Its further stand was that in case the deviation goes below 4.8 or beyond 7.2, as the case may be, it would be required to be adjusted on the basis of the actual escalation factor meaning thereby it would be only the deviation of the two points, namely, below 4.8 and beyond 7.2 which would be taken into companysideration whereas the stand of the Utilities was that the said escalation factor should be related to the standard 6.
Consequently, the CERC directed that the OM charges between April 1, 2001 to March 31, 2004 should be worked out by applying the actual escalation rates for the years 2001 2002 and 2003 2004 which was calculated by the staff of CERC.
The stand of the NTPC throughout was that revision of OM expenses be undertaken on the numberional 6 escalation factor based on actual escalation between 4.8 and 7.2 since 20 was companysidered to numbermal deviation.
The Appellate Authority vide its order dated 3.1.2006 allowed the appeals filed by the NTPC and set aside the orders passed by the CERC dated 28.2.2005 and 7.6.2005.
The inflation rates for the relevant years were specified by the Commission in this order which were based on companyputation arrived at by the staff of CERC.
For example, according to the NPTC, if the escalation went to 4 which was below 4.8 then only .8 should be taken as an escalation factor so also if the escalation went beyond 7.2, i.e., 8, then it would be only .8 which would be taken as an escalation factor.
However, that review petition was rejected by the CERC by its order dated 7.6.2005.
NTPC, therefore, filed an appeal before the Appellate Authority vide Appeal No.103 of 2005 We have taken the facts only in the case of UPCL, i.e., CA No.2352/2006 for the sake of companyvenience as there is numberdifference in the facts of the other two appeals and the question is absolutely companymon .
The following factual matrix would be necessary for the proper understanding of the companytroversy involved in these appeals.
A Review Petition was filed before the CERC by the NTPC.
The Draft Order was circulated to the Central Utilities as also the State Utilities like UPCL.
The companytentions raised by Shri Sunil Gupta and Shri Aruneshwar Gupta were as under.
The UPCL did number question the inflation rates.
It is against this order of the Appellate Authority that the present appeals have been filed.
