CSERC Regulations 16अध्याय 3 · Computation of Annual Charges

धारा 16 · Human Resource Expenses

(1)

Human resource expenses shall be derived on the basis of actual human resource expenses for the years 2005-06 to 2009-10, based on the audited/unaudited balance sheets. The human resource expenses shall be normalized by excluding abnormal Human resource expenses, ex-gratia, VRS expenses, prior-period adjustments, claims and advances written-off, provisions etc., if any, after prudence check by the Commission.

(2)

The normalized human resource expenses, after prudence check, for the years 2005-06 to 2009-10 shall form the basis to arrive at the HR expenses for the base year 2010-11. Provision for wage revision, if any, shall also be considered for arriving at HR expenses for the base year 2010-11. The normalized HR expenses for the base year will be used for projecting the expenses for each year of the control period.

(3)

The human resource expenses for the year 2010-11 shall be escalated further at the rate of 5.72% per annum to arrive at permissible human resource expenses for the subsequent years of the control period :Provided that human resource expenses for the year 2011-12 shall be further rationalized considering reasonable increase in employee cost on account of pay revision of the employees.

(4)

The Human Resource expenses for the subsequent control periods shall be computed on above specified principle and methodology.

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