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lq[kkj Hkzk.k esa LFkkfir djus gsrq izLrko djrh gS vkSj ;Fkk visf{kr lacfU/kr xzke lHkk lnL;ksa dh

tkudkjh ,oa lkoZtfud vk{ksi vkeaf=r djus ds fy, fgekpy izns”k ds jkti= esa izdkf”kr djus ,oa

ftyk dkaxM+k ds mik;qDr dks] mDr ckjs lq>koksa@vk{ksiksa dks izkIr djus rFkk mu ij fopkj djus ds fy,

izkf/kd`r djus ds vkns”k iznku djrh gSa (

;fn xzke lHkk lq[kkj pkS/kfj;ka ds eq[;ky; dks cnyus ckjs mDr izLrko ds lacU/k esa] lacfU/kr

xzke lHkk lnL;ksa dks dksbZ vkifÙk@lq>ko izLrqr djuk gks rks os vius vk{ksi ;k lq>ko bl vf/klwpuk ds

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vof/k ds volku ds Ik”pkr~ vk{ksi ;k lq>ko] tks dksbZ Hkh gksa] xzg.k ugha fd, tk,axs (

jkT; ljdkj] ftyk dkaxM+k] fodkl [k.M uwjiqj dh xzke lHkk lq[kkj pkS/kfj;ka ds eq[;ky; dks

cnyus ds lEcU/k esa vfUre vf/klwpuk] mik;qDr dkaxM+k dh flQkfj”k ds n`f’Vxr tkjh djsxhA

vkns'k }kjk]

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iz/kku lfpo A

&&&&&&

HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION, SHIMLA

NOTIFICATION

Shimla-2, the 22^nd December, 2014

No. HPERC-H(1)-13/2014.—In exercise of powers conferred by section 181, read with

sub-section (8)of section 128 of the Electricity Act, 2003 (36 of 2003) and all other powers

enabling it in th is behalf, The Himachal Pradesh Electricity Regulatory Commission, after

previous publication, hereby makes the following regulations:—

REGULATIONS

Short title, extent and commencement:

(1). These regulations shall be called the Himachal Pradesh Electricity Regulatory

Commission (Reporting System on Power Regulatory Accounting) Regulations, 2014.

(2) Theses regulations shall extend to the whole of the State of Himachal Pradesh and to

all matters within the jurisdiction of the Himachal Pradesh Electricity Regulatory Commission

(3) These regulations shall come into force from the date of their publication in the

Rajpatra, Himachal Pradesh.

Applicability of the Regulations:

These Regulations shall be applicable to all Licensees and Generating Companies, and

where any Licensee also undertakes business of generation of electricity and who submits

application for determination of tariff under Section 64 of the Act or makes an application for

annual performance review under applicable tariff regulations made by the Commission.

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Definitions:

(1) In these regulations, unless the context otherwise requires,—

(a) “Act” means the Electricity Act (36 of 2003);

(b) “Accounting Statement/Annual Accounts” for each financial year, includes,—

(i)

the balance sheet, prepared at the end of the financial years; in accordance with

the general instructions contained in Schedule III of the Companies Act, 2013;

(ii)

the cash flow statement, prepared in accordance with the Accounting

Standards prescribed under section 133 of the Companies Act, 2013 on the

recommendations of the Institute of Chartered Accountants of India;

(iii)

the cost records prepared and kept under Section 128 of the Companies Act,

2013(Act No. 18 of 2013);

(iv)

the profit and loss account, in accordance with the general instructions

contained in the Schedule III to the Companies Act, 2013 (Act No. 18 of 2013);

(v)

a statement of changes in equity, if applicable;

(vi)

the report of the statutory auditors;

(vii) any explanatory note, annexed to, or forming part of, any document referred to

in clause (i) or clause (v), and

(viii) such other supporting statements, together with notes thereto, and information

as the Commission may direct from time to time;

appointment and is not disqualified for appointment as auditor under the Companies

Act, 2013 (Act No. 18 of 2013).

(d) “Commission” means the Himachal Pradesh Electricity Regulatory Commission;

(e) “Financial Accounting Year” means the period coinciding with the financial year for

the purpose of determination of tariff, i.e., the period commencing on Ist day of April

of a calendar year and ending on 31st March of the subsequent calendar year.

(f) “Licensed Business” means the functions and activities, which the licensee is

required to undertake in terms of the licence granted or being a deemed licensee under

the Act;

(g) “Regulatory Accounts” means the regulatory accounts, duly audited by the auditor of

the Utility containing all the financial and non-financial information including the

filled up formats appended to these regulations and cover the activities which includes

without limitation the Statutory Accounts prepared under Companies Act, 2013 or any

other law applicable to the Utility;

(h) “Regulated Business” means the business in relation to which functions and activities

are regulated by the Commission;

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(i) “Other Business” means any business of the licensee or of the deemed licensee other

than the licenced business.

(j) “Utility” means a person who has been granted a licensee or is a deemed licensee

under the Act, and includes a generating company.

(2) The words and expressions used herein and not defined in these regulations, but are

defined in the Act, rules, or regulations made thereunder, shall have the meanings respectively

assigned to them in the Act, and rules or regulations made thereunder.

Preparation of Accounting Manual:

(1) Every Utility shall, within 90 days after the commencement of these regulations or the

grant of the licensee or the beginning of the regulated business, prepare an accounting a Manual

containing.—

(i) definitions of terms and expressions used in the Manual;

(ii) introduction of the Utility;

(iii) an overview of the Utility’s organizational structure;

(iv) a clear categorization of the regulated and unregulated activities of the Utility with

further segregation of regulated activities covered under more than one Regulatory

Commission;

(v) a list of the entities within the group, relationship of the Utility with other group

Companies or subsidiaries or related parties in terms of common resources, etc.;

(vi) an overview of the financial accounting system, which may include policies relating to

treating an expense item as major or minor, capitalization, depreciation, Return on

Equity, security deposits, provision for bad and doubtful debts, apportionment of

common assets, common liabilities, common expenses and common revenue, etc., with

respect to the Regulatory Accounts;

(vii) description of the treatment of related party transactions, allocation of common

expenses and allocation of jointly used assets;

(viii) products, services or geographical areas which shall be treated as separate segments

while preparing regulatory accounts;

(ix) segmentation of regulated business.—

(a) generation – hydro, thermal, renewables i.e. small hydro, solar, wind, bio etc. or

any other;

(b) transmission;

(d) distribution - wheeling and retail supply business and

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(e) trading:

Provided that where regulated business is carried out in more than one State, State-wise

segmentation of the regulated business shall be given:

Provided further, that in case transmission and/or distribution of electricity is carried out

under separate transmission and/or distribution licences within the same State, Licence wise

segmentation of transmission and/or distribution business shall be given;

(x) Accounting System followed for each segment of the regulated business, referred to

clause (ix), and recording of the accounting separation information and reports, which

may include list of cost and profit centres, linkages of financial heads to cost and profit

centres;

(xi) description of studies, surveys and model employed in cost apportionment and

allocation process; and

(xii) procedure for maintenance and updating Manual.

(2) The utility shall subject the Accounting Manual to the Commission by the end of the

financial year and all subsequent changes in the said Manual, together with the reasons thereof shall

also be submitted to the Commission.

Periodicity of submission of Regulatory Accounts:

(1) The Utility shall submit the Regulatory Audited Accounts every year within seven

months of the end of the Financial Accounting Year to the Commission in accordance with the

formats appended to these regulations.

(2). The reports referred to in sub-regulation (1) shall be submitted in hard copy and in soft

copy in MS Excel format along with its formulae and linkage;

Audit:

(1) Every Utility, to which this Regulation applies, shall appoint an auditor who is

qualified for appointment as an auditor under sections 138, 139,141, 142 or 148 of the Companies

Act, 2013 to audit the reports prepared by the Utility under this regulation and obtain an Audit

Report from the Auditor in the Annexure A

(2) The auditor shall audit the Regulatory Accounting Reports prepared by the Utility.

(3) The auditor in his report shall express an opinion as to whether the Regulatory

Accounts have been prepared in accordance with the applicable Tariff Regulations as well as these

regulations and he has received all information and explanation necessary for the purpose of audit.

Maintenance of Information :

(1) Every Utility shall maintain segregated financial, operational and accounting

information with supporting vouchers and journal entries including Allocation Statement based on

actual in respect of the Regulated Business and Other Business.

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Explanation-1 The accounting and reporting arrangements shall be maintained in such a

manner that they can be verified at final accounts level. Data maintained in the formats as per the

Appendix shall provide information in the most understandable manner, without sacrificing

relevance or reliability.

Explanation- 2 For normative figures in Regulatory Accounts, such as Interest on Working

Capital, Interest on Normative Loans, if any, Depreciation, etc. the information as specified in the

formats in the Appendix shall be maintained separately.

(2) Notwithstanding anything contained in sub-regulation (1), the Commission may direct

that further or more detailed information may be required to be maintained by every Utility for their

Regulated Business.

Basis of Preparation:

(1) Every Utility shall prepare the Regulatory Accounts as per formats appended to these

regulations under the historical Cost Convention in accordance with the provisions of the Act and

the Regulations made by the Commission, Generally Accepted Accounting Principles in India,

applicable Accounting Standards as notified under (relevant provisions of the Companies Act, 2013

as well as Electricity (Supply) Annual Accounts Rules, 1985 if applicable). Where there is an

inconsistency between the above mentioned principles, etc. and/ the Act or the regulations made by

the Commission treatment of items in the Regulatory Accounts shall be given as per these

Regulations made by the Commission.

(2) The Utility shall follow the Accounting Policies for Regulatory Accounts and the

Standard Chart of Accounts while preparing the Regulatory Accounts as per the formats appended

to these regulations. In case the Profit and Loss Account and the Balance Sheet does not comply

with any of the Accounting Standards, a disclosure to the effect shall be made in notes to accounts,

including the deviation from the Accounting Standard, reasons for such deviation and the financial

effect of the same.

Accounting Policies for Regulatory Accounts :

(1) FIXED ASSETS

(a). Value of fixed assets shall be at cost( as per the Himachal Pradesh Power Sector

Reforms Transfer Scheme, 2010 formulated in pursuance to unbundling of the

erstwhile Himachal Pradesh State Electricity Board, subject to adoption of the same by

the Commission for the purpose of tariff determination.

(b). In case of transfer of one entity to another, fixed assets shall be carried at historic cost/

cost allowed by the Commission.

(c). Addition to the fixed assets shall be stated at cost of acquisition or construction

including any cost attributable to bringing the assets to their working condition for

their intended use and actually put to use for the benefit of consumers (subject to

certain exceptions like machine spares, etc.), as allowed by the Commission. The date

on which the asset is put to use can be the Commercial Operation Date (COD) of the

last Unit of the Generating Station for a Generation Company or the date of charging

the asset with the rest of the network for a Transmission Licensee or a Distribution

Licensee.

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(d). The Generation Company or the Transmission Licensee shall separately indicate the

addition of fixed assets in respect of renovation and modernization of fixed assets

resulting in increase in life and/or efficiency of existing assets: Provided that, where

any special allowance has been claimed for renovation and modernization of any fixed

asset, in accordance with any Regulations notified by the Commission, the Generation

Company or the Transmission Licensee shall separately indicate the addition of fixed

assets in respect of renovation and modernization of such fixed assets.

(e). All Grants received from Central Government or State Government or any other source

and Consumer Contribution received from consumers for capital expenditure shall be

reduced from the value of fixed assets for the creation of which these funds have been

used. In case the entire asset is funded out of such Grants or Consumer Contributions,

then the fixed asset shall be shown in Regulatory Accounts at zero value. In case grants

from Central Government or State Government or any other source are received for

capital expenditure with caveats which require the Generation Company or the

Licensee to achieve certain milestones, such grants shall be reduced from the value of

fixed assets after achieving the milestones. Till that time, the full value of fixed assets

shall be shown in the Regulatory Accounts.

(f). Wherever considered appropriate and necessary by the Commission, the Generation

Company or the Transmission Licensee shall also be required to provide the asset wise

break up of cost (consisting of Base Cost, Interest During Construction, Incidental

Expenditure During Construction and other cost, if any), asset wise liability incurred,

asset wise accumulated depreciation charged till date, and asset wise depreciation

charged in the Financial Accounting Year for the purpose of Regulatory Accounts.

(g). Fixed assets which do not have the approval of the Commission shall be shown

separately in the fixed assets schedule. Appropriate justification for necessity of such

fixed assets shall be given in the Notes to the Regulatory Accounts.

(h). The Generation Company or the Licensee shall capitalise assets to be charged at high

voltage or extra high voltage after getting the certificate from the Electrical Inspector:

in accordance with Rule 63 of the Indian Electricity Rules, 1956 or any corresponding

Rule made under the Electricity Act 2003.

(i). Where the Commission has given year wise approval for capitalization in the

beginning of MYT Control Period such amount shall be shown separately in the notes

to the Regulatory Accounts.

(j). Amount of spares capitalized and its percentage in the cost of fixed assets shall be

shown separately in the notes to the Regulatory Accounts.

(k). Un-discharged liability shall be shown in the fixed asset schedule.

(l). Variance analysis between the actual capitalization and the capitalization approved by

the Commission shall be shown in a separate schedule/notes to schedule along with

brief reasoning justifying the variance.

(m). In case of Generation Utilities, income from sale of infirm power prior to the date of

commissioning, after accounting for the fuel charges (both primary fuel charges and

secondary fuel charges) shall be reduced from fixed assets and the adjustment shall be

shown in the fixed assets schedule.

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(n). Amount of capitalisation carried out in pursuance to arbitration, court order, change in

law shall be shown separately in notes to the fixed assets schedule.

(o). Details such as Gross block, depreciation for the year, accumulated depreciation and

net block shall be provided for each of the above mentioned Items.

(p). Fixed assets common to more than one Business of the Licensee or Generation

Company shall be apportioned between the different Businesses based on the

Allocation Principles as appended to the Regulation.

(q). Any expenditure on replacement, renovation and modernization or extension of life of

old fixed assets shall be considered after writing off the gross value of such

replaced/de-capitalised fixed assets from the original capital cost, except for the assets

that have been entirely funded out of Grants or Consumer Contribution, where the

original asset would be shown at zero value. The Equity portion attributable to

replaced/de-capitalised in the Regulatory Accounts shall also be deducted. Specific

debt, if any, outstanding corresponding to the replaced old asset shall be deducted from

the debt outstanding in the Regulatory Accounts, to the extent set off by sale of the old

replaced asset as scrap.

(2)

CAPITAL WORK IN PROGRESS:

The Capital Work in progress shall be stated at cost inclusive of all direct and proportionate

overhead costs incurred.

(3)

DEPRECIATION :

(a). Depreciation on fixed assets in the Regulatory Accounts shall be charged as per the

Tariff Regulations notified by the Commission.

(b). All fixed assets, except land, which is a non-depreciable asset, shall be depreciated up

to 90% of the original cost, on straight line method, at rates prescribed under Tariff

Regulations notified by the Commission.

(c). In case of fixed assets added during the year, pro-rata depreciation shall be allowed for

the first year.

(d). Depreciation shall continue only till writing off of 90% of the original cost of the fixed

asset or till the asset is permanently ceases to be in use, whichever is earlier.

(e). In case of replacement of an old asset, the accumulated depreciation corresponding to

the asset shall also be deducted from the total accumulated depreciation. Proportionate

adjustment in Cumulative Repayment shall also be made.

(4)

ADVANCE AGAINST DEPRECIATION :

Advance Against Depreciation, if any, shall be shown in Regulatory Accounts in

accordance with the appropriate provisions of Tariff Regulations.

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(5)

EXPENDITURE ON PROJECT IDENTIFICATION, SURVEY AND FEASIBILITY

STUDIES :

(a). Expenditure incurred on identification, survey and feasibility studies of a project

before the project is considered for sanction or rejection shall be accumulated in an

account provided for this purpose.

(b). If the project is found infeasible, the full amount of expenditure shall be charged to

revenue as in-fructuous capital expenditure in the year in which the project is rejected.

(c). If the project is found feasible, it shall be submitted to the Commission for approval.

Upon approval of the Commission, the expenditure shall be charged to Capital Work-

in-Progress account for that project. Any expenditure incurred on detailed feasibility

studies etc. after a project is sanctioned shall also be charged to the Capital Work-in-

Progress account for that project.

(d). The aggregate of the expenditure incurred before and after the sanction of the project

shall be allocated to the assets capitalized under the project based on appropriate cost

driver.

(6)

EXPENSES CHARGEABLE TO CAPITAL WORKS:

All the expenses, such as Employee Expenses, Administration and General Expenses,

Interest Expenses etc., in respect of construction of fixed asset shall be fully charged to the cost of

fixed assets. At O&M-cum-capital location (where both capital and Operational and Management

work is being carried out) only the following expenses shall be capitalized:—

(a). Insurance on assets under construction.

(b). Legal charges and stamp fees in connection with agreement with capital

suppliers/contractors.

(c). Fees payable to foreign technician for capital project.

(d). Expenses incurred for foreign technician for capital project.

(e). Technician documentation and design charges.

(f). Other consultancy charges directly related with project (which includes architectural

fees).

(g). Power consumed for construction.

(h). Cost of hiring vehicles and equipments for the project.

(i). Other costs directly related to the project

No part of any other administration and general expenses, which is related to Operation and

Maintenance of existing assets, shall be charged to capital works.

(7)

CAPITALISATION OF DEPRECIATION:

Depreciation on fixed assets used for construction of other assets (e.g. depreciation on

vehicles transferred to a project, depreciation on building, furniture & fixtures, vehicles and office

equipment at the construction division or construction circles) shall be charged to capital works.

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(8)

NO CAPITALIZATION OF LOSSES:

(a). The losses incurred such as irrecoverable advances to contractors, loss of assets or

damage to assets at construction stage, shortage observed upon physical verification of

stores at construction division, etc. during the construction of the fixed asset shall not

be charged to the cost of fixed assets.

(b). Such losses shall be charged to the Profit and Loss Account for the year in which such

losses are incurred.

(9)

LAND AND LAND RIGHTS :

(a). All expenses incurred for bringing the land to a usable condition shall be charged to

the cost of land. An indicative list of such expenses is as under:—

(i) Purchase price of land

(ii) Compensation for acquisition of land

(iii) Compensation for trees and crops on the acquired land

(iv) Land charges, stamp duty, etc. incurred in order to secure effective title

(v) Land revenue and other taxes paid during the stage of land development

(vi) Site preparation cost such as cost of levelling hills or filling low spots, cost of

cleaning trees, etc.

(vii) Cost of demolishing as unwanted structure if the land is acquired with structure.

Cost of land improvement having a limited life such as cost of landscaping, gardens,

sidewall, fences and digging shall also be added to cost of land as “cost of land development”.

(10)

BUILDINGS :

(a). All expenses incurred for bringing the building to usable condition shall be charged to

the cost of building. An indicative list of such expenses is as under:—

(i) Purchase price,

(ii) Expenses such as legal charges, stamps duty, etc., incurred for securing an

effective title,

(iii) Repairs, alteration and improvements to put building in usable condition,

(iv) Architect’s fees for remodelling, alteration, improvement before the building is

first put to use,

(v) Cost of obtaining permits, sanctioned plans occupation certificates from

municipal or other bodies,

(vi) Architectural fees,

(vii) Insurance on uncompleted structure.

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(b). Cost of constructed building shall include the following item.—

(i)

Cost of construction comprising of materials, labour contractor charges and

depreciation on construction machinery

(ii) Surveying

(iii) Cost of obtaining permits, sanctioned plans occupation certificates from

municipal or other bodies iv. Architectural fees

(v) Insurance on uncompleted structure

(vi) Cost of excavation (excavation is not a cost of land development).

(11)

REPAIR BEFORE COMMISSIONING OF ASSETS:

All expenses incurred on repairs or rehabilitation of fixed assets (second hand or new)

before capitalization shall be charged to the cost of fixed assets.

(12)

REARRANGEMENTS:

All expenses on rearrangement (of plan layout, office layout etc.) shall be charged to

revenue in the year in which the expenses are incurred.

(13)

REPLACEMENTS:

Replacement can be defined as ‘substitution of one fixed asset by another, particularly of

old assets by new assets, or of an old part by a new part’-

(a). Expenses related to minor replacements shall be charged to revenue as Repair and

Maintenance Expenses.

(b). Expenses related to major replacement shall be capitalized.

(c). The original cost of the replaced asset shall be withdrawn from the cost of total assets

in Regulatory Accounts.

(d). For the purpose of Regulatory Accounts, the Generation Company or the Licensee

shall follow the same criterion for distinguishing between major and minor

replacement as followed in the Statutory Accounts.

(14)

PIECEMEAL REBUILDING:

If an asset is rebuilt by replacement of its component over a period of time instead of at one

time, the criteria fixed for ‘minor’ and ‘major’ replacements shall in such cases be applied to the

aggregate of expenditure on replacement in an asset and accounted for accordingly.

(15)

CONTRIBUTION, GRANTS AND SUBSIDIES TOWARD COST OF CAPITAL

ASSETS:

All Grants received from Central Government or State Government and Consumer

Contribution received from consumers for capital expenditure shall be reduced from the value of

fixed assets for the creation of which these funds have been used.

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(16)

FULL WRITE-OFF OF SMALL AND LOW VALUE ITEMS:

(a). Full cost of all small and low value assets each costing Rs. 5000 or less shall be fully

charged to revenue in the year in which the assets are put to use.

(b). No part of the cost of such item shall therefore be included in the cost of fixed assets

nor shall any depreciation be charged thereon.

(c). The policy for full write-off stated shall not apply to items included under the

classification ‘furniture & fixtures’ and ‘office equipment’. The accounting policy for

write-off of small and low value assets shall not apply to cost of granting each service

connection.

(17)

PIECEMEAL BUILDING OF ASSETS :

Assets may be completely built over a considerable period of the time rather than at one

time. The cut-off criteria for write-off should in such cases be applied to the aggregate of

expenditures and accounting for accordingly.

(18)

COMMISSIONING OF ASSETS :

(a). All capital expenditure shall be accounted for through capital work-in-progress

accounts.

(b). On commissioning of the assets, the expenditure shall be transferred to appropriate

fixed assets account, subject to fulfilment of the conditions of the Commission, like

getting necessary approvals required (like certificate from Electrical Inspector in case

of assets charged at high voltage or extra- high voltage in accordance with Rule 63 of

the Indian Electricity Rules, 1956 or any corresponding rule made under the Electricity

Act 2003) and other conditions in respect of expenditure and financing etc.

(19)

CAPITALIZATION WHEN ASSETS ARE FIRST PUT TO USE :

Assets shall be capitalized when they are first put to use. The date on which the asset is put

to use can be the Commercial Operation Date (COD) of the last Unit of the Generation Station for a

Generation Company or the date of charging the asset with the rest of the network for a

Transmission Licensee or a Distribution Licensee.

(a). ASSETS WHICH ARE ‘COMMISSIONABLE’ BUT NOT ACTUALLY

COMMISSIONED

(1) An assets which is installed/constructed and is in ‘commissionable’ state, but it is ‘not

commissioned/put to use’ shall not be capitalized until it is actually put to use for the

benefit of consumers, except in case of initial spares.

(2) All costs incurred on capital assets (including costs incurred on maintaining the assets

which are ready but await the actual commissioning) shall be charged to the cost of the

assets.

(b). NO WAITING FOR FINISHING TOUCHES

(1) Cost of an assets incurred up to the stage of commissioning of the asset shall be

capitalized when it is put to use for the benefit of consumers without waiting for any

finishing touches which may not be significant in work and value.

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(2) Costs of such finishing touches when completed shall be accounted for and added to

the cost of the assets capitalized earlier, subject to specific clauses of additional

capitalization in the relevant Tariff Regulations of the Commission.

(20)

CAPITALIZATION REGARDLESS OF DISPUTES WITH CONTRACTORS :

(a). Capitalisation shall be considered based on expenses incurred on capital assets that

have been put to use, either on accrual basis or on cash basis, in accordance with the

Tariff Regulations notified by the Commission.

(b). Disputes with contractors/suppliers regarding the fulfilment of the terms and

conditions of contract with them shall not be permitted to withhold or defer

capitalization of assets concerned, provided the asset is put to use for the benefit of

consumers.

(c). Cost of the assets determined on the basis of the contract shall be capitalized by

making necessary provision by the Licensee or the Generation Company, subject to

specific clauses of additional capitalization in the relevant Tariff Regulations of the

Commission.

(21)

ESCALATION CLAIM :

Cost escalation claim made by suppliers and contractor shall be provided to the extent the

claim is acknowledged by the Utility and cost of assets inclusive of such provision shall be

capitalized when the asset is first put to use.

(22)

CAPITALIZATION OF SPARE UNIT/SERVICE UNIT :

Assets which are to be classified as spare units or service units, as approved by the

Commission shall be capitalized when they are ‘put into usable condition’ regardless of whether

they are actually used or not.

(23)

DATE/VALUE OF ACQUISITION NOT KNOWN :

(a). In case of asset scrapped or destroyed or sold for which the date of acquisition is not

known, it shall be assumed, for the purpose of withdrawal of cost of asset and

depreciation, that the asset concerned was the oldest asset of that type in use at that

accounting unit.

(b). In case of asset scrapped or destroyed or sold for which the value of acquisition is not

known, it shall be assumed, for the purpose of withdrawal of cost of asset and

depreciation, that the salvage value of the scrapped or destroyed or sold shall be equal

to the salvage value of a similar asset at that accounting unit at the time of scrapping

the asset.

(24)

LOSS OF ASSETS:

In the event of loss or destruction of assets, the cost of such assets and the accumulated

depreciation attributable to such assets shall be withdrawn from the value of total fixed assets and

total accumulated depreciation respectively. Cumulative Repayment shall also be adjusted.

(25)

WRITE-OFF OF LOSS:

Excess of the written down value of the lost or destroyed assets over the amount of

insurance claim granted shall be charged to revenue in the year in which the insurance claim is

settled.

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(26)

CAPITAL SPARES AT GENERATING STATIONS :

(a). The capital spares at generating stations to the extent allowed in the Tariff Regulations

notified by the Commission shall be treated as capital assets.

(b). No accounting shall be done at the time of issue of such spares for replacement in the

generating plant.

(c). However, depreciation shall be charged on the total cost of the spares.

(d). Depreciation on such spares shall be charged as per the Tariff Regulations notified by

the Commission.

(27)

SPARE UNITS/SERVICE UNITS :

(a). Depreciation on spare unit, installed with the approval of the Commission shall be

charged in normal course as charged for the same type of assets which are in use.

(b). When the original units are removed for repairs or maintenance and the spare units are

installed, no accounting adjustments shall be done.

(c). Expense on repairs or maintenance on the removed units shall be charged to revenue.

(d). No accounting entry shall be done either

-when the removed unit is put back into usable condition or

-when it is actually used again in the place of some other units removed for repair or

maintenance or

-the repaired unit is installed back in its place and the spare unit installed earlier is

removed and brought back to stores.

(e). When the removed unit is considered irreparable, it will be considered to be a retired

asset (if the estimated life is over) or scrapped assets (if estimated life is not over) and

accordingly the subsequent accounting for retirement, scrapping and sale shall be done.

(f). Simultaneously with retirement/scrapping of the original unit, the cost and

accumulated depreciation on the spare unit shall be transferred to fixed assets account.

(28)

TREATMENT OF INCOME FROM INVESTMENTS :

(a). Income from investment shall be credited to the revenue account for the year in which

the income has accrued.

(b). If the investments are held as earmarked investments against any fund such as pension

fund, gratuity fund etc., the income from such investments shall be credited directly to the

respective fund.

(29)

TIMING OF ACCOUNTING FOR REVENUE :

(a). Revenue from sale of power shall be accounted for on accrual basis in cases whether

the determination of retail tariff is done on the basis of distribution loss approach.

5291

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(b). Reconciliation of actual collection, sales, and debtors shall be provided in the notes to

the accounts.

(c). Where the sale of energy prior to the end of a Financial Accounting Year has not been

billed, a provision for such unbilled revenue shall be made at the end of Financial

Accounting Year so as to treat the amount as revenue in the Financial Accounting Year

in which supply of power shall be made.

(30)

DISPUTED CLAIMS UNDER WARRANTY FOR REPAIRS :

(a). Claims made for repair of capital equipments by Licensee or Generation Company to

the suppliers or contractor of capital equipment for reimbursement of expenditure, if

disputed, shall be fully charged to revenue account in the Financial Accounting Year in

which the expenditure is incurred.

(b). Reimbursement when granted by the supplier or contractor of such capital equipment

shall be credited to revenue account in the Financial Accounting Year in which the

receipt of reimbursed amount is made.

(31)

CASH DISCOUNT :

Cash discounts earned by the Licensee or the Generation Company on making timely or

early payments to supplier/contractor shall be reduced from the cost of the assets.

(32)

INTANGIBLE ASSETS :

Cost of Goodwill etc. shall not be considered for tariff determination in Regularly

Accounts.

(33)

INVESTMENTS :

(a). Investment and income there from made out of retained return on investment will not

be considered in the regulatory accounts, unless they are re-invested in the regulated

business.

(b). Income from Investments made against approved Contingency Reserve and from

investments made out of Regulated Business shall be considered as Non Tariff Income

in Regulatory Accounts.

(34)

EQUITY :

(a). Where the actual equity including the retained profit invested in the Regulated

Business is less than normative equity as per Tariff Regulations, actual equity shall be

considered in the Regulatory Accounts.

(b). Where the actual equity including the retained profit invested in the business is more

than normative equity as per Tariff Regulations, the difference between actual and

normative equity shall be treated as normative loan and interest shall be allowed on the

normative loan as per the Tariff Regulations of the Commission.

(35)

RETURN ON EQUITY OR CAPITAL EMPLOYED :

Return on Equity / Capital Employed shall be shown in the Regulatory Accounts as per the

appropriate provisions of Tariff Regulations:

5292

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Provided that where Return on Capital Employed is allowed by the Commission, interest on

loans shall not be shown in Regulatory Accounts.

(36)

TAXES ON INCOME :

In case the RoE/RoCE is allowed on post-tax basis:

(a). Income Tax paid or payable by the Licensee or the Generation Company, at actuals, on

the income stream from the Regulated Business shall be considered in Regulatory

Accounts.

(b). Income Tax on the amount of efficiency gains or incentives shall not be considered in

Regulatory Accounts.

In case the RoE/RoCE is allowed on pre-tax basis:

(a). Income Tax shall be shown as a part of RoE or RoCE in the Regulatory Accounts and

shall not be shown separately.

(37)

OPERATION AND MAINTENANCE EXPENSES :

Operation and Maintenance Expenses shall be shown in Regulatory Accounts in accordance

with the appropriate provisions of Tariff Regulations.

(38)

LEASEHOLD LAND :

(a). Leasehold land is depreciated over the period of lease as per the terms and conditions

of the Lease Agreement.

(b). Lease rental shall be charged to Profit and Loss Account under Administrative &

General Expenses as payable, for the actual life of the Project.

(39)

LOANS/BORROWINGS :

Under audited accounts, actual details of the loans are available based on the actual

disbursement of loan and repayment made by the entity. However, in Regulatory Accounts the

amount of loan approval depends upon the funding pattern approved by the Commission, subject to

the Debt-Equity norm, which is further determined by the capital expenditure approval by the

Commission. Where the actual details of loan are not available, the Commission usually allows the

loans on normative basis including the period of loan and the repayment schedule which is

invariably matched with the depreciation of the fixed asset for which the loan is availed. Very

often, there are variations in the actual terms of loan as against the norms approved by the

Commission including floating rate of interest, moratorium period of repayment, etc.

(40)

BORROWING COST :

(a). Capitalization of Interest Expenses on loans shall be limited to the amount approved by

the Commission.

(b). All Interest Expenses prior to capitalization of assets shall be considered as Interest

During Construction (IDC) and shall be transferred to Capital Work in Progress

(CWIP) corresponding to respective assets for capitalisation.

5293

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(41)

FOREIGN EXCHANGE RATE VARIATION :

(a). This will be in accordance with the notified Tariff Regulations.

(b). In the absence of any specific provision in this regard in the Tariff Regulations notified

by the Commission, the following approach shall be followed:

(i) The Licensee or the Generating Company may hedge foreign exchange exposure in

respect of the interest on foreign currency loan and repayment of foreign loan acquired

for the licensed business or the generation business, in part or full in the discretion of

the Licensee or the Generating Company.

(ii) Every Licensee or the Generating Company shall recover the cost of hedging of

foreign exchange rate variation corresponding to the foreign debt, in the relevant year

on year-to year basis as expense in the period in which it arises and extra rupee liability

corresponding to such foreign exchange rate variation shall not be allowed against the

hedged foreign debt.

(iii) To the extent the Licensee or the Generating Company is not able to hedge the foreign

exchange exposure, the extra rupee liability towards interest payment and loan

repayment corresponding to the foreign currency loan in the relevant year shall be

permissible provided it is not attributable to the Licensee or the Generating Company

or its suppliers or contractors.

(42)

WORKING CAPITAL LOANS AND INTEREST ON WORKING CAPITAL :

(a). Working Capital Loans shall be shown in Regulatory Accounts in accordance with the

appropriate provisions of Tariff Regulations.

(b). Interest on Working Capital shall be shown in the Regulatory Accounts as per the

appropriate provisions of Tariff Regulations.

(43)

INTEREST ON SECURITY DEPOSIT :

Interest on Security Deposit shall be computed and shown in accordance with the provisions

of Tariff Regulations notified by the Commission. The details of computation shall be shown in

Notes to Accounts.

(44)

CONTRIBUTION TO CONTINGENCY RESERVE :

Contribution to Contingency Reserve shall be shown in Regulatory Accounts in accordance

with the appropriate provisions of Tariff Regulations.

(45)

INCENTIVE/ (DISINCENTIVES) FOR PERFORMANCE PARAMETERS AND

EFFICIENCY GAINS/ (LOSSES)

(a). Incentive and Disincentives for Performance Parameters such as Plant Availability

Factor or Plant Load Factor for Generation Companies, Availability for Transmission

Licensees, Wires Availability and Supply Availability for Distribution Licensees shall

be shown in Regulatory Accounts in accordance with the appropriate provisions of

Tariff Regulations.

(b). Incentive and Disincentives for Efficiency Gains/ (Losses) attributable to factors like

O&M Expenses, Distribution Losses, etc. shall also be shown in Regulatory Accounts

in accordance with the appropriate provisions of Tariff Regulations.

5294

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(46)

DEEMED GENERATION :

This shall be in accordance with the notified Tariff Regulations of the Commission.

(47)

TRUING UP :

Where the Commission has provided for truing up in its Tariff Regulations, the

corresponding year-wise amount accrued up to the date of accounts will be shown in the notes to

accounts.

(48)

SALES FOR THE YEAR :

(a). Generation:- The Million Units (MU) sold and income there from shall be provided in

sales schedule for each generating station.

(b). Distribution:- Category wise units sold and income there from should be shown

separately in the sales schedule for each licensee/licence area. Units sold under

banking arrangement and income considered there from should also be shown

separately. Income in the form of penalty from consumers for pilferage of electricity

and the assessed units of pilferage based on which the penalty has been charged shall

be shown separately.

(c). Transmission:- The Section/Licence area wise MU wheeled and income there from

should be given separately.

(49)

NON-TARIFF INCOME :

Non-Tariff Income, attributable to the Regulated Business shall be considered for reduction

in Annual Revenue Requirement of the Licensee or the Generation Company in the Regulatory

Accounts.

(50)

OTHER BUSINESS INCOME :

Other Income shall be considered for reduction in ARR of the Licensee in the Regulatory

Accounts, as per the appropriate provisions of Tariff Regulations or where there are no regulations,

the Commission may do so by reasoned order.

(51)

PRIOR PERIOD ITEMS :

Prior Period Income and Prior Period Expenses shall be shown in Regulatory Accounts.

(52)

REGULATORY ASSETS :

(a). This shall be in conformity with the Tariff Regulations notified by the Commission.

(b). In the absence of any specific provisions in the Tariff Regulations notified by the

Commission, the following approach shall be adopted:

(i) The total amount of outstanding Regulatory Asset at the end of the year shall be

shown, as a separate entry, under the Assets side of the Accounts.

(ii) The period of amortisation of the Regulatory Asset and the carrying cost of the

Regulatory Asset, as stipulated by the Commission in the Regulations or any other

Order in this regard, shall be explained under the Notes to the Accounts.

5295

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

(iii) For every year of amortisation, the amount of Regulatory Asset amortised during the

year as approved by the Commission and the carrying cost allowed by the Commission

on the balance Regulatory Asset shall be shown under the Revenue side, once the

Utility is allowed to bill the same to the consumers.

(53)

CARRYING COST :

Carrying Cost shall be shown in Regulatory Accounts, as approved by the Commission.

(54)

OTHER EXPENSES/EXCEPTIONAL ITEMS/EXTRA ORDINARY ITEMS :

Such items of expense shall be shown in Regulatory Accounts, as approved by the

Commission.

(55)

PROFIT SHARING :

This shall be in accordance with the applicable Sharing Mechanism specified in the Tariff

Regulations of the Commission and shall be reflected in the notes to the accounts.

(56)

TREATMENT OF REVENUE SUBSIDY BY STATE GOVERNMENT AGAINST

SALE OF POWER :

Any Subsidy given by the State Government to any consumer or class of consumer under

Section 65 of the Act shall be considered as revenue to the extent of the billing done to the

consumer.

(57)

BANKING ARRANGEMENT :

Power Banking transactions shall be recorded at the rate as per prevailing directives of the

Commission. Where there are no specific directions from the Commission, these power banking

transactions shall be recorded as per the terms of the agreement.

(58)

ITEMS TREATED ON CASH BASIS :

Items like delayed payment surcharge, revenue from penalty, theft detected, etc., which are

generally accounted for on cash/realization basis, shall be clearly mentioned in notes to accounts by

the Utility.

(59)

PROVISIONS MADE AGAINST BAD & DOUBTFUL DEBTS :

This shall be in accordance with the applicable Tariff Regulations/directives of the

Commission. Actual Bad debts written off as per audited accounts shall be deducted from the

amount of provisioning.

(60)

INVENTORY :

Unless otherwise provided by the Commission, 100% provisioning shall be made for the

non-moving stock lying for more than 3 years and 50% provisioning shall be made for the non

moving stock lying for more than 2 years.

(61)

RETAIL AND WHEELING BUSINESS :

Bifurcation of the accounts including Schedules between retail and wheeling business shall

be shown separately with basis of bifurcation for each item in line with the applicable Tariff

Regulations/directives of the Commission.

5296

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

10.

Segregation of Distribution Business ARR into Wires Business and Supply Business :

Wires Business is the business of owning and operating of the distribution system, while

Retail Supply Business is the business of procuring the requisite power through longterm, medium

term, and short-term power purchase contracts for supplying to its consumers. The different

components of Distribution on ARR shall be allocated to Wire and Retail Supply business in the

following ratios/ basis:—

(a). Power Purchase/Transmission/SLDC- Expenses related to the Supply Business.

Therefore, these should be allocated to Supply Business ARR.

(b). Employee Expenses:- Direct employees for Wires Business and Supply Business

should be identified first and Employee Expenses related to these direct employees

should be allocated to respective businesses. Thereafter, all common Employee

Expenses relating to employees working for both the businesses can be apportioned

between Wires Business and Supply Business using the allocation principles specified

for apportionment of common Employee Expenses. However, till the time the

segregation is complete, the Distribution Licensee may apportion the Employee

Expenses between Wires Business and Supply Business using an appropriate ratio.

Universal electrification in the highly dispensed habitations involving huge network

and systems and geographical and climatic conditions demand very large manpower

for O&M and hence more employees are employed for Wires Business and the

employees who work for Supply Business are lower as compared to Wires Business,

the proportion of employee cost allocated to Wires business and Supply business may

be 80:20.

(c). Repair and Maintenance Expenses:- Cost of spares, fuel etc. and cost of services

related to wires business and supply business need to be separately recorded. Thus all

direct R&M Expenses related to Wires Business and Supply Business may be allocated

to the respective businesses. Thereafter all common R&M expenses can be apportioned

between Wires Business and Supply Business using the allocation principles specified

for apportionment of common R&M Expenses. However, till the time the segregation

is complete, the Distribution Licensee may apportion the R&M Expenses between

Wires Business and Supply Business in the ratio 95:05.

(d). Administration and General Expenses:- All expenses like rents, electricity charges,

water charges, internet charges, office upkeep, insurance charges etc. relating to offices

for distribution business should be allocated to Supply Business, while that relating to

distribution sub stations/receiving stations should be allocated To Wires Business.

Rates and taxes, Freight, and other purchase related expenses need to be allocated

based on the goods purchased – whether for Wires Business or for Supply Business.

All other A&G expenses, which are common to both Wires Business and Supply

Business can be apportioned using the allocation principles discussed for

apportionment of common A&G Expenses. However, till the time the segregation is

complete, the Distribution Licensee may apportion the A&G Expenses using the ratio

65:35.

(e). Depreciation:- Major portion of assets of Distribution Licensee would be relating to

Wire Business, as sub-stations, HT and LT lines are for wheeling of electricity. Only

the service connections and consumer meters, which are in the books of Distribution

Licensee should be allocated to Supply Business. Thus, if asset class wise break up of

assets relating to Wires Business and Supply Business are available, then depreciation

5297

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relating to direct assets of Wires Business and direct assets of Supply Business should

be allocated to respective businesses. Depreciation on any common asset, if any can be

apportioned between Wires Business and Supply Business using the allocation

principles discussed for apportionment of common depreciation. However, if only the

overall asset break-up between Wires business and Supply business is available, then

the depreciation has to be apportioned in the same ratio. Till the time the segregation is

complete, the Distribution Licensee may apportion depreciation for distribution

business in the ratio 95:05.

(f). Interest on Loans:- All new loans availed by the Licensee should be separate for Wires

Business and Supply Business, based on the funding of the assets for Wires Business

and Supply Business. In this way, interest on loans for Wires Business and Supply

Business will be clearly identifiable and these should be allocated to respective

businesses. Other interest charges, which are common to both Wires Business and

Supply Business should be apportioned using the allocation principles discussed for

apportionment of common Interest and Finance Expenses. However, till the time the

segregation is complete, the Distribution Licensee may apportion interest on loans

between Wires Business and Supply Business in the ratio 95:5.

(g). Interest on Working Capital:- All new Working Capital loans availed by the

Distribution Licensee should be separate for Wires Business and Supply Business. In

this way, interest on Working Capital loans for Wires Business and Supply Business

will be clearly identifiable and these should be allocated to respective businesses.

Other interest on Working Capital which are common to both Wires Business and

Supply Business can be apportioned using the ratio 05:95, as major portion of Working

Capital loans belongs to supply business.

(h). Interest on Security Deposit:- Security deposits are collected by Distribution Licensees

from the consumers for supplying electricity to them, hence, the interest on Security

Deposits should be allocated entirely to the Supply Business.

(i). Provision for Bad Debts:- Major part of bad debts relates to supply business and hence

may be allocated to the Supply Business 05:95.

(j). Return on Equity:- RoE for both the businesses should be allowed based on the Equity

invested separately for both the functions. Common RoE, if any should be apportioned

between Wires Business and Supply Business using the allocation principles discussed

for apportionment of common RoE. In case equity invested for both the functions

cannot be segregated clearly or till the time the segregation is complete, RoE can be

apportioned between Wires Business and Supply Business using the proportion of

GFA between Wires Business and Supply Business or using a suitable ratio 100:00.

(k). Income Tax:- Tax is a function of profit earned, i.e. return of a business, therefore, it

should be apportioned on the basis of RoE related to Wires Business and Supply

Business, as discussed for apportionment of Income Tax.

(l). Non Tariff Income:- Non Tariff Income resulting from meter rent, delayed payment

charges, service connection charges etc. should be allocated to Supply Business, while

income resulting from sale of scrap etc. should be allocated to Wires Business. Other

common items of Non-tariff Income, if any can be apportioned using the allocation

principles specified for apportionment of revenues. However, till the time the

segregation is complete, the Distribution Licensee may apportion the Non-Tariff

Income between Wires Business and Supply Business using the ratio 0:100.

5298

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11.

Power to issue directions-

If any difficulty arises in giving effect to these regulations, the Commission may on its own

motion or on an application filed by any affected party, issue such directions as may be considered

necessary in furtherance of the objective and purpose of these regulations.

12.

Power to relax-

The Commission may be general or special order, for reasons to be recorded in writing, and

after giving an opportunity of hearing to the parties likely to be affected by grant of relaxation,

may relax any of the provisions of these regulations on its own motion or on an application made

before it by an interested person.

By order of the Commission

Sd/-

Secretary.

____________

ANNEXURE- A

(See Regulation (1) of Regulation 6)

FORM OF AUDIT REPORT ON HIMACHAL PRADESH ELECTRICITY

REGULATORY COMMISSION (REGULATIONS ON POWER REGULATORY

ACCOUNTING) REGULATION, 2014

I/We, _______________________having been appointed as the Auditor(s) under the

requirements laid down in the Himachal Pradesh Electricity Regulatory Commission (Regulations

on Power Regulatory Accounting) Regulation, 2014 issued by _________________ H.P Electricity

Regulatory Commission by _________________________(mention name of the Entity) having its

registered office at _______________________________________________ (mention registered

office address of the entity), have audited the attached Regulatory Accounts covering

__________________________ (mention name of the service/ geographical area) for the year

ended ____________________ (mentioned the accounting Year) of the Entity.

1. The Entity is responsible for preparation of the Regulatory Accounting Reports. My/

Our responsibility is to audit the Regulatory Accounting Reports in accordance with the

Regulations and generally accepted Auditing standards in India.

2. Further to my/our comments/observations given in the enclosed Annexure (Annexure

is required in case there are comments/observations on Regulatory Accounting Reports), I/We

report that:

a) I / we have received all the information and explanations, which to the best of my/our

knowledge and belief were necessary for the purpose of my/our audit.

b) In my / our opinion proper books of account have been kept by the Entity so far as

appears from my / our examination of those books to enable the preparation of

complete and proper Regulatory Accounting Reports in accordance with the

Regulations.

5299

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

c) The Regulatory Accounting Reports for the year ended ____________are in agreement

with the books of accounts and have been properly drawn up in accordance with the

Regulations and the methods and basis laid down in the Manual of the Entity

prescribed under the Regulations.

In my/our opinion, and to the best of my/our information and according to the

explanations given to me/us, the Regulatory Accounting Reports for the year ended

_______________________provide the information as per the requirement of the

Regulations and represent a true and fair view in conformity with the framework as per

the Regulations.

3. I/ We also report that all changes to the Manual prescribed under the Regulations that

materially affect the Regulatory Accounting Reports for the year ended ____________________

have been filed with the Commission by the Entity.

Dated:

Signature

Place:

Name of Proprietor/Partner

Membership No.

Name of the Firm with Stamp (Seal)

_____________

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

FORMATS

(See regulation 3(1)(g),5,7 and 8)

Balance Sheet

Sr.

No.

Description

For Regulated Business

For

Other

Business and

for Regulated

Business

Other States

Total

per

Audited

Accounts

Remarks/

Reconcili

ation

Format

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Gross

Fixed

Assets

Less:

Accumulated

Depreciation

Net Fixed Assets

III

Capital

Expenditure-in-

progress

Investments

Current Assets

(a) Inventories

(b) Receivables

VII

Balance

(d) Loans

and

Advances

(e) Other

Common

Assets

5300

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Less: Current

Liabilities &

Provisions

(a) Current

Liabilities

VIII

(b) Provisions

VIII

Net

Current

Assets

Others

Total

application

of Funds

(3+4+5+8+9)

Equity

Reserves

Total Loans

(Including

Normative

Loans)

Grants and

Consumer

Contribution

Payment due of

Capital Liabilities

XII

Others

Total Source of

Funds

(11+12+13+14+15)

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Profit & Loss Account

Sr.

No.

Description

For Regulated Business

For

Other

Business and

for Regulated

Business

Other States

Total

per

Audited

Accounts

Remarks/

Reconcili

ation

Format

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Cost of Fuel

XIII

Cost of Power

Purchase

XIV

Operation &

Maintenance

Expenses

(i)

Employee

Expenses

(ii)

R&M Expenses

XVI

(iii)

A&G Expenses

XVII

Depreciation

including AAD

XVIII

Interest

Longterm

Loan Capital

XIX

Interest on

Working Capital

Interest on

Consumer

Security Deposits

5301

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Contribution to

contingency

reserves

Provision for Bad

Debt

Other Expenses

Incentive/(Disinc

entive) for Higher

Availability/

(Lower

Availability)

Sharing of

(Gains)/Losses

(i)

-On Account of

Fuel Cost

(ii)

-On Account of

Aux. Consump.

(iii)

-On Account of

O&M Expenses

(iv)

-On Account of

IWC

(v)

Any Other

Return on Equity/

Capital

Employed

XXI

Corporate

Tax/

MAT & Any

Other

Tax

(In

case of Post-Tax

Return)

XXII

Total

Expenditure

Revenue from

Tariff

XXIII

Non

Tariff

Income

XXIV

Income from

Open Access

consumers

Income from

Transmission

service charges

Income from

wheeling charges

Income from

Other Business

Receipt on

account of Cross

Subsidy and

additional

Surcharge

Others

Total Revenue

Surplus or

(Deficit) (22-15)

5302

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The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format I-Gross Fixed Assets

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Land & land

rights

Land for

Reservoir

Buildings

and Roads

Intangible

Assets

Hydraulic

Works

Other civil

works

Plant &

Machinery

Generators

Transmission

Distribution

Vehicles

Furniture &

Fixtures

Office

Equipment

Others

Total

Apportioned to Different Businesses

Land & land

rights

Land for

Reservoir

Buildings

and Roads

Intangible

Assets

Hydraulic

Works

Other civil

works

Plant &

Machinery

Generators

Transmission

Distribution

Vehicles

Furniture &

Fixtures

Office

Equipment

Others

Total

Total of

Direct and

Apportioned

(12+24)

5303

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The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format II-Accumulated Depreciation

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Land & land

rights

Land for

Reservoir

Buildings

and Roads

Intangible

Assets

Hydraulic

Works

Other civil

works

Plant &

Machinery

Generators

Transmission

Distribution

Vehicles

Furniture &

Fixtures

Office

Equipment

Others

Total

Apportioned to Different Businesses

Land & land

rights

Land for

Reservoir

Buildings

and Roads

Intangible

Assets

Hydraulic

Works

Other civil

works

Plant &

Machinery

Generators

Transmission

Distribution

Vehicles

Furniture &

Fixtures

Office

Equipment

Others

Total

Total of

Direct and

Apportioned

(12+24)

5304

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The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format III- Net Fixed Assets

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Land & land

rights

Land for

Reservoir

Buildings

and Roads

Intangible

Assets

Hydraulic

Works

Other civil

works

Plant &

Machinery

Generators

Transmission

Distribution

Vehicles

Furniture &

Fixtures

Office

Equipment

Others

Total

Apportioned to Different Businesses

Land & land

rights

Land for

Reservoir

Buildings

and Roads

Intangible

Assets

Hydraulic

Works

Other civil

works

Plant &

Machinery

Generators

Transmission

Distribution

Vehicles

Furniture &

Fixtures

Office

Equipment

Others

Total

Total of

Direct and

Apportioned

(12+24)

5305

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format IV- Capital Expenditure-in-Progress

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Capital

Works in

Progress

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format V-Investment

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Investments

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format VI-Inventories & Other Current Assets

Inventories & Other Current Assets

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Inventories

and

Other Current

Assets

Cash & Bank

Balance

Other Current

Assets

Loans

and

Advances

Total

5306

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format VII-Receivables

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Receivables

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format VIII- Current Liabilities

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Current

Liabilities

Provisions

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format IX- Equity

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Equity

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format X- Loans

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

(i)

Secured

Loans

Source 1

5307

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Source 2

…

Source n

(ii)

Unsecured

Loans

Source 1

Source 2

…

Source n

(iii)

Normative

Loans

Total

[(i)+(ii)+(iii)]

Apportioned to Different Businesses

(i)

Secured

Loans

Source 1

Source 2

…

Source n

(ii)

Unsecured

Loans

Source 1

Source 2

…

Source n

(iii)

Normative

Loans

Total

[(i)+(ii)]

Total of Direct

and

Apportioned

(A+B)

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XI-Grants & Consumer Contribution

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Grants and

Consumer

Contribution

5308

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XII-Payments Due on Current Liabilities

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Payment Due on

Capital Liabilities

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XIII-Fuel

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

Remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Basic Cost

Freight

Surcharge, if

applicable

Fuel

Handling

Charges

Taxes and Duties

(pl.

specify

details)

Any

other

charges

Total

Cost

excluding Transit

Loss

Transit Loss

Total

Cost

including Transit

Loss

Apportioned to Different Businesses

Basic Cost

Freight

Surcharge,

applicable

5309

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Fuel Handling

Charges

Taxes and Duties

(pl.

specify

details)

Any

other

charges

Total

Cost

excluding Transit

Loss

Transit Loss

Total

Cost

including Transit

Loss

Total of Direct

and

Apportioned

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XIV-Power Purchase

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Own Generating

Station

Central

Generating

Stations

Renewable

Purchase

Obligation

CPPs and IPPs

Short

Term

Power

Purchase,

Purchase through

UI or from

Imbalance Pool

and

Other

Sources

Transmission

Charges

SLDC Charges

5310

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Wheeling

Charges

Standby charges

Any

Other

Charges

Total

Apportioned to Different Businesses

Own Generating

Station

Other

Generating

Stations

Renewable

Purchase

Obligation

CPPs and IPPs

Short Term

Power Purchase,

Purchase

through UI or

from Imbalance

Pool and Other

Sources

Transmission

Charges

SLDC Charges

Wheeling

Charges

Standby charges

Any Other

Charges

Total

Total of Direct

and

Apportioned

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XV-Employee Expenses

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Basic Salary

5311

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Dearness

Allowance

(DA)

House Rent

Allowance

Conveyance

Allowance

Leave Travel

Allowance

Earned Leave

Encashment

Other

Allowances

Medical

Reimbursement

Overtime

Payment

Bonus/Ex-Gratia

Payments

Interim Relief /

Wage Revision

Staff welfare

expenses

VRS

Expenses/

Retrenchment

Compensation

Commission to

Directors

Training

Expenses

Payment under

Workmen's

Compensation

Act

Net

Employee

Costs

Others

Gross Employee

Expenses

Less: Expenses

Capitalised

Net Employee

Expenses

5312

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Apportioned to Different Businesses

Basic Salary

Dearness

Allowance

(DA)

House Rent

Allowance

Conveyance

Allowance

Leave Travel

Allowance

Earned Leave

Encashment

Other

Allowances

Medical

Reimbursement

Overtime

Payment

Bonus/Ex-Gratia

Payments

Interim Relief /

Wage Revision

Staff welfare

expenses

VRS

Expenses/

Retrenchment

Compensation

Commission to

Directors

Training

Expenses

Payment under

Workmen's

Compensation

Act

Net

Employee

Costs

Others

Gross Employee

Expenses

Less: Expenses

Capitalised

Net Employee

Expenses

Total of Direct

and

Apportioned

(23+46)

5313

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XVI-R & M Expenses

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Plant &

Machinery

Buildings

Civil Works

Hydraulic

Works

Lines &

Cable

Networks

Vehicles

Furniture &

Fixtures

Office

Equipment

Gross R&M

Expenses

Less:

Expenses

Capitalised

Net R&M

Expenses

Apportioned to Different Businesses

Plant &

Machinery

Buildings

Civil Works

Hydraulic

Works

Lines &

Cable

Networks

Vehicles

Furniture &

Fixtures

5314

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Office

Equipment

Gross R&M

Expenses

Less:

Expenses

Capitalised

Net R&M

Expenses

Total of

Direct and

Apportioned

(11+22)

The HPERC (Reporting System on Power Regulatory Accounting) Regulation, 2014

Format XVII- A&G Expenses

Sr.

No.

Description

For Regulated Business

For

Other

Business and for

Regulated

Business

Other States

Total

per

Audited

Accounts

Explanation

for

Apportion-

ment/

remarks,

any

Generation*

Transmission

SLDC

Distribution -

Wheeling

Distribution -

Retail

Total

Directly Attributable to Different Businesses

Rent Rates &

Taxes

Insurance

Telephone &

Postage, etc.

Legal charges &

Audit fee

Professional,

Consultancy,

Technical fee

Conveyance &

Travel

Electricity

charges

Water charges

Security

arrangements

Fees &

subscription

Books &

periodicals

5315

jkti=] fgekpy izns'k] 1 tuojh] 2015@11 ikS"k] 1936

Computer

Stationery

Printing &

Stationery