INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
Process, Appeal and Complaints • Tariff process : Under Sections 62 to 64, the peti- tion is published, objections are invited and a public hearing is held before the SERC issues a tariff order. SERCs have framed their respective tariff and business plan regulations, which detail the entire process for determination of the tariff. An alternative route for tariff adoption is provided under Section 63, whereby the parties can under- take competitive bidding and arrive at a discov- ered tariff which is then adopted by the regulator concerned. • Right of appeal : Any order passed by the SERC or CERC may be appealed before the APTEL under Section 111, and thereafter to the Supreme Court on a substantial question of law under Section 125. • Complaints : Individual grievances are addressed by the Consumer Grievance Redressal Forum and the Electricity Ombudsman under Section 42 (5) to (7) read with the applicable SERC regulations.
wheeling charge for use of the distribution network by open-access consumers, and the cross-subsidy and additional surcharges under Section 42. Regulatory Principles Rate-setting principles are laid down in Section 61, read with the National Electricity Policy and the Tariff Policy. Rates must reflect the cost of supply, allow a reasonable return, safeguard consumers, progres- sively reduce cross-subsidies, and be just, reasonable and non-discriminatory as between consumers of the same category supplied on similar terms. Methodology Tariffs are set on a cost-of-service basis under SERC’stariff regulations. The licensee files an Aggre- gate Revenue Requirement comprising power-pur- chase cost, operation and maintenance expenses, depreciation, interest and a regulated return on equity, net of non-tariff income; costs are classified as con- trollable and uncontrollable and trued-up annually against actuals.
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