(1) Notwithstanding anything contained in any other law, the tariff for intra State transmission of electricity and the tariff for supply of electricity, grid, wholesale, bulk or retail, as the case may be, in a State (hereinafter referred to as the "tariff), shall be subject to the provisions of this Ordinance and the tariff shall be determined by the State Commission of that State in accordance with the provisions of this Ordinance.
(2) The State Commission shall determine by regulations the terms and conditions for the fixation of tariff, and in doing so, shall be guided by the following, namely:—
(a) the principles and their applications provided in sections 46, 57 and 57A of the Electricity (Supply) Act, 1948 and the Sixth Schedule thereto;
(b) in the case of the Board or its successor entities, the principles under section 59 of the Electricity (Supply) Act, 1948;
(c) that the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency;
(d) the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments, and other matters which the State Commission considers appropriate for the purposes of this Ordinance;
(e) the interests of the consumers are safeguarded and at the same time, the consumers pay for the use of electricity in a reasonable manner based on the average cost of supply of energy;
(f) the electricity generation, transmission, distribution and supply are conducted on commercial principles;
(g) national power plans formulated by the Central Government
(3) No consumer or class of consumers shall be charged less than fifty percent of the average cost of supply of energy:
Provided that if the State Commission considers it necessary it may allow the consumers in the agricultural sector to be charged less than fifty per cent, subject to the condition that the charges less than the said fifty per cent shall not be allowed after the expiry of a period of three years from the commencement of this Ordinance.
(4) If the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the State Commission under this section, the State Government shall pay the amount to compensate the person affected by the grant of subsidy in the manner the State Commission may direct, as a condition for the licensee, or any other person concerned to implement the subsidy provided for by the State Government.
(5) Subject to the provisions of sub-section (3), the State Commission, while determining the tariff under this Ordinance, shall not show undue preference to any consumer of electricity, but may differentiate according to the consumer's load factor, power factor, total consumption of energy during any specified period or the time at 54 of 1948.
54 of 1948.
54 of 1948.
Tariff by State Commission.
16 GAZETTE OF INDIA EXTRAORDINARY [ PART II— which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required.
(6) The holder of each licence and other persons including the Board or its successor body authorised to transmit, sell, distribute or supply electricity wholesale, bulk or retail, in the State shall observe the methodologies and procedures specified by the State Commission from time to time in calculating the expected revenue from charges which he is permitted to recover and in determining tariffs to collect those revenues.
30. Where the Commissions depart from factors specified in clauses (a) to (d) of section 28 and clauses (a) to (f) of sub-section (2) of section 29, they shall record the reasons for such departure in writing.
Reasons for deviation by the Commissions.
CHAPTER VII ACCOUNTS, AUDIT AND REPORTS
31. The Central Commission shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Central Commission and forward the same to the Central Government,