Section 23 in State Electricity Regulatory Commission (Terms and Conditions of Intra-State Open Access) Regulations, 2010
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 consumer, 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 monthly basis, by the open access consumers 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.(2)The Cross Subsidy Surcharge shall be determined in accordance with the following formula specified in National Tariff Policy at the commencement of these regulations.Surcharge formula:S = T - [ C (1+ L / 100) + D ]WhereS is the surchargeT 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 powerD is the Wheeling charge in per kWh basis (to be derived from the wheeling charge in Rs./MW-Day referred to in Regulation 22 )L is the system Losses for the applicable voltage level, expressed as a percentageProvided that in case the above formula gives negative value of surcharge, the same shall be zero:Provided further that the Commission may fix a lower surcharge in the situation of shortages and load shedding by the distribution licensee:Provided also that such cross subsidy surcharge shall not be levied in case distribution access is provided to a person who has established a captive generation plant for carrying the electricity to the destination of his own use.(3)Cross subsidy surcharge so determined by the Commission shall be reduced by 20% every year at a linear rate, taking the year in which the Commission has allowed open access to a category of consumers as the first year.e.g. Cross subsidy surcharge of 1 Rs./ kWh determined in the first year will be 80 Paise/kWh in second year and 60 paise/ kWh in third year and so on:Provided 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:Provided further that the revised cross subsidy surcharge so determined by the Commission in subsequent years shall be applicable only to the new Open Access applicants.
