In these regulations, unless the context otherwise requires, - 1 [(1) “accounting statements” shall mean for each financial year, the balance sheet, the profit and loss statement, the cash flow statement and the report of the statutory auditors together with notes thereto:
Provided that in case of any local authority engaged in the business of transmission of electricity, the Accounting Statement shall mean the items, as mentioned above, prepared and maintained in accordance with the relevant Acts or Statutes as applicable to such local authority;]
(1-a) “Act” means the Electricity Act, 2003 (36 of 2003);
(1) “additional capitalisation” means the capital expenditure incurred or projected to be incurred, after the date of commercial operation of the project and admitted by the Commission after prudence check, subject to provisions of regulation 0;
(2) “aggregate revenue requirement” or “ARR” means the costs pertaining to the licensed business which are permitted, in accordance with these regulations, to be recovered from the tariffs and charges determined by the Commission;
(3) “allotted transmission capacity” means and includes the power transfer in MW between the specified point(s) of injection and point(s) of drawal allowed to a long-term customer on the intra-State transmission system under the normal circumstances and allotted transmission capacity to a long-term transmission customer shall be sum of the generating capacities allocated to the long-term transmission customer from the State generating stations and inter- State generating stations and the expression "allotment of capacity" shall be construed accordingly;
1 [(5) “allocation statement ” means for each financial year, a statement in respect of each of the businesses of the licensee including inter-state & intra-state 1 Clause (1) renumbered as clause (1-a) and Ins. clause (1) vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P. dated 27 th November, 2018 at p. 6256-6264.
Compendium of HPERC Regulations, March 2021 3 transmission system, showing the amounts of any revenue, cost, asset, liability, reserve or provision etc, which has been either—
(a) determined by apportionment or allocation between different businesses of the licensee including the licensed business, together with a description of the basis of the apportionment or allocation, or
(b) charged from or to each such other business together with a description of the basis of that charge;]
(6) “Appendix” means the appendix to these regulations;
(7) “applicant” means a transmission licensee who has made an application for determination of transmission charge in accordance with these regulations and includes a transmission licensee whose tariff is the subject of a review by the Commission;
(8) “availability” in relation to a transmission system for a given period means the time in hours during that period in which the transmission system is capable to transmit electricity at its rated voltage and shall be expressed in percentage of total hours in the given period;
(9) “base year” means the financial year immediately preceding first year of the control period and used for the purposes of these regulations;
(10) “beneficiary” means a long term transmission customer;
(11) “capital cost” means the capital cost as defined in regulation 0;
(12) “Central Commission” means the Central Electricity Regulatory Commission, as referred to in sub- section (1) of section 76 of the Act;
2 [(13) “change in law” shall mean the occurrence of any of the following events:
(i) enactment, bringing into effect or promulgation of any new Indian law, or
(ii) adoption, amendment, modification, repeal or re-enactment of any existing Indian law, or
(iii) change in interpretation or application of any Indian law by a competent Court, Tribunal or Indian Governmental Instrumentality, which is the final authority under law for such interpretation or application, or 1 Subs vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P. dated 27 th November, 2018 at p. 6256-626 .and before its substitution it stood as under:
“(5) “allocation statement” means for each financial year, a statement in respect of each of the businesses (transmission and SLDC business) of the licensee, showing the amounts of any revenue, cost, asset, liability, reserve or provision etc, which has been either-
(a) determined by apportionment or allocation between different businesses of the licensee including the licensed business, together with a description of the basis of the apportionment or allocation, or
(b) charged from or to each such other business together with a description of the basis of that charge;” 2 Subs vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P. dated 27 th November, 2018 at p. 6256-6264.and before its substitution it stood as under:
“(13) “change in law” means occurrence of any of the following events-:-
(a) the enactment, bringing into effect, adoption, promulgation, amendment, modification or repeal of any law, or
(b) change in interpretation of any law by a competent court, Tribunal or Indian Governmental Instrumentality which is the final authority under law for such interpretation, or
(c) change by any competent statutory authority, in any consent, approval or licence available or obtained for the project;” 4 Compendium of HPERC Regulations, March 2021
(iv) change by any competent statutory authority in any condition or covenant of any consent or clearances or approval or licence available or obtained for the project, or
(v) coming into force or change in any bilateral or multilateral agreement/ treaty between the Government of India and any other Sovereign Government having implication for the transmission company regulated under these regulations; ]
(14) “Commission” means the Himachal Pradesh Electricity Regulatory Commission, as referred to in sub- section (1) of section 82 of the Act;
(15) “Conduct of Business Regulations” means the Conduct of Business Regulations specified by the Commission under sub-section (1) of section 92 of Act;
(16) “control period” means a multi-year period fixed, by the Commission, from time to time, for which the principles of determination of revenue requirement and tariff will be laid down;
(17) “cut-off date” means 31 st March of the year closing after two years of the year of commercial operation of the project, and in case the project is declared under commercial operation in the last quarter of a year, the cut-off date shall be 31 st March of the year closing after three years of the year of commercial operation;
(18) “date of commercial operation” or “COD” means the date declared by the transmission licensee from 0000 hour of which an element of the transmission system is in regular service after successful charging and trial operation:
Provided that the date shall be the first day of a calendar month and transmission charge for the element shall be payable and its availability shall be accounted for, from that date:
Provided further that in case an element of the transmission system is ready for regular service but is prevented from providing such service for reasons not attributable to the transmission licensee, its suppliers or contractors, the Commission may approve the date of commercial operation prior to the element coming into regular service;
(19) “day” means the 24 hour period starting at 0000 hour;
(20) “distribution licensee” means a licensee authorised to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply;
1 [(21) “existing project” means a project declared under commercial operation from a date prior to first year of the control period;]
(22) “financial year” means a period commencing on 1 st April of a calendar year and ending on 31 st March of the subsequent calendar year;
1 Subs. vide Not. no. HPERC/F(5)(3)(1)(Trans) dated 1 st November,2013 published in the R H.P.
dated 4 th November, 2013 at p. 4608 to 4616 before its substitution Cl 21 read as under:
“21.“existing project” means a project declared under commercial operation from a date prior to 01.04.2011” Compendium of HPERC Regulations, March 2021 5 1 [(22-a) “force majeure event” shall mean, with respect to any party, any event or circumstance or combination of events or circumstances including those stated below, which is not within the reasonable control of , and is not due to an act of omission or commission of that party and which, by the exercise of reasonable care and diligence, could not have been avoided, and without limiting the generality of the foregoing, would include the following events:
(i) acts of God including lightning, drought, fire and explosion, earthquake, volcanic eruption, landslide, flood, cyclone, typhoon, tornado, geological surprises, or exceptionally adverse weather conditions, or
(ii) any act of war, invasion, armed conflict or act of foreign enemy, blockade, embargo, revolution, riot, insurrection, terrorist or military action, or
(iii) industry-wide strikes and labour disturbances having a wide impact;]
(23) “intra-State transmission system” means any system for conveyance of electricity by transmission lines within the area of the State and includes all transmission lines, sub-stations and associated equipment of the transmission licensees in the State:
Provided that the definition of point of separation between a transmission system and distribution system and between a generating station and transmission system shall be guided by the provisions of the Regulations notified by the Authority under clause (b) of section 73 of the Act;
(24) “licence” means a licence granted by the Commission under section 14 of the Act;
(25) “licensed business” means the functions and activities, which the licensee is required to undertake in terms of the licence granted by the Commission or being a deemed licensee under the Act;
(26) “licensee” means a person who has been granted a licence and shall include a deemed licensee;
(27) “long term transmission customer” means a person availing or intending to avail access to the intra-State transmission system for a period of twelve years or more and less than twenty five years;
2 [(27-a) “MCLR” shall mean One Year Marginal Cost of Funds based Lending Rate;]
(28) “medium term transmission customer” means a person availing or intending to avail access to the intra-state transmission system for a period of three months or more and less than three years;
1 [(28-a) “mid-term performance review” means the review of performance of the transmission licensee undertaken by the Commission for the year after the 1 Ins. clause (22-a) vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P. dated 27 th November, 2018 at p. 6256-6264.
2 Ins. clsue (27-a) vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P. dated 27 th November, 2018 at p. 6256-6264.
6 Compendium of HPERC Regulations, March 2021 mid-year of the control period and this shall also include the true up of the previous control period and True Up of previous years of the control period;
and]
(29) “non-tariff income” means income relating to the licensed business other than from tariff (intra-State transmission of electricity), and excluding any income from other business;
(30) “original project cost” means the capital expenditure incurred by the transmission licensee within the original scope of the project up to the cut-off date as admitted by the Commission;
(31) “other business” means any business of the transmission licensee other than the licensed business;
(32) “project” means the transmission system;
2 [(32-a) “prudence check” shall mean scrutiny of the reasonableness of expenditure incurred or proposed to be incurred, financing plan, use of efficient technology, cost and time over-run and such other factors as may be considered appropriate by the Commission for determination of tariff; and]
(33) “rated voltage” means the voltage at which the transmission system is designed to operate or such lower voltage at which the line is charged, for the time being, in consultation with long-term transmission customers;
(34) “short term transmission customer” means a person availing or intending to avail access to the intra-State transmission system for a period up to 1 month;
(35) “State” means the State of Himachal Pradesh;
(36) “transmission business” means the authorised business of a transmission licensee to transmit electricity, whether for its own account or for that of any other person, through any system owned and/ or operated by such licensee;
(37) “transmission licensee” means the entity, which has been granted a transmission licence or is a deemed licensee under the first, second, third or fifth provisos to section 14 of the Act;
(38) “transmission service agreement” means and includes the agreement, contract, memorandum of understanding, or any such other covenants, entered into between the transmission licensee and the beneficiaries;
(39) “transmission system” means the system consisting, 3 [of high and extra high voltage electric lines having design voltage of 33 kV and above] owned or controlled by the transmission licensee, and used for the purposes of the conveyance of electricity between the switchyards of two generating sets or from the switchyard of a generating set to a sub-station, or between substations, or to or from any external interconnection and includes all 1 Ins. vide Not. no. HPERC/F(5)(3)(1)(Trans) dated 1 st November,2013 published in the R H.P. dated 4 th November, 2013 at p. 4608 to 4618.
2 Ins. clause (32-a) vide Not No. HPERC-F(1)-3/2018 dated 22 nd November, 2018 published in the R H.P. dated 27 th November, 2018 at p. 6256-6264.
3 Subs. for “mainly of extra high voltage electric lines having design voltage of above 33 kV” vide Not. no.
HPERC/F(5)(3)(1)(Trans) dated 1st November,2013 published in the R H.P. dated 4th November, 2013 at p. 4608 to
4618.
Compendium of HPERC Regulations, March 2021 7 bays/equipment upto the interconnection with the distribution system, and any plant, apparatus and meters owned or used in connection with the transmission of electricity, but shall not include any part of a distribution system;
(40) “user” means the distribution licensee or open access customer, as the case may be, who uses the intra–State transmission network for the purpose of selling/procuring electricity;
(41) ‘useful life’ in relation to a unit of a transmission system from the COD shall mean the following, namely:-
(a) AC and DC sub-station - 25 years
(b) Transmission line - 35 years;
(42) “year” means a financial year; and 1 [(43) the words and expressions occurring in these regulations and not defined herein but defined in the Act or Grid Code or State Grid Code shall bear the same meanings as respectively assigned to them in the Act or Grid Code or State Grid Code and the words and expressions used herein but not specifically defined herein or in the Act or Grid Code or State Grid Code shall have the meanings generally assigned to them in the electricity industry.]
PART-II GUIDING PRINCIPLES [