Section 2 in The West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2011
2.1General Principles.-2.1.1- The Commission shall determine tariff including terms and conditions thereof for all matters for which the Commission has the power under the Act, including the following cases :-(i)Supply of electricity by a generating company within the state to a distribution licensee within the state except the specific provision permitted under these regulations.Provided that the Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement entered into between a generating company and a licensee or between licensees, for a period not exceeding one year;(ii)Intra-State transmission of electricity within the state for intra-state transmission system;(iii)Rates and charges for use of intervening transmission facilities, where these cannot be mutually agreed upon by the licensees within the state;(iv)Wheeling of electricity within the state;(v)Retail sale of electricity within the state:Provided that in case of distribution of electricity in the same area by two or more licensees, the Commission may, for promoting competition among licensees, fix only maximum ceiling of tariff for retail sale of electricity :Provided also that where the Commission has allowed open access to certain consumers under section 42, such consumers, notwithstanding the provisions contained in clause (d) of sub-section (1) of section 62 of the Act, may enter into an agreement with any person for supply or purchase of electricity on such terms and conditions (including tariff) as may be agreed upon by them;2.1.2- Where the Commission has permitted open access to any consumer or a category of consumers under section 42 of the Act, the Commission shall determine only the wheeling charges and surcharge thereon, if any, in pursuance to the proviso to clause (a) of sub-section (1) of section 86 of the Act, and no tariff for such consumer or the category of consumers for wholesale, bulk or retail supply of electricity, as the case may be, shall be determined by the Commission under these regulations for the part corresponding to Open Access mode.2.1.3- Notwithstanding anything contained in these regulations, the Commission shall adopt the tariff if in pursuance to section 63 of the Act such tariff has been determined through a transparent process of bidding in accordance with the guidelines issued by the Central Government to the extent they are consistent with the Act.2.1.4- The Commission will regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from-(i)The generating companies or licensees within the state through agreements for distribution and supply of such power within the State and where the tariff for such electricity purchase will be determined under sub-section (1) of section 62 of the Act;(ii)The generating companies or licensees or from other sources from outside the state through agreements for purchase of power to distribute electricity and make payments therefor in accordance with sub-section (5) of section 64 of the Act.(iii)The generating companies or licensees or from other sources from outside the state or outside India through agreements for purchase of power for distribution and supply of such power within the state under clause (b) of sub-section (1) of section 86 of the Act but where such supply against purchase is not done under sub-section (5) of section 64 of the Act.(iv)Any sources by participating in any bidding process through any Power Exchange which is approved by the Commission or CERC in pursuance to section 66 of the Electricity Act, 2003.2.1.5- While regulating the electricity purchase and procurement process of distribution licensees as mentioned in regulation 2.1.4 for any purchase of power, except through competitive bidding under section 63 of the Act, from any electricity trader or any distribution licensee of states other than West Bengal, the purchase price will be approved by the Commission on the basis of reasonability through:-(i)Bench marking process with the market driven price when there is any short term procurement of power done either through negotiation or competitive bidding mode which is not covered under the guideline under section 63 of the Act.(ii)Bench marking process with the price found out from tariff determined under section 62 or 64(5) on normative basis or levelised tariff accepted under investment approval by the Commission or tariff adopted under section 63 of the Act in case of similar type of medium term or long term power procurement.Such methodology of purchase price determination for the power procurement by the licensee from the electricity trader or distribution licensee of States other than West Bengal will be applicable for procurement both through negotiated route or through any competitive bidding other than the route mentioned in section 63 of the Act.2.1.6- In case of inter-state supply the purchase price by a distribution licensee will be determined in any of the following ways :(a)Notwithstanding anything contained in Part X of the Act, the Commission in pursuance of sub-section (5) of section 64 of the Act. upon application made to it by the parties intending to undertake inter-state supply, transmission or wheeling, shall determine the tariff in cases where one of the parties intending to distribute electricity and make payment therefor is under the Commission's jurisdiction.Provided that the Commission shall determine such tariff having regard to the terms and conditions specified in these regulations for determination of tariff for generation, transmission, supply and wheeling of electricity wholesale, bulk or retail, as the case may be.Provided also that the Commission, while determining tariff upon an application made to it under this regulation, may to the extent considered appropriate also have regard to the terms and conditions of tariff as may be determined by the Appropriate Commission so far as they are consistent with the Act, where any of the parties of such transaction come under the jurisdiction of such Appropriate Commission.(b)The tariff determined by CERC for any generating station will be accepted by the Commission and no further re-determination will take place.(c)The tariff adopted in pursuance to regulation 2.1.3 of these regulations.(d)The price discovered by power exchange in pursuance to regulation 2.1.4 (iv) of these regulations.(e)The purchase price approved by the Commission in pursuance to regulation 2.1.5 of these regulations.2.1.7- If any licensee has not applied for determination of tariff for supply and / or transmission and / or wheeling of electricity for any year(s) prior to the coming into force of these regulations, such tariff for that / those year(s) shall be determined under these regulations.2.1.8- The Commission will not determine the tariff of the part of supply from a generating station to a person who is not under the purview of the Commission.2.1.9- The tariff / charges determined under these regulations are in addition to other charges which are specified in open access regulations or any other regulations of the Commission.2.1.10- Any losses incurred by a generating company or a licensee and arising out of sale of electricity for which tariff is not determined under these regulations shall not be allowed to be compensated while determining the tariff or while annual performance review is undertaken under these regulations.2.1.11- For the purpose of these regulations any procurement of electricity to be considered as long term procurement of electricity or medium term procurement of electricity as per the guidelines issued by the Central Government under section 63 of the Act. For the purpose of these regulations, short term procurement of electricity means the procurement not covered under long term or medium term procurement of electricity.2.1.12- The tariff determined or adopted for any generating station by CERC or the Commission under section 62(1), 63 and 64(5) of the Act will not be re-determined by the Commission while regulating the purchase and procurement process of the licensee and subject to the above the Commission may determine whether the licensee should enter into PPA or Commission should regulate the procurement process or procurement amount as decided by the Commission. However once the price of procurement of power by any licensee is approved by the Commission under clause (b) of sub-section (1) of section 86 it cannot be re-determined under sub-section (1) of section 62 of the Act or under sub-section (5) of section 64 of the Act.2.1.13- Any previous orders based on earlier regulations framed under section 61 of the Act cannot be re-opened for re-determination under these regulations.Provided that if such order is being referred to the Commission by any court of law for re-determination then that matter will be treated under these regulations.Provided further that in such case where such re-determination is to be taken due to order of the Court of Law, the normative parameters, method of calculation and principles of calculation will remain as had been considered in the concerned tariff order and related repealed regulations to the extent it is not affected by the order of the Court of Law.Provided also that, in such case, if re-determination of tariff due to order of Court of Law is to be undertaken by the Commission and the concerned ensuing year for which tariff is to be re-determined is already passed over, then the Commission may ask the licensee or generating company to re-submit the updated expenditures on different heads of uncontrollable ARR item, so that tariff can be re-determined with better accuracy to reduce the impact of FPPCA and APR of ensuing year in future tariff.2.1.14- Notwithstanding anything to the contrary contained elsewhere in these regulations, if the tariff order of any generating station or any unit of it of a generating company is not determined for any year prior to the 3rd Control Period, then the tariff for such generating station or the unit of it, as the case may be, will be determined under the repealed regulations.2.1.15- The truing up of the ARR under APR and FPPCA for the year 2009-10 and 2010-11, for which order of APR or FPPCA has not yet been issued by the Commission, will be done under these regulations subject to the conditions that for the fixed cost determination under APR, the normative parameters, method of calculation and principles of calculation will remain as had been considered in the concerned tariff order relevant to the ensuing year for which APR is considered subject to the conditions that "controllable" and/or "uncontrollable" item along with gain sharing and incentive during APR will be considered in accordance with the repealed regulations. However, for fuel cost determination or variable cost determination the fuel surcharge formula termed as FPPCA in Schedule 7A of these regulations will be used on the basis of normative parameters as had been used in the concerned tariff order of the ensuing year for which FPPCA is to be determined and also on the basis of application of regulation 4.8.1 of the repealed regulation.
