Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Distribution Tariff) Regulations; 2004]1 Terms & Conditions for

5 · 4 The Ecard may furrish iniormation on circle-wise enercy irput and enrgy billed in system: 5.5 T&C losses for the ensuing year shall be fixed taking into account inter alia the plan submitted by the Petitioner for reduction of these losses, which shall include, information on 'energy auditing measures, improveent in Information Technologies, theft reduction measures etc: 6. Power Purchase Cost: 8.1 The energy available from various sources of power that supply to the Petitioner shall be determined: The fixed and the variable charge for these stations shall be determined: 6.2 The power purchase cost shall be estimated on the basis of merit order despatch; which may be determined on the basis of variable cost. 6.3 Due consideration shall be given to the technical constraints and long term contractual obligations while determining power purchase costs on the basis of merit order principle: 6.4 The availability from the state owned generators shall be estimated taking into account the generation figures approved by the Commission: 6.5 The Plant Load Factors pertaining to the previous financial year shall be taken into account for determining energy available with thermal Central Generating Stations (CGS): The energy from hydro CGS shall be estimated considering the average avaiiabiiity in ine previous years_ 6.8 The Commissiion shall determine the implications of Availability Based Tariif (ABT) regime provided details on the energy drawn at system peak frequency from all sources of generation alontwith the quanturm of incentiveslpenalties paid should be made available to the Commission on monthly basis: 1[6.7_ Additional power purchase cost on account of increase in Power Purchase Cost and in a case of own generation; increase in the fuel cost will be adjusted as per the Fuel and Power Purchase Cost Adjustment which-has been detailed below: 1.0 FPPCA shall be computed as per the-following formulate: FPPCA FOG PPo+B SE Where: FPPCA is the Fuel and Power Purchase Cost Adjustment in RsKKWH Part Code Description Part-I FOG Own Generation Fuel Cost Price Adjusiment and relates to the adjustment on account ofvariations in the landed price of fuelat Licencee's own thermal stations, upto the level of generation as determined by JSERC from time to time: Part-2 PPPo Power Purchase Cost Adjustment for ariation in unit price of power purchase, for the permitted quantity; from that specified for power purchase from other entities, including Central: Sector 1. "Item 6.7 of Regulation 6' added vide Notilin: No JSERCIApptt. 6-275 , dated 15.7.2o0e (Published in Jharkhand Gazette (Ex-ord:) dated 20.7.2006) Determined levels/Permitted quantity have the connotation as approved by JSERC in Tariff Order or any other annual reviews/Orders:

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3 · Repair and Mlainterarce (Ri) Expenses _-3.1 Trie A&ii expenses ##ll be based on & certain percentage of opening baiance oi gross iixed assts ior 'lsstribution works, as may be specified by the Commission irom time to time: 9.2 The R&m expenses shall be adjusted for any extraordinary repair and inaintenance work proposed to be undertaken by the Petitioner: 10. Provision for Bad and Doubtful Debts--10.1 No amount can be Allowed to be passed on the consumer on the ground of it being bad and doubtful dobt as it wil lead to inefficiency in collectioin: 11. Interest on loans: ~11.1 Interest on loan capital shall be computed loan- wise on the actual outstanding loans duly taking irto account the schedule of ropayment and actual interest rate. 11.2 Normative Loan will be equal to the loan and amount of equity in excess of thirty percent (30%) invested into the project provided that the total of actual loans, equity and the normative loan shall not exceed the cost of the project. 11.3 In case of the existing distribution licensee, the normative loan shall be the opening normative loan after taking into account repayments worked out on normative basis. The weighted average rate of interest on loan shall be worked out on the actual outstanding loan and applied to the normative loan for calculation of interest on loan in the respective year: 12. inieresi On Working Capiiai: -i2.i inieresi Or1 working capitai inai is required to meet the shortfall in collection over and above the target approved by Ilve Commission, shall be allowed. 12.2.Rate of interest on working capital shall be the short-term Prime Lending Rate of State Bank of India as on Ist April of the year for which the tariff is dotermined: 13. Interest on Consumer security deposits -13.1 Interest on Consumer "ncurity deposits shall be equivalent to the bank rate or more, as may be specified Iy Ihe Commission from time to time 14. Depreciation: ~14.1 The capital base for the purpose of depreciation "hall be the historical cost of the asset. 14.2 Depreciation shall be calculated annually as per straight-line method at Iha rate of depreciation as prescribed in the schedule attached to the regulations at Appendix-Il: Provided that the total depreciation during the life of the project shall not nxceed 90% of the approved original cost: 14.3 On repayment of entire loan, the remaining depreciable value shall be approad over the balance useful life of the asset: 14.4 Depreciation shall be chargeable from the first year of operation.In case ( operation of the asset for part of the year; depreciation shall be charged on pro- rli basis. 15. Advance Against Depreciation.-15.1 Advance Against Depreciation (AAD) shall be permitted wherever loan repayment considered for working out Ilarost on loan exceeds the depreciation allowable as per schedule and shall be rwmputed as follows: AAD-Loan repayment as referred above amount subject to a ceiling of 1/1Oth ' orlalnal loan amount minus Depreciation as per schedule

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