Section 32(2) in The Gujarat Electricity Industry (Reorganisation and Regulation) Act, 2003
(2)The Commission may determine by regulations the terms and conditions for the fixation of tariff and in doing so shall be guided by the following factors, namely:-(a)that the tariff progressively reflect the cost of supply of electricity at an adequate and improving level of efficiency;(b)the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments and other matters which the Commission considers appropriate for the purpose of this Act;(c)the electricity generation, transmission, distribution and supply are conducted on commercial principles;(d)the interests of the consumers are safeguarded and at the same time the consumers pay for the use of electricity in a reasonable manner;(e)the principles and their applications provided in Section 46 and 57 of the Electricity (Supply) Act, 1948 (54 of 1948) and the Sixth Schedule thereto; and(f)in the case of the Board the principles under Section 59 of the Electricity (Supply) Act, 1948 (54 of 1948) are observed:Provided that where the Commission departs from factors specified in clause (e) it shall record reasons therefor in writing.
