Ascertainment of costs

As soon as practicable after the end of a year of account-

(a) There shall be ascertained in respect of that year the cost of production at the station in accordance with the provisions of the Eighth Schedule:

(b) There shall be deducted from the total sum ascertained, in respect of the year under Cls. (b), (c), ((I). (e) and (f) of para. I of the Eighth Schedule, such proportion of the charges referred to in the said clauses as are wholly attributable to so much of the plant and works, if any, as has been declared by the licensee under Sub-paragraph (2) of para. X to be surplus to his requirements, and the balance remaining after such deduction shall, for the purposes of this schedule. be referred to as the schedule overhead charges:

Provided that in assessing the said proportion, regard shall be had to the period during which any such plant or works were declared to be surplus as aforesaid;

(c) There shall be allocated between fixed costs and running costs in accordance with the provisions of the Ninth Schedule, the sum ascertained in respect of' that year under Cl. (a) of para. I of the Eighth Schedule, and the amount of- running costs divided by the number of kilowatt-hours supplied from the station in that year shall for the purposes of the Schedule, be referred to as the running charges component:

(d) There shall be ascertained in respect of that year an amount (in this Schedule referred to as the scheduled fixed works costs) calculated from the expression, A + A X B / C where--

A = the amount of fixed cost ascertained in respect of that year under Cl. (c);

B = the sum of the scheduled effective capacities for each month of that year;

C = the sum of the actual effective capacities for each month of that year.