Construction Industry News
The Electricity Appellate Body (APTEL) recently ruled that the state regulatory commission should reconsider the topic of cross-subsidy surcharge on open access projects in Rajasthan if and when it takes charge of the tariff setting in the future.
Rajasthan Textile Mills Association, Vedanta, Lord Chloro Alkali, Sunil Healthcare, Synergy Steels, Ambuja Cements and Ultratech Cement had petitioned APTEL to assess the legitimacy of the state regulator's determination of the cross-subsidy allowance for the fiscal year (FY) 2016- 17.
The petitioners have industrial units in Rajasthan that have been granted open access within the contract demand and are taking electricity through open access, including from power exchanges.
They challenged the state commission to increase the cross-subsidy surcharge of Rs 0.18 ($0.002)/kWh, Rs 0.13 ($0.001)/kWh and Rs 0.05 ($0.006)/kWh for 132 kV consumers, 33 kV consumers and 11 kV consumers to Rs 1.63 ($0.021)/kWh, Rs 1.39 ($0.017)/kWh and Rs 0.83 ($0.01)/kWh.
The tribunal noted that the cross-subsidy charges under the previous provision were Rs 0.18 ($0.002)/kWh for 132 kV consumers, Rs 0.13 ($0.001)/kWh for 33 kV consumers and Rs 0.05 ($ 0.006)/kWh for 11 kV consumers.
APTEL argued that the rates of the cross-subsidy allowance should not be tampered with and that it is unjust, unfair and contrary to prescribed standards and procedures, and therefore it is set aside.
The tribunal instructed the state commission to reconsider the cross-subsidy surcharge when it takes up rate-setting in the future.
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