Section 144(a) in The U.P. Electricity Regulatory Commission (Conduct of Business) Regulations, 2004
(a)If the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the Commission, the State Government shall pay in advance the amount to compensate the licensee/person affected by the grant of subsidy in the following manner :(i)The State Government shall provide details of the category/class of consumers to whom it wants the licensee to charge subsidized tariff, 120 days before the start of a financial year.(ii)While determining the tariff for a distribution licensee under the applicable legal framework, the Commission shall separately take into account any subsidies, which the State Government has agreed to give to any category of consumers.(iii)The manner of payment of subsidy in advance, whether monthly or otherwise, along with the parameters of determination of such amount shall be specified by the Commission in the relevant order.(iv)The tariff determined by the Commission shall be published both with and without taking into account such subsidy offered by the State Government, along with such other conditions regarding applicability of subsidized tariffs to the affected consumers as may be specified in the Order.(v)In case of a failure of payment of subsidy to the requisite level by the Government, the tariffs determined by the Commission without accounting for the subsidy shall be applicable in the area of the licensee.(vi)The Distribution Licensee shall be under obligation to supply energy' to the subsidized categories only up to the time provided for in the order for calculating the amount of Government subsidy provision. Any significant deviation anticipated by the licensee in excess of the budgeted quantity for factors beyond its control should be brought to the notice of the Commission for its consideration.
