TNERC Regulations 29अध्याय IV · Determination of Tariff for Distribution of Electricity Under MYT

धारा 29 · Operation and Maintenance (O&M)

Operation and Maintenance (O&M).

- The Operation and Maintenance expenses include the following: Repairs & maintenance costs;Employee-related costs andAdministrative & general expenses,The O&M expenses shall be derived on the basis of actual expenses for the past five years previous to base year based on the audited Annual Accounts, after prudence check by the Commission.The O&M expenses so arrived for the base year may be escalated by four per cent per annum for every year of the control period.The licensee may also propose indexation for estimating the O&M expenses.O&M expense is a controllable cost and the licensee cannot recover the excess cost in excess of norms. The licensee shall share the gains on account of savings with the beneficiaries as provided in Regulation 3(ix).

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