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
State Commission do
not specify any benchmark norms for prudence check of
the capital cost. The Central Commission Tariff
Regulations, 2009 for prudence check ... following:
"(2) The capital cost admitted by the Commission
after prudence check shall form the basis for
determination of tariff:
Provided that in case
reasonably
practicable. The Central Commission was supposed to have done
prudence check by seeking specific information from the Appellant.
c) The Central Commission erred ... months of signing of the
loan agreement. The Central Commission after prudence check
condoned the delay of 22 months (20 months for delay in signing
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
carried out by the State
Commission is without proper and effective prudence check.
3
Judgment ... claim
of Lanco for increase in capital cost upon applying prudence check.
P. Pursuant to the above, Lanco filed its tariff petition being Case
Regulations") provides that the capital cost admitted by CERC
after prudence check shall form the basis for determination of
tariff. Accordingly, CERC in line ... determined the benchmark capital cost vide its
order dated 4.06.2012. Prudence check for capitals cost to be
admitted for the generating station for the purpose
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 ... Gratia as the Commission has not been able to
undertake the prudence check of the partial information
submitted by the Petitioner.
16. Our Consideration
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 ... 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
licensee must be reflected in the transmission charges subject
to appropriate prudence check by the State Commission. The
State Commission has approved the Annual Revenue ... 1415 lakhs claimed
by JSPL, without rejecting the claim on appropriate prudence
check.
(b) that the State Commission has erred in rejecting the Auditor
