The Appellate Tribunal for Electricity (APTEL) recently ruled that the state regulatory commission should revisit the subject of cross-subsidy surcharge on open access projects in Rajasthan as and when it takes up the tariff determination exercise in the future.

Rajasthan Textile Mills Association, Vedanta, Lord Chloro Alkali, Sunil Healthcare, Synergy Steels, Ambuja Cements, and Ultratech Cement had petitioned APTEL to assess the legitimacy of the state regulator’s determination of the cross-subsidy surcharge for the financial year (FY) 2016-17.

The petitioners have industrial units located in Rajasthan that have been granted open access within the contract demand and are drawing electricity through open access, including from power exchanges.

They challenged the state commission for hiking the cross-subsidy surcharge from Rs 0.18 ($0.002)/kWh, Rs 0.13 ($0.001)/kWh, and Rs 0.05 ($0.0006)/kWh for 132 kV consumers, 33 kV consumers, and 11 kV consumers to Rs 1.63 ($0.021)/kWh, Rs 1.39 ($0.017)/kWh, and Rs 0.83 ($0.01)/kWh.

The tribunal observed that the rates of cross-subsidy surcharge under the previous determination were Rs 0.18 ($0.002)/kWh for 132 kV consumers, Rs 0.13 ($0.001)/kWh for 33 kV consumers, and Rs 0.05 ($0.0006)/kWh for 11 kV consumers.

APTEL stated that the rates of cross-subsidy surcharge should not have been tampered with and it is unjust, unfair, and violates the prescribed norms and procedures and so it is set aside.

The tribunal directed the state commission to revisit the cross-subsidy surcharge when it takes up tariff determination in the future.

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