Licensee's revenues and tariffs

§24

Summary

(1) The licensee shall follow the procedure specified in the regulations in calculating the expected revenue from charges which he is permitted to recover and in determining tariffs. (2) Save as provided in sub-section (3), the Commission may specify in regulations the terms and conditions for the determination of the revenue and tariffs and in doing so the Commission shall be guided by the following, namely : (a) the financial principles and their application provided in sections 46, 57 and 57-A of the Electricity (Supply) Act, 1948 and in the Sixth Schedule thereto ; (b) the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments, observance of the conditions of the licence and other matters which the Commission may consider appropriate for the purposes of this Act; and (c) the interest of the consumers. (3) Where the Commission departs from the factors specified in clauses (a) to (c) of sub-section (2) it shall record the sections for such departure. (4) (a) Every licensee shall provide to the Commission at such time and it such manner as may be provided by the regulations, full details of its calculation for the ensuing financial year of the expected revenue for charges which it believes to have been permitted to recover and thereafter it shall also furnish such further information as the Commission may reasonably require to assess the licensees calculation. (b) The licensee shall also publish, within three days of submission of his proposal for the tariff for the ensuing year, a notice in atleast two daily newspapers, widely circulating in the area of supply, outlining the proposal tariff and calling of objections from the interested persons and the State Government. (c) The Commission while determining the tariff shall also take into consideration the objections, if any, received within one months from the date of last publication of the notice referred to in clause (b). (5) The Commission shall, within ninety days from the date on which the licensee has furnished the information under sub-section (4), give notice to the licensee that it, (a) accepts the licensees calculations ; or (b) does not consider the licensees calculations to be in accordance with the procedure given in the licence or considers that it is otherwise incorrect, specifying the reasons therefor and proposing modifications or alternative calculations. (6) The Commission may, after notifying its decision on the licensees calculations as provided in sub-section (5), determine whether the tariff charged by the licensee is required to be modified and if so, require the licensee to modify the tariff or any part thereof with immediate effect. (7) Each holder of a supply licence shall publish in at least two daily newspapers, widely circulating in the area of supply, and make available to the public on request, the tariff for the electricity within its area of supply and such tariff shall come into force after seven days from the last date of such publication, and any tariff implemented under this section, (a) shall not show any preference or favour to any consumer of electricity, but may differentiate on the ground of the consumers load factor or purpose of use or power factor, the consumers total consumption of electricity during any specified period or the time during which the supply is required ; (b) shall be just and reasonable and be such as to promote economy and efficiency in the supply and consumption of electricity ; and (c) shall accord with all other relevant provisions of this Act and the conditions of licence. (8) Tariff shall not be determined more than once in a financial year except in respect of any changes expressly permissible under these terms of any fuel surcharge formula as may be provided by regulation. At least one hundred days before the proposed date for implementation of any tariff, the licensee shall provide details of the proposed tariff to the Commission, together with such further information as the Commission may require with a view to determining whether the proposed tariff is in accordance with sub-section (7). If the Commission considers that the proposed tariff of a licensee does not fulfill any one or more of the requirements of sub-section (7), it shall, within ninety days of receipt of all the information which it required and after consultation with the Electricity Advisory Committee constituted under section 29, and the licensee, inform the licensee that the tariff is not acceptable to the Commission, and it shall provide to the licensee and alternative tariff which shall be implemented by the licensee. The licensee shall not implement any tariff unless it has been approved by the Commission. (9) Notwithstanding anything contained in section 57-A and 57- B of the Electricity (Supply) Act, 1948, no Rating Committee shall be constituted after the commencement of this Act and the Commission shall ensure compliance of the terms and conditions of the licence by the licensee in relation to charge for the sale of electricity, both wholesale and retail, and for the connection to an use of, their assets or systems in accordance with the provisions of this Act. Explanation : For the purposes of this section, (a) the word licensee shall include a person authorised to transmit, sell distribute or supply electricity ; (b) the expected revenue from charges means the revenue which a licensee is expected to recover from charges on supply forecast used in the determination of tariff under sub-section (4) ; and (c) tariff means a schedule of standard prices or charges for specified services, which are applicable to all such specified services, provided to the category or categories of customers specified in the tariff.

(1) The licensee shall follow the procedure specified in the regulations in calculating the expected revenue from charges which he is permitted to recover and in determining tariffs. (2) Save as provided in sub-section (3), the Commission may specify in regulations the terms and conditions for the determination of the revenue and tariffs and in doing so the Commission shall be guided by the following, namely :      (a) the financial principles and their application provided in sections 46, 57 and 57-A of the Electricity (Supply) Act, 1948 and in the Sixth Schedule thereto ;      (b) the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments, observance of the conditions of the licence and other matters which the Commission may consider appropriate for the purposes of this Act; and      (c) the interest of the consumers. (3) Where the Commission departs from the factors specified in clauses (a) to (c) of sub-section (2) it shall record the sections for such departure. (4) (a) Every licensee shall provide to the Commission at such time and it such manner as may be provided by the regulations, full details of its calculation for the ensuing financial year of the expected revenue for charges which it believes to have been permitted to recover and thereafter it shall also furnish such further information as the Commission may reasonably require to assess the licensees calculation.      (b) The licensee shall also publish, within three days of submission of his proposal for the tariff for the ensuing year, a notice in atleast two daily newspapers, widely circulating in the area of supply, outlining the proposal tariff and calling of objections from the interested persons and the State Government.      (c) The Commission while determining the tariff shall also take into consideration the objections, if any, received within one months from the date of last publication of the notice referred to in clause (b). (5) The Commission shall, within ninety days from the date on which the licensee has furnished the information under sub-section (4), give notice to the licensee that it,      (a) accepts the licensees calculations ; or      (b) does not consider the licensees calculations to be in accordance with the procedure given in the licence or considers that it is otherwise incorrect, specifying the reasons therefor and proposing modifications or alternative calculations. (6) The Commission may, after notifying its decision on the licensees calculations as provided in sub-section (5), determine whether the tariff charged by the licensee is required to be modified and if so, require the licensee to modify the tariff or any part thereof with immediate effect. (7) Each holder of a supply licence shall publish in at least two daily newspapers, widely circulating in the area of supply, and make available to the public on request, the tariff for the electricity within its area of supply and such tariff shall come into force after seven days from the last date of such publication, and any tariff implemented under this section,      (a) shall not show any preference or favour to any consumer of electricity, but may differentiate on the ground of the consumers load factor or purpose of use or power factor, the consumers total consumption of electricity during any specified period or the time during which the supply is required ;      (b) shall be just and reasonable and be such as to promote economy and efficiency in the supply and consumption of electricity ; and      (c) shall accord with all other relevant provisions of this Act and the conditions of licence. (8) Tariff shall not be determined more than once in a financial year except in respect of any changes expressly permissible under these terms of any fuel surcharge formula as may be provided by regulation. At least one hundred days before the proposed date for implementation of any tariff, the licensee shall provide details of the proposed tariff to the Commission, together with such further information as the Commission may require with a view to determining whether the proposed tariff is in accordance with sub-section (7). If the Commission considers that the proposed tariff of a licensee does not fulfill any one or more of the requirements of sub-section (7), it shall, within ninety days of receipt of all the information which it required and after consultation with the Electricity Advisory Committee constituted under section 29, and the licensee, inform the licensee that the tariff is not acceptable to the Commission, and it shall provide to the licensee and alternative tariff which shall be implemented by the licensee. The licensee shall not implement any tariff unless it has been approved by the Commission. (9) Notwithstanding anything contained in section 57-A and 57- B of the Electricity (Supply) Act, 1948, no Rating Committee shall be constituted after the commencement of this Act and the Commission shall ensure compliance of the terms and conditions of the licence by the licensee in relation to charge for the sale of electricity, both wholesale and retail, and for the connection to an use of, their assets or systems in accordance with the provisions of this Act.      Explanation : For the purposes of this section,      (a) the word licensee shall include a person authorised to transmit, sell distribute or supply electricity ;      (b) the expected revenue from charges means the revenue which a licensee is expected to recover from charges on supply forecast used in the determination of tariff under sub-section (4) ; and      (c) tariff means a schedule of standard prices or charges for specified services, which are applicable to all such specified services, provided to the category or categories of customers specified in the tariff.

← Previous Section Next Section →

Explore this Chapter