What is cross subsidy surcharge?
Cross subsidization is the practice of charging higher prices to one type of consumers to artificially lower prices for another group.
What is open access in electricity act 2003?
The definition of Open Access in the Electricity Act, 2003, is “the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the …
What is open access in power distribution explain it in the context of Mumbai?
Open Access enables heavy users with more than 1 MW connected load to buy cheap power from the open market. The concept is to allow the customers to choose from a number of competitive power companies, rather than being forced to buy power from the local utility monopoly.
How is cross-subsidy surcharge calculated?
“Surcharge formula: S= T – [C/ (1-L/100) + D+ R] Where, S is the surcharge T is the tariff payable by the relevant category of consumers, including reflecting the Renewable Purchase Obligation C is the per unit weighted average cost of power purchase by the Licensee, including meeting the Renewable Purchase Obligation …
What is cross-subsidy in electricity India?
Cross-subsidies involve a group of consumers paying more than the general cost of supply and the surplus is used to subsidize the provision to the other group at a price that is lower than the cost of supply to the subsidised group.
How are open access charges calculated?
- ANNEXURE – 2. Open Access Charges Calculation (Cross Subsidy Surcharge)
- TPDDL.
- Distribution Loss (L) in % Wheeling charges (D) in paise.
- per unit. Above 66 kV.
- Surcharge formula (S ) : S = T – [C (1+ L / 100) + D] If X = C (1+ L / 100 ), where C is Rs. 6.22/kWhr,
- levels. X paise.
- / kwh. X + D.
- Paise/ kwh.
What is Open Access charges?
Open access charges primarily comprise Cross Subsidy Surcharge (CSS), additional surcharge, wheeling & transmission charges and transmission & distribution losses in kind.
What is a surcharge rate?
What Is a Surcharge? A surcharge is an extra fee, charge, or tax that is added on to the cost of a good or service, beyond the initially quoted price. Often, a surcharge is added to an existing tax and is not included in the stated price of the good or service.
What is additional surcharge in power sector?
(a) Additional Surcharge could have three components to cover for (i) stranded power under long-terms PPAs, (ii) stranded physical assets and (iii) cost of carrying regulatory assets or amortization of regulatory assets, as the case may be.
What is the difference between wheeling charges and transmission charges?
The TRR is paid through transmission access charges (TACs), load-weighted fees charged to internal load and energy exports for use of the transmission facilities. The energy export fee is often referred to as a wheeling charge. When wheeling-through, the transmission access charge only applies to the exported amount.
What is a transmission charge?
Transmission Charge – Charges for moving high voltage electricity from a generation facility to the distribution lines of an electric distribution company. Based on federally regulated charges.
This Cross Subsidy Surcharge shall be utilized by the Distribution Licensee to meet the requirements of current level of cross subsidy within the area of supply. Also, an Open Access customer has to bear Transmission loss, if using the Transmission lines, Wheeling loss and Distribution loss, if using the Distribution lines.
How should the cross-subsidy surcharge be brought down?
The cross-subsidy surcharge should be brought down progressively and, as far as possible, at a linear rate to a maximum of 20% of its opening level.
What is the additional surcharge payable by Open Access Consumers?
Additional Surcharge payable by Open Access consumers for the control period 1st October 2018 to 31st March 2019. Authoring officers of Distribution Utilities to perform the duties under Section 135 (1A) of the Electricity Act, 2003 within their respective license area.
Are cross-subsidies effective for rural electrification?
Cross subsidies are widely used to support rural electrification schemes but their effectiveness depends on the existence of a relatively large number of better-off consumers that can afford to pay more than the cost of supply.