law: Electricity Act, 2003 
  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.     
  
    multiyear
  
  tariff principles;
  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, the Electricity Regulatory Commissions Act, 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.