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Truing up in tariff regulation means

  • A.removing cross subsidies from the tariff schedule
  • B.passing fuel price changes through automatically
  • C.adjusting for the difference between approved and actual costs
  • D.setting the tariff for the next five years at once

Answer: C

The regulator approves a tariff on projected figures, and when the audited accounts arrive the difference is recovered from or returned to consumers in a later year. It is why a tariff order carries arrears of earlier years.

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