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2019 (5) TMI

which the Act was enacted and the fact that the Tariff Regulations, 2001 prescribed under the aegis of this Act do not provide for apportionment of FERV in a particular debtequity ratio, this Court is not inclined to interfere in the matter. The present dispute arises with respect to tariff charged between 01.04.2001 and 31.03.2004 on account of FERV calculation and apportionment. Any variation in the apportionment of FERV now, for the abovementioned period, will consequently be passed on to the consumers. This will be unfair to the consumers who were not consumers for the abovementioned period but will eventually bear the brunt of transactions which took place 1518 years ago. This is another ground for noninterference in the present mat .....

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V has been calculated and added to capital cost. 4. The learned counsel on behalf of the appellant contended that any foreign exchange gets added to the capital cost and not individually to debt or equity. This capital cost is thereafter divided into debt and equity, on the basis of a normative debtequity ratio. As a natural corollary, even the FERV needs to be apportioned both towards debt and equity. Further, he contends that FERV has been apportioned as such, as a matter of practice. 5. On the other hand, the learned counsel for respondent no.1 disputed the existence of such practice. He contended that the Electricity Regulatory Commissions Act, 1998 [ the Act ] was enacted to do away with such practices. He referred to Regulations 1.3 a .....

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covered by the appellants from respondent no.1 without even filing a petition before the CERC. Regulations 1.3 and 1.7 of Tariff Regulations, 2001 provide as under: 1.3 These Regulations shall apply where the capital cost based tariff is determined by the Commission. 1.7 Recovery of Income Tax and Foreign Exchange Rate Variation shall be done directly by the utilities from the beneficiaries without filing a petition before the Commission. In case of any objections by the beneficiaries to the amounts claimed on these counts, they may file an appropriate petition before the Commission. (emphasis supplied) 8. This has not been done in the present case, i.e., Civil Appeal No. 684 of 2007. Further, FERV is sought to be capitalized by the appella .....

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of the abovementioned observations, the appeal is dismissed. No order as to costs. Civil Appeal No. 13452 of 2015 12. This appeal is preferred against the impugned judgment and order dated 18.08.2015 passed by the Appellate Tribunal for Electricity whereby the appeal preferred by the appellant was dismissed. Further, the order of the CERC was upheld by observing that the CERC has rightly applied the decision dated 04.10.2006, which is the same order that is impugned in Civil Appeal No. 684 of 2007, to the instant matter and directed that the entire FERV should be apportioned only in respect of debt liability. Thus, the issue being the same, this appeal is also dismissed in a sequel to the discussion set out above. No order as to costs. - I .....

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