(1) The capital expenditure incurred or projected to be incurred, on the following counts within the original scope of work, after the date of commercial operation and up to the cut-off date, may be admitted by the Commission, subject to prudence check,:-
(a) Un-discharged liabilities;
(b) Works deferred for execution;
(c) Procurement of initial capital spares within the original scope of work, subject to the provisions of regulation;
(d) Liabilities to meet award of arbitration or for compliance of the order or decree of a court; and
(e) Change in law:
Provided that the details of works included in the original scope of work, along with estimates of expenditure, un-discharged liabilities and the works deferred for execution, shall be submitted along with the application for determination of tariff.
1 Subs. for “01.04.2011” vide Not No. HPERC/F(5)(3)(1) (Gen.) dated 1 st Nov., 2013 published in the R H.P. dated 4 th November, 2013 at p. 4599-4606.
Compendium of HPERC Regulations, March 2021 13 1[(2) The capital expenditure incurred on the following counts after the cutoff date may, in its discretion, be admitted by the Commission, subject to prudence check:—
(a) liabilities to meet award of arbitration or for compliance of the order or decree of a court;
(b) change in law;
(c) any expenditure which has become necessary on account of damage caused by natural calamities (but not due to flooding of power house attributable to the negligence of the generating company) including due to geological reasons after adjusting for proceeds from any insurance scheme, and expenditure incurred due to any additional work which has become necessary for successful and efficient plant operation:
(d) any expenses to be incurred on account of need for higher security and safety of the capital asset as advised or directed by appropriate Government agencies or statutory authorities responsible for national security/internal security;
(e) any liability for works executed prior to the Cut-off Date, after prudence check of the details of such undischarged liability, total estimated cost of package, reasons for such withholding of payment and release of such payments etc.;
(f) any liability for works admitted by the Commission after the Cut-off Date to the extent of discharge of such liabilities by actual payments; ‘
(g) any additional capital expenditure, which has become necessary for efficient operation of the plant. The claim shall be substantiated with the technical justification duly supported by the documentary evidence like test results carried out by an independent agency in case of deterioration of assets, report of an independent agency in case of damage caused by natural calamities, obsolescence of technology etc.:
Provided that in any expenditure on acquiring the minor items or the assets like tools and tackles, furniture, air-conditioners, voltage stabilizers, refrigerators, coolers, fans, washing machines, heat convectors, mattresses, carpets etc. bought after the cut-off date shall not be considered for additional capitalisation for determination of tariff.]