Parameters to be considered for "Reduction in cross subsidies"
To collect data on “Reduction in Cross Subsidies” in the electricity sector, you need to focus on parameters that capture the extent of cross-subsidization , tariff rationalization progress , and impact on stakeholders . Based on regulatory guidelines and best practices, here are the key parameters: ✅ 1. Cost and Revenue Metrics Average Cost of Supply (ACoS) : The overall cost per unit of electricity supplied. Category-wise Cost of Supply (CoS) : Cost to serve each consumer category (domestic, agricultural, industrial, commercial). Average Billing Rate (ABR) : Actual tariff charged to each category. Gap between ABR and CoS : Indicates the level of cross-subsidy for each category. Formula: Cross Subsidy = (ABR – CoS) / CoS × 100% ✅ 2. Cross-Subsidy Level Indicators Cross Subsidy Surcharge (CSS) : Amount levied on open access consumers to compensate for loss of cross-subsidy. % Deviation from A...