(1) The cost of terminal benefits payable by the HPSEB Ltd. in respect of the personnel, including existing pensioners of the erstwhile Board, shall be shared in the manner provided for in these regulations.
(2) The net cost of the terminal benefits in respect of the personnel retiring after the commencement of the Transfer Scheme, shall be met by the HPSEB Ltd. and be permitted by the Commission in the annual revenue requirement of the HPSEB Ltd. as a part of operations and maintenance cost to be recovered through tariff, after adjusting the following contributions and shares:-
(a) HPSEB Ltd. shall recover monthly contributions towards terminal benefit from borrowing authorities for its personnel on deputation or on secondment with other departments, organizations, successor entities and also in other businesses of HPSEB Ltd. such as new projects, commissioned projects, Special Purpose Vehicles like Beas Valley Power Corporation etc. with effect from the commencement of the Transfer Scheme and such contributions shall Compendium of HPERC Regulations, March 2021 3 be based on formulae to be evolved by HPSEB Ltd. on realistic basis to effect actual contributions as against the normative contribution prescribed by the State Govt. for its employees on deputation, in view of the different salary structure and staffing pattern;
(b) fifty percent of the total annual requirement for terminal benefits, as approved by the Commission, shall be treated as contribution towards past services i.e.
the services rendered by its personnel prior to commencement of the transfer scheme and shall be shared in the manner provided in sub-regulation (3) hereunder and only the balance fifty percent shall be recovered against operations and maintenance cost.
(3) The terminal benefits in respect of the existing pensioners and the fifty percent of the terminal benefits of the personnel retiring after commencement of transfer scheme shall be shared and provided for in the following manner:
(a) such costs, net of State Government share as per clause (b) hereunder, shall be shared by the successor entities in proportion as near as the assets, including intangible assets of the erstwhile Board so shared:
Provided that the Commission may, by order, determine the allocation of share of contributions of the successor entities by making suitable assumptions as it may consider necessary;
(b) subject to the provisions of regulations 4, the amount on account of return on equity approved by the Commission in the annual revenue requirement of the HPSEB Ltd. on the investment made by the State Government in the erstwhile Board, including that for completed and ongoing works of HPSEB Ltd., shall be a part of the annual share of State Government;
(c) the shares to be borne by the HPPTCL, HPPCL and HPLDS, as per clause (a) above, shall be allowed in the tariff of these entities by the Appropriate Commission and such amount, shall be recovered by the HPSEB Ltd. from the successor entities on month to month basis;
(d) the Commission shall allow the provision corresponding to the share of HPSEB Ltd., as per clause (a) above, in its annual revenue requirement to be recovered as pension surcharge on tariff.
(4) For the employees of HPSEB Ltd. covered under Contributory Pension Scheme, the cost of Terminal Benefits, to the extent applicable, including the monthly pension contributions by the employer shall be provided as a part of operation and maintenance expenses as and when such payments become due.
(5) The amount allowed, or to be allowed, as pass through in the tariff as per the provisions under sub-regulations (2) and (3), shall be subject to prudence check by the Commission and shall also be subject to further review at the time of the truing up of the revenue requirement of HPSEB Ltd. and the shares of successor entities shall be revised and adjusted accordingly.
4 Compendium of HPERC Regulations, March 2021