Section 27 in Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015
27. Treatment of Return on equity.
(a)Return on equity shall be computed on 30% of the capital base or actual equity, whichever is lower:Provided that assets funded by consumer contribution, capital subsidies/ grants and corresponding depreciation shall not form part of the capital base. Actual equity invested in the Distribution Licensee as per book value shall be considered as perpetual and shall be used for computation in this Regulation:(b)The return on the equity invested shall be allowed from the date of start of commercial operation:(c)The project which will be commissioned w.e.f. 01.04.2016 will be allowed RoE of 15.5% and if project is completed in schedule period 0.5% incentives in form of RoE will be allowed.
