Section 17 in The Jammu and Kashmir State Electricity Regulatory Commission Act, 2000
17. Tariff by the Commission.
(1)Notwithstanding anything contained in any other law, the tariff for interstate transmission of electricity and the tariff for supply of electricity, grid, wholesale, bulk or retail, as the case may be, in the State (hereinafter referred to as the 'tariff'), shall be subject to the provisions of this Act and the tariff shall be determined by the Commission in accordance with the provisions of this Act.(2)The Commission shall determine by regulations the terms and conditions for the fixation of tariff, and in doing so, shall be guided by the following, namely :-(a)The principles and their applications provided in sections 41, 52 and 53 of the Jammu and Kashmir Electricity (Supply) Act, 1971 and the Sixth Schedule thereto;(b)In the case of the Board or its successor entities, the principles under section 56 of the Jammu and Kashmir Electricity (Supply) Act, 1971;(c)That the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency;(d)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 commercial principles.(3)[ x x x x ] [Deleted by Act VII of 2007, sections 2.](3)[] [Sub-sections (4) and (5) renumbered as (3), (4) and (5) by Act VII of 2007, sections 2.] If the 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 Government shall pay the amount to compensate the person affected by the grant of subsidy in the manner the Commission may direct, as a condition for the licensee or any other person concerned to implement the subsidy provided for by the Government.(4)[] [Sub-sections (4) and (5) renumbered as (3), (4) and (5) by Act VII of 2007, sections 2.] [ x x x x ] [Deleted by Act VII of 2007, sections 2.] 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 of 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.(5)[] [Sub-sections (4) and (5) renumbered as (3), (4) and (5) by Act VII of 2007, sections 2.] The holder of each licence and other persons including the Board or its successor body authorised 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 he is permitted to recover and in determining tariffs to collect those revenues.[17A. Determination of tariff by bidding process. - Notwithstanding anything contained in section 17, the Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Government.] [Section 17-A inserted by Act IV of 2009 w.e.f. 17-03-2009.]
