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No. MERC/Case 15 of 2000/0427 May 5, 2003 The Technical
Director (EHVP. EA.TR.), Subject: FOCA
charges for the period December 2002
Reference: 1. MSEB letter NO. CE/TRC/FOCA/10470 dated 10.04.03 2. MERC letter
No. MERC/Case 15 of 2000/0399 dated 28.4.2003
Sir,
I am directed to
refer to the above correspondence, and to state as follows:
1. The Commission has issued an Order in
the matter of FOCA in July, 2001. The second Tariff Order in respect
of MSEB for 2001-02 and the Clarificatory Order passed in April 2002
set out the FOCA norms in detail.
2. The principle of the FOCA order was to
pass on the effect of the increased costs per unit beyond the control
of the Board, or the reduced cost per unit, as the case may be, from
month to month. MSEB’s composite FOCA proposal for the period from October
2001 to September 2002 combined with proposals for October and November
2002, has been processed and the approval sent under letter dated 28.4.03,
which details again both the philosophy and methodology of FOCA calculations.
3. Accordingly, MSEB may carry out the FOCA
pass through calculations at their end for last quarter of the financial
year 2002-03, including recalculation for the month of Dec’2002, in
accordance with the methodology and principles set out in the earlier
Orders and letter (with Appendix) dated 28.04.03.
MSEB may approach the Commission only for those components for
which such approval is required as per the FOCA order. 4. The details of the proposed calculation
and rate of FOCA charges recoverable / refundable from / to the consumers
are required to be hosted on MSEB website (with reference to directive
XVI of the FOCA order). MSEB
should also comply with the FOCA Order directives XIV (on submission
of cost audit report) and XVII (on information dissemination to consumers).
Yours faithfully,
(A.M. Khan) Secretary, MERC
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