Gujarat Electricity Regulatory Commission has chalked out a draft order for determination of cross-subsidy surcharge under intra state open access.
The commission has proposed to reduce cross subsidy surcharge to Rs 0.37 per unit. Besides, GERC has also proposed third party sale from renewable sources for exemption for payment of cross subsidy surcharge. For this, the commisison has invited comments and suggestions from stakeholders till November 11.
The cross subsidy surcharge was reduced to Rs 1 per unit by the commission in its March 31 order from the initial level of Rs 1.80 per kwh. The cross subsidy for railway traction works out at Rs 0.89 per unit as per the methodology provided under National Tariff Policy.
According to the policy 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 by the year 2010-11.
The Tariff Policy had given a prescription according to which the weighted average power generation and purchase of top five per cent power at the margin is required to be considered while determining the cross subsidy surcharge.
