Section 134 in The U.P. Electricity Regulatory Commission (Conduct of Business) Regulations, 2004
134.
(a)The Commission may issue orders from time to time giving details of the manner in which the licensee's revenue and tariff will be determined consistent with the provisions of the applicable legal framework. These regulations shall, inter alia, define a period for which the approved tariffs shall be applicable in a multi-year framework for submission of detailed tariff filing by a licensee or a generating company and annual submission of information in a manner as specified by the Commission in the regulation.(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 :Provided that the existing terms and conditions for determination of tariff under the U P. Reforms Act shall continue to apply for a period of one year from the date of notification of the Electricity Act, 2003 or until the terms and conditions for tariff arc specified by the Commission, whichever is earlier.
