Section 8 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
8. Truing up.
(1)The Commission shall carry out truing up exercise along with the tariff petition filed for the next tariff period, with respect to the capital expenditure including additional capital expenditure incurred up to 31.3.2019, as admitted by the Commission after prudence check at the time of truing up:Provided that the generating company or the transmission licensee, as the case may be, shall make an application for interim truing up of capital expenditure including additional capital expenditure in FY 2016-17.(2)The generating station shall carry out truing up of tariff of generating station based on the performance of following Controllable parameters:(a)Controllable Parameters :(i)Station Heat Rate;(ii)Secondary Fuel Oil Consumption;(iii)Auxiliary Energy Consumption; and(iv)Re-financing of Loan.(3)The Commission shall carry out truing up of tariff of generating station based on the performance of following Uncontrollable parameters:(i)Force Majeure;(ii)Change in Law; and(iii)Primary Fuel Cost.(4)The Transmission Licensee shall carry out truing up of tariff of transmission system based on the controllable parameter of Re-Financing of loans:(5)The Commission shall carry out truing up of tariff of transmission licensee based on the performance of following Uncontrollable parameters:(i)Force Majeure; and(ii)Change in Law.(6)The financial gains by a generating company or the transmission licensee, as the case may be on account of controllable parameters shall be shared between generating company/transmission licensee and the beneficiaries on monthly basis with annual reconciliation. The financial gains computed as per following formulae in case of generating station on account of operational parameters as shown in Clause 2(a) (i) to (iii) of this Regulation shall be shared in the ratio of 60:40 between generating station and beneficiaries:Net Gain = (ECRN- ECRA) x Scheduled GenerationWhere,ECRN - Normative Energy Charge Rate computed on the basis of norms specified for Station Heat Rate, Auxiliary Consumption and Secondary Fuel Oil Consumption.ECRA - Actual Energy Charge Rate computed on the basis of actual SHR, Auxiliary Consumption and Secondary Fuel Oil Consumption for the month.Provided that in case of financial gains on account of Clause 2 (a)(iv) and Clause 4 of this Regulation shall be shared in accordance with Clause 7 of Regulation 26 of these regulations.(7)The financial gains and losses by a generating company or the transmission licensee, as the case may be, on account of uncontrollable parameters shall be passed on to beneficiaries of the generating company or to the long term transmission customers/DICs of transmission system, as the case may be.(8)The generating company or the transmission licensee as the case may be, shall carry out the truing up of grossed up rate of return on equity in accordance with Clause 3 of Regulation 25 of these regulations.(9)The generating company or the transmission licensee as the case may be, shall make an application, as per Annexure-I to these regulations, for carrying out truing up exercise in respect of the generating station or a unit or block thereof or the transmission system or the transmission lines or sub-stations by 31.10.2019.(10)The generating company or the transmission licensee as the case may be, shall submit for the purpose of truing up, details of actual capital expenditure and additional capital expenditure incurred for the period from 1.4.2014 to 31.3.2019, duly audited and certified by the auditor.(11)Where after the truing up, the tariff recovered exceeds the tariff approved by the Commission under these regulations, the generating company or the transmission licensee, shall refund to the beneficiaries or the long term transmission customers/DICs, as the case may be, the excess amount so recovered as specified in the Clause 13 of this regulation.(12)Where after the truing up, the tariff recovered is less than the tariff approved by the Commission under these regulations, the generating company or the transmission licensee shall recover from the beneficiaries or the long term transmission customers/DICs, as the case may be, the under-recovered amount as specified in the Clause 13 of this regulation.(13)The amount under-recovered or over-recovered, along with simple interest at the rate equal to the bank rate as on 1st April of the respective year, shall be recovered or refunded by the generating company or the transmission licensee, as the case may be, in six equal monthly instalments starting within three months from the date of the tariff order issued by the Commission.Chapter - 4 Computation of Capital Cost and Capital Structure
