The ARR for the retail supply business of the distribution licensee, for each year of the control period, shall contain the following items;
(a) cost of power procurement;
(b) transmission and load dispatch charges;
(c) operation and maintenance expenses;
(d) financing cost which includes cost of debt including working capital (interest), cost of equity (return);
(e) depreciation;
(f) income tax; and
(g) interest on consumer security deposit;
Less:
(i) non-tariff income;
(ii) income from other business; and
(iii) Receipts on account of cross subsidy surcharge and additional surcharge from open access customers.
1 [32. Working Capital for Retail Supply Business.—The Commission shall calculate the working capital requirement for the wheeling business containing the following components:
(a) O&M expenses for one month;
(b) receivables for two months of revenue from sale of electricity;
(c) maintenance spares @ 15% of O&M Expenses for one month;
Provided that for working out maintenance spares requirement under working capital any provisions, terminal benefits & any arrears payment made shall not be considered.
and Less—
(i) power purchase costs for one month; and
(ii) consumer security deposit, if any.]