Tariff

(1) Notwithstanding anything contained in any other law, the tariff for transmission, grid, bulk or retail supply of electricity in the State (hereinafter referred to as "Tariff") shall be subject to the provisions of this Act and determined by the Commission: Provided that notwithstanding any order or directive of the Madhya Pradesh Electricity Regulatory Commission constituted under Section 17 of the Central Act, the tariffs and charges determined by the Commission vide its orders No. 192/B-1, No. 05-01/G/192/B-2, No. 05-01/G/192/C-1, No. 05-01/G/192/C-2, No. 05-01/G/192/C-3, No. 05-01/G/192/D-1, No. 05-01/G/192/D-2, No. 05-01/G/192/D-3, No. 05-01/G/192/E and No. 05-01/G/192/F, shall be valid and effective from 1st March, 1999. (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 factors, namely:— (a) the generation of electricity at efficient, adequate and quality levels which truly reflects the cost of supply of electricity; (b) factors which promote efficient use of resources, good performance, optimum investment and other matters which the State Commission deems appropriate for the purposes of this Act; (c) the generation, transmission, distribution and supply of electricity is done on commercial principles; (d) the interests of consumers are protected and at the same time consumers pay for the use of electricity in a reasonable manner; (e) the principles and their applications provided in Sections 46 and 57 and the Sixth Schedule of the Electricity (Supply) Act, 1948 (54 of 1948); and (f) in the case of the Board, the principles under Section 59 of the Electricity (Supply) Act, 1948 are complied with: Provided that where the Commission does not follow the factors specified in Clause (f), it shall record the reasons for the same. (3) Every licensee and other person, including the Board or its successor entity, engaged in transmission, sale, distribution or supply of electricity in bulk or retail in the State, shall calculate the expected revenue from charges in accordance with the procedures and processes specified by the Commission from time to time, as authorized for collecting such revenues while recovering and determining the tariff. (4) If the State Government requires the State Commission to grant a subsidy to any consumer or class of consumers under this tariff determined under this section, the State Government shall pay the amount in the form of a condition to the licensee or any other person concerned in the manner directed by the Commission to compensate the person affected by the provision of the subsidy, to implement the subsidy made available by the State Government. (5) Any retail tariff determined or implemented under this Act shall:— (a) not disclose separately the asymmetrical advantage to any consumer of electricity but may vary according to the consumer's load factor, power factor and for the total consumption of electricity during a specified period or the time at which supply is required or the geographical location of the area, the nature of usage, and the purpose for which usage is required or according to the capacity to pay and mutual assistance requirements of the consumer category; (b) except in the case of financially weak consumers, for whom a lower tariff for a limited quantity of electricity for meeting basic needs shall be done in such a manner that a higher tariff charged to any class or category of consumers from any other class or category of consumers being provided existing subsidy is reduced and within a period of five years from the commencement of this Act, the consumer of that category shall reflect the percentage of the cost of electricity supply to the licensee; (c) be fair and reasonable and shall be such as to promote efficiency in the generation and use of electricity; (d) meet all other relevant provisions of the Act, Rules and the conditions of the license. (6) Every licensee who has reason to believe that the charges to be collected under the tariff are to be determined shall provide to the Commission such information as may be required by the Commission to determine such calculation, at such time and in such manner as may be specified by the Commission. (7) (a) The Commission shall determine the tariff to be charged by the licensee after public hearing of the licensee and other interested parties, at intervals not exceeding one year in such manner as may be specified by the Commission. (b) The Commission shall be entitled to include in the licensee's tariff the expenses deemed necessary for the implementation of projects to support the supply of electricity to consumers in various locations in the licensee's area of supply from time to time, to be deployed in specific funds. (8) Except for any change for which the revised tariff is explicitly permitted and defined as part of the order to be issued by the Commission (e.g. fuel surcharge), no tariff or part of a tariff determined by the Commission and implemented shall be revised more than once in a financial year at the instance of the licensee. The licensee shall provide the proposal for revision of tariff to the Commission along with other information as required by the Commission. The Commission, after receipt of all information and hearing of the interested parties, shall take its decision on the proposed revision in tariff. (9) The licensee shall publish the tariff for electricity transmission or electricity supply within the area of transmission or supply in a daily newspaper operating in that region and shall make it available on the request of the public and such tariff shall be effective seven days after the date of such publication. (10) The licensee shall not revise or amend any tariff until it has been approved by the Commission and the revised tariff published in the manner provided in sub-section (9). (11) Notwithstanding anything contained in Sections 56, 57, 57-A and 57-B of the Electricity (Supply) Act, 1948 (54 of 1948), no rating committee shall be constituted after the date of commencement of this Act and the Commission shall ensure that the licensee has followed the relevant provisions regarding the sale of both bulk and retail electricity and the integration of their assets or systems in accordance with the provisions of this Act.