BHASKHAR SHRACHI ALLOYS LTD. Vs. DAMODAR VALLEY CORPORATION AND THE CHAIRMAN, DAMODAR VALLEY CORPORATION

JUDGEMENT

(1.) THE petitioner, Bhaskar Sarachi Alloys Limited, an HT consumer of Damodar Valley Corporation has filed the petition with the following prayers: -

(2.) THE Electricity Act, 2003 (2003 Act) came into force from 10.6.2003. In accordance with the fourth proviso to section 14 read with section 79(1)(a) of the 2003 Act, the fixation of tariff of DVC being a generating station owned and controlled by the Central Government came to be vested in this Commission. The tariff of the generating stations and transmission systems of DVC was determined by this Commission vide order dated 3.10.2006 in Petition No 66/2005 for the period from 1.4.2006 till 31.3.2009, after allowing a transition period of two years from 1.4.2004. In the tariff order, the basic energy charge was calculated taking into account the value of GCV, base price of fuel and normative operating parameters specified by this Commission. It was also directed that the basic energy charge would be subject to Fuel Price Adjustment in accordance with the following formula, applicable to the coal based stations of DVC: -

(3.) IT is to be noted that in none of the appeals, the Fuel Price Adjustment Formula was challenged. However, Government of West Bengal as the respondent had contended before the Appellate Tribunal that the applicability of Fuel Price Adjustment is within the jurisdiction of the State Commissions. The Appellate Tribunal while rejecting the said contention in its judgment dated 23.11.2007 had observed as under: