Decided on January 08,2015

STATE Respondents


- (1.) The Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) has filed a Petition on 25 September, 2014 seeking re -determination of Cross Subsidy Surcharge (CSS) under Sections 42(2) and 86(1) of the Electricity Act (EA), 2003, and Regulations 13 and 17 of the MERC (Distribution Open Access (DOA)) Regulations, 2005 and 2014, respectively
(2.) MSEDCL's prayers are as follows: " 1) To admit the Petition for determination of cross subsidy surcharge in accordance with the Section 42(2) and 86(1) of the Electricity Act, 2003, Regulation 13 of MERC (Distribution Open Access ) Regulations, 2005 and Regulation 17 of MERC(Distribution Open Access) Regulations, 2014; 2) To approve the cross subsidy surcharge as worked out by MSEDCL which will be applicable for existing as well as new Open Access consumers with effect from 1st April 2014;..."
(3.) In its Petition, MSEDCL has submitted as follows: 3.1 The Commission had de novo determined the CSS payable by Open Access (OA) consumers vide Order dated 9 September, 2011 in Case No. 43 of 2010. The CSS was again revised vide Order dated 21 February 2013 in Case No. 138 of 2012. 3.2 By its Order dated 29 October, 2013 in Case No.107 of 2013, the Commission had determined the CSS which was applicable for a limited period of six months, from September, 2013 to February, 2014. Hence, from 1 March, 2014 onwards, the CSS as per Order dated 21 February, 2013 has become applicable. 3.3 The Commission has issued the DOA Regulations, 2014, applicable from 25 June, 2014. Since, the present Petition seeks re -determination of CSS from 1 April, 2014, both the 2005 and 2014 DOA Regulations have been cited. 3.4 Re -determination of CSS is sought for FY 2014 -15 considering the Tariffs approved in the following Orders of the Commission: A. Case No. 19 of 2012: Order dated 16 August 2012 (MSEDCL's Tariff for FY 12 -13) B. Case No. 56 of 2013: Order dated 13 May 2013 - Intra -State Transmission System (InSTS) Tariff for FY 13 -14 to 15 -16. C. Case No. 95 of 2013: Order dated 5th September 2013 - Suo moto determination of supplemental charges) D. Case No. 54 of 2013: Order dated 3 March, 2014 - Multi Year Tariff determination of Maharashtra State Power Generation Co. Ltd. (MSPGCL) E. Case No. 38 of 2014: Interim Order dated 3 March, 2014 and final Order dated 11th June 2014 - Truing up of FY 11 -12 and 12 -13 for MSEDCL. 3.5 Shift of industrial consumers out of the MSEDCL results in the loss of cross subsidy generated by them. This cross subsidy is utilized towards the shortfall in revenue from subsidized consumers. If the precise level of CSS is not determined, the consumers remaining with MSEDCL would have to bear the burden along with carrying cost, and this might result in tariff shock to them in future. Therefore, it is necessary to urgently determine the exact level of CSS. 3.6 In its previous Orders, the Commission has determined category -wise CSS (as per the Formula below) for consumers who have migrated to or who may opt for OA. S = T ­ [C (1+ L / 100) + D] The CSS ("S") inter -alia depends upon "T" (the Tariff payable by relevant category of consumers), "C" (the weighted average cost of power purchase of top 5% of the margin, excluding liquid fuel based generation and renewable power), "D" (wheeling charge) and "L" (the system losses for the applicable voltage level). 3.7 MSEDCL has considered the following components for the CSS Formula: T: The present Average Billing Rate (ABR), considering the ABR approved in Tariff Order for FY 2012 -13 dated 16 August, 2012 (Case No. 19 of 2012) and current Additional Charges as per Interim Order dated 3 March, 2014 (Case No. 38 of 2014), i.e. Interim Charges, MSPGCL and Transmission Charges applicable from 1st April 2014; C: The weighted average cost of power purchase of top 5% at the margin as approved by the Commission in Final True Up of FY 2012 -13 (Case No. 38 of 2014); L: The System Losses as approved by the Commission in Tariff Order for FY 2012 -13 (Case No. 19 of 2012); D: The Wheeling Charges as approved by the Commission in Tariff Order for FY 2012 -13 (Case No. 19 of 2012). Detailed CSS computation spread sheets have been provided based on these components. 3.8 Vide GR dated 29 February, 2014, Govt. Of Maharashtra (GoM) has provided relief of around 20% in the Tariff for Industrial, Commercial, Agriculture and Residential consumers of MSEDCL. No relief is provided for OA consumers. Therefore, for determination of CSS, the total Tariff for the consumers, as approved by the Commission, needs to be considered. ;

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