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State of Maharashtra - Section

Section 82 in The Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005

82. Fuel surcharge adjustment.

- 82.1 With effect from the first day of September, 2005, the Distribution Licensee shall pass on adjustments, due to changes in the cost of power generation and power procured due to changes in fuel cost, through the Fuel Adjustment Cost (FAC) formula, as specified below.
82.2The FAC charge shall be applicable on the entire sale of the Distribution Licensee without any exemption to any consumer.
82.3The FAC charge shall be computed and charged on the basis of actual variation in fuel costs relating to power generated from own generation stations and power procured during any month subsequent to such costs being incurred, in accordance with these Regulations, and shall not be computed on the basis of estimated or expected variations in fuel costs.
82.4The Distribution Licensee shall submit details in the stipulated format to the Commission on a quarterly basis for the FAC charged and, for this purpose, shall submit such details of the FAC incurred and the FAC charged to all consumers for each month in such quarter, along with the detailed computations and supporting documents as may be required for verification by the Commission:Provided that where the FAC is being charged for the first time subsequent to the notification of these Regulations, the Distribution Licensee shall obtain the approval of the Commission prior to levying the FAC charge:Provided further that the FAC charge applicable to each tariff category of consumers shall be displayed prominently at the cash collection centres and on the internet website of the Distribution Licensee:Provided that the Distribution Licensee shall put up on his internet website such details of the FAC incurred and the FAC charged to all consumers for each month along with detailed computations.
82.5The formula for the calculation of the FAC shall be as given under:
FAC (Rs crores) = C + I + B, Where
FAC = Fuel Adjustment Cost
C = Change in cost of own generation and power purchase due tovariation in the fuel cost
I = Interest on working capital
B = Adjustment factor for over-recovery/under-recovery
Explanation I - for the purpose of this Regulation 82.5, the term "C" shall be computed in accordance with the following formula:
C (Rs. Crores) = AFC,Gen + AFC,PP, Where:
AFC,Gen : Change in fuel cost of own generation. This change would becomputed based on the norms and directives of the Commission,including heat rate, auxiliary consumption, generation and powerpurchase mix, etc.
AFC,PP : Change in energy charges of power procured from other sources.
This change would be allowed to the extent it satisfies the criteria prescribed in these Regulations and the prevailing tariff order, and subject to applicable norms.Explanation II - for the purpose of this Regulation 82.5, the term "I" shall mean change in interest on working capital on account of change in fuel cost.Explanation III - for the purpose of this Regulation 82.5, the term "B" shall be computed in accordance with the following formula:BJ-2 (Rs. Crores) = AJ-4 + RJ-2Where:AJ-4 : Incremental cost in month "J-4".RJ-2 : Incremental cost in month "J-4" actually recovered in month "J-2".
82.6The monthly FAC charge shall not exceed 10% of the variable component of tariff, or such other ceiling as may be stipulated by the Commission from time to time:Provided that any excess in the FAC charge over the above ceiling shall be carried forward by the Distribution Licensee and shall be recovered over such future period as may be directed by the Commission.
82.7The calculation for FAC to be charged for the month "J" shall be as follows:FACJ (Rs crores) = CJ-2 + IJ-2 + BJ-2The FAC would be applicable from the month following the month in which the additional costs are calculated.
82.8The FAC charge shall be allowed only in respect of approved power purchases of the Distribution Licensee and in respect of power purchases made in accordance with Regulation 25 where the approval of the Commission is not required under these Regulations.
82.9The total FAC recoverable, as per the formula specified above, shall be recovered from the actual sales in "Rupees per kilowatt-hour" terms:Provided that in case of unmetered consumers, FAC shall be recoverable based on estimated sales to such consumers, calculated in accordance with such methodology as may be stipulated by the Commission:Provided further that where the actual distribution losses of the Distribution Licensee exceed the level approved by the Commission, the amount of FAC corresponding to the excess distribution losses (in kWh terms) shall be deducted from the total FAC recoverable.
82.10Calculation of FAC per kWh shall be as per the following formula:FACRs./KWh = (FAC/(Metered sales + Unmetered consumption estimates + Excess distribution losses)) * 10