The Andhra Pradesh Electricity Regulatory Commission (APERC) has come with an order stating that, the Cross Subsidy Surcharge will be levied on the consumers who opt for Open Access for the Financial Year 2015-16.

The Table below summarizes the new cross subsidy surcharge applicable during FY15-16:

As per previous years there was no CSS charges applicable in the state of Andhra Pradesh. This is a considerable setback for the consumers who are availing OA and purchasing power from exchanges. The Average charges through exchange is close to Rs 4.60 for the OA consumers. With implementing CSS it would be close to Rs 6.60 to 9.20 depending on consumer category for Industrial and Commercial, which is very high compared to DISCOM Tariff.

With the current scenario we can rule out OA in  Andhra Pradesh through exchanges. The only option of purchasing power through open access is 3rdparty power through Solar, as the CSS is waved off for Solar generators under Solar policy of the state. But CSS is applicable for purchasing power through other renewable source.

As Andhra Pradesh being a power surplus  state, this would be great revenue for the DISCOMs as all the consumers have to buy the power through DISCOM and option of availing power though exchange is completely ruled out. With this Excess consumption of units and revenue, the DISOCM may recover the losses from previous years.

The order can be accessed here.

Contributed by Vignesh Kumar Adiraju