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Showing posts with the label Tariff

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...

How to conduct tariff analysis ?

Conducting a  tariff analysis  involves evaluating the impact of tariffs (taxes on imports or exports) on trade, prices, industries, and economies. Here's a structured approach to help you conduct a thorough tariff analysis: 🔍  1. Define the Scope and Objectives Purpose : Are you analyzing the impact on a specific industry, country, or product? Type of Tariff : Is it an ad valorem (percentage-based), specific (fixed amount), or compound tariff? 📊  2. Gather Relevant Data Tariff schedules : From government or WTO databases. Trade volumes : Import/export data by product and country. Prices : Pre- and post-tariff prices of goods. Economic indicators : GDP, inflation, employment, etc. Industry data : Production, consumption, and competitiveness. 🧮  3. Quantitative Analysis Effective Rate of Protection (ERP) : Measures protection to domestic producers. Tariff Revenu...

Improving Auxiliary Power Consumption in Coal-Based Thermal Power Plants: A Path to Tariff Reduction

Introduction Coal-based thermal power plants (TPPs) remain a cornerstone of electricity generation in India and many other countries. Despite the global push toward renewables, coal continues to account for over 50% of India’s installed capacity. However, one of the persistent challenges in coal-fired TPPs is  Auxiliary Power Consumption (APC) , the energy consumed by internal systems to keep the plant operational. Typically ranging from 7% to 10% of gross generation, high APC directly impacts the net power available for sale and, consequently, the tariff. Reducing APC is not only a technical necessity but also a strategic imperative to improve plant economics, reduce emissions, and remain competitive in the evolving energy market. Understanding Auxiliary Power Consumption Auxiliary power refers to the electricity consumed by various subsystems within the plant, including: Boiler Feed Pumps (BFP) Induced Draft (ID) Fans Forced Draft (FD) Fans Primary Air...