Section 7 in The Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005
7. Determination of generation tariff.
- 7.1 Existing generating station7.1.1Where the Commission has, at any time prior to the notification of these Regulations, approved a power purchase agreement or arrangement between a Generating Company and a Distribution Licensee or has adopted the tariff contained therein for supply of electricity from an existing generating station then the tariff for supply of electricity by the Generating Company to the Distribution Licensee shall be in accordance with such power purchase agreement or arrangement for such period as may be so approved or adopted by the Commission.7.1.2Where, as at the date of notification of these Regulations, the power purchase agreement or arrangement between a Generating Company and a Distribution Licensee for supply of electricity from an existing generating station has not been approved by the Commission or the tariff contained therein has not been adopted by the Commission or where there is no power purchase agreement or arrangement, then the supply of electricity by such Generating Company to such Distribution Licensee after the date of notification of these Regulations shall be in accordance with a power purchase agreement approved by the Commission in accordance with Part D of these Regulations:Provided that an application for approval of such power purchase agreement or arrangement shall be made by the Generating Company or the Distribution Licensee to the Commission within a period of three (3) months from the date of notification of these Regulations:Provided further that the supply of electricity shall be allowed to continue under the present agreement or arrangement, as the case may be, until such time as the Commission approves of such power purchase agreement and shall be discontinued forthwith if the Commission rejects, for reasons recorded in writing, such power purchase agreement.7.2New generating stations7.2.1The tariff for the supply of electricity by a Generating Company to a Distribution Licensee from a new generating station shall be in accordance with a power purchase agreement approved by the Commission, except if such power purchase agreement has been exempted from requiring such approval in accordance with Part D of these Regulations.7.3Own generating stations7.3.1Where the Distribution Licensee also undertakes the business of generation of electricity, the transfer price at which electricity is supplied by the Generation Business of the Distribution Licensee to his Retail Supply Business shall be determined by the Commission:Provided that the Commission shall have regard to the terms and conditions specified in Part E of these Regulations in determining the transfer price for such supply.7.3.2The Distribution Licensee shall maintain separate records for the Generation Business and shall maintain an Allocation Statement so as to enable the Commission to clearly identify the direct and indirect costs relating to such business and return on equity accruing to such business.7.3.3The Distribution Licensee shall submit, along with the application for determination of tariff for retail sale of electricity, the information required under Part E of these Regulations relating to the Generation Business, so as to enable the Commission determine the transfer price for supply of electricity to the Retail Supply Business in accordance with the terms and conditions contained in the said Part.7.4Notwithstanding anything contained in this Regulation 7, the Commission shall adopt the tariff for supply of electricity by a Generating Company to a Distribution Licensee if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government:Provided that the applicant shall provide such information as the Commission may require to satisfy itself that the guidelines issued by the Central Government have been duly followed.
