Chibro Petition - UJVN Limited Dehradun...

True-up of FY09, FY10, FY11 & MYT Petition for FY14, FY15, FY16power project for which corresponding expenses being incurred. Indirectexpenses i.e. corporate office, other common expenses have been divided inthe ratio of 80:10:10 to 9 LHPs, MB-II HEP and Small Hydro Projects includingproject under construction respectively. The 80% of total indirect expenseshave further been divided into 9 LHPs based on their installed capacity in MW.1.7.3 Hon’ble Commission vide Tariff Order dated October 21, 2009, directed thePetitioner to submit the probable alternatives for rationally allocating thecommon/indirect expenses. Further, in the Tariff Order dated May 10, 2011,Hon’ble Commission instructed the Petitioner to examine the practices beingfollowed in similar utilities in other States as well as Central Sector utilities likeNTPC, NHPC, etc. In this regard it is respectfully submitted that1.7.3.1 The Petitioner has sincerely made efforts to fulfil the Hon’ble Commission’sinstructions. As already informed to the Hon’ble Commission, Petitionerhad requested NHPC and SJVNL to communicate the practice followed byNHPC/SJVNL of allocating indirect expenses at various power stations. Thecopies of the correspondence have already been provided to the Hon’bleCommission as mentioned in the Tariff Order dated April 4, 2012.However, it is further submitted that getting such information from otherutilities is beyond the control of the Petitioner.1.7.3.2 Since there was no response received from the concerned utilities,Petitioner tried to enquire if any such information is available in publicdomain. No such information was found available in the public domain also.1.7.3.3 However, during Petitioner’s research and analysis and based ondiscussions with various power sector experts, it was found that there arethree methods which have been widely adopted and recognised acrossgeneration companies in India to allocation common expenses. Thesemethods are as underAllocation based on actual revenues of power projectsAllocation based on installed capacity of power projectsAllocation based on power generation in Million Units (MUs)Chibro HEP November 2012 Page 9