Section 25 in Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2009
25. Operation & Maintenance expenses.
(1)'Operation and Maintenance or O&M expenses' shall mean repair and maintenance (R&M), establishment, and administrative and general expenses.(2)Operation and maintenance expenses shall be determined for the tariff period based on normative O&M expenses specified by the Commission subsequently in these Regulations for the base year, that is, the year immediately preceding the tariff period.(3)O&M expenses of assets taken on lease and those created out of consumer's contributions shall be considered, if the transmission or distribution licensee or the generating company has the responsibility for its O&M and bears O&M expenses.(4)Normative O&M expenses allowed at the commencement of the Control Period (i.e. FY 2009-10) under these Regulations shall be escalated at the rate of 5.72% per annum. Further, the same shall be subject to revision on account of annual escalation linked to WPI in the subsequent years for the purpose of true-up.(5)In case of considerable variance between the normative expenses and the actual expenses in the base year, the Commission may allow the transmission or distribution licensee or the generating company to achieve the normative level over a period of time.(6)Annual O&M expenses for gross fixed assets added during the year shall be considered from the date of commissioning(7)Increase in O&M charges on account of war, insurgency, change in laws, or like eventualities may be considered by the Commission for a specified period.(8)Any saving achieved by generating company or a transmission or distribution licensee in any year shall be shared with the distribution licensee or user, as applicable, in the ratio specified in Regulation 10. The loss to the generating company or the transmission or distribution licensee if he exceeds the targeted O&M expenses for that year be shared with the distribution licensee or user, as applicable, in the ratio in Regulation 10.
