ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION

Hyderabad

 

Dated: 01.04.2006

present:

 

Sri. K. Swaminathan, Chairman

Sri. K. Sreerama Murthy, Member

Sri. Surinder Pal, Member

 

 

O.P.No.13 of 2006

(Suo motu)

 

In the matter of determination of Surcharge under Sections 39, 40 and 42 of the Electricity Act, 2003 and additional surcharge under subsection (4) of Section 42 of the said Act for the FY 2006-07.

WHEREAS Sections 39(2)(d)(ii) and 40(c) of Electricity Act, 2003 (hereinafter referred to as ‘the Act’) provide for payment of a surcharge (hereinafter also referred to as ‘the cross-subsidy surcharge’) when a transmission system is used for open access for supply of electricity to a consumer and Section 42(2) of the Act provides for payment of the surcharge in addition to the wheeling charges as determined by the State Commission. 

AND WHEREAS as per the aforementioned provisions, the surcharge has to be utilised to meet the requirements of current level of cross-subsidy.

AND WHEREAS Section 42(4) of the Act further provides that a consumer permitted to receive supply of electricity from a person other than the Distribution Licensee of the area in which such consumer is located, shall be liable to pay an additional surcharge to meet the fixed cost of the distribution licensee arising out of his obligation to supply.

AND WHEREAS the aforementioned cross-subsidy surcharge and the additional surcharge for the year 2005-06 and the methodology for computation thereof were determined by the Commission vide its Order dated 21.09.2005 in O.P.No.16 of 2005.

AND WHEREAS pursuant to the notification of Tariff Policy by the Government of India published in the Gazette of India on 06.01.2006, the Commission initiated proceedings by issuing a public notice on 12.01.2006 for review of the methodologies for computation of cross-subsidy surcharge and additional surcharge in the light of the said Tariff Policy, and the Commission has also received some written responses to its said notice, and this matter also came up for public hearing on 16.02.2006 at Karimnagar, 18.02.2006 at Rajahmundry, 20.02.2006 at Nellore and 22.02.2006 at Kurnool, in the presence of the representation of the licensees, individuals, consumer rights activists and other stakeholders.

AND WHEREAS in view of its preoccupations with several matters, like determination of transmission tariff, wheeling tariffs / charges and tariff for retail sale of electricity, etc., for the year 2006-07, the Commission could not complete the above-mentioned proceedings and therefore, deems just and appropriate to issue an interim Order to provisionally extend the applicability of the rates of surcharge /additional surcharge already specified in its order dated 21.09.2005 in O.P.No.16 of 2005, from 1st April 2006 onwards. 

NOW, THEREFORE, the Commission in exercise of powers conferred by Section 94(2) of the Act and all other powers enabling it in that behalf extends the applicability of the rates of surcharge and the Additional Surcharge specified in the Annexure-II of aforementioned Order dated 21.09.2005 for different categories of consumers availing of open access at different voltages from 1st April, 2006 onwards till the Commission passes a final order on the proceedings already initiated, subject to adjustment of the surcharge/ additional surcharge if any so paid against that payable as per the final Order.

This Order is corrected and signed this 1st day of April 2006.

Sd/-

Sd/-

Sd/-

Surinder Pal

K.Sreerama Murthy

K.Swaminathan

MEMBER

MEMBER

CHAIRMAN

 

 

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