Section 4(2) in The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011
(2)The Multi Year Tariff framework shall be based on the following:(a)Business Plan of the Distribution Licensee for the entire Control Period to be submitted to the Commission for approval, prior to the start of the Control Period;(b)Applicant?s forecast of expected Wheeling Tariff and Retail Supply Tariff for each year of the Control Period, based on reasonable assumptions of the underlying financial and operational parameters, as submitted in the Business Plan;(c)Trajectory for specific parameters shall be stipulated by the Commission, where the performance of the applicant is sought to be improved through incentives and disincentives;(d)Annual review of performance shall be conducted based on the actual vis-à-vis the approved forecast and categorization of variations in performance into controllable factors and uncontrollable factors;(e)The Distribution Licensee?s performance vis-à-vis the AT&C loss targets specified by the Commission shall be appropriately incentivise/penalise; and(f)Variation in revenue / cost on account of uncontrollable factors like sales, power purchase and controllable factors - RoCE and Depreciation shall be trued up annually.Segregation of Wheeling and Retail Supply Business
