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Section 27: Net Aggregate Revenue Requirement

The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff)…State Regulations of Himachal Pradesh · 2003

(1) The net aggregate revenue requirement of the licensee eligible for recovery during each year of the control period shall be determined after deducting from the aggregate revenue requirement, the non-tariff 1 Subs. vide Not. No. HPERC/F(5)(3)(1)(Retail) dated 1 st November, 2013 published in the R H.P. dated 4 th November, 2013 at p. 4579- 4596 and before its substitution regulation 26 read as under:

“26. Other Income of the Licensee Where the licensee is engaged in any other business, the income from such business will be calculated in accordance with the Himachal Pradesh Electricity Regulatory Commission (Treatment of Income of Other Businesses of Transmission Licensees and Distribution Licensees) Regulations, 2005 and shall be deducted from the aggregate revenue requirement in calculating the revenue requirement of the licensee:

Provided that the licensee shall follow a reasonable basis for allocation of all joint and common costs between the distribution business and the other business and shall submit the allocation statement, as approved by its board of directors, to the Commission alongwith his application for determination of tariff:

Provided further that where the sum total of the direct and indirect costs of such other business exceeds the revenues from such other business or for any other reason, no amount shall be allowed to be added to the aggregate revenue requirement of the licensee on account of such other business.” 2 Subs. vide Not. HPERC-F(1)-1/2018 dated 22nd November, 2018 published in R.H.P. dated 27th November, 2018 at p.

6265-6277. Before its substitution read as under:

“(2) The licensee shall maintain separate accounts and sub balance sheets for each of the other business such as Generation (existing stations), Survey & Investigation of new power projects, investments in the existing new projects etc.

Provided that the licensee shall follow a reasonable basis for allocation of all joint and common costs between the distribution business and the other business and shall submit the allocation statement, as approved by its board of directors, to the Commission alongwith his application for determination of tariff:

Provided further that where the sum total of the direct and indirect costs of such other business exceeds the revenues from such other business or for any other reason, no amount shall be allowed to be added to the aggregate revenue requirement of the licensee on account of such other business.” 30 Compendium of HPERC Regulations, March 2021 income and other income, less: receipts on account of cross subsidy surcharge and additional surcharge from open access customers.

1 [Provided that, to promote cogeneration and generation of electricity from renewable energy sources, the Commission while determining the wheeling charges shall give due consideration to the Renewable Purchase Obligation of the distribution licensee:

Provided further that the Commission based upon high energy consumption of commercial, industrial and any other consumer category may determine the threshold of such high consumption and levy a green charge in the form of surcharge upon such consumers.]

2 [(2) The distribution licensee shall maintain separate books of accounts for wheeling and retail supply business. For such period until accounts are segregated and separate books of accounts are maintained, the Commission shall stipulate the ratio of allocation of all expenses and return component, based on data obtained from the distribution licensee.]

Where this provision sits

ActThe Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011
Section27
Marginal noteNet Aggregate Revenue Requirement
JurisdictionState of Himachal Pradesh
StatusIn force as published by the source

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