RERC Regulations 29Chapter III · Financial principles for computing costs and return

Section 29 · Foreign Exchange Rate Variation (FERV)

(1)

Cost of hedging for foreign exchange variation towards interest payment and loan repayment shall be allowed on year-to-year basis and shall be payable until due date of payments and be subject to prudent check of the Commission. The Applicant shall provide full particulars of such cost of hedging to the Commission.

(2)

In case hedging has not been arranged due to valid reasons, FERV shall be provisionally estimated by the Commission for the purpose of determining tariff and shall be subject to adjustment as per actuals.

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