BEFORE THE GUJARAT ELECTRICITY REGULATORY …

Page 1

BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION

GANDHINAGAR

Petition No14332014

In the matter of

Petition under section 86(1)(f) of the Electricity Act 2003 in relation to thePower Purchase Agreement dated 03021994 between the partiesPetitioner CLP Power India Pvt Ltd6th Floor Chanakya BuildingOff Ashram RoadAhmedabad - 380 009Represented By Learned Senior Advocate Shri Saurabh Souparkar andAdvocate Shri Uttam Datt with Shri Naveen MunjalVsRespondent Gujarat Urja Vikas Nigam LimitedSardar Patel Vidhyut BhavanRace Course Circle Vadodara - 390007Represented by Learned Advocate Shri MG Ramachandran with MsShailaja Vachharajani and Shri RP Soni

CORAMDr M K Iyer MemberShri Pravinbhai Patel Chairman

Date 31072015

ORDER1) The present petition has been filed by the Petitioner seeking the followingprayers

Page 2

(a) Direct the Respondent to refund the sum of Rs 65533556300 deductedtowards Interest on Working Capital to the Petitioner along with delayedpayment charges in terms of the PPA(b) Direct the Respondent to refund all rebate deducted by it from thePetitioners invoices for the months of November 2013 December 2013and January 2014 and such other months that the Respondent hasillegally deducted rebates along with delayed payment charges in termsof the PPA(c) Pass any other order deemed fit in the facts and circumstance2) The brief facts mentioned in the petition are as under21 The Petitioner is a Generating Company within the meaning of Section 2 (28)of the Electricity Act 2003 (The Act) The Petitioner runs and operates a6547 MW gas based power station at village Paguthan in Bharuch district ThePetitioner Company was earlier known as Gujarat Paguthan EnergyCorporation Private Ltd (GPEC)22 The Respondent is a Licensee within the meaning of Section 2 (39) of theElectricity Act 200323 The Petitioner supplies electricity to the Respondent in terms of the PowerPurchase Agreement dated 03021994 (PPA) and its subsequentamendments dated 05122003 (Supplementary Agreement) and 26022014(lsquoSupplementary Agreement No 2rsquo)

Page 3

24 The PPA was entered into between the parties under Section 43 A of theIndian Electricity Act 1948 which in turn was generally based on the tariffnorms laid down in the notification dated 30031992 (Tariff Notification)issued by the Government of India under Section 43 A of the said Act The tariffnorms were ceiling norms within which the parties had negotiated the PPAterms25 The present petition pertains to a dispute between the parties in relation tothe PPA The dispute relates to Interest on Working Capital payable to thePetitioner under Clause 759 (iv) of the PPA26 The tariff payable to the Petitioner is calculated in terms of Schedule VII of thePPA Under Clause 72 of Schedule VII of the PPA the Petitioner is entitled toreceive interest from the Respondent as a component of Fixed Charge Clause758 of Schedule VII of the PPA defines Interest as to mean the sum ofInterest on Working Capital Interest on Loan Capital interest tax thereon ifany lease rentals or hire purchase charges in respect of assets obtained onlease or hire purchase guarantee commission for various guarantees obtainedfor securing the repayments of debt or for the performance assurancespremium for forward cover for foreign exchange liabilities and any othercharge or financing cost 27 Interest on Working Capital (IWC) is further calculated as a sum of variouscomponents one of which is the receivables equivalent to two months average

Page 4

billing for sale of electricity Originally in the PPA Clause 759 (iv) of ScheduleVII of the PPA was defined as underldquo759

Interest on Working Capital shall mean the sum of all interest bank charges

and associated financing charges with respect to

( i ) Fuel cost for one month

(ii) Operation and Maintenance Expenses (cash) for one month

(iii) Maintenance spares at actual but not exceeding one years requirement

less value of one fifth of initial spares already capitalised and

(iv) Receivables equivalent to two months average billing for sale of electricityrdquo28 Originally in Clause 759 IWC was inter alia payable on actual basis on (a)fuel cost actually incurred during the month and (b) receivables equivalent totwo months average billing for sale of electricity The receivables equivalentto two months average billing would include both Fixed Charges and fuel cost onactual29 During the period prior to December 2003 the Petitioners power station wasachieving high PLF levels In order to reduce the Respondents IWC liabilitythe Respondent requested the Petitioner to amend the clause 759 In theyear 2003 the parties renegotiated the PPA and executed a SupplementaryAgreement dated 05122003 wherein various amendments to the PPA wereagreed to One of the key concessions agreed to by the Petitioner on the

Page 5

request of the Respondent was an amendment in Clause 759 Schedule VII ofthe PPA whereby the IWC was linked to the normative 70 PLF instead ofactual generation The clause 759 was amended in the following terms(a) sub-clause (i) was amended such that IWC would be computed on fuelcost required to achieve normative PLF of 70 which hitherto waspayable on fuel cost incurred on actual generation and(b) sub-clause (iv) was amended such that IWC was now payable on twotimes the Monthly Invoice for sale of electricity Monthly Invoice iscomputed at actuals as regards Fixed Charges and on normative basis70 PLF as regards fuel cost in line with Clause 759(i) of ScheduleVII of the PPA The amended Clause 759 of Schedule VII of the PPAafter the first amendment was as underldquo759


and associated financing charges and shall be charged at 11 or any such other

rate as may be agreed to between the GPEC and GEB from time to time with

respect to the Working Capital comprising of

(i) Fuel Costs for one month at 70 PLF

(ii) helliphelliphelliphelliphelliphelliphelliphelliphellip

(iii) helliphelliphelliphelliphelliphelliphelliphelliphelliphellip

(iv) Receivables equivalent to two times the amount of the Monthly Invoice for

Page 6

sale of electricityrdquoPursuant to the aforesaid amendment on 5122003 post December 2003 thePetitioner commenced billing the Respondent for IWC on fuel costs and thefuel cost component of receivables at normative PLF of 70 and theRespondent paid the IWC on the same basis without any reservation210 Within less than two years of concluding the Supplementary Agreement andenjoying substantial concessions in the tariff the Respondent once again videits letter dated 1992005 requested the Petitioner to renegotiate thePPA in order to further reduce the cost of power purchase In reply thePetitioner in its letter dated 10102005 stated that on the request of theRespondent it had already reduced the tariff significantly vide theSupplementary Agreement wherein various concessions were grantedby the Petitioner in tariff including the modifications carried out in thecomputation of IWC It was stated in the said letter that with respect to IWC onone months fuel and two months receivables related to fuel costs both thecomponents which were hitherto considered at actual PLF levels were agreedto be computed at normative level of 70 under the SupplementaryAgreement It is submitted that even though the actual generation of thePetitioner would be above 70 PLF the Petitioner would be paid IWC only onthe fixed 70 normative PLF as a consequence of the amendment carried outvide the Supplementary Agreement

Page 7

211 It is pertinent to note that in the said letter dated 1992005 the Respondentdid not make any reference to IWC paid by them to the Petitioner sinceDecember 2003 amendment or that they had any issue with IWC paid to thePetitioner since December 2003212 The Respondent vide its letter dated 2052013 once again sought torenegotiate the PPA and proposed certain amendments to be madetherein In the said letter the Respondent alleged and claimed that the Statewas impacted by global recessionary trend and adverse economic conditionsIt was claimed and alleged that power supply had exceeded demand andtherefore it was impossible for the Respondent to bear the burden of monthlyfixed costs One of the modifications sought by the Respondent was tocompletely remove IWC from the tariff structure213 The Petitioner vide its letter dated 2752013 refused to renegotiate the PPAand insisted to be governed by the existing PPA terms214 Immediately after the Petitioner refused to renegotiate the PPA theRespondent unilaterally commenced deducting amounts aggregating to a sum ofRs 655335563- from its invoice payments for the months of July Augustand December 2013 purportedly to recover the alleged excess IWC paid tothe Petitioner during the period 2010-11 2011-12 2012-13 and 2013-14(up to October 2013) as detailed in the table belowPeriod Base Amount DPC Total2010-11 30450857 9818931 40269787

Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563

215 It is all the more egregious that the Respondent also deducted delayedpayment charges (DPC) from the Petitioners invoice payments treating thepayments made to the Petitioner since 2010 towards IWC as wronglypaid and therefore refundable by the Petitioner retrospectively While theRespondent did not until it deducted the aforementioned amounts fromthe Petitioners invoices make any claim against the Petitioner torefund the amounts purportedly overpaid by it the Respondent wasquick to levy DPC from the date the payment was originally made by theRespondent216 The Respondent vide its letter dated 692013 threatened that the PPA beterminated if the proposed amendments were not acceptable to thePetitioner The Respondent alleged and claimed that due to scenario ofeconomic slowdown it would not be possible to honour the futureinvoices of the Petitioner as payment of fixed cost as per the existingprovisions of the PPA was putting huge burden on the Respondent TheRespondent threatened that either the PPA was terminated or theproposed amendments be accepted by the Petitioner As regards IWC theRespondent claimed that the Respondent had been paying IWC on two

Page 9

months receivables at normative level (70 PLF) though the Petitionerspower station is operating at 10-15 PLF However the Respondent failedto appreciate that consequent to the amendments carried out vide theSupplementary Agreement the Petitioner was only billing the Respondent atnormative level of 70 even when the Petitioners plant operated atmore than 70 PLF The Respondent however still proposed that either noIWC should be charged or the Petitioner should agree to compute IWC onlower of actual or normative level for two months receivables217 It is evident from the above that the Respondents proposal to pay IWC on thelower of actual or normative generation is unfair self serving and without anyregard for the Petitioners economic interest The yardstick should be uniformfor the cases when the Petitioner generates more than 70 PLF and when itgenerates less than 70 It is to be noted that when the Petitioner generatesmore than 70 PLF its IWC claim gets restricted to normative 70 PLFSimilarly when actual generation is lower than 70 PLF as per the agreedClause 74 the Respondent is liable to pay IWC at normative 70 PLF andtherefore should not see it at as a burden However contrary to thecontractual commitment the Respondent does not wish to pay the Petitioner atnormative level when actual generation is less than 70 PLF whereas it hasno concern for the Petitioner when it pays a lower IWC at 70 PLF eventhough the actual generation is above 70 PLF

Page 10

218 Be that as it may in view of unilateral action of the Respondent in refusingto pay IWC as per the applicable clause 749 the Petitioner wasconstrained to amend the c lause 75 9 once again andSupplementary Agreement No 2 dated 2622014 was signed between theparties Amendment in relation to Clause 759 (iv) of Schedule VII of the PPAwas as followsldquo759






(ii) helliphelliphelliphelliphelliphelliphelliphelliphellip(iii) helliphelliphelliphelliphelliphelliphelliphelliphelliphellip(iv) Receivables equivalent to two times the amount of the Monthly Invoice for

sale of electricity which shall be calculated as two times the sum of Fixed

Charges at normative level (70) for the respective month and lower of

actual fuel cost for that month or fuel costs for that one month at

normative levelrdquo219 By way of the aforesaid amendment sub-clause (iv) of Clause 759 wasamended to restrict the IWC by restricting the Receivables to beequivalent of two times the amount of the Monthly Invoice for sale of

Page 11

electricity calculated as two times the sum of Fixed Charges atnormative level (70) for the respective month and lower of actual fuel costfor that month and fuel costs at normative PLF220 In terms of Clause 21 of the Supplementary Agreement No 2 theagreement became effective from 1112013 The amendments wereprospective and came into effect only from 1112013 and the Respondent couldgive effect to the said amendments only for the period subsequent to 1112013Pursuant to the amendment in Clause 759(iv) the Petitioner would beentitled to the Receivables on the lower of actual or normative basis for theperiod subsequent to 1112013 and not prior thereto221 However the Respondent has deducted the sum of Rs 655335563- for theperiod prior to 1112013 The period of deduction is 2010-11 2011- 122012-13 and 2013-14 (up to October 2013) The Respondent has provided noexplanation of as to how it could recover for the period prior to 1112013 andhave also refused to refund the abovementioned amount222 The retrospective deduction made by the Respondent is arbitrary and ex-facieillegal The amended clause 759(iv) is applicable with effect from 1112013The Respondent is liable to refund the said sum illegally deducted by it223 It is further submitted that the sum of Rs 655335563- includes a sum ofRs 35135805- towards DPC (interest) This DPC is charged on the baseamount of Rs 620199760- The Respondent has charged DPC by treatingthe IWC paid by them to the Petitioner as allegedly not payable since the year

Page 12

2010-2011 The DPC charged is illegal since the Respondent never before thededuction made in October 2013 asked the Petitioner to repay the saidamount or disputed their liability to pay the same Assuming for the sake ofargument that IWC was wrongly paid to the Petitioner the Respondent bynot raising a claim in time is estopped now from claiming that the Petitionerdelayed the payment Also by not raising a dispute earlier the Respondentwaived its right to claim DPC if it did have the said right It is highlypertinent to mention that the Respondent even in their letter dated1992005 did not hint at or raise any reservation or protest or claim thatthe IWC paid by them was not payable Since December 2003 amendmentthe IWC was paid as per the then applicable clause 759 It was only inOctober 2013 that for the first time it was claimed that IWC paid till nowwas wrongly paid in view of the retrospective application of theamendments dated 26022014 effective with effect from 1112013224 Without prejudice to the above said it is pertinent to note that in the PPA whilethere is a liability fastened on the Respondent under Clause 62(b) of Articleto pay DPC on the outstanding payments of the Petitioner however no suchcorresponding liability has been cast upon the Petitioner to pay DPC to theRespondent on any account Therefore the Respondents DPC claim isnot borne out of the PPA signed by parties and consequently is not payable225 In order to incentivise timely payments of bills by the Respondent underArticle 63(f) it was agreed between the parties that in case the

Page 13

Respondent made payments of Petitioners invoices within a period ofone month a rebate of 1 of such amount shall be allowed to theRespondent226 Article 63(f) was amended vide Supplementary Agreement dated5122003 whereby a condition was introduced whereby the Respondent wouldbe entitled to rebate only if there are no pending outstanding dues from theRespondent to the Petitioner Also clause 63(f) was amended to the effectthat if the Respondent made payment within 7 days it became entitled torebate 15 and if the payment is made within 30 days rebate 1 wouldbe made available227 The Respondent had paid invoices for the months of November 2013 December2013 and January 2014 net of rebate The Respondent has enjoyed a rebate of Rs3173491- in the aforesaid invoices However if the deductions towards IWCare held to be illegal then the Respondent is not entitled to any rebate as thepayments refunded by the Respondent subject to the order by the HonbleCommission in this petition shall be treated as late228 Since the Respondent has made deductions illegally it is not entitled to rebate interms of Article 63(f) and is bound to refund the same along with refund of Rs6553 Crores Following is the details of the rebate enjoyed by the respondentInvoice Rebatededucted(Rs) GUVNL Letter RefNovember-13 52931 GUVNLIPPCLP205 dated 28012014December-13 382811 GUVNLIPPCLP298 dated 12022014January-14 2737749 GUVNLIPPCLP466 dated 18032014

Page 14

Total 3173491229 As per Article 62(c) of the PPA the Respondent is required to pay all dueswhether disputed or admitted on schedule The intent is not to affect the cashflow to the Petitioner on the pretext of a dispute Dispute and liability to pay asper the schedule have been delinked230 The Respondent is still enjoying rebate on various bills paid by it even noweven though it has illegally deducted the sum of Rs 655335563 It issubmitted that in case the Honble Commission holds that the deductionmade by the Respondent is illegal then the said sum may be directed to berefunded to the Petitioner along with the rebates that the Respondent hasdeducted in the invoices from where the deduction of the aforesaid sumhas been made and all such invoices raised by the Petitioner since thedeductions in October 2013 in which the Respondent has been makingand shall make payments after rebate231 Accordingly the Respondent is liable to refund the following sums to thepetitioner(a) refund the illegal deduction of Rs 655335563- along with delayedpayment charges (DPC) in terms of the PPA and(b) refund all the rebates illegally deducted by the Respondent along withdelayed payment charges232 The Petitioner has made all amicable attempts to resolve the disputeswhich have failed and which has constrained the Petitioner to invoke

Page 15

adjudicatory jurisdiction of the Honble Commission under Section 86(1)(f)of the Electricity Act 20033) The Respondent filed its reply dated 19072014 in the matter on 21072014wherein it is submitted that the present petition filed by the Petitioner seekinginterest on working capital on two months receivable component to be takenas per the normative 70 PLF instead of actual amount of two monthsreceivable is totally misconceived and is contrary to the provisions of thePower Purchase Agreement31 It is submitted that the Power Purchase Agreement dated 3rd February 1994as amended by the Supplemental Agreement dated 5th December 2003between the Petitioner and the Respondent sets out the terms and conditionsfor tariff computation and payment under a cost plus mechanism Clause 759of the Power Purchase Agreement defines `Interest on Working Capitalrsquo asunder

ldquo759 Interest on Working Capital shall mean the sum of all interest bank

charges and associated financing charges and shall be charged at 11 or

any such other rate as may be agreed to between the GPEC and GEB from

time to time with respect to the Working Capital comprising of


(ii)

(iii)

Page 16

(iv) Receivables equivalent to two times the amount of the Monthly

Invoice for sale of electricity32 In accordance with the above definition besides other elements to betaken into account the receivables equivalent to two times the amount ofmonthly invoice for sale of electricity is to be considered Thus thedetermination of working capital requirements is on the basis of the actualreceivables to be recovered from the Respondent for the billing periodThe period of two months is provided to take care of the period betweenthe date of billing and the due date of payment ie 60 days from the date ofthe billing33 It is submitted that the receivables to be counted for the purpose ofworking capital computation and interest to be allowed thereon is theactual receivables equivalent to two times the amount of monthly invoicefor sale of electricity The Power Purchase Agreement does not provide forreceivables at normative level as being interpreted by the petitioner Theprovisions of the Power Purchase Agreement are therefore clear andunequivocal34 The Petitionerrsquos contention that the parties have implemented the PowerPurchase Agreement and the Supplemental Agreement in regard to theinterest on working capital based on the normative of Plant Load Factor(PLF) of 70 and in the past the working capital requirement wasrestricted to 70 PLF and therefore receivables needs to be considered at

Page 17

normative level is not correct The Petitioner as a generating companyrecovers the Full Fixed Charges including the Return on Equity at 70PLF The interest on working capital being an element of fixed cost istherefore related to the maximum of 70 PLF In the event thegenerating station operates at a level more than 70 PLFPAF a separatetariff element namely incentive is provided for The incentive is specifiedin Clause 74 of the PPA over and above the full fixed cost recovery35 It is submitted that for the relevant period the definition of Interest onWorking Capital as per the Supplemental Agreement of 05122003 isrelevant The above definition clearly provides for the receivablesequivalent to two times the amount of monthly invoice for sale ofelectricity is to be considered Even as per the definition contained in thePower Purchase Agreement dated 03021994 the receivables equivalentto two months average billing for sale of electricity is to be consideredThe provisions being clear it is not open to the Petitioner to claim theinclusion of receivables which would have been there if the plant hadoperated on a normative PLF of 70 Such receivables includes deemedfixed charges but cannot include any variable charges on normative 70PLF when there is no requirement whatsoever for the Petitioner to incursuch variable charges Accordingly the claim of the Petitioner for suchvariable charges to be counted on deemed basis or on a normative basisfor the calculation of the working capital is totally misconceived and

Page 18

wrong In view of the above when the plant PLF is less than 70 thePetitioner is entitled to include the receivables for fixed charges to theextent of 70 and receivables pertaining to variable charges on actualpercentage of generation It will be highly unjustified and improper if thePetitioner claims the inclusion of variable charges on normative basisparticularly when the plant was operating at a PLF for some time as low as5 to 10 The petitioner in his petition has already accepted that theIWC as per original PPA was payable on actual basis on two monthsreceivables component The only modification made in the SupplementalPPA dated 5122003 was replacement of the phrase ldquotwo months averagebillingldquo by the phrase ldquotwo times the monthly invoicerdquo This was done onlyto remove the method of computing receivables by working out theaverage of 12 months receivables and then multiplying the same with twoand incorporate the method of simply multiplying the receivable amountof the respective monthly invoice by two Thus there was no modificationfrom computation based on actuals to computation based on normativelevel as being sought to be interpreted by the petitioner36 The Petitioner is not entitled to draw any analogy between the operationof the plant at PLF higher than 70 to the operation of the plant at PLFless than 70 The interest on working capital is a tariff element forrecovery of the fixed charges and not with regard to incentive which ispayable over and above the fixed charges The Petitioner already has the

Page 19

advantage of recovery of full capacityfixed charges at normative 70 PLFas compared to such fixed charges to the installed capacity of 100 PLFOnce the PLF of 70 is achieved the fixed charge component gets fullyrecovered For operation beyond 70 there is a tariff element ofincentive which alone is payable In this regard it is also relevant tomention that there is no penalty or disincentive provided for in the tariffby way of adjustment of the fixed charges if the Petitioner does not offergeneration more than 70 PLF It was always for the Petitioner to declarethe availability of the power plant above 70 to earn incentive which isagreed to be paid by the Respondent to the Petitioner under Clause 74 ofthe Power Purchase Agreement37 The allegation that the provisions of the Power Purchase Agreementrelates to the normative operation of the power plant for determining theworking capital requirements is wrong As explained the effect of theSupplemental Agreement dated 5th December 2003 was only to providefor the receivables equivalent to the concerned month x 2 instead of takingthe average of 12 months The allegations to the contrary are wrong andare specifically denied38 It is wrong and denied that by the Supplemental Agreement theRespondent had agreed to the claim of the Petitioner that the Respondentwould consider the working capital requirements at 70 PLF even if theactual PLF is less than 70 It is wrong and denied that the letter dated

Page 20

19th September 2005 of the Respondent or the Petitionerrsquos reply dated10th October 2005 brings about a concluded agreement between theparties notwithstanding the actual PLF being less than 70 for thepurpose of working capital the normative PLF of 70 will be taken inregard to the receivables It is reiterated that there is no rationale or logicto claim the working capital for receivables equivalent to two months withreference to 70 PLF when the actual PLF is less than 70 Theallegations to the contrary are wrong and are denied39 It is wrong and denied that the Petitioner was in any manner coerced orforced to sign any agreement or otherwise forego any claim It isreiterated that the provisions of the Power Purchase Agreement dated 3rdFebruary 1994 and the Supplemental Agreement dated 5th December2003 are explicit in regard to the determination of the working capitalinclusive of receivables of two months There were various othernegotiations between the parties in regard to the claims of the Respondentagainst the Petitioner The second Supplemental Agreement was signed on26th February 2014 dealing with the amendments in regard to O amp MExpenses incentive etc The amendment to Clause 759 was done inconfirmation and to clarify the position particularly in the context of theRespondent having not acceded to the claim of the Petitioner fordetermining the working capital requirements in regard to the receivableswith reference to 70 PLF It is relevant to mention that the Supplemental

Page 21

Agreement does not make any mention of the liability of the Respondent topay any amount for the period prior to the Supplemental Agreement inregard to the working capital as per the claims of the Petitioner It istherefore incorrect on the part of the Petitioner to rely on the secondSupplemental Agreement to contend that for the previous periodsubstantial amount is recoverable by the Petitioner from the Respondenttowards interest on working capital Accordingly the amendment toClause 759 by the second Supplemental Agreement is clarificatory innature Each and every allegation to the contrary are specifically denied310 It is wrong and denied that any amount has been wrongly withheld ordeducted by the Respondent from the bills of the Petitioner It isreiterated that the amount deducted by the Respondent including for theperiod 2010-11 2011-12 2012-13 and 2013-14 are fully in accordancewith the provisions of the Power Purchase Agreement It is wrong anddenied that the Respondent has not provided any explanation for suchdeduction It is reiterated that the Respondent has duly advised thePetitioner and the Petitioner is fully aware that the variable costcomponent of the receivables for calculation of interest on working capitalis to be with reference to the actual PLF when the same is less than 70normative PLF The Petitioner had wrongly claimed and taken amount inexcess of due amount under the Power Purchase Agreement TheRespondent is entitled to adjust the same with interest or carrying cost as

Page 22

the amount was wrongly recovered and the money was lying with thepetitioner for the period from the date of recovery till the date ofadjustment The allegations to the contrary are wrong and are denied311 It is submitted that the excess amount recovered by the Petitioner fromthe Respondent was required to be adjusted with carrying cost ThePower Purchase Agreement recognises the said carrying cost as DelayedPayment Surcharge It is equitable just and proper that the adjustment forexcess payment is made at the same rate as in the case of Delayed Paymentby the Respondent to the Petitioner There have been instances of suchexcess payment made to the petitioner earlier where the same wererecovered with interest and the petitioner has not objected to suchrecoveries The allegations to the contrary are wrong and are denied312 The Respondent is entitled to adjust the amount due to it with allconsequential effects including in regard to the interest and rebate Theallegations to the contrary are wrong and are denied An excess paymentwas made by the Respondent inadvertently due to a mistake in thecalculation than what was actually payable as per the PPA Therefore therecoveries have been made in accordance with the PPA and hence there isno scope of any dispute Thus the contention of the petitioner thatdisputed amounts ought to be paid and the deductions are illegal has norelevance or standing in the present case and prayed that the Commissionmay dismiss the present Petition with costs

Page 23

4) The Petitioner filed its rejoinder in reply with affidavit dated 03092014wherein the submissions made by the respondent are denied and has alsorefuted that the respondentrsquos submission that the claims made bypetitioner are wrong and are misconceived or contrary to the PowerPurchase Agreement dated 3rd February 1994 and SupplementaryAgreement dated 5th December 2003 It is submitted that the allegationsmade by the Respondent are vague since the respondent has not specifiedthat the claims made by the petitioner are contrary to which provisions ofthe PPA41 It is submitted that determination of working capital requirement is on thebasis of actual Receivables since as per the tariff scheme the Receivablesare liable to be calculated on normative basis The Government of IndiaNotification No SO 251(E) dated 30th March 1992 which lays down thetariff norms (lsquoGOI Tariff Notificationrsquo) which was made the basis for thePPA signed by the parties provides that annual fixed charges consisting ofinterest on loan capital depreciation operation and maintenanceexpenses taxes on income return on equity and interest on workingcapital shall be reckoned at normative level of generation The relevantClause 1 of the GOI Tariff Notification provides as under

1 Thermal Power Generating Station mdash The two-part tariff for sale of

electricity from thermal power generating stations (including gas based

Page 24

station) shall comprise the recovery of annual fixed charges consisting of

interest on loan capital depreciation operation and maintenance expenses

(excluding fuel) taxes on income reckoned as expenses return on equity and

interest on working capital a normative level of generation and energy

(variable) charges covering fuel cost recoverable for each (kilowatt hours)

of energy supplied and shall be based on the following norms

42 It is also submitted by the petitioner that the Respondent is liable to pay allindividual items of Fixed Charges reckoned at normative level of generation istherefore abundantly clear and in order to claim full (100) Fixed Chargesfrom the Respondent the generator must achieve 70 normative availabilitytarget or 70 normative availability target is good enough Therefore theRespondent is wrong in contending that Fixed Charges are payable on actualand not on normative basis Also in the event the annual availability of thepower station is less than 70 normative availability the recovery of FixedCharges shall stand proportionately reduced which however doesnt meanthat the Fixed Charges are payable at actual since at 70 normative targetavailability full Fixed Charges are payable The term Fixed Charges by itsvery nomenclature makes it clear that this component of tariff is fixed and isnot prone to change to the extent actual availability is equal to or more thannormative availability (70) It is also submitted that originally when the PPAwas signed on 03021994 contrary to GOI Tariff Notification its Clause759(i) of Schedule VII which lays down the provision for IWC payable to thePetitioner did not mention the normative target availability at all The

Page 25

Petitioner billed the Respondent IWC at actual and Respondent paid the sameat actual in terms of the aforesaid original clause However this inconsistencyof the PPA Clause 759(i) with the GOI Tariff Notification which provides thatthe components of Fixed Charges should be reckoned at normative availabilitywas subsequently removed at the instance of the Respondent itself whoinsisted that clause 759 should be amended to clarify that IWC was payableon normative basis Consequently vide Supplementary Agreement dated5122003 Clause 759(i) was amended to specify that the fuel cost shall bepaid on normative basis It is submitted that originally receivables payable tothe Petitioner as IWC in sub clause (iv) of Clause 759 was billed and paid inthe manner where both Fixed Charges and Variable Charges were paid onactual basis however pursuant to the said amendment in the SupplementaryAgreement the Petitioner has been invoicing IWC on receivables constitutingboth Fixed Charges as well as Variable Charges on the basis of normativeavailability It is noteworthy that the Respondent has also been paying thesame on the normative basis until it unilaterally decided to change its positionsuddenly to claim that it would pay IWC on actual basis and not on normativebasis and deducted an amount aggregating to Rs 655335563- from theinvoice of the Petitioner for the months of July August and December 2013However the Petitioner has inadvertently mentioned in paragraph 9 (b) of thePetition that Monthly Invoice is computed at actuals as regards Fixed Chargesand on normative basis 70 PLF as regards fuel costs in line with Clause

Page 26

759(i) of Schedule VII of the PPA The Petitioner wishes to remove thetypographical discrepancy and clarify that it has been in its monthly invoicescalculating both fixed and variable charges on normative basis 70availability in line with Clause 759(i) of Schedule VII of the PPA43 The petitioner has further reiterated that post signing of SupplementaryAgreement in 2003 as per the amendment the receivables were made to bepaid on normative basis to make it consistent with the GoI Tariff Notificationwhich provides that the components of Fixed Charges should be reckoned atnormative availability That was the very purpose of the amendment in Clause759 and pursuant to the same the Respondent did pay the fuel costcomponent of the receivables on normative basis for 10 years approximatelyIt was only in May 2013 the Respondent vide its letter NoGUVNLCOMCFM(IPP)CLP926 dated 20th May 2013 firstly proposed to doaway with the IWC completely and then vide letter NoGUVNLCOMCFM(IPP)CLP1587 dated 6th September 2013 proposed thateither the Petitioner shall not claim the IWC or the same should be claimed onthe lower of actual or normative basis for two months receivables component44 The petitioner has further submitted that the interpretation sought to be givenby the Respondent to clause 759 is incorrect and contrary to the intentions ofthe parties the GoI Tariff Notification and the practice followed by them If theRespondents interpretation is correct than how does the Respondent justify

Page 27

the payments made to the Petitioner since amendment made in December2003 on normative basis when it was so much evident to the Respondent asclaimed by it from the PPA that according to the scheme of the PPA variablecharges are not payable on normative basis Clearly the Respondentsinterpretation of clause 759 is an afterthought and contrary to the PPA andintention of the parties This interpretation is contrary to the tariff scheme andnorms whereby IWC is treated as a distinct component of Fixed Charges tariffWhile fuel cost other than in IWC is payable on actuals whereas as far as itstreatment as a component of IWC is concerned the same is payable like othercomponents of IWC on normative basis All IWC items are to be uniformlytreated and PPA scheme does not countenance that some items are payable onnormative and other are on actual basis45 It is reiterated that the Respondent is wrong in contending that variablecharges are not payable on normative basis It is wrong as a matter ofprinciple since the GoI Tariff Notification very clearly specifies that fuel costas far as component of IWC is concerned is payable on normative basis It isalso submitted that in the CERC Tariff notification both fixed charges andvariable charges are payable on target availability and not on actualgeneration Therefore the Respondents contention that variable charges as amatter of principle cannot be paid on the normative basis is allegedly unfairunjustified and improper is completely wrong and incorrect Also the wholeargument of the Respondent is an afterthought as the Respondent did pay the

Page 28

Petitioner on normative basis for about ten years since December 2003without any protest whatsoever If according to the Respondent the PPA isvery clear about how IWC for fuel cost is to be paid then it would not havetaken the Respondent around 10 years to realize that all this while IWC waswrongly paid It is therefore denied that the only modification carried out inthe clause 759 in the year 2003 was to replace two months average billingwith the words two times the monthly invoice in sub-clause (iv) is contraryto facts intent of the parties and the text of the amendment itself Besides theaforesaid amendment to sub-clause (iv) the sub-clause (i) was also amendedto read as following fuel costs for one month at 70 PLF replacing the wordsfuel costs for one month Therefore the Respondents contention that therewas no amendment to specify that fuel charges will be paid on normativebasis in the Supplementary Agreement of 2003 is incorrect Also aninterpretation which results in isolation of receivables purportedly to bepaid on actuals whereas component of fuel cost in IWC is agreed to be paid onnormative basis cannot be accepted since the PPA does not make suchdistinction The Respondent cannot now retract from its agreement on thepurported ground of it being allegedly unjust and improper Also theRespondent is estopped from claiming that it would not pay on normativebasis for the period after the amendment in the PPA in the year 2003 afterhaving paid on the said basis for nearly 10 years It is submitted that theRespondent paid on normative basis because the same was payable in terms

Page 29

of the GOI Tariff Notification which was adopted in the PPA through the 2003Amendment46 It is further submitted that IWC is an important component of Fixed Chargesand by not agreeing to pay the Petitioner IWC on variable charges onnormative basis the Respondent is acting in breach of the PPA therebydepriving the Petitioner of its legitimate right to tariff which was negotiatedand incorporated in the PPA and its subsequent amendments It is submittedthat the Respondent cannot pick and choose the tariff parameters where it willapply the principle of normative or actual whichever is lower for the period ofdispute The Respondent cannot in law be allowed to unilaterally andarbitrarily apply new terms in violation of and contrary to the agreed terms ofthe PPA It is submitted that the Respondent is not correct in claiming that thePPA does not penalize the Petitioner for not meeting the normative availabilitytarget of 70 PLF Rather the said claim is misleading since in case of notachieving the said normative target the Petitioner does not get paid the fullFixed Charges and the same is proportionately reduced Most importantly thePetitioner losses on incentive which it is entitled to for availability beyond70 normative This incentive is a substantial component of the tariffpayable to the Petitioner and if it is not able to claim incentive due todeclaration of availability at or below 70 the Petitioner suffers a huge loss ofrevenue Clause 72 of Schedule VII (Tariff) of the PPA provides for a formulafor computation of Fixed Charges which unambiguously provides that the

Page 30

Fixed Charges would be proportionately adjusted relative to the shortfall inavailability below the normative availability (70) Clause 16 of the GoINotification also provides for an identical formula to adjust Fixed Charges if agenerating company fails to offer generation of at least 70 PLF47 If the intent was not to move to normative basis from actual basis which wasbeing followed by the Respondent prior to 2003 amendment then theRespondent must justify making payments to the Petitioner on the normativebasis for nearly about 10 years It is therefore evident that the Respondentscontention is an afterthought Even in the Respondents letter dated 1992005it was nowhere indicated that the payments made pursuant to the signing ofthe Supplementary Agreement in 2003 were not payable or were paid subjectto any reservation or exception It is further denied that there is no rationaleto claim fuel cost in receivables on normative basis where the same fuel cost iscomputed at normative availability (70) for the purposes of computation ofIWC on fuel cost As stated above the fuel cost as part of IWC is payable onnormative basis since the same is part of the Fixed Charges It was theRespondent who introduced the same in the 2003 Amendment to limit thePetitioners claim since the Petitioners availability would consistently be highabove 70 PLF However when the availability has been keeping below 70PLF the Respondent is arbitrarily claiming that there never was an agreementto pay on normative basis and the same is allegedly unreasonable TheRespondent cannot approbate and reprobate at the same time Also as stated

Page 31

above both the GoI Tariff Notification and the CERC in its tariff notificationpermits receivables for both fixed charges and variable charges on targetavailability rather than actual generation and therefore the Respondentscontention that it is principally unfair and unreasonable is incorrect48 It is once again denied that in the 2003 Amendment it was not agreed by theRespondent to pay IWC on fuel costs on normative basis than on actual basisThe said assertion is contrary to the text of the amendment and intention ofthe parties and the Respondents own conduct where they paid the Petitioneron normative basis for about 10 years pursuant to the amendment It issubmitted that in the subsequent Supplementary Agreement dated 2622014(ldquo2014 Amendmentrdquo) further amendments were made to clause 759 at thebehest of Respondent to now make the fuel cost payable in receivables atlower of actual or normative This amendment only confirmed that there was adeparture from pre-amendment provision of payment of fuel cost agreed atnormative basis and post amendment the same was payable on the lower ofactual and normative It is therefore wrong and completely contrary to thePPA provisions and their own conduct on the part of the Respondent to claimthat fuel cost as part of the IWC was never agreed to be paid on normativebasis It is even more arbitrary and illegal for the Respondent to claim that the2014 Amendment did not bar the Respondent from recovering the fuel costpaid on normative basis for about ten years since 2003 Amendment prior to2014 amendment The said contention on the face of it is contrary to 2014

Page 32

Amendment which very clearly lays down that the same would becomeeffective from 1112013 The amendment was prospective and notretrospective and the same could not have been retrospective since theamendment was aimed to only redraw the norms for the future This is alsocaptured specifically in clause 22 of Supplementary Agreement dated262201449 The Respondent merely makes bald and vague allegations without specificallystating the clausesprovisions of the PPA which empower it to adjust suchdisputed amounts As per Article-6(c) parties have categorically agreed toreleasing all payments on schedule irrespective of invoices being in disputeHence the deductions made are illegal and consequentially DPC charged isillegal too Furthermore there is no provision in the PPA which entitles theRespondent to charge interestDPC from the Petitioner It is denied that theamounts paid to the Petitioner pursuant to the 2003 amendment was onaccount of a mistake in calculation Respondent is wrong in terming thepayments made for ten years as a calculation mistake In this context it ispertinent to mention that if indeed it was a mere calculation error theRespondent would not have persuaded the Petitioner to amend the PPA inSeptember 2013 to capture the new method proposed by them in place of thethen existing normative basis The Respondent could have on their ownrectified the error without seeking the Petitioners approval Clearly theRespondents contentions are incorrect and an afterthought to provide some

Page 33

justification for the arbitrary and illegal deductions made after 10 years Alsothis contention is contrary to their own stand that the same was not payablein principle in the first place The Respondent cannot therefore call it acalculation or clerical mistake The payments were made as per the PPA andare legitimately due and payable to the Petitioner Article 63(f) as amendedby the Supplementary Agreement dated 5122003 provides that theRespondent would be entitled to rebate only if there are no pendingoutstanding dues from the Respondent to the Petitioner Since the Respondenthas made deductions illegally of a sum of Rs 6553 crores in breach of Article6(c) it is not entitled to any rebate in terms of Article 63(f) and is bound torefund the same along with refund of Rs 6553 Crores5) The matter was kept for hearing on 28072014 06092014 0410201415112014 and finally on 201220146) During the hearing on 20122014 Learned Advocates of the petitioner andrespondent made their submissions and reiterated the facts as mentionedabove and completed their arguments in the petition61 The Commission vide its daily order dated 22122014 directed the parties tofile their written submissions within 10 days from the date of the order andreserved the matter for final order judgment

Page 34

62 In pursuance to our directions the petitioner and the respondent have filedtheir written submissions7) Based on the rival connections of the parties the following issues emerged forthe decision of the Commission1) Whether the interest on working capital deducted by the respondent isillegal in terms of the PPA and whether the petitioner is eligible to receivethe delay payment charges in terms of the PPA2) Is the petitioner entitled to get refund all rebates deducted by therespondent from the petitioner bill invoices for the month of November2013 December 2013 and January 2014 and such other months withdelay payment charges8) We have carefully considered the submission made by the parties In thepresent petition it is undisputed between the parties that the petitioner andthe respondent have entered into a Power Purchase Agreement (PPA) dated3021994 and the subsequent amendments made in it on 5122003 and26022014 The original PPA entered between the parties consisting of thetariff norms laid down in notification dated 30031992 (Tariff Notificationissued by Govt of India) under section 43 (A) of the Indian Electricity Act194881 The dispute between the parties is in relation to the interest on workingcapital payable to the petitioner under clause 759 (iv) of the schedule VII of

Page 35

the PPA which pertain to tariff The original clause of the interest of workingcapital in PPA dated 3021994 reads as underldquo759 Interest on Working Capital shall mean the sum of all interest bank

charges and associated financing charges with respect to

(i) Fuel cost for one month


(iii) Maintenance spares at actual but not exceeding one years

requirement less value of one fifth of initial spares already capitalised

and

(iv) Receivables equivalent to two months average billing for sale of

electricityrdquo

The aforesaid clause state that the working capital be worked out withconsideration of (i) fuel cost for one month (ii) O amp M expenses for one month(iii) maintenance spare actual but not exceeding one month requirement lessvalues of one fifth on initial spare capitalized and (iv) receivable equivalent totwo months average bills sale of electricityArticle 6 state with regards to invoice and its payment etc As per Article 62 itwas agreed between the parties that the petitioner shall issue the invoices tothe respondent for the electrical output delivered from its plant by thepetitioner and the respondent is liable to pay the charges as per scheduled VIIof the PPA which pertains to tariff reads as under

Page 36

ldquo71 Tariff

GEB shall purchase power from GTEC generally on the basis of GOI Notification

No SO 251 (E) dtd 3031992 The tariff for the first 6000 KWhKW (ie 685

PLF) of Net Availability in any Year during the term of this Agreement shall be

the sum of (a) the Fixed Charge and (b) the Variable Charges For all energy of

actual and deemed generation in excess of 685 PLF in any Year the tariff

payable by GEB shall be sum of (a) the incentive described below and (b) the

Variable Charge Any tax duty or impost on or pertaining to sale of energy or

capacity shall be payable by GEB to GTEC over and above the tariffrdquo

82 Thus the invoices consist of (i) fixed charge comprising (a) RoE (b)depreciation (c) O amp M charge (d) interest (e) insurance expense and (f)Foreign Exchange Rate Variation and Interest on working capital (ii) variablecharge consisting of fuel charge and (iii) incentives etc as specified inSchedule VII above Thus the receivable for two months average billing refundto in clause 759 of schedule VII of the PPA consists of fixed charge as well asfuel cost The fuel cost was not having any linkage with the PLF in thisagreement83 The petitioner and the respondent thereafter signed the supplementaryagreement on 5122003 in which they agreed to amend the clause 759 ofSchedule VII of the PPA as underldquo45 Amendment Clause 759 of Schedule VII

Page 37

The terms of Clause 759 of Schedule VII are hereby modified and shall read as

under

ldquoInterest on Working Capitalrdquo shall mean the sum of all interest bank charges


rate as may be agreed to between GPEC and GEB from time to time with respect

to the Working Capital comprising of

(i) Fuel cost for one month at 70 PLF


(iii) Maintenance spares at actuals but not exceeding one years

requirement less value of one fifth of initial spares already capitalized

(iv) Receivables equivalent to two times the amount of the Monthly Invoice

for sale of electricityrdquo

As per the above agreement both the petitioner agreed that the fuel cost whichis considered for working capital is linked with PLF 70 Thus it was linkedwith the 70 PLF of energy and hence was not linked to actual generationSimilarly the receivable is equivalent to two times of amount of monthlyinvoices for sale of electricity which in original PPA was equivalent to twomonths average billing of sale of electricity Thus the shifting from the originalPPA by the parties in the working capital calculations is limited to the fuel costupto 70 of PLF on normative basis instead of actual basis and the receivablesas two times amount of the monthly bill instead of average of two months

Page 38

billing The above amendment made in the original agreement by the partiesmutually by shifting the limitation of the fuel cost as a part of working capitalupto 70 of PLF Similarly in case of the receivable as a part of workingcapital it was agreed between the parties the same is shifted from ldquoaveragetwo months billing chargesrdquo to ldquotwo times the amount of monthly invoices forsale of electricityrdquo Thus for calculation of two months receivables themonthly bill is required to be evaluated first The said agreement does notstipulate that while evaluating the receivable the fixed charge are required tobe limited upto 70 of PLF and the variable charge is evaluated withconsideration of the fuel actually consumed and required to utilise on actualbasis with PLF of 70 and lower of the above two items be considered as apart of receivable84 We further note that the petitioner and the respondents had further agreed toamend the agreement by signing supplemental agreement dated 26022014In the said agreement the parties agreed to amend the sub clause (iv) ofclause 759 of schedule VII of the PPA as underSub-clause (iv) of Clause 759 of Schedule VII shall be amended and restatedas follow

ldquoReceivables equivalent to two times the amount of the Monthly Invoice for sale

of electricity which shall be calculated as two times the sum of Fixed Charges at

normative level (70) for the respective month and lower of actual fuel cost for

that month or fuel costs for that one month at normative levelrdquo

Page 39

In the said clause it was agreed between the parties that the receivable whichconsists of fixed and variable charges be calculated as the sum of the fixedcharge with consideration of PLF at normative level of 70 while the variablechargefuel charge be determined based on the actual fuel cost in the saidmonth or the fuel consumption at normative PLF level and whichever is lowerThus by way of an amendment dtd 26th Feb 2014 in PPA the parties to thePPA agreed to the change in the methodology for calculation of workingcapital We also note that the parties to the PPA agreed in supplemental PPAdated 26022014 as underldquoArticle 2 ndash Effective date

21 Subject to the fulfillment of the following condition by GUVNL this

Agreement shall be deemed to have been effective from November 1 2013

(i) GUVNL shall refund deductions made by it towards lsquoIncome Tax on Incentiversquo

and amounts withheld on account of cash constraints amounting to INR 21272

Crores and detailed in Annexure A of this Agreement plus delayed payment

charges on amounts withheld on account of cash constraints With respect to

refund of deductions made on lsquoIncome Tax on Incentiversquo by GUVNL should be the

Comptroller amp Auditor General (CAG) be of the view as may be recorded in its

final audit report on ldquoreimbursement of tax to GPECLrdquo that income tax on

incentive payments are not reimbursable by GUVNL in terms of the GOI

Notification No SO251 (E) dtd 30031992 then GUVNL shall be at liberty to

Page 40

raise a dispute against CLP India in terms of the PPA In such an event it is

clarified that GUVNL shall not make any unilateral recovery of such amounts as

stipulated in the PPA until resolution of such disputes

22 It is clarified that the amendments contained herein are prospective in

nature It is further clarified that to the extent the conditions mentioned

aforesaid remain unfulfilled this Agreement shall not be effective enforceable

andor bindingrdquo

In the said Article it is admitted between the parties the supplemental PPAdated 26022014 becomes effective from 1st November 201385 From the above provisions of the PPA it transpires that the parties to the PPAie petitioner and the respondent mutually agreed to amend in the originalPPA dated 3021994 in respect of the components of working capital stated inclause 759 of the PPA86 In the supplemental PPA dated 5122003 it was agreed between the partiesthat the parameters as stated in clause 759 of schedule VII are normativeparameters The only amendment in the said PPA agreed between the partiesis with regards to the working capital components (i) fuel cost for one monthHowever the same is limited to 70 PLF level only Similarly the receivableis restricted two times the monthly invoices for sale of electricity which isbased on the monthly bill required to be evaluated and the same be doubled as2 months receivable while calculating the working capital

Page 41

87 It was also agreed between the parties the interest on working capital payableby the respondent to the petitioner is 11 which include the interest bankcharges and associated finance charges We also note that in the aboveamendment the parties agreed that the parameters of working capital arenormative only with certain changes agreed between the parties which are indeviations from the earlier agreed terms88 We also note that the petitioner and the respondents specifically agreed in26022014 that while evaluating the interest on working capital thecomponent of receivable is required to be evaluated with consideration ofnormative fixed charge at 70 of PLF of the plant and the fuel cost is requiredto be evaluated with consideration of normative fuel requirement at 70 PLFor actual fuel cost whichever is lower89 The respondentrsquos contention that as per the original agreement dated3021994 and as well as first amendment dated 5122003 to the original PPAdated 3021994 the fuel cost and receivable stated are on actual basis and notnormative basis is valid on following grounds1) In original PPA the parties agreed in clause 71 of the schedule regarding tariffas under

ldquo71 Tariff



Page 42






capacity shall be payable by GEB to GTEC over and above the tariffrdquoAs per above provisions it was agreed between the parties that the tariffshould be as per GoI notification No SO251(E) dated 300319922) In original PPA dated 3021994 the clause 759 does not says the fuel cost onactual basis It is silent on this part Similarly the receivable is stated isequivalent to two months average billing for sale of electricity The aforesaidclause is also silent as to whether the same is normative or on actual basisHowever the said issue clause in the PPA is based on the notification issued byGovt of India vide Notification dated 30031992 in which the fuel cost isstated as normative basis The aforesaid regulations was notified by the Govtof India under the provision of sub section (2) of Section 43 A of ElectricitySupply Act 1948 It is a statutory notification issued by the Govt of India Therelevant portion of the same is reproduced below

ldquo (i) Fuel cost for one month and reasonable fuel stocks as actually maintained

but limited to fifteen days for pit head stations and thirty days for non pit head

Page 43

stations and thirty days for non pit head stations calculated on normative plant

and load factor basis

(ii) Sixty days stock of secondary fuel oil calculated on normative plant load

factor basis

(iii) operation and maintenance expenses (cash) for one month

(iv) maintenance spares at actuals subject to a maximum of one per cent of the

capital cost but not exceeding one yearrsquos requirements less value of one fifth of

initial spares already capitalized and

(v) receivables equivalent to two monthsrsquo average of one per cent of the capital

cost but not exceeding one yearrsquos requirements less value of one fifth of initial

spares already capitalized andrdquo

The parties to the PPA dated 3021994 are to abide by the aforesaid statutorynotifications and they were required to payreceive the tariff as per theaforesaid notification as agreed in Schedule VII on normative basis3) Though the amendment made in clause 759 of schedule VII by amendmentdated 5122003 the parties agreed to make change in fuel cost limited to 70of PLF It does not mean that if the PLF is less than 70 in that case the fuelcost be considered on actual basis while in case of the PLF more than 70 thesame may be considered as limited to 70 which is in contravention of theprovisions of the agreed terms

Page 44

4) The receivable stated in clause iv of clause 759 of the supplemental PPAdated 5122003 is also on normative basis because the same came from theoriginal PPA with only amendment in the methodology for evaluation ofreceivable which was previously equivalent two month average billing to thetwo times the amount of monthly invoice of sale of electricity5) The parties specifically agreed to evaluate the receivable on normative level ofPLF of 70 of the respective month and fuel cost is with the consideration ofactual fuel cost and normative fuel cost of the month whichever is lowerbetween them be considered as fuel cost as a part of receivable only by way ofamendment dated 26022014 in the PPA dated 26022014 which waseffective from 1112013 between the parties6) The issue regarding whether the calculation of working capital should benormative basis or on actuals was also raised in the petition No 1053 of 2010between the same parties In the said petition the Commission had in para 11111 112 and 116 propounded as under

ldquo11 We have considered the submissions made by the parties and in order to

examine the issue it is necessary to refer clause 759 of Schedule III of the

PPA which reads as under-

ldquo759ldquoInterest on Working Capitalrdquo Shall mean the sum of all interest

bank charges and associated financing charges with respect to

Page 45

(i) Fuel costs for one month

(ii) Operation and Maintenance expenses (cash) for one month

(iii) Maintenance spares at actuals but not exceeding one yearrsquos

requirement less value of one fifth of initial spares already

capitalized and


electricity

All other reasonable expenses as may be mutually agreedrdquo

The above definition provides that the parties to the PPA agreed that

normative interest on working capital payable by the procurer to the seller

consists of (i) all interest (ii) bank charges and (iii) associated financing

charges with respect to (i) fuel cost for one month irrespective of gas or

naphtha use in the plant (ii) OampM expenses for one month (iii)

Maintenance Spares at actual but not exceeding one yearrsquos requirement less

value of one fifth of initial spares and (iv) Receivable of two months

average billing for sale of electricity The various parameters of the interest

on Working Capital agreed between the parties are normative parameters It

is also agreed between the parties that one of the components of interest on

working capital is fuel cost for one monthhelliphellip

hellip 111 The provision for interest on working capital is to meet the cash

outflow agreed between the petitioner on normative basis The said Article

does not indicate that any verification as to whether the payment is for

Page 46

working capital on gas or any other fuel individually used as fuel

Moreover the fuel defined in the PPA says it can be gas as well as naphtha

Hence the provision of this Article is applicable to both the fuels ie gas as

well as Naphtha

112 The working capital is provided to the generators to meet the

requirement of cash flow The generator incurs the cost for certain activities

such as procurement of fuel OampM expenses maintenance spares etc to

generate the electricity However the same is reimbursed to the generator

as per the agreed terms between generator and procurer either on actual

basis or on normative basis Therefore when the parties to the PPA agree to

pay the Interest on Working Capital on normative basis it is not necessary

to verify as to whether the generator meets the expenses towards fuel OampM

charges etc actually or otherwise Hence when the parties to the PPA

agree for normative interest on working capital the generator is entitled to

receive the interest and other charges on normative calculations only The

normative parameters are to restrict the overall cost of working capital

irrespective of actual expenses incurred In the present case it was agreed

between the petitioner and respondent that interest on fuel and other items

as stated in earlier para is required to be paid by the respondent in the form

of working capital as fuel cost for one month on normative basis It is

therefore not necessary to ascertain as to whether there is burden of

interest of working capital on the generators or not irrespective of fuel

being usedhellip

Page 47

hellip116 In view of above observations we are of the view that the petitioner

is eligible to receive the interest on working capital from the respondent on

normative basis for one month as stated in Clause 759 of the Schedule VII

of the PPA irrespective of whether it is natural gas or naphtha utilized as

fuelrdquo

As per above decision the Commission has decided that the interest onworking capital has to be calculated on normative basis7) The Commissionrsquos above order dated 25112013 in petition No 10532010was challenged by the respondent GUVNL by filling an Appeal No 37 of 2014in which the Honrsquoble APTEL passed judgement dated 3032015 In the saidJudgment also Honrsquoble APTEL decided that the interest on working capital ison normative basis The relevant portion of the said order is stated belowldquo24 We find that Clause 759 of Schedule VII of the PPA describes the

interest on working capital as under

ldquo759 ldquoInterest on Working Capitalrdquo shall mean the sum of all interestbank charges and associated financing charges with respect to

(i) Fuel costs for one month(ii) Operation and maintenance expenses (cash) for one month (iii)

Maintenance spares at actual but not exceeding one yearrsquosrequirement less value of one fifth of initial spares already capitalizedand

(iv) Receivables equivalent to two months average billing for sale ofelectricity

(v) All other reasonable expenses as may be mutually agreedrdquo

25 The interest on working capital as amended by Supplementary PPAdated 05122003 provides as under

Page 48

ldquoInterest on working capitalrdquo shall mean the sum of all interest bankcharges and associated financing charges and shall be charged at 11or any such other rate as may be agreed to between GPEC and the GEBfrom time to time with respect to the Working Capital comprising of

(i) Fuel costs for one month at 70 PLF(ii) Operation and maintenance expenses (cash) for one month (iii)

Maintenance spares at actual but not exceeding one yearrsquosrequirement less value of one fifth of initial spares already capitalized

(iv) Receivables equivalent to two times the amount of theMonthly Invoice for sale of electricityrdquo

26 Thus the PPA provides for interest on working capital to be

calculated on normative basis The working capital inter alia includes

the fuel cost for one month at normative PLF of 70 The fuel as defined in

the PPA is natural gas andor any liquid fuel selected by the Respondent

no2 for use in power station for generating electricity

27 We find that the tariff agreed to between the parties is a normative

tariffTherefore the interest on working capital has to be determined on

normative basis The proposition suggested by the Appellant of actual or

normative whichever is less will not be applicable to the Respondent no 2

in view of the specific provision of interest on working capital on the

normative basis in the PPAhellip

hellip31 This Tribunal in Appeal no1 of 2011 judgment dated 05012012 in

the matter between DPSC Ltd Vs WBERC after considering the findings of

the Tribunal in various other cases has held that when the Regulations

provide for interest on working capital on normative basis then the interest

on working capital has to be allowed on normative basis and not on actual

amount incurred The findings of the Tribunal will apply to the present case

also where the PPA entered into between the parties provided for interest

on working capital on normative basis Accordingly this issue is also decided

against the Appellant

Page 49


tariff Therefore the interest on working capital has to be

determined on normative basis The proposition suggested by the

Appellant of actual or normative whichever is less will not be

applicable to the Respondent no 2 in view of the specific provision of

interest on working capital on the normative basis in the PPArdquo

According to the above judgment of the Honrsquoble APTEL the interest onworking capital agreed between the parties in original PPA dated 3021994and supplemental PPA dated 5122003 is required to be calculated onnormative basis810 From the above findings it is clear that any deduction made by therespondent contrary to the provisions of the PPA dated 3021994 and5122003 prior to 1112013 on which date the amendment dated 26022014came into effect is illegal and arbitrary and in violation of provisions of thePPA Hence the same is quashed and set aside The respondents are thereforeliable to refund the amounts deducted from the bills of the petitioner for anymonthperiod prior to November 2013811 The petitioner has claimed the delayed payment charges on the refund ofillegal recovery towards fuel cost as well as receivable as a part of interest onworking capital It is necessary to refer the relevant provision of the delaypayment charged if any in the PPA We note that in Article 63 of the PPAparties agreed with regards to DPC as under

Page 50

ldquo63 (c) GTEC shall be entitled to draw payment upon such Letter of Credit by

presenting of the issuing bank on due date a copy of the Invoice delivered to GEB

in accordance with this contract If payment in full is not remitted on or before

the close of business on the Due date delayed payment charge on the unpaid

amount due for each day overdue will be imposed by GTC at the rate of 15 per

month or the average interest rate charged by GTECrsquos banks on working capital

loans whichever is greaterrdquo

In the said clause the parties to the agreement agreed for the payment of DPC 15 per month or the average interest rate charged by GTECrsquos Banks onworking capital loan whichever is greater812 The Commission has in its order dated 25112013 in petition No 1053 of2010 decided regarding DPC as under

117 Now we deal with the issue on delay payment charges on interest on

working capital In this regard it is necessary to refer Article 63 (c) which reads

as under






Page 51



ldquo The above provision provides that in case of delay in payment of invoice by the

respondent he is required to pay delayed payment charges 15 per month

or average interest rates charged by the bank to the petitioner on working

capital loan whichever is greater Hence we decide that the petitioner is entitled

to receive the Delayed payment charges in terms of the Article 63(c) of the PPArdquo

813 Thus in the above decision the Commission upheld that the DPC is payable ondues accordingly payable by the parties The Honrsquoble ATPEL in its Judgmentdated 3032015 in Appeal No 37 of 2014 decided regarding DPC for the saidPPA as underldquo44 We find that the Article 63(c) of the PPA provides that if the payment in full

of the invoice raised by the Respondent no2 is not remitted on or before the close

of the business on Due Date delayed payment charges on the unpaid amount due

for each day overdue will be imposed by the Respondent no2 at the rate 15 per

month or the average interest rate charged by the Respondent no2rsquos bank on

working capital loans whichever is greater The Appellant in this case had

unilaterally withheld the payments of the Respondent no2 which were due as per

the terms of the PPA Therefore the Respondent no2 is entitled to delayed

payment surcharge on such amounts as per the terms of the PPA We do not find

any infirmity in the State Commissionrsquos order in this regard However we

have objection to application of a different rate of interest on delayed payment

surcharge lower than provided in the PPA if already agreed to between the

parties mutuallyrdquo

Page 52

Thus in above decisions the Commission and Honrsquoble APTEL have alreadydecided that DPC is payable for any delay in payment of the invoices raised bythe petitioner Hence we decide that the petitioner is eligible to receive DPC atthe rate of 15 per month on the illegal recovery of interest on workingcapital as decided by the Commission in earlier para 811814 Now we deal with the 2nd issue pertaining to refund of rebate deducted by therespondent for the period November 2013 December 2013 and January2014 and such other months It is necessary to refer the relevant Article 63 (f)of the PPA which in original PPA dated 3021994 reads as under

ldquo63 Establishment of Letter of Credit

(f) GEB shall be allowed rebate of 25 of the charges for the electrical output

delivered to GEB received by GTEC under the Letters of Credit on presentation of

invoice as per Article 63 (c) In case the payment is made within a period of one

month of presentation of bills a rebate of 1 of such amount shall be allowed to

GEBrdquoAccording to above article it transpires that GEBGUVNL is entitled to therebate at the rate of 25 on presentation of invoices as per Article 63 (c) It isalso provided that if the payment is made within a one month from thepresentation of bill the rebate is 1 on such amountThe petitioner contended that both the petitioner and the respondent agreedin the amendment dated 26022014 to amended the Article 63 (f) of the PPAas under

Page 53

47 Amendment of Article 63(f) of the PPA

The terms of Article 63 (f) of the PPA are hereby modified and shall read as

under

In partial amendment to the provisions of Clause 62 (b) and 63 (c) of Article-6

of the PPA it is agreed that the levy of Delayed Payment Charges on the unpaid

amount shall be applied for each day overdue as under

Period Modality of Application RateFrom 1-4-2000 to 30-6-2003

DPC shall accrue from the31st Day of the Date ofInvoice over the unpaidamount remainingoutstanding as on thatday

15 pm

From 1-7-2003 onwards DPC shall accrue from the61st Day of the Date ofInvoice over the unpaidamount remainingoutstanding as on thatday

15 pm

It is agreed as a one time offer that recovery of an amount equivalent to 40

(forty percentage points) of the total amount of DPC accrued effective from 1-4-

200 to 30-9-2003 as computed in the manner detailed hereinabove shall be

waived by GPEC

GPEC shall allow a rebate of 15 for payments (through cash LC or otherwise)

received within 7 days of the invoice and rebate or 1 to be eligible for

payments (through cash LC or otherwise) received within 30 days of the

invoice

Page 54

Provided however that such rebate(s) shall be allowed only if there are no

pendingoutstanding dues from GEB to GPECrdquo

As per aforesaid article the petitioner and the respondent agreed to amendprovision of clause 62 (b) and 63 (c) with regards to DPC applicable onunpaid amount outstanding which was different for different periods ie1042003 to 30062003 and 1072003 onwards The modality is different inboth the cases for the period 1042002 to 30062003 The DPC accrued from31st day of the date of invoice and from 1072003 onwards the same is from61st day on the unpaid outstanding bill It is also agreed between the partiesthat the GPEC shall allow rebate at the rate of 15 for payments receivedwithin 7 days of the invoice (either through cash LC or otherwise) and rebateof 1 for payment received within 30 days of the invoice It was also agreedthat such rebate shall be allowed only if there are no pending outstandingdues from GEB to GPEC In the present case the petitioner had claimed refundof rebate for the month of November 2013 December 2013 and January 2014on a ground that the respondent has deducted the rebate amount on the billinvoices as if the IWC paid by them is valid and legal as per the original PPAand agreement between the parties If the Commission decide that the IWCpaid by the respondents is in contravention of the provisions of agreement inthat case the respondent is not eligible for the rebate as per Article 63 (c) ofthe PPA which reads as underldquo63 Establishment of Letter of Credit

Page 55

(c) GTEC shall be entitled to draw payment upon such Letter of Credit by

presenting to the issuing bank on due date a copy of the Invoice delivered to GEB

in accordance with this Contract If payment in full is not remitted on or before

the close of business on the Due Date delayed payment charge on the unpaid

amount due for each day overdue will be imposed by GTEC at the rate of 15

per Month or the average interest rate charged by GTECrsquos banks on working

capital loans whichever is greaterrdquo

As per the above provisions we find that if the invoice amount is not paid bythe respondent in accordance with the provisions of the contract on the duedates the DPC on the unpaid amount due for each day over due will beimposed by the petitioner at the rate of 15 per month on the averageinterest rate815 As stated in earlier para the first amendment made in the PPA dated 3021994on 5122003 which was effective upto 31st October 2013 on the agreed termsbetween the parties We noted in earlier para 814 above that in Article 63 (f)of the PPA the petitioner and the respondent agreed that the rebate is allowedon the payment if made within stipulated period as agreed by the parties inabove Article If any amount is pendingoutstanding beyond the agreed termsof the above article it does qualify for rebate816 We have already in issue no 1 decided that the deduction of the IWC by therespondent for the period prior to November 2013 is illegal and arbitrary We

Page 56

note that the respondent had deducted the rebate from the bill invoices duringthe month of November 2013 to January 2014 from the invoices paid by themamounting to Rs 3173491 as claimed by the petitioner We decide that therespondent has illegally deducted the rebate amount on the IWC amountwhich was not paid by the respondent as per the decision of the Commissionin issue No1 We therefore decide that the respondent is liable to refund therebate amount which was illegally deducted by the respondent on the amountof IWC and not paid by them to the petitioner for the month of November2013 to January 2014[9] Based on the above we decide that the petitioner is eligible to get the refundon the illegal recovery of the rebate amount recovered from the bill invoicesraised by the petitioner for the period from November 2013 to January 2014In view of the above observations present petition is allowed[10] In view of the above we decide that the petition succeeds and that thededuction of IWC by the respondent for the period prior to November 2013 isillegal and arbitrary We also decide that the rebate deducted by therespondent from the invoices issued by the petitioner for the amount of IWC isalso illegal and the respondents are directed to refund the same also Thepetitioner is also entitled for the DPC as agreed between the parties on theaforesaid amount in terms of Article 63 (C) of the PPA and amendment madeit from time to time

Page 57

[11] We order accordingly[12] With this order present petition stands disposed of

Sd- Sd-[DR M K IYER] [SHRI PRAVINBHAI PATEL]

MEMBER (Finance) CHAIRMANPlace GandhinagarDate 31072015

Page 2

(a) Direct the Respondent to refund the sum of Rs 65533556300 deductedtowards Interest on Working Capital to the Petitioner along with delayedpayment charges in terms of the PPA(b) Direct the Respondent to refund all rebate deducted by it from thePetitioners invoices for the months of November 2013 December 2013and January 2014 and such other months that the Respondent hasillegally deducted rebates along with delayed payment charges in termsof the PPA(c) Pass any other order deemed fit in the facts and circumstance2) The brief facts mentioned in the petition are as under21 The Petitioner is a Generating Company within the meaning of Section 2 (28)of the Electricity Act 2003 (The Act) The Petitioner runs and operates a6547 MW gas based power station at village Paguthan in Bharuch district ThePetitioner Company was earlier known as Gujarat Paguthan EnergyCorporation Private Ltd (GPEC)22 The Respondent is a Licensee within the meaning of Section 2 (39) of theElectricity Act 200323 The Petitioner supplies electricity to the Respondent in terms of the PowerPurchase Agreement dated 03021994 (PPA) and its subsequentamendments dated 05122003 (Supplementary Agreement) and 26022014(lsquoSupplementary Agreement No 2rsquo)

Page 3


Page 4









Page 5










Page 6


Page 7


Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 3


Page 4









Page 5










Page 6


Page 7


Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 4









Page 5










Page 6


Page 7


Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 5










Page 6


Page 7


Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 6


Page 7


Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 7


Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 8

2011-12 49274328 9405772 586801002012-13 201646253 15911101 2175573542013-14 (up to Oct-13) 338828322 - 338828322Total 620199760 35135804 655335563


Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 9


Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 10












Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 11


Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 12


Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 13


Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 14


Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 15







(ii)

(iii)

Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 16



Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 17


Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 18


Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 19


Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 20


Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 21


Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 22


Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 23




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 24








Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 25


Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 26


Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 27


Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 28


Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 29


Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 30


Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 31


Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Page 32


Page 33


Page 34


Page 35







and


electricityrdquo


Page 36

ldquo71 Tariff










Page 37


under












Page 38






Page 39













Page 40







andor bindingrdquo


Page 41


ldquo71 Tariff



Page 42









Page 43




factor basis









Page 44







Page 45





capitalized and


electricity
















Page 46




well as Naphtha



















being usedhellip

Page 47





fuelrdquo









Page 48

























Page 49








Page 50











as under






Page 51





















Page 52








Page 53



under






15 pm


15 pm




waived by GPEC




invoice

Page 54




Page 55









Page 56


Page 57




Documents

BEFORE THE GUJARAT ELECTRICITY REGULATORY …