Assam: Hike In Service Connection Charges For Above 30 kW HT

GUWAHATI: In response to the petition by APDCL before the AERC seeking simplification of service connection charges, the AERC suggested that new service connection charges may be based on the category of connections sought and the average cost of connection of the distribution licensee as stipulated in the Electricity (Rights of Consumers) Rules, 2020.

The Assam Power Distribution Company Limited (APDCL) petitioned the Assam Electricity Regulatory Commission (AERC) seeking a hike in the service connection charges for new connections for high-tension (HT) consumers above 30 kW.

According to the petition, the APDCL has sought the consideration of AERC on the following proposition on adhoc basis for initial implementation for categories— increase in service connection charges for HT Domestic above 30 kW (35 kVA) from Rs 12,500 to rs 25,000 (Rs/kW); for HT Commercial above 30 kW (35 kVA) from Rs 10,500 to Rs 21,000; Public Water Works from Rs 24,500 to Rs 49,000; Bulk supply (Educational institutional) above 30 kW from Rs 9,000 to Rs 18,000 and (others) Rs 24,500 to Rs 49,000; HT Small Industries above 30 kW (35 kVA) and up to 50 kVA from Rs 11,000 to Rs 22,000; HT Industries-I above 50kVA to 150kVA from Rs 11,500 to Rs 23,000; HT- Industries -II above 150kVA from Rs 21,500 to Rs 43,000; Tea, coffee, rubber from Rs 21,500 to Rs 43,000; Oil & Coal from Rs 58,000 to Rs 1,16,000; HT Irrigation Load above 7.5 HP from Rs 12,500 to Rs 25,000; HT Temporary Supply from Rs 18,000 to Rs 36,000; HT Electric Crematorium from Rs 7,500 to Rs 15,000; HT Railway Traction from Rs 16,000 to Rs 32,000; and HT Electric Vehicle Charging station from Rs 44,500 to Rs 89,000 (Rs/kW).

The estimated rates are proposed to be increased to double the ad hoc rates. APDCL also submitted that the aforementioned charges are only base service connection charges (excluding any taxes) over and above other applicable charges like load security, meter cost, application fees, etc.

APDCL submitted that these charges are meant to recover investments made for providing supply of electricity (from the distribution main to the applicant’s premises) and form a part of non-tariff income.

APDCL further submitted that these charges should be reviewed based on actual implementation at the end of the financial year and adjusted in the true-up petition for the year. The rates may be revised periodically based on the prevailing cost as well as other standards and specifications.

After hearing the petition, the AERC observed that the petitioner’s claim for adjusting the differential cost in the true-up petition for the year is not justified, and appears to violate the principle of natural justice, as connections are applied for by individual consumers.

Therefore, the burden of under-recovery cannot be borne by the rest of the consumers in the state. Moreover, the Commission observed that the Rules specify that the charges for new connections shall be fixed based on the load, category of connection sought, and average cost of connection of the distribution licensee.

However, APDCL charged different categories of consumers at different rates, even when load security, meter costs, application fees, etc. were excluded. The Commission suggested that new service connection charges may be based on the category of connections sought, etc., as stipulated in the aforesaid Rules.

In view of the above, the Commission directed that APDCL may include the content of the petition with necessary modifications in the suggestions and comments in the light of observations recorded by the Commission to be laid in connection with the draft amendment of the AERC Regulation, 2024, and in that event, the Commission may consider the same at the time of finalizing the draft Supply Code Regulation.

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