Economics · Economy
With reference to the ACS-ARR gap (Average Cost of Supply vs Average Revenue Realized) in power sector DISCOMs, consider the following statements: I. If ACS is greater than ARR, DISCOMs incur a financial loss on every unit of power supplied. II. This revenue shortfall is often recognized as a regulatory asset to be recovered via future tariff revisions. III. If ACS is less than ARR, DISCOMs automatically suffer from systemic accumulated deficits. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and III
- 2I and III only
- 3II and III only
- 4I and II only✓
Correct answer
I and II only
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