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DEC 01 2016

RERC Notified the Order of determination and approval of Cross Subsidy Surcharge for the FY 16-17

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 01st DEC 2016


The three distribution companies, namely, Jaipur Vidyut Vitran Nigam Ltd. (JVVNL), Ajmer Vidyut Vitran Nigam Ltd. (AVVNL) and Jodhpur Vidyut Vitran Nigam Ltd. (JdVVNL)), have collectively filed petition on 22nd Jul 2016 praying for determination of Cross Subsidy Surcharge payable by open access consumers under Section 42(2) read with Section 39 and 40 and other applicable provision of the Electricity Act, 2003.


Cross Subsidy Surcharge as per the RERC Tariff Regulations, 2014:

S= T – [C/(1-(L/100)) + D];


Where S is the Surcharge,

T is the tariff applicable by the relevant category of consumers,

C is the weighted average cost of power purchase of top 5% at margin excluding liquid fuel source and renewable energy sources,

D is the Wheeling Charge,
L is the system losses of distribution licensee for the applicable voltage level, as a percentage.

The Commission after considering the comments and suggestions, stated that the Cross Subsidy Surcharge should be reduced progressively but the reduction should relate to the actual cost and not to historical facts. The Commission has taken the values as approved in its Tariff Order for FY 15-16.  Cross Subsidy as approved by the Commission:

Consumer Category

Voltage Level

Tariff (T)- Energy Charge

Weighted Avg. Cost of Power Purchase of Top 5% Power Purchase

System Losses              (L)

Wheeling Charges (D)


       S= T- [C/(1-(L/100))+ D]

Large Industrial Service (LIS)

11 KV






33 KV






132 KV and Above






Note: The Calculation is done on the basis of formula as specified in RERC Tariff Regulations, 2014


The Above Cross Subsidy Surcharge shall be levied and collected with effect from the date of this Order and remain in force till CSS is re-determined by the Commission.





WHEELING Jodhpur Vidyut Vitran Nigam Ltd Jaipur Vidyut Vitran Nigam Ltd. Ajmer Vidyut Vitaran Nigam Ltd Open Access Distribution Companies Cross Subsidy sucharge Renewable Energy Tariff Electricity Act Energy Rajasthan Electricity Commission Power Electricity Consumer WHEELING

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