Section 3(7) in Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015
(7)"Expenditure" Reasonable and required expenditure actually incurred on the following:(a)purchase of energy;(b)salaries and wages of staff, welfare expenses excluding management remuneration covered below;(c)Directors remuneration, fees, expenses including facilities;(d)salaries and wages of corporate office / registered office;(e)financing cost excluding penal interest / charges;(f)interest charges on loan(s) borrowed for capitalized assets;(g)interest on temporary accommodation to the extent of approved unrealized arrears from the consumers(h)interest on working capital(i)Return on equity;(j)Income Tax(k)financing charges applicable to operational account;(l)interest on cash security deposits from consumers;(m)interest on advance against sales from consumers, if any;(n)Impact of variation in foreign exchange rate in case of foreign currency loan taken with due approval and is not capitalized;(o)Depreciation(p)Rents, rates and taxes, other than all taxes relating to income / profits;(q)Legal charges;(r)Auditor's expenses, Auditor's fees; auditor's expenses; Payment to Auditors in any other capacity or for any work which is necessary to be got done from them in connection with audit;(s)Consultancy charges for work which cannot be done in house or is uneconomical in doing in-house or is essential to be done from outside sources;(t)Bad debts actually written off subject to Commission's clearance;(u)Other expenses necessary which are ancillary or incidental to the business of electricity except penalty etc levied under the Act or any other law in force;
