Section 5(5)(a) in Rajasthan Electricity Regulatory Commission (tariff for Captive Power Plants) Regulations, 2007
(a)As per RERC (Terms & Conditions for determination of tariff) Regulations 2004 as modified, fixed charge component shall comprise of various annual fixed costs converted to rate per kWh of energy corresponding to delivery/ sale of energy at 80% PLF and levelised for the life of the plant in determining the annual fixed cost.(i)The pre-tax return on equity shall be computed at the rate of 14% of equity component.(ii)Income Tax and minimum alternate tax (MAT) during normal hours for determination of the fixed cost and interest charge on outstanding loan based on next five years average shall be allowed.(iii)Advance against depreciation (AAD) shall not be allowed.