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Comments on TPC-D's petition for approval of Additional Surcharge on Open Access consumers

Author(s): Prayas (Energy Group) Publication Date: December, 2017

Tata Power (Distribution) has filed a petition with the MERC for approval of additional surcharge from 2016-17 onward.

The Additional Surcharge is a mechanism to compensate utilities for the fixed cost of their long-term contracted capacity, which is stranded as a result of consumers moving to Open Access (OA). Prayas (Energy Group) presented at the public hearing held on December 14, 2017 in Mumbai and submitted that TPC-D's petition was not legally maintainable. In addition, the regulations do not allow for restrospective application of Additional Surcharge and all of TPC-D's existing power purchase agreements are about to expire in March 2018, providing an opportunity to the MERC and TPC-D to plan future power procurement in a manner that results in no stranded capacity. Hence, even going forward there is no case for applying additional surcharge.

Both the presentation and the submission made by PEG can be downloaded using the links below.

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