Petition No. 124/2009. Case: Gujarat Urja Vikas Nigam Ltd, Vadodara Vs NTPC Limited and Ors.. Central Electricity Regulatory Commission
| Case Number | Petition No. 124/2009 |
| Judges | Shri S. Jayaraman, Member and Shri V.S. Verma, Member |
| Issue | Electricity Law |
| Judgement Date | August 31, 2012 |
| Court | Central Electricity Regulatory Commission |
Order:
1. The petitioner in this case has sought directions to the first respondent to submit details of decapitalisation of assets, determine the excess tariff charged any the respondent on the inflated capital and refund the excess amount recovered through tariff in respect of the following generating stations owned by NTPC Ltd (hereafter referred to as "the respondent") for the period shown against each -
| (a) Gandhar Gas Based Power Station | 2001- 04 |
| (b) Vindhyachal Super Thermal Power Station Stage I | 2001- 04 |
| (c) Vindhyachal Super Thermal Power Station Stage II | 2001- 04 |
| (d) Kahalgaon Super Thermal Power Station | 1997 - 04 |
| (e) Farakka Super Thermal Power Station | 2001- 04 |
The present petition has its foundation in the Commission's orders determining tariff for the period 2004-09 for the generating stations owned by the respondent. While examining the respondent's petitions for approval of additional capital expenditure and revision of fixed charges for the period 2001-04, it came to notice that the respondent had included the un-discharged liabilities in the capital base since its accounts were maintained on accrual basis. However, some of the un-discharged liabilities included in the gross block did not materialize. Therefore, this Commission to arrive at the capital base as on 31.3.2004 adjusted the amounts of such un-discharged liabilities included in the capital base. It is pertinent to mention that while approving the additional capital expenditure for the period 2001-04, the tariff for that period was not revised, but the respondent was allowed to recover only two elements, namely, Return On Equity and Interest on Loan. The tariff for the period 2004-09 was determined by this Commission based on the revised reduced capital base as on 31.3.2004. As the tariff for the period prior to 1.4.2004 was already recovered by the respondent on the inflated capital base, this Commission while approving the tariff for the period 2004-09 observed that the respondent should mutually settle the excess recovery of tariff with the beneficiaries in the tariff orders applicable for the period 2004-09. The order in respect of Gandhar Gas Based Power Station was in the following terms:
12. The petitioner has de-capitalised certain assets during the period 2001-04. These de-capitalised assets were removed from the gross block to arrive at the admissible capital cost as on 31.3.2004 by order dated 9.5.2006 in Petition No...
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