otherwise
required to be considered on merits and after applying prudence check, the
generating stations like NTPC required additional capital assets from time to time ... discretion, be admitted by the Commission, subject to
prudence check:
.........
(ii) Change in law"
17.02. that the learned Central Commission observed that such expense
benchmark norms for prudence check of
the capital cost. The Central Commission Tariff
Regulations, 2009 for prudence check of capital cost
provide for the following ... laid down any
benchmark norms for prudence check, but its
Regulations only indicate the area of prudence check
including cost overrun and time overrun
check shall form the basis for determination of
tariff:
Provided that in case of the thermal generating station and
the transmission system, prudence check ... determination of tariff, by the Central Commission after prudence
check, which also includes prudence check on cost over - run and
time over
deducted after due
prudence from the R&M expenditure to be
allowed.
(vii) Any capital expenditure found justified after
prudence check necessitated on account ... deducted after due
prudence from the R&M expenditure to be
allowed.
(vii) Any capital expenditure found justified after
prudence check necessitated on account
Commission to apply prudence check and re-determine the tariff.
13.4 The State Commission was required to exercise prudence check in order to ascertain ... without further prudence check to be applied.
13.12 The Ernest & Young had apparently, not carried out the necessary prudence check and has
even disclaimed
CERC on the basis of expenditure incurred after prudence check.
The prudence check of the capital cost is to be carried out based on
benchmark ... check has been
specified as benchmark norms to be specified by CERC from
time to time and in the absence of benchmark norms, prudence
check
distinguishes it from the transmission assets of PGCIL.
For purpose of prudence check the Appellant was unable
to provide the cost details considered ... loan. As evident from this judgment the Central Commission
has done prudence check while deciding the issue of
depreciation.
14. The learned counsel
Commission.
Therefore, the Commission has not been able to undertake
the prudence check of the partial information submitted by
the Appellant.
14.3 In view ... period
FY 2007-08 to FY 2010-11. The prudence check
involved the prudence check of procurement records
and physical verification of the assets
Commission could not undertake
prudence check in determining the ARR and retail tariff of the
Jindal Steel. The prudence check is an essential part ... Commission could not undertake
prudence check in determining the ARR and retail tariff of the Jindal
Steel. The prudence check is an essential part
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 ... submitted segregated accounts subject to prudence check.
However, the State Commission without conducting any
prudence check and without even considering the expenses
submitted by JSPL
