Section 12 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
12. Controllable and Uncontrollable factors.
- The following shall be considered as controllable and uncontrollable factors leading to cost escalation impacting Contract Prices, IDC and IEDC of the project :(1)The "controllable factors" shall include but shall not be limited to the following:(a)Variations in capital expenditure on account of time and/or cost overruns on account of land acquisition issues;(b)Efficiency in the implementation of the project not involving approved change in scope of such project, change in statutory levies or force majeure events; and(c)Delay in execution of the project on account of contractor, supplier or agency of the generating company or transmission licensee.(2)The "uncontrollable factors" shall include but shall not be limited to the following:(i)Force Majeure events.; and(ii)Change in law.Provided that no additional impact of time overrun or cost over-run shall be allowed on account of non-commissioning of the generating station or associated transmission system by SCOD, as the same should be recovered through Implementation Agreement between the generating company and the transmission licensee:Provided further that if the generating station is not commissioned on the SCOD of the associated transmission system, the generating company shall bear the IDC or transmission charges if the transmission system is declared under commercial operation by the Commission in accordance with second proviso of Clause 3 of Regulation 4 of these regulations till the generating station is commissioned:Provided also that if the transmission system is not commissioned on SCOD of the generating station, the transmission licensee shall arrange the evacuation from the generating station at its own arrangement and cost till the associated transmission system is commissioned.
