O.P.No.5 of 2007

(Suo motu)

In the matter of determination of Surcharge under Sections 39, 40 and 42 of the Electricity Act, 2003 and additional surcharge under subsection (4) of Section 42 of the said Act for the FY 2006-07

WHEREAS Sections 39 (2)(d)(ii) and 40(c) of Electricity Act, 2003 (hereinafter referred to as ‘the Act’) provide for payment of a surcharge (hereinafter also referred to as ‘the cross-subsidy surcharge’) when a transmission system is used for open access for supply of electricity to a consumer and Section 42(2) of the Act provides for payment of the surcharge in addition to the wheeling charges as determined by the State Commission.

2. AND WHEREAS as per the aforementioned provisions, the surcharge has to be utilized to meet the requirements of current level of cross-subsidy.

3. AND WHEREAS Section 42 (4) of the Act further provides that a consumer permitted to receive supply of electricity from a person other than the Distribution Licensee of the area in which such consumer is located, shall be liable to pay an additional surcharge to meet the fixed cost of the distribution licensee arising out of his obligation to supply.

4. AND WHEREAS the aforementioned cross-subsidy surcharge and the additional surcharge for the year 2006-07 and the methodology for computation thereof were determined by the Commission vide its Order dated 29-08-2006, in O.P. No. 13 of 2006 (Suo-motu).

5. AND WHEREAS the Order on determining the tariffs for retail sale of electricity, for the year 2007-08 has been recently issued and the Commission has initiated Suo-motu proceedings in O.P. No. 5 of 2007 for determination of cross-subsidy surcharge for 2007-08 in terms of the methodology indicated in the Order on 29-08-2006 and on the basis of the parameters in Order dated 20-03-2007, setting out the retail supply tariffs for 2007-08.

6. AND WHEREAS in view of the time required to complete the proceedings in the O.P. No. 5 of 2007, the Commission deems just and appropriate to issue an interim Order to provisionally extend the applicability of the rates of surcharge / additional surcharge already specified in its order dated 29-08-2006 in O.P. No. 13 of 2006 from 1^st April 2007 onwards.

7. NOW, THEREFORE, the Commission in exercise of powers conferred by Section 94(2) of the Act ibid and all other powers enabling it in that behalf extends the applicability of the rates of surcharge and the Additional Surcharge specified in the Annexure to its of aforementioned Order dated 29-08-2006 for different categories of consumers availing of open access at different voltages from 1^st April 2007 onwards till the Commission passes a final order on the proceedings already initiated, subject to adjustment of the surcharge / additional surcharge if any so paid against that payable as per the final Order.

This order is corrected and signed on this 28^th day of March, 2007.

Sd/-	Sd/-	Sd/-
(R.RADHA KISHEN)	(SURINDER PAL)	(K.SWAMINATHAN)
MEMBER	MEMBER	CHAIRMAN

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