TARIFF STABILISATION FUND Sample Clauses

TARIFF STABILISATION FUND. (1) A Tariff Stabilisation Fund shall be maintained in the accounts of HEC. (2) If the Gross Tariff Revenues for any Year shall exceed or be Sch. 1( 17) less than the total for HEC for that Year of:- (a) the Total Operating Costs; (b) the Permitted Return after the adjustment for interest on Borrowed Capital calculated in accordance with clauses 4(3)(a) and (b), interest on consumers’ deposits calculated in accordance with clause 4(3)(d), the Excess Capacity Adjustment in accordance with clause 4(3)(e), and the performance adjustments in accordance with clauses 4(3)(f), (g) and (h); and (c) the Scheme Of Control taxation charges as set out in Section F of Schedule 2, such excess shall be added to or such deficiency shall be deducted from the Tariff Stabilisation Fund, provided always that in case of a deficiency, the said amount so transferred shall not exceed the balance of the Tariff Stabilisation Fund. (3) The main purpose of the Tariff Stabilisation Fund is to accumulate and provide funds to ameliorate tariff increases or facilitate tariff reduction where appropriate. (4) A Rate Reduction Reserve shall be maintained in the accounts of HEC. In each Year, a charge equal to the Rate Reduction Reserve Interest Rate times the average of the opening and closing balances of the Tariff Stabilisation Fund for that Year, shall be credited to the Rate Reduction Reserve. This Rate Reduction Reserve shall be reduced by rebates applied to the tariffs normally in the Year next following so as to effect tariff reductions or to minimise tariff increases. The balance of the Rate Reduction Reserve shall not exceed the total annual charges hereunder for the then current Year and the preceding three Years whether covered by the Term or not. (5) The balances in the Tariff Stabilisation Fund and the Rate Reduction Reserve shall represent liabilities in the accounts of HEC and shall not accrue to the benefit of its shareholders save as provided for by the Scheme Of Control. (6) In the absence of any agreement to the contrary, HEC shall discharge its liabilities in respect of the balances in the Tariff Stabilisation Fund and the Rate Reduction Reserve after the expiry of this Agreement. Such agreement could include the handling and/or the continued maintenance of the balances in the Tariff Stabilisation Fund and/or the Rate Reduction Reserve after the expiry of this Agreement. In the absence of any agreement (whether under clause 7(5) or otherwise), the Government and HEC shal...