Section 9 in Punjab State Electricity Regulatory Commission Tariff Regulations, 2002
9. Inter Class Cross Subsidies.
(1)It is the Commission's policy that utility's/licensee's tariffs should reflect the reasonable cost of providing service to each consumer class in order to encourage efficiency, the economic use of resources, good performance and optimum investment and to ensure that consumers pay for electricity in a fair, reasonable and commercial manner. Each utility/licensee is, therefore, required to adopt and submit to the Commission for its approval by the time specified in its license a plan for the identification and progressive elimination of any cross subsidies in its tariffs.(2)In each tariff application, utilities/licensees shall include a report on how far they have implemented the plan approved by the Commission for the elimination of cross subsidies and the measures being proposed in the current application to implement the plan.
