Section 5 in Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015
5. Business Plan.
- 5.1 The Distribution Licensee shall file a Business Plan, for the Control Period which shall comprise but not be limited to detailed category-wise sales and demand projections, power procurement plan, capital investment plan, financing plan and physical targets.Provided that in case the Commission issues guidelines and formats, from time to time, the same shall be adhered to by the Distribution Licensee.5.2(a)The capital investment plan shall show separately, on-going projects that will spill into the year(s) under review and new projects (along with justification) that will commence but may be completed within or beyond the tariff period. The Commission shall consider and approve the capital investment plan for which the Distribution Licensee shall provide relevant technical and commercial details.Provided that for schemes involving capital expenditure greater than INR 5 Crore, the Distribution Licensee shall seek prior approval of the Commission.(b)The Distribution Licensee shall submit detailed supporting documents while seeking approval from the Commission.Provided that supporting documents shall include but not be limited to purpose of investment, capital structure, capitalization schedule, financing plan and cost-benefit analysis:(c)The approval of the capital expenditure by the Commission for the ensuing year shall be in accordance with load growth, system extension, rural electrification, distribution loss reduction or quality improvement as proposed in the Distribution Licensee's supporting documents.(d)The Commission may also undertake a detailed review of the actual works compared with the works approved in the previous Tariff Order while approving the capital expenditure for the ensuing year.(e)In case the capital expenditure is required for emergency work, the licensee shall submit an application, containing all relevant information along with reasons justifying the emergent nature of the proposed work, seeking post facto approval by the Commission.(f)The Distribution Licensee shall take up the work prior to receiving the approval from the Commission provided that the emergent nature of the scheme has been certified by its Board of Directors.(g)If the scheme involves capital expenditure of less than INR 5 Crore, and included in the capital investment plan referred in regulation 5.2, the Distribution Licensee shall undertake the execution of the scheme with simultaneous notification to the Commission with all of the relevant supporting documents.(h)Consumer's contribution towards cost of capital asset shall be treated as capital receipt and credited in current liabilities until transferred to a separate account on Commissioning of the assets.(i)An amount equivalent to the depreciation charge on such assets for the year shall be appropriated from this account as income to the profit and loss account over the useful life of the asset.5.3The Distribution Licensees shall project the power purchase requirement after considering effect of target set for Energy Efficiency (EE) and Demand Side Management (DSM) schemes.
