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             Till 15th May, 1999 tariffs of generating companies, owned or controlled by the central government, were determined by the Government of India under the provision of Section 43 A (2) of the Electricity (Supply) act, 1948 on the basis of operating and financial norms notified by it from time to time.  The last such notification was issued on March 30, 1992.  In 1997 the Central Electricity Authority (CEA) had drafted a proposal to revise these operational norms.  However the matter remained under the consideration of the Government of India and on 15th May, 1999 vide notification No.25/24/99-R&R dated March 22, 1999 of the Government of India, Ministry of Power, the jurisdiction to regulate the tariff of such generating companies was vested in the Commission.  The revised norms proposed by the CEA have been subsequently sent to the Commission.

The Commission is in the process of prescribing the terms and conditions for determination of tariff of existing as well as new plants of generating companies, owned or controlled by the Government of India and in pursuance of the provisions of Regulation 78 of its Conduct of Business Regulations invites objections to the revised operational norms proposed by the CEA.  The CEA proposal includes both operational norms and financial parameters.   The Commission is only considering the operational norms at this stage.  It intends to consider revision of the prevailing financial norms separately.  Accordingly, the provisions of para 1.2.1,,, the provisions in para relating to escalation of O&M expenses,, and 1.2.3 are not being considered at this stage since these relate to financial parameters.

The Commission invites interested persons to file their objections or comments on the revised operational norms, proposed by the CEA, by February 2, 2000 at the office of the Commission in the manner prescribed in Chapter II of the Conduct of Business Rules of the Commission.

A copy of the revised norms, proposed by the CEA as a draft gazette notification, can be collected from the office of the Commission from 10.30 A.M. to 4.30 P.M. on any working day.  It can also be obtained by post by sending a self-addressed, A-4 size envelope pre-stamped for Rs. 70/- to the office of the Commission.  The revised norms proposed by the CEA as well as Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 can also be down loaded from the Commission’s web-site at http://www.cercind.org

The Commission will hold hearings on dates to be announced later.  Interested persons, desirous of being heard in person, may indicate so specifically, while filing their objections/comments.


(Sanjeev S. Ahluwalia)

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