(a) whether the Central Electricity Regulatory Commission has issued new tariff orders
which would reduce the NTPC`s internal resources by Rs.18,000 crores;
(b) if so, the details thereof and justification behind issuing such orders;
(c) whether the CERC has considered the adverse effect of such orders before issuing the
same;
(d) if so, whether NTPC has opposed the said orders; and
(e) if so, the steps being taken by the Government to resolve the matter?
THE MINISTER OF STATE IN THE MINISTRY OF POWER( SHRIMATI JAYAWANTI MEHTA )
(a) to (e) : The Central Electricity Regulatory Commission (CERC) is an independent
statutory body created under the Electricity Regulatory Commissions (ERC) Act, 1998
with powers, inter alia, to regulate tariff of generating companies owned or controlled by
the Central Government and to determine by regulation the terms and conditions for
fixation of tariff for such generating companies. CERC while determining the tariff is to
be guided by inter alia, that the generating companies and transmission entities shall
adopt such principles in order that they may earn an adequate return and at the same time
that they do not exploit their dominant position in generation, sale of electricity or in the
inter-State transmission of electricity; and the factors which would encourage efficiency,
good performance optimum investments etc. In exercise of the powers conferred under
the ERC Act, 1998, the CERC has issued orders regarding Availability Based Tariff
(ABT) on 15.12.2000 and regarding Tariff Principles and Norms for Central Generation
Stations including NTPC on 21.12.2000 after hearing all parties.
The orders regarding ABT were first issued on 4.1.2000 against which NTPC
filed a review petition before the CERC. The CERC considered the petition and issued
final order on ABT on 15.12.2000.
As regards CERC`s order dated 21.12.2000 regarding Tariff Principles and
Norms, NTPC has filed a review petition before the CERC. CERC has not yet
considered/disposed the petition of the NTPC in this regard. NTPC has also filed an
appeal before the Hon`ble Delhi High Court against the Commission`s orders.