A first: Panel working on green energy tariff in Chandigarh

Dushyant Singh Pundir

Chandigarh, January 1

To regulate charges, the Joint Electricity Regulatory Commission (JERC) has unveiled the draft discussion paper to determine green energy tariff for Chandigarh.

The commission has invited comments/suggestions from public/stakeholders on the determination of tariff for requisition of green energy under the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 (as amended from time to time) for the city.

To determine the green energy tariff, the commission will consider various components, including average pooled power purchase cost of renewable energy, cross-subsidy charges, if any, and service charge covering the prudent cost of distribution licensee for providing green energy.

The commission has worked out the average pooled power purchase cost of renewable energy sources at Rs 3.26/kWh (Kilowatt per hour). As per the commission, the UT Electricity Department had procured 169.51 million units of renewable energy at a cost of Rs 55.27 crore for the financial year 2023-24.

The commission also worked out the landed cost of renewable energy at Rs 3.56/kWh, gross subsidy surcharge at Rs 1.11/kWh, distribution service charges at Rs 0.86/kWh, and “backing down” cost at Rs 1.23/kWh. Accordingly, green energy tariff applicable is valued at Rs 6.75/kWh.

For determining the incremental green energy charges, the commission has considered the difference between green energy tariff and average billing rate (ABR). The ABR approved in the Retail Supply Tariff Order for 2023-24 has been taken into account in the computation of the green energy tariff, which is Rs 5.10/kWh. Accordingly, incremental green energy charges for the Electricity Department have been worked out to be Rs 1.65/kWh.

“The Incremental Green Energy Charges shall be applicable to consumers over and above the normal tariff of the respective category,” suggested the JERC.

The revenue earned by the distribution licensee from the sale of power to consumers under the tariff for green energy shall be considered as revenue from sale of power. The distribution licensee is required to separately maintain tariff category and sub-category-wise accounting of the number of consumers, connected load, sale and revenue from sale under the tariff for green energy for consumers. The same shall be shown separately by the distribution licensee at the time of truing up.

The incremental green energy charges for green energy shall only be applicable if the consumer wishes to get power under the respective arrangement.