AERC releases retail tariff for FY 2017-18

The Assam Electricity Regulatory Commission (AERC) in an order dated  31st March released tariff for FY 2017-18 for the Assam Power Distribution Corporation Limited (APDCL). The change in energy charge from last year to this year has been depicted in the following table:

 

 

The tariff has increased since the last year specially for HT II industries and commercial users for who the tariff has increased significantly. There has been an increase in the CSS as well this year.

The open access charges are as follows:

 

Cross Subsidy Surcharge: The CSS for FY 2017-18 is Rs 1.31/kWh

Wheeling Charge : The wheeling charge applicable for FY 2017-18 is Rs 0.23/kWh

 Wheeling Loss: The wheeling loss at 11 kV is 11% and that at 33 kV is 5%

Transmission Loss: The transmission loss for Assam has been determined as 3.49%

 

The order can be accessed here.

KSERC RELEASES TARIFF ORDER FOR FY 2017-18

KSERC (Kerala State Electricity Regulatory Commission) has released a tariff order determining the retail tariff for FY 2017-18 for the state. Salient features of the order are as follows:

 

 

Transmission Charge: The transmission charge for FY 2017-18 is Rs 0.37/unit

Wheeling Charges: The wheeling charges determined for the FY 2017-18 are Rs 0.31/unit

Cross Subsidy Surcharge: The cross subsidy surcharge is  Rs 0.91/unit.

 

The order can be accessed here.

HPERC NOTIFIES RETAIL TARIFF ORDER FOR FY 2017-18

The HPERC has released the retail tariff for FY 2017-18 in its order. The tariff has basically remained unchanged to a large extent.

 

The tariff is given as follows:

 Screenshot (88).png

Cross Subsidy Surcharge: Rs 1.89/unit

Wheeling charges: Rs 1.83/unit

Additional Surcharge: Rs 0.49/unit

The article can be accessed here.

The press note about the same can be accessed here.

KERC DETERMINES RETAIL TARIFF FOR STATE

Karnataka Electricity Regulatory Commission in its order dated 11th April, 2017, has approved the retail supply tariff for 2017-18. The tariff hike proposed by the KERC for industrial and commercial consumers and a comparison of the existing and the new tariff proposed by the commission can be seen as follows:

 

 

The table below represents the cross subsidy charges worked out as per the different consumer category:

 

The order can be accessed here.

APERC RELEASES RETAIL TARIFF ORDER FOR FY 2017-18:

The Andhra Pradesh Electricity Regulatory Commission has released an order dated 31st March, 2017 regarding the Tariff for Retail Sale of Electricity during 2017-18.

 

The below table gives the comparison between the new tariff determined from FY 2017-18 and FY 2016-17 and % change in the tariff from  FY 2016-17 and FY 2017-18 for different categories:

 

Wheeling Charges:

The tariff included the wheeling charges for FY 2017-18 and they are given as follows:


No information about wheeling loss has been given in this order.

 

Cross Subsidy Surcharge:

The Cross Subsidy Surcharge (CSS) for FY 2017-18 has been given below for different categories:

The regulation can be accessed here

Rajasthan Electricity Regulatory Commission determines CSS for FY 2016-17

Rajasthan Electricity Regulatory Commission (RERC) has calculated the Cross subsidy surcharge to be applicable during FY 16-17. The new CSS will be applicable only for the state of Rajasthan effective till 31st March, 2017.   The new CSS applicable will have significant impact on the open access power market.

The table below depicts the CSS charges defined for year FY 2016-17:

 

The graph below depicts the % change in the CSS over the last four years:

 

The regulation can be accessed here.

Cross-subsidy surcharge continues to rise

A recent article in Business Standard highlighted the disproportionate rise of cross-subsidy surcharge (CSS) in many states. We have been tracking this issue as well and had highlighted the problem in our blog & NL Volume 62.

 

In the past, CSS has been calculated on the basis of the cost of the marginal 5% (in other words the most expensive 5%) of power procured by the state. This results in a bias towards the highest cost paid, resulting in high CSS. The National tariff policy (NTP) has suggested change in this methodology to a weighted average cost model, and also proposed that CSS be restricted to 20% of the tariff. However, recent increases show that states have largely ignored the provisions of the NTP.

 

A big reason for the rise in CSS is also the fact that states continue to shy away from raising tariffs for domestic, agricultural and such categories. According to the Business Standard article, States like Chhattisgarh, UP, Uttarakhand and Bihar have already come up with their tariff orders for the financial year 2016-17, but have not raised retail tariffs. Only Gujarat has allowed a retail tariff increase.

 

With increasing cost of power the burden to foot the bill therefore falls on industrial and commercial consumers. As per the MoP data the below graph depicts change in CSS over the span of 1 year in the major states which varies from 35% to 321%.

 

 

 

 

 

Telangana Regulations for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic

Telangana recently came up with its net metering regulation for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic. This Regulation will be applicable to the distribution licensee, an eligible consumer and a third party owner of a Roof Top Solar PV System in the state of Telangana.

 

Following are some of the highlights of the regulations:

 

  • An eligible consumer shall install the grid connected Rooftop Solar PV System of the rated capacity as specified in this Regulation.
  • The tariff payable to an eligible consumer under the net-metering shall be the average power purchase cost of a Distribution Licensee.
  • The net metering facility, as far as possible, of an eligible consumer shall be in three phase service.
  • A single phase consumer is also eligible for net metering up to 3 KW.
  • The capacity of a Rooftop Solar PV System to be installed at the premises of an eligible consumer shall not be less than one Kilo Watt peak (1kWp) and a maximum of One (1) MWp.
  • The quantum of electricity consumed by an Eligible Consumer from the Rooftop Solar PV System under the Net Metering Arrangement shall qualify towards his compliance of Solar RPPO, if such Consumer is an Obligated Entity.
  • The quantum of electricity consumed by the Eligible Consumer from the Rooftop Solar PV System under the Net Metering arrangement shall, if such Consumer is not an Obligated Entity, qualify towards meeting the Solar RPPO of the Distribution Licensee.
  • The unadjusted surplus Units of the solar energy purchased by the Distribution Licensee under the provisions of sub-Para 10.3 shall qualify towards meeting its Solar RPPO.
  • The Rooftop Solar PV System under the net metering arrangement, whether self- owned or third party owned installed on the Eligible Consumer’s premises, shall be exempted from Transmission Charge, Transmission Loss, Wheeling Charge, Wheeling Loss, Cross Subsidy Surcharge and Additional Surcharge.
  • The Rooftop Solar PV System Developer shall retain the entire proceeds of CDM benefits in the first year after the date of commercial operation of the generating station.

 

The regulation can be accessed here.

TSERC Determines CSS for FY2016-17

Telangana Electricity Regulatory Commission (TSERC) has calculated the Cross subsidy surcharge to be applicable during FY 16-17. The new CSS will be applicable only for the state of Telangana effective from 1st July, 2016 to 31st March, 2017.  There was no CSS applicable in the state till last FY 14-15. The new CSS applicable will have significant impact on the open access power market.

The Telangana solar and wind policy which was announced recently clearly states that for Solar Power Plant located within the state and selling power to third parties within the state, 100% exemption shall be provided on the cross subsidy surcharge as determined by TSERC for five years from the date of commissioning of the Power Plant.

The table below depicts the CSS charges defined for year FY2015-16 and FY 2016-17:

The regulation can be accessed here.

 

GERC Determines Tariff for Procurement of Power from Wind Energy Projects

Gujarat Electricity Regulatory Commission (GERC) has proposed an increase in tariff for procurement of wind power. The higher tariff is on account of a rise in capital costs of setting up a wind power project in Gujarat.

GERC has come out with a draft discussion paper on tariff fixation and has invited stake holders to file objections before June 10, 2016. According to the draft paper, the capital cost of setting up a wind power project in Gujarat increased from Rs 6.06 crore per MW to Rs 6.13 crore per MW.

The graph below gives a comparison of the wind tariff determined over the few years:

 

 

Cross Subsidy Charges, Transmission and Wheeling Charges:

1.      Cross Subsidy Charges:

According to the earlier orders, the commission had exempted third party sale of wind energy from the cross subsidy surcharge. Also  the cross-subsidy surcharge all open access transactions from wind power projects.

  • 25% of the cross subsidy surcharge as applicable to normal open access consumer shall be applicable.

2. Wheeling of power for Captive Use

a. In Case of wheeling of power to consumption site at 66 kV voltage level and above, normal open access charges and losses as applicable to normal open access consumer.

b.  In case the injection of power is at 66 kV or above and drawl is at 11 kV, normal transmission charges and losses are applicable; however 50% of wheeling charges and 50% of distribution losses of the energy fed into the grid as applicable to normal open access consumers.

 

3.Wheeling of power to more than one locations

Wind power projects owners , who decide to wheel electricity for captive use / third party sale , to more than one location, shall pay 5 Paisa/KWh on energy fed in the grid to the distribution company concerned in addition to transmission charges and losses, as applicable.

 

4. Energy Metering

  • Wind projects shall have to provide ABT compliant meters at the interface points
  • Metering shall be done at interconnection point of the generator bus-bar with the transmission or distribution system concerned. Pricing of Reactive Power
  • 10 paise/kVARh– For the drawl of reactive energy at 10% or less of the net energy exported.
  • 25 paise/kVARh– For the drawl of reactive energy at more than 10% of the net active energy exported

5.Banking of Surplus Wind Energy

As promotional measure, it is proposed to continue the banking facility for 1 billing cycle for the wind power captive projects wheeling electricity for own use.

  • For captive wind energy projects, the surplus energy after one month’s banking is considered for purchase by distribution licensee at 85% of the wind tariff.
  • For third party wind energy sale, the surplus energy after 15 minutes time block is considered for purchase by distribution licensee at the rate of 85% of the tariff declared by the Commission. The order can be accessed here.
Go to top