NOTIFICATION

TARIFF REGULATIONS

54. These regulations shall apply with the provisions of Section 9 and 26 of the Act:-

(i) In determination of the tariff for wholesale, bulk, grid or retail supply of electricity and intra State transmission of electricity.

(ii) In regulating power purchase and procurement by the transmission utilities and distribution utilities.

(iii) Explanation-" Tariff means a schedule of standard prices for supply of electricity energy or charges for specified services which are applicable in all such specified services provided to the type or types of purchases or consumer specified in the tariffs.

55. Neither the Board nor the utilities for transmission (intra-State transmission), distribution and supply of power shall charge any tariff without prior approval of the Commission.

56. Any transmission or distribution utility, henceforth proposing to procure and purchase power, including the price at which power may be purchased, from any Generating Company, Generating Station or from any other source for transmission, distribution and supply in the State, shall take approval from the Commission, before entering into such contract.

57. The Commission may from time to time, prescribe methodology and procedure for calculating the expected revenue from the permissible charges, in determining the tariff.

58. (a)The Commission may at any time frame separate Regulation, through notification, for fixation of tariff in accordance with the guidelines under Section 26 (2 ) of the Act.

(b) Unless otherwise specified by the Commission through separate Regulations, the fixation of tariff shall be based on the following factors:
(i) The financial principles and applications thereof, as laid down under Sections 46, 57 and 57-A and the Sixth Schedule of the Electricity (supply) Act, 1948 in respect of licensees.

(ii) In respect of Board or its successor, the financial principles and application thereof as laid down under Section 59 of Electricity (Supply) Act, 1948 shall be taken into consideration. The payment of interest of the State Government shall be according to the provision of Section 67-A of the above Act.

(iii) While determining the tariff, the Commission may ask the State Government if it desire to grant concession in that regard to any consumer or class of consumers. If so, the State Government shall compensate the loss to the Board/Utility in the manner directed by the Commission.

(iv) The carried over liabilities of Board/Utility and their extent may be considered in fixing the tariff.

(v) Different operational norms and performance levels such as plant load factor, period of stabilization/commercial operation of new generation/transmission facilities, transmission and distribution losses, reduction in the unaccounted energy due to theft/pilferage, secondary fuel oil consumption, auxiliary consumption, station heat rate, recovery of old outstanding arrears, economy in operation/maintenance, establishment and other expenses.

(vi) The tariff allowed in any financial year shall be subject to the adjustment in any tariff to be fixed for subsequent period, if the Commission is satisfied for reasons to be recorded in writing that such adjustments for the excess amount or short fall in the amount actually realized vis-à-vis estimated is necessary, and the Commission is further satisfied that the same is not on account of any reason attributable to the Board/Utility.

(vii) If a licensee desires any deviation from the factors mentioned in the Sixth Schedule of the Electricity (Supply) Act, 1948, the licensee shall give the justification for such request. The Commission, may also on its own, provide for deviation from the Sixth Schedule by recording reason therefore.

59. The Commission shall also regulate charges payable to the State transmission utility/other utilities for wheeling power within the State.

60. The Commission may work out appropriate incentive schemes for improved performance in generation, transmission and distribution utilities, which shall be notified from time to time.

61. The Commission may approve differential tariff as incentive linked with timely payment of bills.

62. Board/Utilities shall submit tariff proposals in the form of petition based on the terms and conditions, provided in these Regulations. Such proposals should be submitted to the Commission at least three months before the date from which tariff is proposed to be enforced.

63. The Commission shall invite objections/suggestions on the tariff proposals from the interested consumers and concerned parties. Similar petitions shall be clubbed and shall be summarily heard by the Commission.

64. Admission of petitions from the parties other than those directly affected by the tariff shall be at the discretion of the Commission.

65. (i) The Commission may get the books and records of the Board/Utilities concerned, examined by the officers and /or by consultants, as and when necessary. The report of the officers/consultants shall be made available to the parties concerned and they shall given opportunity to react on the report in the manner as prescribe in clauses 40 and 53 of these Regulations.

(ii) The Commission may require the Board/Utilities to give such other information, particulars and documents as considered appropriate to enable the Commission to asses Board's/Utility's calculations.

66. The Board/Utilities concerned shall publish the tariff as decided by the Commission, in the manner as may be provided in the order. The tariff so decided, shall be in force until any amendment on review is made by the Commission and published.

67. (i)All applications for review of tariff in terms of section 10 (f) of the Act shall also be in the form of petition and shall be governed by the provisions of chapter-II

(ii) The Commission on its own, being satisfied that there is need to review the tariff of any utility, may initiate its process. The proceedings for suo-motu review of the tariff shall be the same as set out in chapter-II of these Regulations.

68. Board/Utility found to be charging a tariff different from the one decided by the Commission shall be deemed to have not complied with the directions of the Commission and shall be liable to penalties under Sections 45 and 46 of the Act without prejudice to any other penalty to which it may be liable under any other Act. Any excess charges of tariff by Board/Utility in any year shall be dealt with as per the directions of the Commission.

69. In the event of variation in the fuel cost, the Board/Utilities may make application to the Commission in terms of Section 10 (f) of the Act for the amendment in the last tariff so as to adjust the same provisionally from the date of such application subject to final adjustment as per finalized accounts of the Board/Utilities.

70. The Board/Utilities shall submit periodic returns as may be prescribed, containing operational and cost to enable the Commission to monitor the implementation of its order and reassess the basis on which tariff was approved.

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