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Section 5: Financial Implications

Uttar Pradesh Electricity Regulatory Commission (Treatment of income of Other Businesses of Transmission Licensees and Distribution License…State Regulations of Uttar Pradesh · 2003

(1) The Licensee shall not in any manner utilize the assets and facilities of the Licensed Business or otherwise directly or indirectly allow the activities to be undertaken in a manner that it results in the Licensed Business subsidising the Other Business in any manner.

(2) The Licensee shall not in any manner, directly or indirectly encumber the assets and facilities of the Licensed Business for the other Business or for any activities other than the Licensed Business.

(3) The Licensee shall duly pay for all costs accounted for in the Licensed Business which have been incurred for Other Business and in the event of such costs being incurred commonly for both the Licensed Business and Other Business, apportion such costs and ensure due payment of apportioned costs to the Licensed Business from Other Business.

(4) In addition to the sharing of costs under sub-clause (3) above, the Licensee shall account for and ensure due payment to the Licensed Business as per the formula given below:

Payment due to the licensed business = X(R*A/C) Where, R-> Revenue generated in other business A->Assets of the licenced business utilised in other business C->Total assets of the other business (including the assets utilised of the licenced business) X-> is a factor to be decided by the Commission after receiving the accounts of other business.

(5) The payment as specified at 5 (4) received in the Licence Business, from Other Business shall be utilised for reducing the transmission and/or wheeling charges, as the case may be, of the Licenced Business.

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Where this provision sits

ActUttar Pradesh Electricity Regulatory Commission (Treatment of income of Other Businesses of Transmission Licensees and Distribution Licensees) Regulations, 2004
Section5
Marginal noteFinancial Implications
JurisdictionState of Uttar Pradesh
StatusIn force as published by the source

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