Section 23(2) in State Electricity Regulatory Commission (Terms and Conditions of Intra-State Open Access) Regulations, 2010
(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.
