Section 5(7) in The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011
(7)O&M expenses permissible towards ARR for each year of the Control Period shall be determined using the formula detailed below:(a)O&Mn = (R&Mn + EMPn + A&Gn) * (1 Xn)Where,(i)R&Mn = K * GFAn-1;(ii)EMPn + A&Gn = (EMPn-1 + A&Gn-1) * (INDX); and(iii)INDX = 0.55 * CPI + 0.45 * WPI(iv)EMPn Employee Costs of the Licensee for the nth year;(v)A&Gn Administrative and General Costs of the Licensee for the nth year;(vi)R&Mn Repair and Maintenance Costs of the Licensee for the nth year;(vii)Xn is an efficiency factor for nth year. Value of Xn shall be determined by the Commission in the MYT Tariff order based on Licensee's filing, benchmarking, approved cost by the Commission in past and any other factor the Commission feels appropriate.
