Section 12 in Chhattisgarh State Electricity Regulatory Commission (Fees and Charges of State Load Despatch Centre and Other Related Matters) Regulations, 2010
12. Return on equity.
(1)Return on equity shall be computed in Rupee term on equity base determined in accordance with Regulation 8 of these regulations.(2)Return on equity shall be computed on pre-tax base rate of maximum 15.5% to be grossed up as per the sub-clause (3) of this regulation.(3)The rate of return on equity shall be computed by grossing up the base rate with the normal tax rate for the financial year of the control period applicable to the CSPSOC :Provided that return on equity with respect to the actual tax rate applicable to the CSPSOC in line with the provisions of the relevant Finance Acts of the respective year during control period shall be trued up at the end of the control period.(4)Rate of return on equity shall be rounded off to three decimal points and be computed as per the formula given below : -Rate of pre-tax return on equity = Base rate/(l-t)Where it is the applicable tax rate in accordance with sub-clause (3).
