Section 5(3) in Orissa Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulation, 2004
(3)Distribution Loss - (a) To set the baseline of distribution loss estimate, the Commission may either require the licensee to carry out proper loss estimation studies under its supervision or initiate a study itself.(b)The Commission shall approve a realistic and achievable loss target for the year under review based on the opening loss levels, licensee's filings, submissions and objections raised by the stake holders. This approved loss target will be used for computing sale of power to consumers for that year.(c)The licensee will have to share with the consumer part of the financial gains arising from achieving higher loss reduction vis-a-vis the target. Losses on account of under achievement of loss reduction target will be entirely borne by the licensee.
