(1) The information obtained, under sub-regulation (1) of regulation 11, vis-à-vis information supplied by the licensee under regulation 10, shall be graded in two parts - reliability and accuracy of the data as under:- I Reliability Grade Assessment of reliability Grade A Based on proper records with adequate procedures B Data has significant procedural deviations C Unsatisfactory data II Accuracy Grade Accuracy Grade Level Percentage of compensation paid to be recovered through ARR for each parameter circle wise* 1 +/-2% 100% 2 +/-5% 85% 3 +/-10% 70% Compendium of HPERC Regulations, March 2021 9 * subject to achievement of overall standard of performance for respective parameter Only if reliability of data is established (at least Grade A), further analysis will be carried out for claims of accuracy of data for each parameter (excluding those where the overall standards of performance has not been achieved) on circle wise basis and subsequently the amount of total compensation so paid out in respect of each parameter on circle basis shall be considered as a pass through in ARR as stipulated above.
(2) The provisions contained in sub-regulation (1) shall be effective from 1 st April
2011.
(3) Where the commission considers it expedient, so to do, it may, by order in writing, call upon the licensee to furnish in writing such information as may be necessary for the enforcement of the provisions of sub-regulation (1) of this regulation.
(4) Till 1 st April, 2011 when the provisions under sub-regulation(1) become effective, the compensation paid, by the licensee under regulation 5, for the respective parameters computed circle wise, may be allowed to be recovered, partly or fully, in the revenue requirement of licensee, keeping in view the extent to which the licensee is able to achieve the overall standards of performance, as measured through auditing results or investigation carried out under these regulation:
Provided that the compensation paid by the licensee, which is attributed to negligence, inefficiency and for not exercising reasonable care and diligence by its employees would not be allowed as pass-through in the ARR of the licensee.