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State of Andhra Pradesh - Section

Section 45B in Andhra Pradesh Electricity Regulatory Commission (Conduct of Business) Regulations, 1999

45B. [ Fuel Surcharge Adjustment Formula. [Substituted by Regulation No. 3, dated 9.7.2003.]

(1)Unless otherwise agreed by the commission, the fuel Surcharges adjustment (FSA) for the price and mix variations in the quantity of energy to be purchased as per the tariff order during a quarter '1' shall be determined as per the following formula aggregated for the quarter '1':-
F1=(P1x E1+ FC1+ Z + A1
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Q1
WhereP1 is the difference in the Weighted Average Variable Cost in Rupees adjusted to four decimal points, of power purchase cost in quarter ‘1’ for the power purchase quantity mentioned tn the tariff order compared to the Weighted Average Variable Cost adopted in the tariff order.E1 is the energy purchase as mentioned in the tariff order in K wh during the quarter to be submitted for each of the generating stations.PC1 difference in Rupees, of the actual total fixed charges of the generating stations from the base values adopted in the tariff order.Q1 is the actual energy sold to all categories in K wh in the quarter in D1SCOM or RESCO, subject to condition No. 1, mentioned hereunder.Z is the changes in the cost in Rupees as allowed by the Commission for a period extending in the past beyond the relevant quarter.A1 adjustment in Rupees to account for the financial impact of demonstrated Incidents of merit order violation on account of controllable factors or any other events the financial impact of which, in the Commission’s view, should be given appropriate treatment.Condition:
(1)The FSA as worked out will be distributed among all categories of consumers that existed in the quarter. However the consumption by the agricultural sector will be excluded till the Commission is satisfied that metering of agricultural consumption is complete, as may be notified in the Tariff orders from time to time.
(2)The licensee shall provide the Commission with its calculation of each fuel surcharge adjustment required to be made pursuant to its tariff before it is implemented with such documentation and other information as it may require, for purpose of verifying the correctness of adjustments.
(3)FSA billed to retail categories to be made over to Bulk supplier by individual Distribution Companies and/or RESCOS as the case may be.
(4)APTRANSCO must file with the Commission all information (including sales data from the DISCOMS/ RESCOS) required for calculation of the Fuel Surcharge Adjustment within 30 days of the end of the respective quarter failing which it will forfeit any future claims on this account for such quarter. DISCOMS/RESCOS should use actual consumption details of the relevant quarter when levying FSA.
(5)The licensee will report data for computing the total cost (split for fixed and variable) for each of the generation stations that has supplied power in the respective quarter for which fuel surcharge adjustment is being computed. The total amount eligible for recovery will be computed on an aggregate basis.
(6)Fuel cost data has to conform to the fuel costs to the allowed level and no other charges other than the transportation cost can be included in the fuel cost. Every statement has to be confirmed by the licensee to that effect. The costs arrived at will be compared to the fuel cost indexation which will be developed by the Commission in the future.
(7)Penalties are leviable for furnishing wrong data.
(8)The licensee shall publish the FSA approved by the Commission in one English and one Telugu daily newspaper with circulation in the area of supply, for general information of the consumers, and shall make available copies of the FSA order for the relevant quarter to the public on request, at a reasonable cost.
(9)The FSA shall be implemented after 7 days of such publication.
(10)The actual variable costs and Fixed costs computed for Central Generating Stations (CGS) should exclude the effect of UI charges.
(11)The FSA will include not only fixed costs of two part tariff but also of single part tariff wherever applicable.]