Section 10(5) in The Rajasthan Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2017
(5)All Intra-state entities which had at any time during the previous financial year failed to make payment of Charges for Deviation including Additional Charges for Deviation within the time specified in these regulations shall be required to open a Letter of Credit (LC) equal to 110% of its average payable weekly liability for Deviations in the previous financial year, in favour of the SLDC within a fortnight from the date these Regulations come into force.Provided that if any intra-state entity fails to make payment of Charges for Deviation including Additional Charges for Deviation by the time specified in these regulations during the current financial year, it shall be required to open a Letter of Credit equal to 110% of weekly outstanding liability in favour of State Load Despatch Centre within a fortnight from the due date of payment.Provided that LC amount shall be increased to 110% of the payable weekly liability for Deviation in any week during the year, if it exceeds the previous LC amount by more than 50%.Illustration: If the average payable weekly liability for Deviation of a intra- State entity during 2015-16 is Rs. 2.0 Crore, the intra-state entity shall open LC for Rs.2.2 Crore in 2016-17. If the weekly payable liability during any week in 2016-17 is Rs. 3.5 crore which is more than 50% of the previous financial year's average payable weekly liability of Rs. 3.0 Crore, the concerned intra-state entity shall increase the LC amount to Rs. 3.85 Crore (1.1*3.50) by adding Rs. 1.65 Crore.
