Section 76 in Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2005
76. [ Hydro Balancing Fund. [Substituted by Commission's Notification No.TNERC/TR/5/2-1, dated 09-05-2006 (w.e.f07-06-2006), before substitution stood as under:'76. Variation in Power Purchase. - (1) Any financial loss or gain on account of variation in quantum of power purchase for the reasons beyond the control of the licensees like changes in thermal -- hydro mix due to natural calamities shall be allowed to be carried forward and adjusted in the next years revenue requirement and tariff allowed accordingly. (2) Any financial gain / loss on account of variation in power purchase not covered under sub clause (I) above shall be to the account of the licensee in the year itself'.]
(1)There shall be created a fund called "Hydro Balancing Fund" to take care of any financial loss to the Distribution Licensee (owning Generating Stations including hydro station), on account of increase in quantum of power purchase due to adverse monsoon resulting in reduction in hydro generation.(2)The average contribution of power by the hydro generations in a normal monsoon year shall be at the overall average Plant Load Factor of 25% and the licensee shall estimate quantum of generation from his hydro stations at 25% PLF of the total installed capacity of all the stations as at 31st March of preceding year.](3)When the hydro generation in a particular year exceeds 25% PLF, the amount equivalent to the cost of power for such excess hydro generation calculated at the weighted average per unit power purchase cost in that year shall be credited to "Hydro Balancing Fund" debiting the A/c provision for Hydro Balancing Fund. This will be in addition to the Hydel Swing Support Scheme, if any sanctioned by the Government.(4)The Distribution Licensee may either invest the amount in easily convertible Government securities or utilize it as internal resources.(5)The interest earned on such investments also will have to be credited to the Fund. In case it is utilized as internal resources, a return equivalent to Bank rate notified by Reserve Bank of India shall be credited to the fund.(6)When the hydro generation in a particular year is less than 25% PLF, the amount equivalent to cost of power for the shortfall in generation calculated at the weighted average per unit power purchase cost in that year shall be transferred from "Hydro Balancing Fund" to the revenue account of the licensee. If the fund is insufficient, it will be adjusted only to the extent of fund availability.(7)The Distribution Licensee / TNEB shall also draw from the 'Hydel Swing Support Subsidy Fund' maintained by the Government to meet the shortfall if any required.(8)In case there is still a shortfall left unadjusted as above, such shortfall shall be allowed to be carried forward / to be adjusted in the ensuing years as regulatory asset],
