Compendium of HPERC Regulations, March 2021 1 1 [The Himachal Pradesh Electricity Regulatory Commission (Cross Subsidy Surcharge, Additional Surcharge and Phasing of Cross Subsidy) Regulations, 2006] Amended, repealed or otherwise affected by:-
1. (First Amendment) Regulations, 2006 notified vide the Not. No. HPERC/391 dated 10 th November, 2016 published in R.H.P. dated 16 th November, 2016 at p. 5564-
5565.
NOTIFICATION Shimla, 21 st August, 2006 No. HPERC/391.- The Himachal Pradesh Electricity Regulatory Commission in exercise of the powers vested in it under clauses (i), (j), (k), (l), (m), (n), (p) and (q) of sub-section
(2) of section 181, read with clause (d) of sub-section (2) of section 39, sub clause (ii) of clause (c) of section 40, sub-sections (2) and (4) of section 42, and clause (g) of section 61 of the Electricity Act 2003 (36 of 2003) and all other powers enabling it in that behalf, and after previous publication, hereby makes the following regulations, namely:-
1. Short title, extent and commencement.- (1) These regulations may be called the Himachal Pradesh Electricity Regulatory Commission (Cross Subsidy Surcharge, Additional Surcharge and Phasing of Cross Subsidy) Regulations, 2006.
(2) These regulations shall be applicable to any person engaged in the business of transmission/distribution of electricity, and open access customers including captive power plants in the State of Himachal Pradesh.
(3) These regulations shall come into force from the date of their publication in the Rajpatra, Himachal Pradesh.
2. Definitions.- (1) In these regulations, unless the context otherwise requires , -
(a) “Act” means the Electricity Act, 2003 (36 of 2003);
(b) “Commission” means the Himachal Pradesh Electricity Regulatory Commission;
(c) “licence” means a licence granted under section 14 of the Act and shall include the deemed licensee for the purpose; and
(d) “licensee” means a person who is granted a license under section 14 of the Act or is a deemed licensee under the Act.
(2) Words and expressions used and not defined in these regulations, but defined in the Act, shall have the meanings as are assigned to them in the Act.
3. Cross subsidy surcharge.- (1) The cross subsidy surcharge as provided under subsection (2) of section 42 of the Act shall be payable by the consumers availing Open Access:
Provided that no cross subsidy surcharge shall be payable by a person who has established a captive generating plant for carrying the electricity to the destination of his own use:
Provided further that no cross subsidy surcharge on the electricity being— 1 Published in the R H.P. (Extra) dated 7 th September, 2006 at p. 4127-4131.
2 Compendium of HPERC Regulations, March 2021
(a) sold by the generating companies, with the consent of the competent Government under clause (c) of sub-section (1) of section 43 A of the Electricity (Supply) Act,1948 (54 of 1948); or
(b) supplied by the distribution licensee, on the authorization by the State Government under section 27 of the Indian Electricity Act, 1910 (9 of 1910);
shall be payable during the period such consent or authorization remains in force.
(2) 1 [The cross subsidy surcharge shall be determined by the Commission on the methodology and surcharge formula, specified in the revised Tariff Policy, 2016, which is given as under:— Surcharge formula:
S= T-[C/(1-L/100)+D+R]
(a) “S” is the surcharge;
(b) “T” is the tariff payable by the relevant category of consumers, including reflecting the Renewable Purchase Obligation;
(c) “C” is the per unit weighted average cost of power purchase by the Licensee, including meeting the Renewable Purchase Obligation;
(d) “D” is the aggregate of transmission, distribution and wheeling charges applicable to the relevant voltage level;
(e) “L” is the aggregate of transmission, distribution and commercial losses, expressed as a percentage applicable to the relevant voltage level;
(f) “R” is the per unit cost of carrying regulatory assets.
Provided that the surcharge shall not exceed 20% of the tariff applicable to the respective category of the consumers, seeking open access.
Provided further that the Commission, while keeping the overall objectives of the Electricity Act in view, may review and vary the formula, taking into consideration the different circumstances related to power supply, prevailing in the area of Distribution Licensee.]
4. 2[Restriction of Cross Subsidy Surcharge.— The Commission may further restrict the cross subsidy surcharge computed in accordance with Regulation 3, in a 1 Sub. for sub-regulation 2 of regulation 3 vide Not. No. HPERC/391.dated 10 th November, 2016 published in R.H.P. dated 16 th November, 2016 at p. 5564-5565. Before substitution sub-regulation (2) read as under:
-“(2) The cross subsidy surcharge shall be determined by the Commission on a methodology and surcharge formula specified in the National Tariff Policy, which is given as under:- S = T – [C (1+L/100) +D]
Explanation.- For the purpose of this regulation. -
(a) “S” is the Surcharge
(b) “T” means Tariff payable by the relevant category of consumers
(c) “C” is the Weighted average cost of power purchase of top 5% at the margin excluding liquid fuel based generation and renewable power
(d) “D” is the Wheeling Charge
(e) “L” is the system losses for the applicable voltage level, expressed as a percentage” 2 Subs. vide Not. No. HPERC/391dated 10 th November, 2016 published in the R.H.P. dated 16 th November, 2016 at p. 5564-5565 and before its substitution it stood as under:- Compendium of HPERC Regulations, March 2021 3 manner as it may consider appropriate, from time to time for respective categories of consumers and also for different time of a day.]
5. Manner and utilization of payment of Cross subsidy surcharge.- (1) The Cross subsidy surcharge which is a compensatory charge payable to the distribution licensee of the area where the electricity is delivered to the consumer, shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee.
(2) The Cross subsidy surcharge shall be collected on a monthly basis either by the distribution licensee or the transmission licensee, or the STU, depending on whose facilities are used by the consumer for availing electricity supplies. In all cases, the amount collected from a consumer shall be paid to the distribution licensee in whose area the consumer is located and in case of two licensees supplying in the same area, the licensee from whom the consumer was availing supply shall be paid the amount collected.
6. Additional surcharge.-(1) An open access consumer shall also pay to the distribution licensee an additional surcharge to meet the fixed cost of such distribution licensee arising out of his obligation to supply as provided under sub-section (4) of section 42 of the Act.
(2) Additional surcharge will be payable by any consumer including any consumer who puts up a captive plant for his own use.
(3) The additional surcharge for obligation to supply as per sub-section 4 of section 42 of the Act shall become applicable only if it is conclusively demonstrated that the obligation of a licensee, in terms of existing power purchase commitments, has been and continues to be stranded, or there is an unavoidable obligation and incidence to bear fixed costs consequent to such a contract. The fixed costs related to network assets would be recovered through wheeling charges.
(4) Each distribution licensee shall submit to the Commission, details of fixed costs, which the licensee is incurring towards his obligation to supply.
(5) In determining the additional surcharge, the Commission shall scrutinize the details of fixed costs submitted by the distribution licensee and invite and consider objections, if any, from the public and affected parties.
(6) The additional surcharge shall be determined on annual basis and it can be collected either as onetime payment or on monthly basis.
“4. Reduction and Elimination of cross-subsidy surcharge. - (1) The phasing of the cross subsidy surcharge shall be within a period of five years, and the cross subsidy surcharge at the end of 5 years shall be at a normative level of 20% of its opening level in the base year.
(2) The base year for starting the elimination of cross subsidy surcharge shall be the financial year 2006 and the phasing will be in terms of percentage of the cross subsidy surcharge to be made applicable to the Open Access Customer – starting from 100% in the first year to 20% in the sixth year as detailed in the Table hereunder:- Year Phasing Plan FY06 100% FY07 84% FY08 68% FY09 52% FY10 36% FY11 20% 4 Compendium of HPERC Regulations, March 2021 1 [7. XX XX XX XX XX XX XX]
8. General conditions .- (1) Nothing in these regulations shall be deemed to limit or otherwise affect the powers of the Commission to issue such orders as may be necessary to meet the ends of justice.
(2) Nothing in these regulations shall bar the Commission from adopting a procedure, which is at variance with any of the provisions of these regulations, if the Commission, in view of the special circumstances of a matter or a class of matters, deems it just or expedient for deciding such matter or class of matters.
(3) Nothing in these regulations shall bar the Commission from adopting, a procedure, which is at variance with any of the provisions of these regulations, if the Commission, in view of the force majeure events, deems it just or expedient for deciding such matter or class of matters.
(4) Nothing in these regulations shall, expressly or impliedly, restrict the Commission from dealing with any matter or exercising any power under the Act for which no regulations have been framed, and the Commission may deal with such matters, powers and functions in a manner, as it considers just and appropriate.
9. Power to amend. – The Commission may, at any time add, vary alter, modify or amend any provisions of these regulations.
10. Power to remove difficulties. – In case any difficulty arises in giving effect to any of the provisions of these regulations, the Commission may, either suo-motu or on an application made to it, do or undertake to do things, or by general or special order direct the licensee to take suitable action, not being inconsistent with the Act, which appears to the Commission to be necessary or expedient for the purpose of removing the difficulty.
11. Issue of orders and directions. – Subject to the provisions of the Act and these regulations, the Commission may, from time to time, issue orders and practice directions with regard to the implementation of these regulations and procedure to be followed for such implementation and matter incidental or ancillary thereto.
12. Interpretation.– All issues arising in relating to interpretation of these regulations shall be determined by the Commission and the decision of the Commission on such issues shall be final.
By order of the Commission -Sd- Secretary 1 Repealed vide regulation 40 of the HPERC (Grant of Connectivity, Long-term and Medium-term intra-State Open Access and Related Matters) Regulations, 2010. Before its repealed regulation 7 read as under:- “7. Transmission & distribution loss sharing by Open access customers.-
(1) The Open access consumer shall, as determined by the Commission, bear the transmission and distribution losses existing in the system and pay for these charges in kind for only technical losses at various voltage levels -
(a) where the point of injection and point of drawl by the open access consumer, are at different voltage levels the charges payable in kind will be 50% of the technical loss prevalent at the injection point and 50% of the technical loss prevalent at drawl point.
(b) where the point of injection and point of drawl by the open access consumer, are at the same voltage levels the charges payable in kind will be the prevalent technical losses at that voltage.” Compendium of HPERC Regulations, March 2021 5 Notification and Orders issued under The HPERC (Cross Subsidy Surcharge, Additional Surcharge and Phasing Cross Subsidy) Regulations, 2006 1 The Himachal Pradesh Electricity Regulatory Commission (Determination of Open Access Charges) Order, 2008] ORDER Dated 5 th September. 2008 No. HPERC/418.- In exercise of powers conferred under regulations 15 and 33 of the Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2005, Regulation 32 of Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2007 and Regulation 3 of Himachal Pradesh Electricity Regulatory Commission (Cross Subsidy Surcharge, Additional Surcharge and Phasing of Cross Subsidy) Regulations, 2006, the Himachal Pradesh Electricity Regulatory Commission makes the following order namely:-
1. Short title and Commencement.- (1) This Order may be called the Himachal Pradesh Electricity Regulatory Commission (Determination of Open Access Charges) Order, 2008.
(2) This Order shall come into force on the date of its publication in the Rajpatra, Himachal Pradesh
2. Applicability.- This Order shall remain in force upto 31 st March, 2009 unless allowed to be continued for further period with such variations or modifications as may be ordered by the Commission.
3. Open Access Charges.- (A) The Open Access customers in transmission shall pay-
(i) Transmission Charges:-Transmission Charges@ Rs. 43621/ MW/month.
(ii) SLDC/Operating charges:- SLDC/Operating charges @ Rs. 1,000/- /day or part of the day for each transaction.
(B) Open Access Customer in distribution shall pay -
(i) Wheeling charges:-Wheeling charges @ 75 paise/unit as determined in the tariff order for the Himachal Pradesh State Electricity Board for MYT control period FY 2009-2011.
(ii) Cross Subsidy surcharge:- Nil
(iii) SLDC/Operating charges:- SLDC/Operating charges @ Rs.1,000/-/day or part of the day for each transaction.
By Order of the Commission -Sd- Secretary 1 Published in R H.P. dated 26 th September, 2008 at p. 3972. For Hindi text see R H.P.
dated 26 th September, 2008 at p. 3971-3972.
6 Compendium of HPERC Regulations, March 2021 1 [The Himachal Pradesh Electricity Regulatory Commission (Determination of Open Access Charges) Order, 2009] ORDER Dated 25 th November, 2009 No. HPERC/418.- In exercise of powers conferred under regulations 15 and 33 of the Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2005, Regulation 32 of Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2007 and Regulation 3 of Himachal Pradesh Electricity Regulatory Commission (Cross Subsidy Surcharge, Additional Surcharge and Phasing of Cross Subsidy) Regulations, 2006, the Himachal Pradesh Electricity Regulatory Commission makes the following order namely:-
1. Short title and Commencement.- (1) This Order may be called Himachal Pradesh Electricity Regulatory Commission (Determination of Open Access Charges) Order, 2009.
(2) This Order shall come into force on the date of its publication in the Rajpatra, Himachal Pradesh.
2. Applicability.-This Order shall remain in force upto 2 [31 st March, 2010] unless allowed to be continued for further period with such variations or modifications as may be ordered by the Commission.
3. Open Access Charges.- (A) The Open Access customers in transmission shall pay -
(i) Transmission Charges:- Transmission Charges @ Rs. 43358.92/MW/ month.
(ii) SLDC/Operating charges:- SLDC/Operating charges @ Rs. 1,000/- day or part of the day for each transaction.
(B) Open Access Customer in distribution shall pay –
(i) Wheeling charges:- Wheeling charges @ 71 paise/unit as determined in the tariff order for the Himachal Pradesh State Electricity Board for period FY 2009-2010.
(ii) Cross Subsidy surcharge:- (Rs/Unit) a) Cross-Subsidy Surcharge for LS EHT Category 0.12 b) Cross subsidy Surcharge for LS HT Category Nil c) Cross Subsidy Surcharge for BS HT Category Nil
(iii) SLDC/Operating charges:-SLDC/Operating charges @ Rs.1,000/-/day or part of the day for each transaction.
By Order of the Commission -Sd- Secretary 1 Published in R H.P. dated 25 th November, 2009 at p. 5413-5414.
2 Corrected for ‘31 st March, 2011’ vide corrigendum dated 9 th July, 2010 published in R H.P.
dated 9 th July, 2010 at p. 2058.
Compendium of HPERC Regulations, March 2021 7 1 [The Himachal Pradesh Electricity Regulatory Commission (Determination of Open Access Charges) Order, 2010] ORDER Dated: 19 th August, 2010 No. HPERC/418.- In exercise of powers conferred under regulations 16,17,26 and 27 of the Himachal Pradesh Electricity Regulatory Commission (Short term Open Access) Regulations, 2010 and regulations27and 28 of the Himachal Pradesh Electricity Regulatory Commission (Grant of Connectivity, Long-term and Medium-term intra-State Open Access and Related Matters) Regulations, 2010, regulation 32 of Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations,2007 and regulation 3 of Himachal Pradesh Electricity Regulatory Commission (Cross Subsidy Surcharge, Additional Surcharge and Phasing of Cross Subsidy) Regulations,2006, the Himachal Pradesh Electricity Regulatory Commission makes the following order namely:-
1. Short title and Commencement.- (1) This Order may be called Himachal Pradesh Electricity Regulatory Commission (Determination of Open Access Charges) Order, 2010.
(2) This Order shall come into force on the date of its publication in the Rajpatra, Himachal Pradesh.
2. Applicability.- This Order shall remain in force upto 31 st March, 2011 unless allowed to be continued for further period with such variations or modifications as may be ordered by the Commission.
3. Open Access Charges.- (A) The Open Access customers in transmission shall pay
(i) Transmission Charges:- Transmission Charges@Rs.64,967.43/ MW/ month.
(ii) SLDC/Operating charges:- SLDC/Operating charges @ Rs. 2000/day or part of the day for each transaction.
(B) Open Access Customer in distribution shall pay –
(i) Wheeling charges:- Wheeling charges @ 100.73 paise/unit as determined in the tariff order for the Himachal Pradesh State Electricity Board for MYT control period FY 2010-2011.
(ii) SLDC/Operating charges:- SLDC/Operating charges @Rs.2000/day or part of the day for each transaction.
(iii) Cross Subsidy surcharge:- (Rs/Unit) a) Cross-Subsidy Surcharge for LS EHT Category 0.20 b) Cross subsidy Surcharge for LS HT Category Nil c) Cross Subsidy Surcharge for BS HT Category Nil Any change in the Transmission and Wheeling Charges of FY 11 due to True up of ARR shall be applicable accordingly.
[[ By Order of the Commission -Sd- Secretary 1 Published in R H.P. dated 25 th August, 2010 at p. 4048-4049.