Section 17(2) in The Jammu and Kashmir State Electricity Regulatory Commission Act, 2000
(2)The Commission shall determine by regulations the terms and conditions for the fixation of tariff, and in doing so, shall be guided by the following, namely :-(a)The principles and their applications provided in sections 41, 52 and 53 of the Jammu and Kashmir Electricity (Supply) Act, 1971 and the Sixth Schedule thereto;(b)In the case of the Board or its successor entities, the principles under section 56 of the Jammu and Kashmir Electricity (Supply) Act, 1971;(c)That the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency;(d)The factors which would encourage efficiency, economical use of the resources, good performance, optimum investments and other matters which the Commission considers appropriate for the purposes of this Act;(e)The interests of the consumers are safeguarded and at the same time, the consumers pay for the use of electricity in a reasonable manner based on the average cost of supply of energy;(f)The electricity generation, transmission, distribution and supply are conducted on commercial principles.
