(1) Operation and maintenance expenses mean the expenditure incurred on operation and maintenance of the project, or part thereof, and includes, without limitation, the expenditure on manpower, establishment (including employees expense, administrative and general expenses), repairs, spares, consumables, 1 Add. proviso vide Not. No. HPERC-438 –Vol-VIII, dated 11 th Feb., 2015, published in R H.P. dated
19.02.2015 at p. 6291-929.
Compendium of HPERC Regulations, March 2021 27 insurance and overheads as well as the taxes, duties and other levies on any or all such activities.
(2) Operation and maintenance expenses shall be determined for the tariff period based on normative operation and maintenance expenses specified in Chapter-V of these Regulations for the SHPs and as stipulated in relevant orders of the Commission for other renewable technologies.
(3) Normative O&M expenses allowed under these Regulations shall be escalated at the rate of 5.72% per annum over the tariff period.