RENEWCONNECT - All about renewables & power sector

  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...

Open access in electricity refers to the provision that allows large consumers of electricity (typically with a connected load above a specified threshold, often 1 MW or more) to purchase power directly from the open market rather than being confined to buying from the local distribution company (DISCOM). This mechanism is designed to foster competition, improve efficiency, and provide consumers with the flexibility to choose their power suppliers. Key Aspects of Open Access in Electricity Choice of Supplier : Consumers can buy electricity directly from power generators, power trading exchanges, or other suppliers rather than being limited to the local DISCOM. Cost Efficiency : It enables consumers to potentially lower their electricity costs by taking advantage of competitive prices available in the market. Regulatory Framework : The Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs) govern the rules and regulations for open access. T...