Section 61:
Tariff regulations.
The Appropriate Commission shall, subject to the provisions of this Act,
specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the
following, namely:--
(a) the principles and methodologies specified by the Central Commission for determination of
the tariff applicable to generating companies and transmission licensees;
(b) the generation, transmission, distribution and supply of electricity are conducted on
commercial principles;
(c) the factors which would encourage competition, efficiency, economical use of the resources,
good performance and optimum investments;
(d) safeguarding of consumers' interest and at the same time, recovery of the cost of electricity in
a reasonable manner;
(e) the principles rewarding efficiency in performance;
(f) multi year tariff principles;
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[(g) that the tariff progressively reflects the cost of supply of electricity and also, reduces
cross-subsidies in the manner specified by the Appropriate Commission;]
(h) the promotion of co-generation and generation of electricity from renewable sources of
energy;
(i) the National Electricity Policy and tariff policy:
Provided that the terms and conditions for determination of tariff under the Electricity (Supply) Act,
1948 (54 of 1948), the Electricity Regulatory Commission Act, 1998 (14 of 1998) and the enactments
specified in the Schedule as they stood immediately before the appointed date, shall continue to apply for
a period of one year or until the terms and conditions for tariff are specified under this section, whichever
is earlier.
Notes:
1. Subs. by Act 26 of 2007, s. 10, for clause (g) (w.e.f. 15-6-2007).