Section 32 in Punjab State Electricity Regulatory Commission (Conduct of Business) Regulations, 2002
32. Tariff Fixation Guidelines.
(1)The Commission shall determine by regulations, the terms and conditions from time to time, including mechanism for fixation of tariff, and in doing so, shall be guided by the following:(a)the principles and their applications provided in Sections 46, 57 and 57 (A) of the Electricity (Supply) Act, 1948 and the Sixth Schedule thereto;(b)in the case of the Board or its successor entities, the principles under Section 59 of the Electricity (Supply) Act 1948;(c)that the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency;(d)that 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 sound commercial principles; and(g)National power plans formulated by the Central Government.(2)Where the Commission departs from factors specified in sub sections (a) to (f), they shall record the reasons for such departure in writing.(3)The Commission, while determining the tariff under this Act, shall not show undue preference to any consumer of electricity, but may differentiate according to the consumer's load factor, power factor, total consumption of energy during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required.(4)The holder of each licence and other persons including the Board, who are authorized to transmit, sell, distribute or supply electricity wholesale, bulk or retail in the State, shall observe the methodologies and procedures specified by the Commission from time to time in calculating the expected revenue from charges which are permitted to be recovered and in determining the tariff to collect those revenues.(5)If the Punjab Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the Commission under this section, the Punjab Government shall pay the amount to compensate the person affected by the grant of subsidy in the manner the Commission may direct as per provisions of sub-section (5) of Section 29 of the Act, to implement the subsidy provided for by the Punjab Government.(6)The Commission shall be guided by such directions in the matter of "Cross subsidy" considered in Regulation 32 (3) above and 'direct subsidy' considered in Regulation 32 (5) above, as matters of policy involving public interest as the Punjab Government may give to the Commission in writing according to Section 39 of the Act.(7)The tariff allowed in any financial year shall be subject to the adjustment in any tariff to be fixed for subsequent period, if the Commission is satisfied for reasons to be recorded in writing that such adjustments for the excess or shortfall (i.e. in the "Expected revenue amounts' - actually realized vis-a-vis estimated amounts) is necessary and the Commission is further satisfied that such excess or shortfall is not on account of any reason attributed to the Utility/ Board or any of its successor entities. Such excess or shortfall shall be treated as defend revenue or expense while fixing the tariff.
