complexities were involved in the dispute, the Commission decided that the issues should in the first instance be examined in detail by a one- member Bench of the Commission to make suitable recommendations to the Commission for its consideration. I was nominated to conduct further proceedings and make suitable recommendations to the Commission for this purpose.;


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