Gujarat Electricity Regulatory Commission (Multi Year Tariff Framework) Regulation, 2007

{
    "id": 16582,
    "slug": "gujarat-electricity-regulatory-commission-multi-year-tariff-framework-regulation-2007",
    "title": "Gujarat Electricity Regulatory Commission (Multi Year Tariff Framework) Regulation, 2007",
    "short_title": "Gujarat Electricity Regulatory Commission (Multi Year Tariff Framework) Regulation, 2007",
    "act_number": "Published vide Notification No. 1 of 2007",
    "act_year": 2007,
    "act_type": "STATE",
    "location": "Gujarat",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "Gujarat Electricity Regulatory Commission (Multi Year Tariff Framework) Regulation, 2007",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short Title, Extent and Commencement.",
            "chapter": null,
            "content": "Chapter 2",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definitions.",
            "chapter": null,
            "content": "(a) \"Accounting Statement\" means for each financial year, the following statements, namely\ni. balance sheet, prepared in accordance with the form contained in Part I of schedule VI to the Companies Act, 1956;\nii. profit and loss account, complying with the requirements contained in Part II of Schedule VI to the Companies Act, 1956;\niii. cash flow statement, prepared in accordance with the Accounting Standard on Cash Flow Statement (AS-3) of the Institute of Chartered Accountants of India;\niv. report of the statutory auditors;\n(b) \"Act\" means the Electricity Act, 2003 (36 of 2003), including amendments thereto;\n(c) \"Allocation Statement\" means for each financial year, a statement in respect of each of the separate businesses of the Licensee, showing the amounts of any revenue, cost, asset, liability, reserve or provision etc, which has been either;\ni. charged from or to each such Other Business together with a description of the basis of that charge; or\nii. determined by apportionment or allocation between different businesses of the licensee including the Licensed Businesses, together with a description of the basis of the apportionment or allocation;\n(d) \"Applicant\" means a Licensee or Generating Company who has made an application for determination of tariff or an application for annual performance review in accordance with the Act and these Regulations and includes a Licensee or Generating Company whose tariff is the subject of a review by the Commission either suo motu or on a petition filed by any interested or affected person or as part of an annual performance review;\n(e) \"Aggregate Revenue Requirement\" means the requirement of the Licensee for recovery, through tariffs, of allowable expenses and return on equity pertaining to his Licensed Business, in accordance with these Regulations;\n(f) \"Base Year\" means the financial year immediately preceding the first year of the Control Period;\n(g) \"Commission\" means the Gujarat Electricity Regulatory Commission;\n(h) \"Control Period\" means a period comprising one or more financial years, as may be stipulated by the Commission, for submission of forecast in accordance with chapter 6 of these Regulations;\n(i) \"Expected Revenue from Tariff and Charges\" means the revenue estimated to accrue to the Licensee from the Licensed Business at the prevailing tariffs;\n(j) \"Fees and Charges Regulation\" means the Gujarat Electricity Regulatory Commission (Fees, Fines and Charges) Regulations, 2005 (Notification No. 6 of 2005) as notified by the Commission and as amended from time to time;\n(k) \"Financial year\" means the period commencing on 1st April of a calendar year and ending on 31st March of the subsequent calendar year;\n(l) Force Majeure Event\" means, with respect to any party, any event or circumstance which is not within the reasonable control of, or due to an act or omission of, that party and which, by the exercise of reasonable care and diligence, that party is not able to prevent, including, without limiting the generality of the foregoing:\n(i) acts of God, including but not limited to lightning, storm, action of the elements, earthquakes, flood, drought and natural disaster;\n(ii) strikes, lockouts, go-slow, bandh or other industrial disturbances;\n(iii) acts of public enemy, wars (declared or undeclared), blockades, insurrections, riots, revolution, sabotage, vandalism and civil disturbance;\n(iv) unavoidable accident, including but not limited to fire, explosion, radioactive contamination and toxic dangerous chemical contamination;\n(v) any shutdown or interruption of the grid, which is required or directed by the State or Central Government or by the Commission or the State Load Despatch Centre; and\n(vi) any shut down or interruption, which is required to avoid serious and immediate risks of a significant plant or equipment failure;\n(m) \"Retail Supply Business\" means the business of sale of electricity by a Distribution Licensee to consumers, in accordance with the Conditions of Licence;\n(n) \"Tariff Regulation\" means the GERC (Terms and Conditions or Tariff) Regulation, 2005;\n(o) \"Trading Business\" means the business of purchase of electricity by the distribution licensee for resale of electricity to other licensee or consumers or category of consumers agreed to receive supply as per section 49 of the Act;\n(p) \"Wheeling\" means the operation whereby the distribution system associated facilities of a distribution licensee, are used by another person for the conveyance of electricity on payment of charges to be determined under section 62;\n(q) \"Wheeling Business\" means the business of operating and maintaining a distribution system for supplying electricity in the area of supply of the distribution licensee.\nChapter 3",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Scope of Application.",
            "chapter": null,
            "content": "(a) Supply of electricity by a Generating Company to a Distribution Licensee:\n(b) Intra-State transmission of electricity;\n(c) Intra-State Wheeling of electricity;\n(d) Retail sale of electricity;\n(a) Wheeling Business and\n(b) Retail Supply Business\nChapter 4",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. Multi Year Tariff Framework.",
            "chapter": null,
            "content": "(a) At the commencement of Control period a forecast of the aggregate revenue requirement and expected revenue from existing tariffs and charges shall be submitted by the applicant and approved by the Commission;\n(b) Applicants forecast of aggregate revenue requirement and expected revenue from tariffs and charges during the control period, based on reasonable assumptions relating to the expected behavior of the underlying financial and operational variables;\n(c) For determining the values for the base year of the Control Period, the Commission may take into account the latest audited accounts available, actuals of the first six months for the base year and other factors considered relevant by the Commission;\n(d) The Commission may also make an independent analysis & assessment of the baseline data for various parameters of the wheeling business and supply business and consider the same with appropriate and required modifications as the baseline values for the control period;\n(e) Trajectory for specific variables as may be stipulated by the Commission, where the performance of the applicant is sought to be improved through incentives and disincentives;\n(f) The Commission may specify a trajectory of certain variables for determination of tariff of:\n(i) A Generating Station,\n(ii) A Generating Company; and/ or\n(iii) A Licensee in respect of his Generation Business:\n(g) Annual review of performance vis-a-vis the approved forecast and categorization of variations in performance into those that were caused by factors within the control of the applicant (controllable factors) and those caused by factors beyond the control of the applicant (uncontrollable factors);\n(h) Mechanism for pass-through of approved gains or losses arising due to difference between the performance vis-a-vis the Commission approved forecast of the generating company or the licensee on account of uncontrollable factors;\n(i) Mechanism for sharing of approved gains or losses arising due to difference between the performance vis-a-vis the Commission approved forecast of the generating company or the licensee on account of controllable factors;\n(j) Annual determination of tariff for each financial year within the control period, based on the approved forecast and results of the annual performance review.\nChapter 5",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Accounting statement and filing under MYT.",
            "chapter": null,
            "content": "Chapter 6",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Control Period.",
            "chapter": null,
            "content": "Chapter 7",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Forecast.",
            "chapter": null,
            "content": "(a) Assumptions relating to the behavior of individual variables that comprise the aggregate revenue requirement during the control period; or\n(b) Assumptions relating to-\n(i) percentage annual change in a suitable macro-economic or market index, or combination thereof, to which the aggregate revenue requirement of the applicant is correlated; and\n(ii) percentage annual reduction in aggregate revenue requirement due to efficiency or productivity gains proposed to be achieved by the applicant on account of specified benchmark, controllable and uncontrollable factors, during the control period: or any other unforeseen adjustments as appropriate.\n(a) from the methodology specified in clause (a) of Regulation 7.2.1 to clause (b) of that Regulation; or\n(b) from the methodology specified in clause (b) of Regulation 7.2.1 to clause (a) of that Regulation, the applicant shall apply to the Commission for approval of change of methodology along with the rationale thereof and such other details as the Commission may require, at least nine (9) months before the commencement of such control period.\n(a) pass an order approving the change of method, subject to such conditions as it may specify in the said order; or\n(b) reject the application for reasons to be recorded in writing, if it is not in accordance with the principles contained in Section 61 of the Act or these regulations.\n(2) Capital Expenditure Plan.\n(3) Forecast of expected revenue from tariff and charges.\n(a) In the case of a Transmission Licensee, estimates of transmission capacity allocated to Transmission System Users for each financial year within the control period;\n(b) In the case of a Distribution Licensee, estimates of quantum of electricity wheeled or capacity allocated to the distribution system users for each financial year within the control period;\n(c) Prevailing tariffs as at the date of making the application.\n(a) pass an order approving the forecast of aggregate revenue requirement and expected revenue from tariff and charges for the control period, subject to such modifications and conditions as it may specify in the said Order; or\n(b) reject the application for reasons to be recorded in writing, if it is not in accordance with the principles contained in Section 61 of the Act or these Regulations and direct the applicant to submit a revised forecast taking into consideration such factors as the Commission may deem appropriate.\nChapter 8",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Specific trajectory for certain variables.",
            "chapter": null,
            "content": "Chapter 9",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Annual review of performance.",
            "chapter": null,
            "content": "(a) The application for determination of tariff for any financial year shall be made not less than one hundred and twenty (120) days before the commencement of such financial year;\n(b) The application for annual performance review during any financial year of the control period shall be made not less than one hundred and twenty (120) days before the close of such financial year:\n(a) A comparison of the audited performance of the applicant for the previous financial year with the approved forecast for such previous financial year;and\n(b) A comparison of the performance of the applicant for the first half of the current financial year with the approved forecast for the current financial year and\n(c) Any other relevant details, if any\n(a) Force Majeure Events;\n(b) Changes in law, judicial pronouncements and Orders of the Central Government, State Government or Commission;\n(c) Economy-wide influences, such as unforeseen changes in inflation rate, market-interest rates, taxes and statutory levies.\n(a) Variation in the price of fuel and/ or price of power purchase according to the FCA/FPPPA formula approved by the Commission from time to time;\n(b) Variation in the number or mix of consumers or quantities of electricity supplied to consumers;\n(c) Expenses on account of Inflation;\n(d) Taxes on Income.\n(a) Variations in capital expenditure on account of time and/ or cost overruns / efficiencies in the implementation of a capital expenditure project not attributable to an approved change in scope of such project, change in statutory levies or force majeure events;\n(b) Variations in technical and commercial losses, including bad debts;\n(c) Variations in the number or mix of consumers or quantities of electricity supplied to consumers as specified in the first and second proviso to clause\n(b) of Regulation 9.6.1;\n(d) Variations in working capital requirements;\n(e) Variation in expenses like: (i) Operation & Maintenance expanses , (ii) Employee Cost, (iii) Admn. & General expenses, (iv) Interest & Finance Charges, (v) Return on Equity, Depreciation, (vi) Non-tariff income;\n(f) Failure to meet the standards specified in the Standards of Performance Regulations, except where exempted in accordance with those Regulations;\n(g) Variations in labour productivity;\n(h) Variations in any variable other than those stipulated by the Commission under Regulation 9.6 above.\n(a) the approved aggregate gain or loss to the Generating Company or Licensee on account of uncontrollable factors and the mechanism by which the Generating Company or Licensee shall pass through such gains or losses in accordance with Regulation 10;\n(b) the approved aggregate gain or loss to the Generating Company or Licensee on account of controllable factors and the amount of such gains or such losses that may be shared in accordance with Regulation 11;\n(c) the approved modifications to the forecast of the Generating Company or Licensee for the remainder of the control period, if any, under Regulation 9.5.\nChapter 10",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Mechanism for pass through of gains or losses on account of uncontrollable factors.",
            "chapter": null,
            "content": "Chapter 11",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Mechanism for sharing of gains or losses on account of controllable factors.",
            "chapter": null,
            "content": "(a) One-third of the amount of such gain shall be passed on as a rebate in tariffs over such period as may be specified in the Order of the Commission under Regulation 9.7;\n(b) One-third of the amount of such gain shall be retained in a special reserve by the Generating Company or Licensee for the purpose of absorbing the impact of any future losses on account of controllable factors under clause\n(b) of Regulation 11.2; and\n(c) The balance amount of gain may be utilized at the discretion of the Generating Company or Licensee.\n(a) One-third of the amount of such loss may be passed on as an additional charge in tariffs over such period as may be specified in the Order of the Commission under Regulation 9.7; and\n(b) The balance amount of loss shall be absorbed by the Generating Company or Licensee.\nChapter 12",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Annual determination of tariff.",
            "chapter": null,
            "content": "(a) The approved forecast of aggregate revenue requirement including the incentive available for the Generating Company or Licensee and expected revenue from tariff and charges for such financial year, including approved modifications to such forecast; and\n(b) Approved gains and losses to be passed through in tariffs, following the annual performance review.\nChapter 13",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. Miscellaneous",
            "chapter": null,
            "content": "13.1 Issue of Orders and Practice Directions.\n13.2\n(3) Powers to remove difficulties.\n(4) Power of Relaxation.\n(5) Interpretation.\n(6) Saving of Inherent Powers of the Commission.\n(7) Enquiry and Investigation.\n13.8 Power to Amend.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        }
    ],
    "metadata": {
        "Act ID": "Last Updated 11th June, 2019 [guj282]",
        "Act Number": "Published vide Notification No. 1 of 2007",
        "Enactment Date": "",
        "Act Year": "2007",
        "Short Title": "Gujarat Electricity Regulatory Commission (Multi Year Tariff Framework) Regulation, 2007",
        "Type": "STATE",
        "Location": "Gujarat"
    },
    "updated_at": "2026-09-29 21:55:19"
}