(1) The State Government shall, twice in a year, evaluate the status of compliance by the State Distribution Licensee with the Electricity Act, 2003 and Rules and Regulations made thereunder as also regulatory directives and policies as well as steps taken to rectify instances of non-compliances since the last such evaluation.
(2) The State Government shall ensure regular and timely filing of true-up petitions, Aggregate Revenue Requirement and tariff petitions, and petitions for adjustments on account of fuel and cost of power purchased by the State Distribution Licensee, as per the orders or regulations specified by the State Commission.
(3) Notwithstanding sub-section (2), it shall be the duty of the State Government to make fiscal provision or provision of grant to the State Distribution Licensee if there is an adverse financial impact due to the failure of the State Distribution Licensee to minimize or eliminate the following:-
(a) variations in the actual power purchase cost and the power purchase cost approved by the State Commission;
(b) variations in the actual and approved expenditure of other items of the Aggregate Revenue Requirement such as but not limited to Operation and maintenance expenditure and capital expenditure; and
(c) variation between average cost of supply and average realization of revenue:
Provided that the variation, if any, between average cost of supply and average realization of revenue, shall be bridged/filled in a period of three to five years from the date of coming into force of this Act.
(4)The State Government shall ensure that the regulatory assets, if any, are liquidatedexpeditiously in a period of three to five years from the date of coming into force of this Act, or within such period stipulated, if any, by the State Commission, whichever is earlier.