The distribution licensee shall publish the tariff approved by the Commission in the newspapers, having circulation in the area of supply, as the Commission may direct. The publication shall, besides such other things as the Commission may require, include a general description of the tariff changes and its effect on the classes of the consumers.
1 [41-A. Adherence to Tariff Order .- (1) If the distribution licensee recovers a price or charge exceeding the tariff determined under Section 62 of the Act and in accordance with these regulations, the excess amount shall be recoverable by the person who has paid such price or charge, along with interest equivalent to the one (1) Year State Bank of India (SBI) MCLR/any replacement thereof as notified by RBI for the time being in effect applicable for one (1) Year period, as may be applicable as on 1st April of the Financial Year plus 300 basis points prevailing during the relevant period, without prejudice to any other liability to which such licensee may be subject:
Provided that such interest payable to any party shall not be allowed to be recovered through the Aggregate Revenue Requirement of the licensee:
1 Subs. sub-regulation (1) 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:
“(1) If the distribution licensee recovers a price or charge exceeding the tariff determined under Section 62 of the Act and in accordance with these Regulations, the excess amount shall be recoverable by the person who has paid such price or charge, along with interest equivalent to the Base Rate of State Bank of India plus 350 basis points without prejudice to any other liability incurred by the distribution licensee.” 40 Compendium of HPERC Regulations, March 2021
Provided further that the licensee shall maintain separate details of such interest paid or payable by it, and shall submit them to the Commission alongwith its petition.]
(2) The distribution licensee shall submit periodic returns as may be required by the Commission, containing operational and cost data to enable the Commission to monitor the implementation of its Order.
PART –V 1 [SUBSIDY, COST OF SUPPLY AND CROSS SUBSIDY] 2 [41-B. Cost of Supply and Cross Subsidy.- (1) In accordance with the National Electricity Policy and National Tariff Policy, the Commission shall allow recovery of efficient and prudent cost of supply of electricity by the licensee from the consumers to make the power sector sustainable.
(2) The Commission shall be guided by the objective that the tariff progressively reflects the efficient and prudent cost of supply of electricity. The Commission shall also continuously endeavour to rationalise the tariff structures to encourage efficient and prudent end use of electricity.
(3) The Commission shall progressively and gradually reduce the existing cross subsidies without giving tariff shocks to any consumer category and to achieve the objective the Commission shall -
(a) restrict the cross subsidy, while fixing the tariff for 2014-15, for various consumer categories other than the life line domestic consumers, to a level of (±)20% of the average cost of supply;
(b) indicate a roadmap for reduction and/or rationalization of cross subsidies in the MYT Orders for the Control Periods starting from 1.4.2014 and thereafter. The road map shall be based on the approach of a gradual reduction/rationalization in cross subsidy, guided by the principles laid down in the National Tariff Policy, with a target that by the end of the control period starting from 1.4.2014 tariffs for the consumer categories, other than the life line category, are within (-)15% to (+) 10% of the average cost of supply and by the end of the subsequent control period, the same are within (-)10% to (+) 5%;
(c) The life line domestic consumers shall continue to receive a special support through cross subsidy:
Provided that the tariff of the life line domestic consumers shall not be less than 50% of the average cost of supply.
(4) Till such time the overall average per unit tariffs for various categories, other than Life line category, are brought within (-)10% to (+)5% of the average cost of supply as per sub regulation (3) the Commission shall base the tariff fixation exercise during such interim periods on the basis of average cost of supply.
(5) During the interim periods as mentioned as sub regulations (3) and (4), the Commission shall, with an objective of broadly assessing, the trends and levels of category wise cost of supply for indicative purposes also carry out suitable exercise based on the available data, suitable assumptions and the concepts as may be considered appropriate.
1 Subs. for “SUBSIDY” 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.
2 Ins. 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.
Compendium of HPERC Regulations, March 2021 41 The Commission shall broadly follow the following methodologies for allocation of costs for the purpose of cost to serve calculations.
(a) Functionalization and classification of Cost – Total cost shall be divided on the basis of functions performed such as power purchase, distribution etc. Each of the functionalized cost shall be further classified, based on its intrinsic nature into Demand related cost, Energy related cost and Customer related cost.
Demand related costs shall generally be of fixed nature related to capacity creation and shall include interest on capital borrowing, depreciation etc.
Energy cost shall be related to quantum of electricity consumption of consumer, such as fuel cost, interest on working capital, etc. Consumer related cost shall include operating expenses associated with meter reading, billing and accounting;
(b) Allocation of Costs -
(i) Allocation of Demand Costs: Demand costs various functions shall be allocated among consumer categories on the basis of average estimated demand of the consumer categories during different hours of the day and different seasons of the year;
(ii) Allocation of Energy Costs : Energy related costs of Distribution functions shall be allocated to the consumer categories on the basis of incremental cost of power purchase by following merit order and block approach beyond the minimum common level of load factor:
Provided that the cost of additional 5% power kept as contingent surplus in accordance with these regulations may be allocated to all the consumer categories in proportion to the total electricity consumption of each category:
Provided further that the energy flows from HT system to EHT system during certain situations which are typically prevalent in Himachal Pradesh on account of small hydro projects shall also be duly considered while allocating the distribution losses to various categories of consumers;
(iii) Allocation of Customer Costs: Customer related costs shall be allocated to consumer categories by assigning suitable weights duly taking into account to average consumption per consumer for various categories of consumers.”]