The Delhi Electricity Regulatory Commission (DERC) has set the additional surcharge payable by open access power consumers under the jurisdiction of three distribution licensees. Based on the projections mentioned in the tariff order, the average fixed cost per unit from October to April is considered the additional surcharge.
The additional surcharge for May to September is 50% of the average fixed cost per unit.
The order issued by the Commission has been named as ‘Open Access Charges and Related Matters (Fifth Amendment) Order, 2021.’
Earlier, DERC had issued the tariff order for the financial year 2021-22 for Tata Power Delhi Distribution Limited (TPDDL), BSES Rajdhani Private Limited (BRPL), and BSES Yamuna Power Limited (BYPL), revising the power purchase cost.
The order will apply from the issue date and remain in force until revised.
According to the new order, the additional surcharge for TPDDL has been set at ₹1.89 (~$0.025)/kWh (for October to April) and ₹0.95 (~$0.013)/kWh (for May to September). This is an 8% increase compared to the surcharge announced in the previous amendment in 2019. As per the third amendment in 2019, the additional surcharge for TPDDL was ₹1.76 (~$0.024)/kWh (for October to April) and ₹0.88 (~$0.012)/kWh (for May to September).
For BRPL, the surcharge is ₹1.71 (~$0.023)/kWh (for October to April) and ₹0.85 (~$0.011)/kWh (for May to September), a 17% hike from the earlier ₹1.46 (~$0.019)/kWh (for October to April) and ₹0.73 (~$0.009)/kWh (for May to September).
The additional surcharge for BYPL is ₹1.33 (~$0.018)/kWh (for October to April) and ₹0.66 (~$0.009)/kWh (for May to September), 3% higher from ₹1.29 (~$0.017)/kWh (for October to April) and ₹0.645 (~$0.008)/kWh (for May to September), announced in 2019.
Distribution companies (DISCOMs) generally have surplus power during all months of the year. However, based on actual demand and availability, additional power must be purchased during some time blocks. From May to September, such additional power purchased is higher than in other months. As the allocation of power purchase is not linked with the tariff category of consumers, all the existing consumers of the DISCOMs bear the average fixed cost of power purchase. Consumers opting for open access have to bear the liability corresponding to the average fixed cost. So, the Commission has determined additional surcharge as the average fixed cost per unit for respective DISCOMs based on the projections given in the Tariff Order for the months from October-April. The additional surcharge from May to September has been maintained at 50% of the average fixed cost per unit.
In August this year, DERC announced the ‘Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation Regulations, 2021.’ The regulations became effective from April 13, 2021. The rules govern obligated entities mandated to fulfill their renewable purchase obligation (RPO), including distribution licensees, captive users, open access consumers, or any other entity in Delhi.
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Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.