New set of electricity tariffs announced by Assam Electricity Regulatory Commission

Digital Desk: On March 29, 2023, the Assam Electricity Regulatory Commission issued Tariff Orders modifying the tariffs of APGCL, AEGCL, SLDC, and APDCL with effect from April 1, 2023.

Notably, APDCL, APGCL, AEGCL, and SLDC had filed petitions for approval of Truing Up for Fiscal Years 2021-22, Annual Performance Review (APR) for Fiscal Years 2022-23, and determination of Revised Aggregate Revenue Requirement (ARR) and Tariff for Fiscal Years 2023-24 by November 30, 2022.

In its petition, APDCL suggested an increase in fixed costs ranging from Rs 15 to Rs 75 per KW/KVA per month.

The company also suggested raising energy rates, including existing FPPPA charges (Fuel and Power Purchase Price Adjustment charges), by Rs 1 to Rs 3 per unit for various consumer categories. 

After analyzing the Petitioner's responses, objections and suggestions from respondents/stakeholders, and all other relevant information on record, the Commission determined that the proposed walk is not acceptable.

Instead, the Commission approved a 1.2% drop in the tariff for FY 2023-24 over the tariff for FY 2022-23, including existing FPPPA costs. The Commission has decreased energy charge rates for all categories by 10 to 20 paise per unit.

Nonetheless, to rationalise tariffs and fulfil overall income requirements, the Commission has increased Fixed Charges by Rs 10 per kW/KVA per month for all categories. 

The Average Cost of Supply (ACGS) for FY 2023-24 is Rs. 8.02 per kWh, compared to Rs. 9.52 per kWh proposed by APDCL. For the fiscal year 2022-23, the ACOS was Rs 8.14 per kWh.

While finalising the tariff, the Commission regarded the Natural Gas price as US$ 2.90 per MMBTU, based on the declining trend of Gas prices in the worldwide market and the average Gas price in the previous three months of US$ 2.91 per MMBTU.

The Commission has approved the pass-through of Rs 457.09 crore in under-recovery FPPPA costs in FY 2022-23 in the revised tariff for FY 2023-24. 

Upon obtaining the decision, the Commission took great care to protect the interests of both consumers and utilities. The Commission attempted to keep cross-subsidies between consumer categories to a maximum of (+ -) 20%. The detailed Orders are available on the Commission's website (http://aerc.gov.in).

During the tariff selection phase, stakeholders on the petitions were invited to submit objections/suggestions. On February 28, 2023, a public hearing was also held. In total, seventeen (17) respondents provided feedback and comments on the Tariff Petitions. 

Based on the most recent fuel costs, the Commission has authorised an overall generation pricing of Rs 3.58 per kWh for FY 2023-24. During the fiscal year 2023-24, a transmission rate of Rs. 0.57 per kWh and SLDC charges of Rs. 106.84/MW/day has been approved.