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9(b). "parallel operation charges shall be charged at the rate fixed by GEB/Licensee with the approval of the Government.
b) The circular No. 687 dated 21.12.1998 had accordingly included the rate of parallel operation charges.

Clause 19: "The parallel operation charges leviable at 7.5% of demand charges in accordance to applicable tariff."

c) Meanwhile the Government of Gujarat had issued two notifications dated 12.11.98 purporting to establish Gujarat Electricity Regulatory Commission and constituting a selection committee for selecting the members of Gujarat Electricity Regulatory Commission. The members were selected and appointed vide a notification dated 10.03.1999. The GERC became operational on 19.04.1999. The Commission, inter alia, had exclusive jurisdiction to fix tariff under Section 29 of The ERC Act 1998. The GEB on 28.01.2000 issued commercial circular No. 706 of 2000 to revise the parallel operational charges which were determined earlier by commercial circular No. 687 dated 21.12.1998. The Commission initiated suo moto proceedings to enquire into the validity of commercial circular issued on 28.01.2000. Vide an order dated 31.08.2000 in Case No. 24 of 2000 the Commission passed a judgment in the suo moto enquiry. It held that parallel operation charge was also tariff and therefore could be determined only by the Commission. It also held that the GEB had no jurisdiction to issue the circular No. 706 dated 28.01.2000 as the same was without the approval of the Commission in accordance of Section 29 of The ERC Act. The Commission observed that when the resolution dated 09.11.1999 was adopted the Commission had not been established and before the establishment of the Commission the GEB could exercise power regarding revision of tariff. However, it opined that on establishment of the Commission under The ERC Act the GEB was required to get approval of the Commission in respect of Circular No. 687, therefore, while quashing circular No.706 dated 28.01.2000 it said:

5. The Circular No. 687 was issued on 21.12.1998. This was based on the resolution of Government of Gujarat adopted on 09.11.1998. The resolution of 09.11.1998 permitted imposition of parallel operation charges but rate of such charge was left to be determined by GEB. The GEB determined the rate on 21.12.1998. Before the resolution of 09.11.1998 the ERC Act 1998 had been passed and had been brought into force on 25.04.1998. The Act gave the power and responsibility to fix the tariff to the ERCs. However, on the date, when the resolution was adopted, there was no Commission in place. Although one notification of 12.11.98 declared establishment of GERC, the other notification appointed only the members of the selection committee. Naturally the establishment of GERC by notification on 12.11.98 did not take effect till the members of GERC were actually selected and appointed and those appointed actually took charge of their office. Admittedly the Commission became operative on 19.04.99. Thus there was no Commission in place on 21.12.1998 when the Circular No. 687 was issued. The Commission came into existence on 19.04.1999. The Commission's order dated 06.09.2002 holds the commercial circular No. 687 to be bad because the Commission had come into existence on 12th November, 1998 which was a mistake of fact. This Tribunal had an opportunity to consider the position of tariff fixation during the period after the enforcement of ERC Act and the establishment of the Regulatory Commission. In Benani Zinc Ltd. v. Kerala State Electricity Board and Ors. Appeal No. 154 of 2005 Energy Law Reports 2007 APTEL's 868 the Honorable Chairperson had this to say: