Section 121 in Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2009
121. Annual Revenue Requirement.
(1)The total annual expenses and return on equity of the distribution licensee shall be worked out on the basis of expenses and return allowed in terms of Part III and Regulation 109 to 120 of these Regulations.(2)The retail supply tariff of a Distribution Licensee shall provide for recovery of the aggregate revenue requirement of the Distribution Licensee for the financial year, as reduced by the amount of non-tariff income, income from wheeling, income from Other Business and receipts on account of cross-subsidy surcharge and additional surcharge, as approved by the Commission, and subsidy from the State Government, if any, and shall comprise the following:(a)Return on equity capital;(b)Interest and finance charges on loan capital;(c)Depreciation and amortisation of intangible/Regulatory assets;(d)Cost of power generation for self and partnership projects/ power purchase;(e)Transmission charges;(f)SLDC Charges(g)Operation and Maintenance expenses;(h)Interest on working capital and on consumer security deposits and deposits from Distribution System Users; and(i)Contribution to contingency reserves.(3)Net Revenue Requirement from sale of electricity = Aggregate revenue requirement, as above, minus:(a)Non-tariff income;(b)Income from wheeling charges recovered from open access consumers;(c)Income from Other Business, to the extent specified in these Regulations;(d)Receipts on account of cross-subsidy surcharge from open access consumers; and(e)Receipts on account of additional surcharge on charges of wheeling from open access consumers.(f)Any revenue grant received from the State Government other than the subsidy under Section 65 of the Act(4)The retail supply tariff of the Distribution Licensee shall be determined by the Commission on the basis of an application for determination of tariff made by the Distribution Licensee in accordance with Part II of these Regulations.
