Section 4 in Haryana Electricity Regulatory Commission (Tariff) Regulations, 1999
4. Fuel Surcharge Adjustment.
(1)No tariff may be amended more frequently than once in any financial year except that tariff rates shall be adjusted quarterly in accordance with any fuel surcharge adjustment formula (FSA) incorporated in the tariff with the approval of the Commission.(2)Unless otherwise agreed by the Commission, an FSA shall be in the following form:-Ai - PPCi - 1 - OFi-1 - EPRi-1 + BBiwhere :A1 is the amount by which the licensee's revenues under the relevant tariff are to be increased or decreased during quarter i(a negative number representing a reduction and a positive number representing an increase in revenues)PPCi = 1 is the licensee cost of purchased power for the actual level of sales and the allowed level of loss in the post recent quarter ending before quarter i, calculated asPi -1 X QACTi -1 X (1 + L)where :Pi -1 is the actual average cost of purchased power incurred by the licensee in the most recent quarter ending before quarter iQACTi -1 is the actual level of sales experienced by the licensee in the most recent quarter ending before quarter iL is the average level of energy losses allowed by the Commission in the cost of service and reflected in the licensee's tariffs,OFi - 1 are any purchased power costs actually incurred by the licensee in the most recent quarter ending before quarter i that are disallowed by the Commission as having been incurred in breach of its economic purchasing obligation.EPRi -1 is the aggregate amount of the charges that the licensee is deemed to have recovered from its tariffs in the most recent quarter before quarter i, which is given by the formula :EPi -1 X Qi-1 X(1 + L)where :EPi -1 is the average charge for purchased power for the most recent quarter ending before quarter i as determined by the Commission in the licensee's tariff.Qi -1 is the quantity of power deemed to have been sold by the licensee in the most recent quarter ending before quarter i, as determined by the Commission in the licensee's tariffsBi is a balancing faction reflecting the extent to which the licensee has under-adjusted or over-adjusted its tariffs through previous fuel surcharge adjustments and is calculated as follows :Bi = Bi-1+Ai-1 - Ri-1where :Ri-1 is the total amount of fuel surcharges accruing due to the licensee from its sales to consumers in the quarter immediately preceding quarter i(3)The licensee shall allocate the FSA to each class of consumers using the energy cost allocation Factors for each class contained in the currently approved tariff.(4)The licensee shall provide the Commission with its calculation of each fuel surcharge adjustment required to be made pursuant to its tariff before it is implemented and shall provide the Commission with such documentation and other information as it may require for the purpose of verifying the correctness of the adjustment.
