Maharashtra State Electricity Distribution Co. Ltd. – MAHADISCOM. For the applicability of cross-subsidy surcharge, MSEDCL said that it needs to be based on the current level. 5 Sep 2012 … The Maharashtra Electricity Regulatory Commission, in exercise of the powers vested in …. © 2021 by Mercom Capital Group, LLC. As per the order, the consumers will be charged ₹14,500 (~$191.67) as the processing fee for up to 1MW, ₹22,000 (~$290.81) for more than 1 MW and up to 5 MW, ₹44,000 (~$581.63) for more than 5 MW and up to 20 MW, and ₹75,000 (~$991.41)  for more than 20 MW and up to 50 MW and above. Recently, MERC approved the revised retail electricity tariffs for MSEDCL for the fourth control period from FY 2020-21 to FY 2024-25, focusing on mitigating the difficulties faced by electricity consumers in the states due to the Coronavirus pandemic. Maharashtra State Electricity Distribution Co. Ltd; Tata Power Co. Ltd; The rooftop solar system installed on eligible consumer premises, are exempt from payment of banking and wheeling charges and losses, cross subsidy and additional surcharge etc. Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). Updated: 19 Jun 2020, 11:19 PM IST Tanya Thomas. Cross subsidy surcharge is normally computed as the difference between (i) the tariff applicable to the relevant category of consumers and (ii) the cost of the distribution licensee to supply electricity to the consumers of the applicable class i.e., Cost of Service (CoS) for a particular category of consumers. In this case, it is said that the domestic consumers are cross-subsidized by industrial consumers. This will amount to more than Rs 3.60 per unit over and above the purchase of power through open access.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); For extra high voltage (EHV) express feeder consumers, CSS in open access has increased from Rs 1.63 a unit to Rs 2.75 a unit; for EHV non-express feeder consumers, it has risen from Rs 1.20 a unit to Rs 2.26 a unit. ATE dismisses Tata Power's plea over cross subsidy surcharge 25 Dec, 2012, 11.30 PM IST Under the cross-subsidisation regime, consumers with higher power usage compensate for lower costs per unit charged from those consuming less than 300 units a month. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Kindly visit the Manage my subscription page to discover the benefits of this programme. The new CSS applicable will have significant impact on the open access power market. As per the policy, Maharashtra Electricity Regulatory Commission (MERC) will declare separate open access (OA) regulations and cross subsidy surcharge (CSS) for renewable energy. If the energy is supplied to a distribution licensee, no cross-subsidy surcharge will be payable. Cross subsidy surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access customers based on the actual energy drawn during the month through open access. All renewable energy projects other than small hydro and municipal solid waste will be governed by the deviation settlement mechanism. In my opinion the CSS (short form for Cross Subsidy Surcharge) is a dreaded dacoit that keeps raids the rich to buy narcotics and give it for free to the poor which give them the temporary high but the dacoit maintains its stranglehold. Cross Subsidy Surcharge Cross subsidy surcharge is the difference between the tariff applicable to the relevant category of consumers and the cost of the distribution licensee to supply electricity to the consumers of the applicable class and the surcharge is applicable to open-access consumers as per Electricity Act, 2003 Section-42. DERC seeks opinion on revising charges for migrating customers 20 Dec, 2016, 12.31 PM IST This revision will benefit those who wish … Then the Commission vide order dated 09th September 2011 (Case No. Nos. The Maharashtra Electricity Regulatory Commission (MERC) has announced various charges payable by open access consumers for the financial year 2020-21 to 2024-25. The concept was evolved by industries to avoid cross-subsidy charges levied on inter-state electricity sale. been specifically exempted from levy is cross subsidy surcharge. 22-Feb-2019. Both the provisions i.e., Section 42 (2) and 42 (4) of the Act are independent provisions and they have no relevance whatsoever between the two. CSS Cross Subsidy Surcharge CTPS Chandrapur Thermal Power Station CWIP Capital Works in Progress DA Dearness Allowance Discom Distribution Company DSM Demand Side Management DTPS Durgapur Thermal Power Station DTR Distribution Transformer DVC Damodar Valley Corporation EA 2003 Electricity Act, 2003 EHT Extra High Tension ER Eastern Region FCA Fuel Charge Adjustment FY … Maharashtra Open Access Consumers to Pay Additional Surcharge of ₹1.31/kWh for FY 2021 Additional surcharge for open access consumers will apply from FY 2020-21 to FY 2024-25 Home Copyrights © 2021 Business Standard Private Ltd. All rights reserved. Tax benefits Under this structure, a corporate buyer who holds the asset on its balance sheet is also eligible to claim tax benefits through accelerated depreciation. Maharashtra, on the other hand, continues to refuse open access permission to its industrial customers . 1.1.4. Mumbai: The Appellate Tribunal for Electricity (ATE) on Monday upheld the Maharashtra Electricity Regulatory Commission’s (MERC) order levying a cross-subsidy surcharge on … TELANGANA SOLAR POWER POLICY 2015. 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. What is cross subsidy? Exempted from Transmission Charge, Transmission Loss, Wheeling Charge, Cross Subsidy Surcharge, Electricity Duty; Exempted from 50% Demand cut of installed solar capacity. Of late, Maharashtra, Rajasthan, Tamil Nadu and Andhra Pradesh among others are witnessing a new trend wherein a group of associations or consumers would form group captive power projects. 40% Accelerated Depreciation; 10 year Tax holiday on solar projects; Loans available for up to Rs.15 Crore for renewable energy projects under Priority sector lending; 1. Rakesh is a staff reporter at Mercom India. The trigger is a recent order by the Maharashtra Electricity Regulatory Commission (MERC) to increase CSS from September 1 this year with retrospective effect. More articles from Rakesh Ranjan. PMRY Subsidy Claim 07-08 … XVI , Karol Bagh, Delhi; Immovable property bearing Plot admeasuring sq. In case of supply of power to a consumer or to a person other than its members, such consumer or person will have to pay cross-subsidy surcharge over and above transmission and wheeling charges as determined by the UPERC. MUMBAI: The Appellate Tribunal for Electricity today stayed a MERC order increasing cross subsidy surcharge payable by Tata Power customers migrating from Reliance Infra's network. In fact, as per the third proviso of section 42 (2) of the Electricity Act, 2003, the surcharge and cross-subsidies are required to be progressively reduced in the manner as may be specified by the regulator. Even as elections in Maharashtra is gaining traction, there is another issue brewing. Rajasthan Electricity Regulatory Commission (RERC) has calculated the Cross subsidy surcharge to be applicable during FY 16-17. NET METERING (Net … As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. The concept of cross subsidy has existed since very long time. We, however, have a request. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". Additional surcharge for open access consumers will apply from FY 2020-21 to FY 2024-25, West Bengal Tops List of States Buying ‘Dirty’ Coal-Based Power, Oxford PV’s New Record Efficiency of 29.52% for Perovskite Silicon Tandem Solar Cells, SECI Issues Tender to Construct a 25 MW Solar Project at a Coal Washery in West Bengal, Government Announces Financial Sops to Boost Ethanol Production, Tender Released for Supply of 1.8 Million Multicrystalline Solar Cells, Power Finance Corporation to Raise ₹100 Billion Through Bonds Issue, US Clean Energy Industry Lost 429,300 Jobs Since February 2020 Due to COVID-19, Module Technologies and Trends Dominating the Indian Solar Market, Solar Sector Sees Broad-based Recovery, Funding Rises by 24% in 2020, EESL Issues Tender for 317,975 Solar Pumps Across India. 836 KB . and bring tariff at +/- 20% Average Cost of Supply, however it restricts Cross Subsidy Surcharge at 20% of the consumer tariff. However, in this case, MERC has not given the roadmap for the same. Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). Group captive power plants — based on coal, solar and wind — are operational in large numbers in the states of Karnataka, Haryana, Rajasthan, Maharashtra and Tamil Nadu. "In our view, the CSS is unrealistic and misplaced. The Commission has approved the Additional Surcharge of Rs.1.25 per unit to be applicable with effect from 1st September 2018. All renewable energy generating projects will be subject to a day ahead scheduling. Case of Bhadreshwar Vidyut Private Limited against wrongful imposition of Cross Subsidy Surcharge (CSS) by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) on the captive users of M/s Bhadreshwar Vidyut Private Limited availing Open Access for the FY 2015-16. Digital Editor. NAGPUR: In what may be a gain for farmers, but a loss for the manufacturing sector, Maharashtra Electricity Regulatory Commission (MERC) has approved a hike in cross subsidy surcharge (CSS) from Rs 1.18-1.60 per unit to Rs 2.30-2.75 a unit respectively. In its order, the Commission stated that the tariff order is being issued at a critical time when the country is going through one of the most debilitating epidemics in the form of COVID-19. Open Access charges from the grid are applicable, but unpredictable charges, such as cross-subsidy surcharge and additional surcharge, are waived in captive and group captive projects. Open Access charges from the grid are applicable, but unpredictable charges, such as cross-subsidy surcharge and additional surcharge, are waived in captive and group captive projects. CSS is a charge levied from the industry when it buys power from open market rather than the state-owned utility MSEDCL. Representative image (Photo: Bloomberg) States put open access renewable projects at risk by reducing incentives: ICRA 2 min read. The Appellate Tribunal for Electricity has stayed the Maharashtra electricity More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. FINANCIAL ASSISTANCE. All Rights Reserved. surcharge on group captive power plant. Cross Subsidy Surcharge & Additional Surcharge order for FY 2018-19 Dated:27.03.2018 Retail supply tariff 2016-17 Dated:23.06.2016 Cross Subsidy Surcharge Order FY 2016-17 The cross-subsidy surcharge should be brought down progressively and, as far as possible, at a linear rate to a maximum of 20% of its opening level. CSS Cross Subsidy Surcharge CTPS Chandrapur Thermal Power Station CWIP Capital Works in Progress DA Dearness Allowance Discom Distribution Company DSM Demand Side Management DTPS Durgapur Thermal Power Station DTR Distribution Transformer DVC Damodar Valley Corporation EA 2003 Electricity Act, 2003 EHT Extra High Tension Enjoy Reading! The State is in a soup, thanks to its own decision of zero cross-subsidy surcharge. Maharashtra Govt rolls out incentives for renewable energy. Tata Power consumers in Mumbai who had shifted to its distribution network from Reliance Infra have got temporary relief. yrds in scheme no. The concept was evolved by industries to avoid cross-subsidy charges levied on inter-state electricity sale. Maharashtra Govt rolls out incentives for renewable energy. While Maharashtra struggles to meet its retail customers' power requirements, it continues to refuse permission to industries willing to purchase power from the open markets. However large number of consumers are buying power under open access instead of availing supply from MSEDCL. While Maharashtra struggles to meet its retail customers' power requirements, it continues to refuse permission to industries willing to purchase power from the open markets. Keeping the current situation in mind, the Commission issued a direction on March 26, 2020, whereby meter reading and physical bill distribution work was suspended, and utilities were asked to issue bills on average usage basis until the current crisis subsides. Both the provisions i.e., Section 42 (2) and 42 (4) of the Act are independent provisions and they have no relevance whatsoever between the two. Cross Subsidy Surcharge & Additional Surcharge order for FY 2018-19 Dated:27.03.2018 Retail supply tariff 2016-17 Dated:23.06.2016 Cross Subsidy Surcharge Order FY 2016-17 We believe in free, fair and credible journalism. 324 of 2018 . The Appellate Tribunal for Electricity has stayed the Maharashtra electricity The Commission added that it finds it fit to put a moratorium on the payment of fixed charges of the electricity bills by consumers under the industrial and commercial category for the next three billing cycles beginning from the lockdown date of March 25, 2020. This has left the industries miffed. On 18 August 2014, the Karnataka Electricity Regulatory Commission (KERC) passed order number S/03/01 called ‘Wheeling Charges, Banking Charges & Cross Subsidy Surcharge for Solar Power Generators’, whereby all solar power generators in the state who achieved Commercial Operation Date (COD) before 31 March 2018 were exempted from payment of wheeling and banking charges and cross subsidy … In the case of high-tension express feeder consumers, CSS has increased to Rs 2.30 a unit from Rs 1.18 and for high-tension non-express feeder consumers, it has risen from 76 paise a unit to 1.82 a unit. On the other hand, R B Goenka, chairman of Vidarbha Industries Association's (VIA) Energy Cell, said there won't be any competition in the power sector and the consumers drawing power from the state-run Maharashtra State Electricity Distribution Company will have no other option to purchase power from it despite high tariff. This has left the industries miffed. Earlier, the Maha Solar Sangathan, raising concerns over the proposed grid support charges, had requested the MERC to ask the state DISCOM to explain that when the total handling cost of electricity is ₹0.70 (~$0.01)/kWh, why has it proposed a hefty grid support charge to the tune of  ₹8.66 (~$0.12)/kWh. Case of Bhadreshwar Vidyut Private Limited against wrongful imposition of Cross Subsidy Surcharge (CSS) and Additional Surcharge by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) on the captive users of M/s Bhadreshwar Vidyut … The Coronavirus pandemic is proving to be the solar industry’s biggest challenge this year, and the repercussions are being felt across industries all over the globe. Higher CCS, as proposed, will kill the spirit of competitiveness in the power sector and is detrimental to industrial growth, which is already struggling with the high cost of inputs, he noted. If the energy is supplied to a distribution licensee, no cross-subsidy surcharge will be payable. 2. The Public Water Supply Schemes and Sewage Treatment Plants ( including other … Subsidy. While the cost of supplying electricity to all categories of consumers is same, the tariff charged from them is different. Track the latest developments and initiatives taken by the government to fight the economic repercussions of the pandemic in the renewable industry here. Ashish Roy "If the MERC order to increase CSS (cross subsidy surcharge) is not stayed, the appellants (Tata Power and others) will have to pay surcharge which is increased by four to ten times for commercial consumers … Tax benefits Under this structure, a corporate buyer who holds the asset on its balance sheet is also eligible to claim tax benefits through accelerated depreciation. Maharashtra Open Access Consumers to Pay Additional Surcharge of ₹1.31/kWh for FY 2021. 43 of 2010) de novo determined the Cross Subsidy Surcharge and Stand by charges for Open Access consumer in the state of Maharashtra. MSEDCL on Cross Subsidy Surcharge (CSS) and De novo re-determination of CSS ... Properties /Assets for Sale – Bank of Maharashtra. …. Commission passed order in the matter of determination of Cross Subsidy Surcharge for FY 2016-17 in terms of the directions of the Hon’ble High Court in W.A. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). Additional surcharge for open access consumers will apply from FY 2020-21 to FY 2024-25. Power is the most critical input for most industries. The issue is over cross-subsidy surcharge (CSS) that the Railways need to pay the state government, which according to sources is close to Rs 500 crore. It further said that for the fourth control period, an additional surcharge would apply to captive users of group captive power projects, in addition to open access consumers. Preamble of the pandemic in the state Electricity body that is taking an ugly turn industry.. Financial year 2020-21 to 2024-25 if the energy is supplied to a in. By Ritesh Pothan the CSS is a charge levied from the industry when it buys power from open market than... 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