Section 4(8) in The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011
(8)The target AT&C loss levels to be achieved by each Distribution Licensee during each year of the Control Period shall be determined by the Commission based upon benchmarking, past trends, business plan submitted by the Distribution Licensee and any other factor considered relevant by the Commission.(i)The Distribution Licensee will be eligible for incentive by the way of higher rate of Return on Equity (to be considered while calculating RoCE) as shown below for achieving lower AT&C loss level than specified in the loss reduction trajectory:(ii)Additional Return on Equity (%) = (Xi-Yi)/(Xi-1-Xi)(iii)Where,(iv)Xi = Target AT&C loss level for ith year,(v)Xi-1= Target AT&C loss level for (i-1)thyear,(vii)Yi = Actual AT&C Loss level for ith year:(vii)Provided that any financial loss on account of under performance with respect to AT&C loss targets shall be to the Licensee?s account.Sales Forecast
