Section 24 in Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2019
24. Human Resource Expenses.
(1)Human resource expenses shall be derived on the basis of actual human resource expenses for the years 2017-18 to 2018-19 based on the audited balance sheets. The human resource expenses shall be normalized by excluding abnormal Human resource expenses ex-gratia, VRS expenses, PRP/incentive, prior-period adjustments, claims and advances written-off, provisions, etc., if any, after prudence check by the Commission:(2)The expenses towards payment of Certificate Retainer-ship amount would be a part of the Human Resource Expenses.(3)Performance related pay computed in accordance with DPE /other applicable guidelines shall be met from the incentive allowed in accordance with Regulation 32 of these Regulations.Provided that in case of any surplus in the incentive collected as per provisions of Regulation 32 after payment of performance related pay in accordance with DPE guidelines, such surplus amount shall be maintained separately to be used in subsequent years in case of shortfall of funds for payment of performance related pay as per DPE guidelines.Provided further that in case shortfall in the funds as per Regulation 32 for distribution of performance related pay in accordance with DPE guidelines still persists, the shortfall shall be met from the LDC development Fund.(4)The normalized human resource expenses, after prudence check, for the year 2017-18 to 2018-19, shall be escalated at the rate of 4.77% to arrive at the normalized human resource expenses at the 2018-19 price level respectively and then averaged to arrive at normalized average human resource expenses for the 2017-18 to 2018-19 at 2018-19 price level.(5)The manpower approved during the year 2018-19 shall be the basis for computation of the HR expenses for 2019-20. Thereafter, for the subsequent years, the HR expenses shall be escalated at the annual escalation rate.(6)The average normalized human resource expenses of 2018-19 price level shall be escalated at the escalation rate as worked out in accordance with clause (8) of this Regulation to arrive the HR expenses for the year 2019-20.(7)The human resource expenses for the year 2019-20 shall be escalated further at the annual escalation rate as worked out in accordance with clause (8) this Regulation to arrive at permissible human resource expenses for the subsequent years of the control period:(8)The escalation rate shall be worked out by considering the compound annual growth rate, inflation rate, rationalization of human resource and other factors, if any.(9)The cost of anticipated increase in the manpower of each year of the control period shall also be considered after prudence check. The strength of manpower required for effective functioning of LDC will be as approved by the Commission while specifying the fees and charges.(10)Human Resource Development (HRD) expenses, incurred by the NLDC or RLDCS shall be a part of HR Expenses from FY 2019-20 onwards. In addition to the capacity building of the employees of NLDC or RLDCs, capacity building workshops and training programs organized for other stakeholders will also form part of the HRD expenses. Projected annual HRD expenses will be at least 5% of the HR expenses arrived based on the methodology defined above. However, if the actual utilization towards HRD expenditure exceeds the 5% of HR expenses of any year, it shall be allowed at the time of truing up by the Commission after prudence check. In case of less than 5% utilization, it shall be refunded at the time of annual truing up. All efforts shall be made to ensure that minimum seven days training per employee per annum is imparted as per the National Training Policy.
