Petition No. 205 of 2010. Case: Assam State Electricity Board, Guwahati Vs Reliance Energy Trading Ltd., Mumbai. Central Electricity Regulatory Commission

Case NumberPetition No. 205 of 2010
JudgesDr. Pramod Deo, Chairperson, Shri S. Jayaraman, Member, Shri V.S. Verma, Member and Shri M. Deena Dayalan, Member
IssueElectricity Act, 2003 - Sections 2, 79
Judgement DateAugust 22, 2012
CourtCentral Electricity Regulatory Commission

Order:

1. The petitioner, Assam State Electricity Board has filed this petition with prayers as under:

(a) To declare that as per the contractual understanding between the parties, the relevant point of reference for the purpose of calculating compensation for deviation in supply of power is the delivery point; and

(b) Direct the respondent to pay `23,08,956 as compensation for deviation, as per the petitioners bill dated 9.7.2009.

The petitioner issued Notice Inviting Tenders dated 12.10.2006 to invite bids for purchase of power for supply to the distribution companies within the State of Assam during the period 1.11.2006 to 30.4.2007. One of the conditions for supply of power was that

9. Without prejudice to the conditions of Force Majeure, the successful bidder(s) would require to supply at least 60% per day and 80% per month of contracted quantum of power. Any deviation from above limitations will attract compensation @ 50 paise/kWh in shortfall from the contracted quantum for the particular period.

2. The respondent submitted its bid under letter dated 19.10.2006. The terms and conditions for supply of power as per the price bid submitted by the respondent were at variance with the bid document on certain aspects, including the compensation for deviation from power supply/off take. In clause 17 of the price bid, the respondent stated as under:

17. In case of deviation from ASEB side is more than 10% of contracted energy for which open access has been allocated on monthly basis, ASEB shall pay compensation @ 100 Paise per KWh for quantum of shortfall in excess of 10% while continuing to pay open access charges as per the contract.

In case RETL default in scheduling of power exceeds 10% of contracted quantum of power for which open access has been allocated on monthly basis, RETL shall pay compensation to ASEB @ 95 Paise per KWh for the quantum of shortfall of permitted deviation of 10% in the energy supplied.

3. The respondent also suggested deviations to clauses 1 and 9 of the bid document as under:

1. The delivery point of supply would be entry into ER ISTS.

.................................................................................

9. Without prejudice to the provisions of Force Majeure,

In case of deviation from ASEB side is more than 10% of contracted energy for which open access has been allocated on monthly basis, ASEB shall pay compensation @ 100 Paise per KWh for quantum of shortfall in excess of 10% while continuing to pay open access charges as per the contract.

In case RETL default in scheduling of power exceeds 10% of contracted quantum of power for which open access has been allocated on monthly basis, RETL shall pay compensation to ASEB @ 95 Paise per KWh for the quantum of shortfall of permitted deviation of 10% in the energy supplied.

4. The petitioner conveyed its acceptance to the offer of the respondent for...

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