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4.1 We may clarify here that Appeal No. 213/2013 is against the impugned order, dated 12.7.2013, by which, the State Commission has rejected the segregated accounts for FY 2011-12 of the Appellant-JSPL, and determined its ARRs for FY 2013-14.

5. The following grievances have been raised in these Appeals on behalf of the Appellants (JSPL):

(i) that the State Commission failed to appreciate that the distribution licensee is entitled to the tariff on cost plus basis and the actual cost of the distribution licensees must be reflected in the tariff subject to appropriate prudence check by the State Commission. The State Commission has approved the annual revenue requirement of Rs. 23,033.37 lakhs for 2013-14, Rs. 23,503.37 lakhs for 2014-15 and Rs.

23,956.28 for 2015-16 as against the amount estimated by JSPL as Rs. 31,140.75 lakhs for 2013-14, Rs. 28,599.72 lakhs for 2014-15 and Rs. 28,935.36 lakhs for 2015-16, without rejecting the claim on appropriate prudence check.

Page (5) Judgment in Appeal Nos. 213 and 214 of 2013

(ii) that the State Commission rejected the auditor certified segregated accounts submitted by the Appellant (JSPL), even though the said accounts were prepared on the basis of specially created separate cost centre "Business Area 1900"

"4.11 In view of the above discussions, the Commission has carried out provisional truing up for FY 2011-12 based on the actual figures for various parameters submitted by the JSPL and prudence check by the Commission which is detailed in subsequent paragraphs. Final true-up would be undertaken only after the receipt of the audited segregated accounts for the FY 2011-12 as per the Companies Act, 1956 and CSERC (License) Regulations, 2004.' (xix) that the statutory auditor of the Appellant-JSPL sought for a period of two months to conduct the independent verification Page (17) Judgment in Appeal Nos. 213 and 214 of 2013 and certification, but the time was not granted by the State Commission. The State Commission may consider such accounts for true up of 2011-12, 2012-13 and 2013-14 and for determination of tariff for subsequent years.
(c) that the Tariff Regulations, 2012 provide for calculation of Operation & Maintenance expenses on the basis of a base year 2012-13, which shall be derived on the basis of normalized average of the actual operation & maintenance accounts available in the audited/unaudited accounts for the previous Page (24) Judgment in Appeal Nos. 213 and 214 of 2013 three years immediately preceding the base year 2012-13 subject to prudence check.