Section 22(22) in Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015
22.1Employee Cost. - Employee cost shall be computed as per the approved norm escalated by consumer price index (CPI), adjusted by provisions for expenses beyond the control of the Distribution Licensee and one time expected expenses, such as recovery/adjustment of terminal benefits, implications of pay commission, arrears and Interim Relief, governed by the following formula:EMPn = (EMPb * CPI inflation) + ProvisionWhere:EMPn : Employee expense for the year nEMPb : Employee expense as per the normCPI inflation : is the average increase in the Consumer Price Index (CPI) for immediately preceding three yearsProvision : Provision for expenses beyond control of the Distribution Licensee and expected one-time expenses as specified above.Till the norms is specified by the Commission the employee cost shall be determined on the basis of actual historical cost.
