Section 7 in Orissa Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulation, 2004
7. Tariff Principles.
- (a) Peak and Off-peak Tariff -(i)A differential tariff for peak and off-peak hours is necessary to promote demand side management. The Commission may encourage the distribution licensees to move towards separate peak and off-peak tariffs.(ii)The Commission shall stipulate the broad classification of consumers and time frame for implementation. While stipulating differential tariffs, the Commission may also indicate the periods for peak, off-peak and normal consumption.(b)Power Factor and Load Factor Related Tariff - The Commission may provide rebates to the consumers for maintaining high power factors and load factor to promote efficiency of operation and optimum capacity utilisation. To achieve this, the Commission may at a future date consider switching over to KVAh tariff from KWh tariff for consumers having appropriate meters. However, even after switching to KVAh tariff demand charges shall continue to apply. This will take care of incentive for better power factors as well as curb the tendency of not improving the power factor beyond a point determined for penalty, to avail of the rebate for high load factor.(c)Surcharge -(i)Surcharge to be levied on wheeling consumers shall be determined by the Commission keeping in view the loss of cross-subsidy from the consumers or category of consumer who have opted for open access to take supply from a person other than the incumbent distribution licensee.(ii)The Commission may adopt requisite principle for computing surcharge, which shall compensate for the entire loss of cross subsidy for any given consumer category for which supply is given, as the Act clearly states that such surcharges shall be utilised to meet the requirements of current level of cross-subsidy. The entire amount of cross-subsidy lost by the incumbent licensee needs to be compensated.(iii)For the purpose of computing cross-subsidy, the difference between cost to serve of that category and average tariff realisation of that category shall be considered.(d)Wheeling -(i)The licensee shall provide non-discriminatory open access to the consumers within the period as stipulated by the Commission. For the purpose of tariff for wheeling,the person utilizing wheeling services shall be charged on both cash and kind basis.(ii)The wheeling charge in cash for a consumer category for the present shall be based on postage stamp method for the present, which includes cost of distribution system.(iii)Wheeling charge shall be computed taking into account, projected units to be sold and wheeled through distribution licensee network in the ensuing tariff period.(iv)With regard to charges in kind, the normative distribution system loss to be borne by the consumer in the case of wheeling transactions and it shall be based on the voltage levels.(e)Additional Surcharge - Where a consumer avails open access, the Commission may determine the additional surcharge to meet the fixed costs of distribution licensee arising out of his obligation to supply and permit collection of such additional surcharge for the period the fixed cost remains stranded. If the capacity released on account of a consumer changing from his existing distribution licensee to another person is productively utilized then no standard cost is involved.(f)Bulk Supply Tariff -(i)As per the provisions of the Act, the distribution licensees may buy power directly from a generating station or a trader. The Commission may continue to adopt a differential Bulk Supply Tariff mechanism to address the issues of uniform retail tariffs and different level of cross-subsidies that exist on account of the consumer mix, which however will be reviewed by the Commission from time to time.(ii)The Commission shall, while designing of differential bulk supply tariff, ensure bulk supply tariff predictability, protect efficiency gains and lay down a clear formula for the calculation of bulk supply tariff.(g)Provision of Subsidy -(i)The Commission, while determining the tariff, shall see that the tariff progressively, reflects the cost of supply of electricity and also reduces and eliminates cross-subsidy within a period as stipulated by the Commission.(ii)If the State Government decides to subsidise any consumer or class of consumers in the tariff determined by the Commission, the State Government shall pay the amount to compensate the licensee affected by grant of such subsidy in advance.(iii)The Government shall, by notification, declare the consumers or class of consumers to be subsidised.(iv)The licensee shall make an estimate of subsidy to be provided to the consumers or class of consumers as per the Government notification and file the same with the Commission for approval.(v)The Commission shall scrutinize the estimate and may require further details, data, documents in support of the estimates, which the licensees are required to file with the Commission within the stipulated time.(vi)The Commission, on according approval forward the same to the State Government with a direction to pay the amount in full with a copy of the approval to the licensee.(vii)On receipt of the approval of the Commission, the Government shall pay the amount to the licensees or the affected person within one month of receipt of such approval.(viii)The amount of subsidies shall be available to the licensees in the form of cash only.(ix)The licensee shall pay the subsidy received from the Government to the entitled class of consumers in proportion to their energy consumption on actual basis by way of adjustment in the energy bill.(x)The licensee shall keep proper accounts of subsidy in such manner as approved by the Commission, and render the same to the Commission within 30 days of the closure of the Year of Account.(xi)The difference between the subsidy received from the Government and actual disbursement to the entitled class of consumers shall be adjusted in the next year ;Provided that no such direction of the State Government to grant subsidy shall be operative if the payment is not made in accordance with the relevant provisions contained in these Regulations. In such a case the tariff fixed by the Commission shall be applicable to the consumers from the date of issue of tariff orders by the Commission.Chapter-IV Miscellaneous
