Assam Electricity Regulatory Commission Readies Draft for EPPPA Surcharge

GUWAHATI: In sync with the APTEL’s (Appellate Tribunal for Electricity) order, the AERC (Assam Electricity Regulatory Commission) has prepared a draft of the Assam Electricity Regulatory Commission (Fuel and Power Purchase Price Adjustment) (EPPPA) Regulations, 2023. The AERC will replace the EPPPA 2010 with the EPPPA Regulations of 2023.

The AERC has sought comments, objections, and suggestions from all stakeholders on the EPPPA Regulations of 2023 on or before July 15, 2023. After the amendment, the EPPPA surcharge will be recovered from the consumers in the (n + 2)th month on the energy charge (variable charge) of the nth month.

For example, the FPPPA surcharge on account of actual variation in the cost of fuel and power purchases during the month of April of any financial year shall be computed and billed in the month of June of the same financial year on the energy charge (variable charge) of the consumer for the month of April. Earlier, the system for the recovery of the EPPPA surcharge was done after an interval of three months (quarterly).

In the new system, this formula will be applied at the end of every month by the distribution licensee (APDCL in Assam) without making it necessary to go through the regulatory proceedings, the draft said. The distribution licensee shall, however, be obligated to provide all relevant information to the Commission simultaneously. This mechanism will provide administrative and regulatory simplicity, as the draft claimed.

The FPPPA surcharge for the nth month shall be shown separately in the bills or monthly statements of the consumers in the (n + 2)th month. The FPPPA surcharge will be effective from the date of publication of the regulations in the official Gazette, the draft said.

The draft proposal, however, is silent on the clause ‘the EPPPA surcharge shall not exceed 25 percent of the variable component of the tariff or such other ceiling as may be stipulated by the AERC from time to time’ mentioned in the EPPPA, 2010.

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