Section 16 in Tamil Nadu Electricity Regulatory Commission (Demand Side Management) Regulations, 2013
16. Mechanism for Cost Recovery.
(1)Distribution Licensee shall identify the net incremental costs, if any, associated with planning, design and implementation of programmes;(2)Distribution Licensee may propose methodology for recovery of net incremental costs through tariff or any other mechanism. The amounts so earmarked may be kept separately as DSM fund and shall be exclusively used for DSM objectives;(3)In order to qualify for cost recovery, each program shall be.-(a)approved by the Commission prior to implementation;(b)implemented in accordance with the approved program plan; and(c)implemented cost effectively.(4)The Commission may direct the Distribution Licensee to undertake DSM programmes that may not be cost effective but is highly beneficial to the society;(5)Distribution Licensee shall be allowed to recover all costs incurred by them in any DSM related activity, including planning, conducting load research, designing, implementing, monitoring and evaluating DSM programmes, by adding these costs to their ARR to enable their funding through tariff structure;(6)The Commission may direct the Distribution Licensee to adopt other complementing DSM funding approaches such as creating a pool of funds through collection of public benefits charge at a later date, if such an approach is found beneficial;(7)Distribution Licensee shall obtain the prior approval of the Commission for implementing DSM Programmes at the consumer premises through equity placements, provided that such programmes shall be eligible for Return on Investment and would be evaluated during the ARR approval process.
