Section 23 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions of Intra-State Open Access) Regulations, 2015
23. Cross subsidy surcharge.
(1)If open access facility is availed of by a subsidising consumer of a distribution licensee of the State, then such customer, in addition to transmission and/or wheeling charges, shall pay cross subsidy surcharge determined by the Commission. Cross subsidy surcharge determined on per unit basis shall be payable, on a monthly basis, by the open access customers based on the actual energy drawn during the month through open access. The amount of surcharge shall be paid to the distribution licensee of the area of supply from whom the consumer was availing supply before seeking open access :Provided that the Commission may fix a lower surcharge in the situation of shortages and load shedding by the distribution licensee :Provided further that in case power supply position or the consumer load seeking open access changes substantially, the Commission may review the cross subsidy surcharge as and when required.(2)The cross subsidy surcharge shall be determined in accordance with the following formula specified in National Tariff Policy :-Surcharge formula :S = T - {C (1+L/100) + D}Where,S is the cross Subsidy 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 charges per kWh basis (to be derived from the wheeling charges in Rs./MW-day referred to in Regulation 21(2).L is the system losses 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.
