Regulations and the Tariff Policy.
8.9. The State Commission has justified creation of
regulatory asset for avoiding tariff shock. Now, let us
examine the increase ... average tariff
realization of that category of consumers.
While the cross-subsidies have to be reduced
progressively and gradually to avoid tariff
shock
tariff proposal by Licensee and the tariff determination by the Commission shall be based on the following principles: (a) The tariff for all categories shall ... tariff for various class of Consumers; (e) The tariff shall be set in such a manner that it may not present a tariff shock
appellants of both the
appeals that by the impugned tariff order, a tariff shock has been caused to the power
4
Judgment in Appeal ... appellants that the voltage wise tariff
determination has to be done in one go irrespective of the tariff shocks caused or the
implication
tariff shock?
(c) Whether the State Commission while
increasing the tariff causing tariff
shock has violated its own
Regulations 5(3) of the Tariff
Regulations ... categories of consumers and while re-
determining the tariff the Commission shall ensure
that no tariff shock is caused to any other category
Tariff Orders the tariff has increased monthly electricity bills in some cases between two to three time and has therefore given a tariff shock ... tariff shock" is belied by the fact that it is not actually charging the so-called "shocking" tariffs from their consumers
National Tariff Policy and
Commission's own Tariff Regulations provide that cross
subsidy should be reduced gradually so as not give tariff
shock ... Respondent which had
been published and determined tariff giving tariff shock to
subsidized categories of consumers. We are not conveying or
suggesting that the Commission
Tariff Policy according to which the increase in tariff
should be gradual so that there is no tariff shock. Further
there is no rationale ... Respondent which had been published and determined
tariff giving tariff shock to subsidized categories of
consumers. We are not conveying or suggesting that the
Commission
operations. There is urgent need to correct this
imbalance without giving tariff shock to consumers.
The existing cross-subsidies for other categories of
Page ... tariffs.
19. The National Electricity Policy provides for
reducing the cross subsidies progressively and
gradually. The gradual reduction is envisaged to avoid
tariff shock
Another ground for interfering with the tariff order is
increase in cross subsidy levels and tariff shock caused to
the appellant as described in paragraph ... tariff is not correct.
(ii) According to the Appellant, there is an increase in
cross subsidy level and consequently there is a
tariff shock
consumers from the existing tariff- category to the newly created tariff category carrying excessive tariff, beside causing severe tariff-shock, suffers from lack of predictability ... with its tariff philosophy of cross-subsidy reduction, enunciated in earlier Tariff Orders, for the base tariff. The details of category-wise tariffs
