Section 58 in The M.P. Electricity Regulatory Commission (Conduct of Business) Regulations, 1999
58.
(a)The Commission may at any time frame separate Regulations, through notifications, for fixation of tariff in accordance with the guidelines under Section 29(2) of the Act.(b)Unless otherwise specified by the Commission through separate Regulations, the fixation of tariff shall be based on the following factors :-(i)The financial principles and applications thereof, as laid down under Sections 46, 57 and 57-A and the Sixth Schedule of the Electricity (Supply) Act, 1948 in respect of licensees.(ii)In respect of Board or its successor, the financial principles and application thereof as laid down under Section 59 of Electricity (Supply) Act, 1948 shall be taken into consideration. The payment of interest to the State Government shall be according to the provision of Section 67-A of the above Act.(iii)While determining the tariff, the Commission may ask the State Government if it desires to grant concession in that regard to any consumer or class of consumers. If so, the State Government shall compensate the loss to the Board/Utility in the manner directed by the Commission.(iv)The carried over liabilities of Board/Utility and their extent maybe considered in fixing the tariff.(v)Different operational norms and performance levels such as plant load factor, period of stabilisation/commercial operation of new generation/transmission facilities, transmission and distribution losses, reduction in the unaccounted energy due to theft/pilferage, secondary fuel oil consumption, auxiliary consumption, station heat rate, recovery of old outstanding arrears, economy in operation/maintenance, establishment and other expenses.(vi)The tariff allowed in any financial year shall be subject to the adjustment in any tariff to be fixed for subsequent period, if the Commission is satisfied for reasons to be recorded in writing that such adjustments for the excess amount or shortfall in the amount actually realised vis-a-vis estimated is necessary, and the Commission is further satisfied that the same is not on account of any reason attributable to the Board/Utility.(vii)If a licensee desires any deviation from the factors mentioned in the Sixth Schedule of the Electricity (Supply) Act, 1948, the licensee shall give the justification for such request. The Commission, may also on its own, provide for deviation from the Sixth Schedule by recording reasons therefor.
