Section 134(b) in The U.P. Electricity Regulatory Commission (Conduct of Business) Regulations, 2004
(b)The Commission shall within a year of the notification of the Electricity Act, 2003 specify the terms and conditions for the determination of tariff for generation, transmission, w heeling, supply and trading of electricity (wholesale, bulk or retail) in line with the applicable legal framework and in doing so shall be guided by the following -(i)the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees;(ii)the generation, transmission, distribution and supply of electricity are conducted on commercial principles;(iii)the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments;(iv)safeguarding consumers' interest and ensuring recovery of the cost of electricity in a reasonable manner;(v)the principles which reward efficiency in performance;(vi)multi-year tariff principles;(vii)that the tariff progressively reflects the cost of supply of electricity, and reduces and eliminates cross-subsidies within a specified period;(viii)co-generation and generation of electricity from renewable sources of energy is promoted;(ix)the National Electricity Policy and tariff policy :
