Section 9 in Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Transmission/Distribution of Electricity Under MYT Framework) Regulations, 2009
9. Operation and Maintenance (O&M).
- The Operation and Maintenance expenses include the following: Repairs & maintenance costs;Employee-related costs and Administrative & general expenses,The O&M expenses shall be derived on the basis of actual expenses for the past five years previous to base year based on the audited Annual Accounts, after prudence check by the Commission.The O&M expenses so arrived for the base year may be escalated by four per cent per annum for every year of the control period.The licensee may also propose indexation for estimating the O&M expenses. O&M expense is a controllable cost and the licensee cannot recover the cost in excess of norms. The licensee shall share the gains on account of savings with the beneficiaries as provided in regulation 3(ix).
