Section 17 in The Maharashtra Electricity Regulatory Commission (Distribution Open Access) Regulations, 2014
17. Cross Subsidy Surcharge.
- 17.1 Every consumer of a Distribution Licensee who has been granted Open Access in accordance with these Regulations or any consumer situated within area of the supply of Distribution Licensee and/or receiving supply from a Generating Company using dedicated transmission line, shall be liable to pay a cross subsidy surcharge, as may be stipulated, as a condition for availing Open Access:Provided further that such surcharge shall not be leviable in case Open Access is provided to a person who has established a captive generating plant, in respect of his captive generation, for carrying the electricity to a destination of his own use.17.2Cross subsidy surcharge determined on Per Unit basis shall be payable, on monthly basis, by the Open Access consumers based on the actual energy drawn at the consumption end during the month through Open Access. The amount of surcharge shall be paid to the Distribution Licensee with whose Distribution System the Consumer is connected to.Provided that where consumer is not connected in accordance with specified voltage level in MERC (Standards of Performance of Distribution Licensees, Period for Giving supply and Determination of Compensation) Regulations, 2014 and its amendment from time to time, the Cross Subsidy Surcharge shall be levied as per the voltage level at which the consumer is connected to the distribution system/transmission system.17.3The formula for the purpose of determination of Cross-subsidy surcharge shall be as under:S = T - [C (1 + L / 100) + D]Where,S is the surcharge;T is the Tariff payable by the relevant category of consumers;C is the Weighted average cost of power purchase of top 5% at the margin excluding liquid fuel based generation and renewable power;D is the Wheeling charge in per kWh basis;L is the Distribution System Losses as stipulated by the Commission in accordance with Regulation 25.2 of these Regulations for the applicable voltage level, expressed as a percentage:Provided that in case the above formula gives negative value of surcharge, the same shall be zero:Provided that 'L' shall be the losses at the voltage level of the consumer category and shall include the transmission losses corresponding to the source of power purchase component 'C':Provided further that the concessions to the applicable surcharge, if any, in case the Open Access consumer purchases power from a Renewable source of energy, shall be stipulated by the Commission from time to time:Provided further that the Commission may, if required, revisit the formula and modify the same by general or special Order.17.4The Cross-subsidy surcharge payable to the Distribution Licensee by consumer shall be determined by the Commission in the Tariff Order of the Distribution Licensees or any other Order issued by the Commission:Provided further that as and when the Cross subsidy reduction road map is specified the surcharge to be levied on consumers shall be revised by the Commission.17.5The Distribution Licensee shall submit full details of the calculation of cross subsidy surcharge within the area of supply of such Distribution Licensee together with its application for determination of tariff submitted to the Commission in accordance with the provisions of clause (d) of sub-section (1) of Section 62 of the Act.
