(1) In accordance with the principles laid down in these regulations, the Commission shall determine the tariff for –
(a) wheeling of electricity, i.e. wheeling tariff;
(b) retail sale of electricity, i.e. retail supply tariff:
Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Commission may, for promoting competition amongst distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity:
Provided further that where the Commission has permitted open access to any category of consumers under section 42 of the Act, the Commission shall determine the wheeling tariff, cross-subsidy surcharge, additional surcharge and other open access related charges in accordance with these regulations and the Himachal Pradesh Electricity Regulatory Commission (Cross Subsidy Surcharge, Additional Surcharge and Phasing of Cross Subsidy) Regulations, 2006.
(2) In accordance with the principles laid down in these regulations, the Commission shall determine the aggregate revenue requirement (ARR) and tariff for –
(a) wheeling business; and
(b) retail supply business.
(3) The aggregate revenue requirement (ARR) determined for the wheeling business shall be used in fixation of the wheeling tariff.
(4) The aggregate revenue requirement (ARR) determined for retail supply business shall be used in fixation of the retail supply tariff for retail sale of electricity.
(5) The Tariff determined by the Commission and the directions given in the tariff order made by the Commission shall be quid pro quo and mutually inclusive. The tariff determined shall, within the period specified by it, be subject to the compliance of the directions to the satisfaction of the Commission and their non-compliance shall lead to such amendment, revocation, variations and alterations of the tariff, as may be ordered by the Commission.
(6) The tariff order shall, unless amended or revoked, continue to be in force for such period as may be specified in the tariff order. In the event of failure on the part of the licensee to file the aggregate revenue requirement (ARR) under Part-IV, the tariff determined by the Commission shall cease to operate, unless allowed to be continued for a 1 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 it stood as under:- “the words and expressions used in these regulations and not defined herein but defined in the Act shall have the meanings respectively assigned to them in the Act.” 6 Compendium of HPERC Regulations, March 2021 further period with such variations, or modifications, as may be ordered by the Commission.