Section 24 in Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015
24. Contribution to Contingency Reserve.
(a)If the Distribution Licensee has made an appropriation to the Contingency Reserve, a sum not less than 0.25 per cent and not more than 0.5 per cent of the original cost of fixed assets shall be allowed annually towards such appropriation in the calculation of ARR:(b)The amount so appropriated shall be invested in securities authorized under the Indian Trusts Act, 1882 within a period of six months of close of the financial year.Provided that no diminution in the value of contingency reserve shall be allowed to be adjusted as a part of tariff.(c)The Contingency Reserve shall not be drawn upon during the term of the license except to meet such charges as may be approved by the Commission, such as following:(i)Expenses or loss of profits arising out of accidents, strikes or circumstances which the management could not have prevented;(ii)Expenses on replacement or removal of plant or works other than expenses required for normal maintenance or renewal;(iii)Compensation payable under any law for the time being in force and for which no other provision is made:Provided that such drawl from contingency reserve shall be computed after making due adjustment for any other compensation that may have been received by the Licensee as part of an insurance cover:
