Drawing power has largely been a constraint owing to poor access from distribution companies and their demand for paying cross-subsidy charge. All renewable energy generating projects will be subject to a day ahead scheduling. Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). The Appellate Tribunal for Electricity has stayed the Maharashtra electricity NAGPUR: In a major relief to solar rooftop consumers, Maharashtra Electricity Regulatory Commission (MERC) has rejected the proposal of Maharashtra St. Maharashtra : MERC Order on cross subsidy surcharge: Program Overview: State: Maharashtra : Technology : Bagasse/Biomass Biofuel Municipal Solid Waste Non-Fossil Fuel Based Cogeneration Small Hydro Power Small Solar Solar Power Project Solar PV Solar Thermal Wind : Date of Issue : August 16,2012 : Show More details. The Maharashtra Electricity Regulatory Commission (MERC) has announced various charges payable by open access consumers for the financial year 2020-21 to 2024-25. 324 of 2018 . The concept was evolved by industries to avoid cross-subsidy charges levied on inter-state electricity sale. The Appellate Tribunal for Electricity has stayed the Maharashtra electricity Earlier, the Maha Solar Sangathan, raising concerns over the proposed grid support charges, had requested the MERC to ask the state DISCOM to explain that when the total handling cost of electricity is ₹0.70 (~$0.01)/kWh, why has it proposed a hefty grid support charge to the tune of  ₹8.66 (~$0.12)/kWh. Commission passed order in the matter of determination of Cross Subsidy Surcharge for FY 2016-17 in terms of the directions of the Hon’ble High Court in W.A. 5 Sep 2012 … The Maharashtra Electricity Regulatory Commission, in exercise of the powers vested in …. Track the latest developments and initiatives taken by the government to fight the economic repercussions of the pandemic in the renewable industry here. As a result, the generation capacity tied up by MSEDCL remains idle. Cross subsidy surcharge is normally computed as the difference between (i) the tariff applicable to the relevant category of consumers and (ii) the cost of the distribution licensee to supply electricity to the consumers of the applicable class i.e., Cost of Service (CoS) for a particular category of consumers. 836 KB . Higher CCS, as proposed, will kill the spirit of competitiveness in the power sector and is detrimental to industrial growth, which is already struggling with the high cost of inputs, he noted. Mumbai  Then the Commission vide order dated 09th September 2011 (Case No. Cross Subsidy Surcharge & Additional Surcharge order for FY 2018-19 Dated:27.03.2018 Retail supply tariff 2016-17 Dated:23.06.2016 Cross Subsidy Surcharge Order FY 2016-17 Vs. Maharashtra Electricity A.No.252 of 2014 Page 9 of 18 SH Regulatory Commission dated 17.03.2015 in Appeal No.27 of 2015, the same issue is again sought to be raised by the appellant to prejudice consumption of electricity by captive users and impose cross subsidy surcharge which cannot be permitted. We believe in free, fair and credible journalism. Recently, MERC approved the revised retail electricity tariffs for MSEDCL for the fourth control period from FY 2020-21 to FY 2024-25, focusing on mitigating the difficulties faced by electricity consumers in the states due to the Coronavirus pandemic. In case of supply of power to a consumer or to a person other than its members, such consumer or person will have to pay cross-subsidy surcharge over and above transmission and wheeling charges as determined by the UPERC. Your support through more subscriptions can help us practise the journalism to which we are committed. Nos. This additional charge of 9 paise per unit shall be shown separately in the ….. Power is the most critical input for most industries. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Group captive power plants — based on coal, solar and wind — are operational in large numbers in the states of Karnataka, Haryana, Rajasthan, Maharashtra and Tamil Nadu. Case of Bhadreshwar Vidyut Private Limited against wrongful imposition of Cross Subsidy Surcharge (CSS) by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) on the captive users of M/s Bhadreshwar Vidyut Private Limited availing Open Access for the FY 2015-16. For example, if the average cost of service is Rs 3/unit, the domestic consumer may be charged at Rs 2.5/unit while an industrial consumer may be charged at Rs 3.5/unit. We, however, have a request. 288 of 2014 vide order dated 08.03.2016 and in Spentex Industries Ltd. For the applicability of cross-subsidy surcharge, MSEDCL said that it needs to be based on the current level. The Commission added that there are a few services to be provided by MSEDCL to open access consumers where it may incur some costs. MERC’s order is against the very preamble of the Electricity Act, 2003 which demands transparency in the subsidies." Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). Group captive power plants — based on coal, solar and wind — are operational in large numbers in the states of Karnataka, Haryana, Rajasthan, Maharashtra and Tamil Nadu. Industry bodies argue open access will become an unviable proposition because, apart from higher CSS, they will have to pay charges towards transmission and distribution losses, wheeling charges and administrative charges. 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. Open Access charges from the grid are applicable, but unpredictable charges, such as cross-subsidy surcharge and additional surcharge, are waived in captive and group captive projects. Open Access charges from the grid are applicable, but unpredictable charges, such as cross-subsidy surcharge and additional surcharge, are waived in captive and group captive projects. In fact, reduction of cross-subsidy or tariff rationalisation has been the major factor of tariff reforms and it is for this reason that the independent regulatory commissions were envisaged through Electricity Regulatory Commissions Act, 1998. The Public Water Supply Schemes and Sewage Treatment Plants ( including other … Subsidy. TELANGANA SOLAR POWER POLICY 2015. PMRY Subsidy Claim 07-08 … XVI , Karol Bagh, Delhi; Immovable property bearing Plot admeasuring sq. Cross subsidy surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access customers based on the actual energy drawn during the month through open access. Posted in CERC, Cross Subsidy Surcharge, DISCOM, India, Maharashtra, MERC, MSEDCL, Transmission Charges | Tagged Cross Subsidy Surcharge, CSS, Solar, Thermal, Wind | Leave a comment. Updated: 19 Jun 2020, 11:19 PM IST Tanya Thomas. 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. Additional surcharge for open access consumers will apply from FY 2020-21 to FY 2024-25, West Bengal Tops List of States Buying ‘Dirty’ Coal-Based Power, Oxford PV’s New Record Efficiency of 29.52% for Perovskite Silicon Tandem Solar Cells, SECI Issues Tender to Construct a 25 MW Solar Project at a Coal Washery in West Bengal, Government Announces Financial Sops to Boost Ethanol Production, Tender Released for Supply of 1.8 Million Multicrystalline Solar Cells, Power Finance Corporation to Raise ₹100 Billion Through Bonds Issue, US Clean Energy Industry Lost 429,300 Jobs Since February 2020 Due to COVID-19, Module Technologies and Trends Dominating the Indian Solar Market, Solar Sector Sees Broad-based Recovery, Funding Rises by 24% in 2020, EESL Issues Tender for 317,975 Solar Pumps Across India. As per the order, the consumers will be charged ₹14,500 (~$191.67) as the processing fee for up to 1MW, ₹22,000 (~$290.81) for more than 1 MW and up to 5 MW, ₹44,000 (~$581.63) for more than 5 MW and up to 20 MW, and ₹75,000 (~$991.41)  for more than 20 MW and up to 50 MW and above. So, MERC noted that under the circumstances, there is a case for the recovery of a part of fixed cost towards the stranded capacity arising from the power purchase obligation through the levy of additional surcharge from open access consumers, including the group captive consumers who have availed such arrangement. Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). If the energy is supplied to a distribution licensee, no cross-subsidy surcharge will be payable. In case the consumer tariff is more than 120% of Average Cost of Supply, DISCOM will not be able to recover losses through cross subsidy surcharge in case consumer opts for … Maharashtra State Electricity Distribution Company Limited (MSEDCL) has said that consumers are buying a considerable amount of power under open access, and on the other hand, it has tied up a sufficient amount of power to meet the expected demand by considering the overall growth in the state. DERC seeks opinion on revising charges for migrating customers 20 Dec, 2016, 12.31 PM IST This revision will benefit those who wish … Representative image (Photo: Bloomberg) States put open access renewable projects at risk by reducing incentives: ICRA 2 min read. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". Mumbai: The Appellate Tribunal for Electricity (ATE) on Monday upheld the Maharashtra Electricity Regulatory Commission’s (MERC) order levying a cross-subsidy surcharge on … As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Exempted from Transmission Charge, Transmission Loss, Wheeling Charge, Cross Subsidy Surcharge, Electricity Duty; Exempted from 50% Demand cut of installed solar capacity. The Additional Surcharge shall be applicable to third party open access consumer and Captive users of Group captive power plant in addition to open access consumer with prospective effect. If the energy is supplied to a distribution licensee, no cross-subsidy surcharge will be payable. In my opinion the CSS (short form for Cross Subsidy Surcharge) is a dreaded dacoit that keeps raids the rich to buy narcotics and give it for free to the poor which give them the temporary high but the dacoit maintains its stranglehold. The trigger is a recent order by the Maharashtra Electricity Regulatory Commission (MERC) to increase CSS from September 1 this year with retrospective effect. Keeping the current situation in mind, the Commission issued a direction on March 26, 2020, whereby meter reading and physical bill distribution work was suspended, and utilities were asked to issue bills on average usage basis until the current crisis subsides. Of late, Maharashtra, Rajasthan, Tamil Nadu and Andhra Pradesh among others are witnessing a new trend wherein a group of associations or consumers would form group captive power projects. The concept of cross subsidy has existed since very long time. The Coronavirus pandemic is proving to be the solar industry’s biggest challenge this year, and the repercussions are being felt across industries all over the globe. Ashish Roy As per the policy, Maharashtra Electricity Regulatory Commission (MERC) will declare separate open access (OA) regulations and cross subsidy surcharge (CSS) for renewable energy. Last Updated at November 19, 2013 02:21 IST. A fight between the Indian Railways and the state electricity body that is taking an ugly turn. The State is in a soup, thanks to its own decision of zero cross-subsidy surcharge. Cross Subsidy Surcharge TSERC DETERMINES RETAIL TARIFF FOR FY 2017-18 The Telangana State Electricity Regulatory Commission (TSERC) has determined its retail tariff in … To true-up is to match, reconcile, tie-out two the balances with the help of an adjustment. Regarding the wheeling charges, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) in its submission had stated that for the control period from FY 2020-21 to 2024-25, it had proposed wheeling charges for three levels only, extra-high voltage (66 kV and above), high tension (combined wheeling charges for 33, 22, and 11 kV) and low tension level. The State is in a soup, thanks to its own decision of zero cross-subsidy surcharge. Enjoy Reading! In the matter of Petition filed by Maharashtra State Electricity Distribution Company Limited regarding Cross Subsidy Surcharge and Stand by Charges for Open Access consumers And In the matter of De novo re-determination of Cross Subsidy Surcharge and issues related to Open Access. More articles from Rakesh Ranjan. Both the provisions i.e., Section 42 (2) and 42 (4) of the Act are independent provisions and they have no relevance whatsoever between the two. Additional surcharge for open access consumers will apply from FY 2020-21 to FY 2024-25. Support quality journalism and subscribe to Business Standard. The Commission has approved the Additional Surcharge of Rs.1.25 per unit to be applicable with effect from 1st September 2018. It further said that for the fourth control period, an additional surcharge would apply to captive users of group captive power projects, in addition to open access consumers. …. Ashish Roy MSEDCL’s prayers are as follows:- i. In Appeal No. Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). Cross Subsidy Surcharge & Additional Surcharge order for FY 2018-19 Dated:27.03.2018 Retail supply tariff 2016-17 Dated:23.06.2016 Cross Subsidy Surcharge Order FY 2016-17 Copyrights © 2021 Business Standard Private Ltd. All rights reserved. The only charge which has been specifically exempted from levy is cross subsidy surcharge. Both the provisions i.e., Section 42 (2) and 42 (4) of the Act are independent provisions and they have no relevance whatsoever between the two. The new CSS applicable will have significant impact on the open access power market. Jayant Deo, founder member of Maharashtra Electricity Regulatory Commission, told Business Standard: "'The increase in CSS is against the Electricity Act, 2003 and also the National Tariff Policy. 2014 08-Nov-2016 218 KB According to Goenka, VIA will soon approach the Appellate Tribunal for Electricity challenging the MERC's order. 1.1.4. 22-Feb-2019. The Commission said that unless fixed costs due to stranded capacity are recovered from open access consumers, this burden would be unjustly passed onto other consumers of a distribution licensee. NAGPUR: In a major relief to solar rooftop consumers, Maharashtra Electricity Regulatory Commission (MERC) has rejected the proposal of Maharashtra St. "If the MERC order to increase CSS (cross subsidy surcharge) is not stayed, the appellants (Tata Power and others) will have to pay surcharge which is increased by four to ten times for commercial consumers … This will amount to more than Rs 3.60 per unit over and above the purchase of power through open access.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); For extra high voltage (EHV) express feeder consumers, CSS in open access has increased from Rs 1.63 a unit to Rs 2.75 a unit; for EHV non-express feeder consumers, it has risen from Rs 1.20 a unit to Rs 2.26 a unit. Maharashtra, on the other hand, continues to refuse open access permission to its industrial customers . According to S L Patil, advisor, Thane Belapur Industries Association, industries will not be able to avail cheap power from various sources in the country. Tax benefits Under this structure, a corporate buyer who holds the asset on its balance sheet is also eligible to claim tax benefits through accelerated depreciation. NET METERING (Net … According to an approach paper released on the topic by MPERC, industrial consumers will have to pay upto Rs 1.53 per unit as cross-subsidy. been specifically exempted from levy is cross subsidy surcharge. MUMBAI: The Appellate Tribunal for Electricity (ATE) has dismissed the petition of Tata Power Company (TPC) challenging the Maharashtra electricity regulator's order on imposing cross subsidy surcharge from high billing consumers, who have migrated from RInfra to TPC. Sanjay Jog  |  Cross Subsidy Surcharge Cross subsidy surcharge is the difference between the tariff applicable to the relevant category of consumers and the cost of the distribution licensee to supply electricity to the consumers of the applicable class and the surcharge is applicable to open-access consumers as per Electricity Act, 2003 Section-42. In fact, as per the third proviso of section 42 (2) of the Electricity Act, 2003, the surcharge and cross-subsidies are required to be progressively reduced in the manner as may be specified by the regulator. This has left the industries miffed. CSS Cross Subsidy Surcharge CTPS Chandrapur Thermal Power Station CWIP Capital Works in Progress DA Dearness Allowance Discom Distribution Company DSM Demand Side Management DTPS Durgapur Thermal Power Station DTR Distribution Transformer DVC Damodar Valley Corporation EA 2003 Electricity Act, 2003 EHT Extra High Tension 3 & 4 of 2019 duly remanding the same for determination afresh by passing a reasoned order. Initially, the Commission has determined the Cross Subsidy Surcharge for MSEDCL as ZERO vide its Order dated 05.09.2006 and continued to determine it to be ZERO during all its subsequent tariff orders. The new CSS will be applicable only for the state of Rajasthan effective till 31st March, 2017. In the case of high-tension express feeder consumers, CSS has increased to Rs 2.30 a unit from Rs 1.18 and for high-tension non-express feeder consumers, it has risen from 76 paise a unit to 1.82 a unit. This has left the industries miffed. The concept was evolved by industries to avoid cross-subsidy charges levied on inter-state electricity sale. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Kindly visit the Manage my subscription page to discover the benefits of this programme. Then the Commission vide order dated 09th September 2011 (Case No. Maharashtra Open Access Consumers to Pay Additional Surcharge of ₹1.31/kWh for FY 2021 Additional surcharge for open access consumers will apply from FY 2020-21 to FY 2024-25 Home and bring tariff at +/- 20% Average Cost of Supply, however it restricts Cross Subsidy Surcharge at 20% of the consumer tariff. Tata Power consumers in Mumbai who had shifted to its distribution network from Reliance Infra have got temporary relief. MSEDCL on Cross Subsidy Surcharge (CSS) and De novo re-determination of CSS ... Properties /Assets for Sale – Bank of Maharashtra. While Maharashtra struggles to meet its retail customers' power requirements, it continues to refuse permission to industries willing to purchase power from the open markets. The Commission added that it finds it fit to put a moratorium on the payment of fixed charges of the electricity bills by consumers under the industrial and commercial category for the next three billing cycles beginning from the lockdown date of March 25, 2020. ATE dismisses Tata Power's plea over cross subsidy surcharge 25 Dec, 2012, 11.30 PM IST Under the cross-subsidisation regime, consumers with higher power usage compensate for lower costs per unit charged from those consuming less than 300 units a month. Shown separately in the state is in a soup, thanks to its own of! May 26, 2015 by Ritesh Pothan Standard Premium services '' be provided by MSEDCL to open access renewable at. Most industries the concept of Cross Subsidy surcharge from levy is Cross has. 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