Section 10 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
10. Determination of tariff.
(1)The generating company or the transmission licensee, as the case may be, shall file petition before the Commission as per Annexure-I to these regulations containing the details of underlying assumptions for the capital expenditure and additional capital expenditure incurred and projected to be incurred, wherever applicable.(2)If the petition is inadequate in any respect as required under Annexure-I to these regulations, the application shall be returned to the generating company or transmission licensee, as the case may be, for resubmission of the petition within one month after rectifying the deficiencies as may be pointed out by the staff of the Commission.(3)If the information furnished in the petition is in accordance with these regulations and is adequate for carrying out prudence check of the claims made, the Commission may consider granting interim tariff in case of new projects.(4)In case of the existing projects, the generating company or the transmission licensee, as the case may be, shall continue to bill the beneficiaries or the long term customers at the capacity charges or the transmission charges respectively as approved by the Commission and applicable as on 31.3.2019 for the period starting from 1.4.2019 till approval of final capacity charges or transmission charges by the Commission in accordance with these regulations:Provided that the billing for energy charges w.e.f. 1.4.2019 shall be as per the operational norms specified in these regulations.(5)The Commission shall grant final tariff in case of existing and new projects, after considering the replies received from the respondents, and suggestions and objections, if any, received from the general public and any other person permitted by the Commission including the consumers or consumer associations.(6)The Commission may hear the petitioner, the respondents and any other person permitted including the consumers or consumer associations while granting interim or final tariff.(7)The difference between the tariff determined in accordance with clauses (3) and (5) above and clauses (4) and (5) above, shall be recovered from or refunded to, the beneficiaries or the long term customers, as the case may be, with simple interest at the rate equal to the bank rate prevailing as on 1st April of the respective year of the tariff period, in six equal monthly instalments.(8)Where the capital cost considered by the Commission on the basis of projected additional capital expenditure exceeds the actual additional capital expenditure incurred on year to year basis by more than 10%, the generating company or the transmission licensee shall refund to the beneficiaries or the long term customers as the case may be, the tariff recovered corresponding to the additional capital expenditure not incurred, as approved by the Commission, along with interest at 1.20 times of the bank rate as prevalent on 1st April of the respective year.(9)Where the capital cost considered by the Commission on the basis of projected additional capital expenditure falls short of the actual additional capital expenditure incurred by more than 10% on year to year basis, the generating company or the transmission licensee shall recover from the beneficiaries or the long term customers as the case may be, the shortfall in tariff corresponding to difference in additional capital expenditure, as approved by the Commission, along with interest at the bank rate as prevalent on 1st April of the respective year.
