Dakshin Gujarat Vij Company Limited Suo - Motu Case No ... - GERC

Dakshin Gujarat Vij Company Limited
Truing up for FY 2010-11
and Determination of Tariff for FY 2012-13
water irrigation, the same cannot be extended for lifting water from ground water
sources.
Commission’s View: The consumers are broadly categorised based on end use
and tariffs are determined accordingly.
10. Night hour concessional tariff
Objection: Some of the stakeholders have stated that the night hour benefit should
be given on all units like peak hour units recovery.
Response of the Licensee: The licensee has submitted that the cost of supplying
power at peak hours is significantly high. Thus, tariff structure is devised recognizing
this fact and allowing recovery at higher rates for peak hour use. Moreover, the
objective of giving night benefit to the consumer is to shift their demand to off peak
hours and thereby to help the grid as well as to flatten the demand curve of the utility.
But the consumers who otherwise consume energy throughout the day or as a part of
their process they consume power during night hours cannot be considered to have
made additional efforts to shift the load from peak hrs. Therefore, the night hours
concession is given on the energy consumption during night hours in excess of one
third of the total energy consumption of a particular month.
Commission’s View: It is true that night time consumers facilitate the reduction of
peak demand, by shifting their demand to off peak period. They allow the base load
equipment to be loaded optimally. The night hour concessional tariff can be extended
to those consumers who have shifted significant quantum of consumption from peak
hours to night hours.
11. Applicability of Demand Charges on Night Tariff
Objection: Some of the stakeholders have stated that the night tariff should not have
any demand charge. During the night demand is low and, therefore, the infrastructure
is sub-optimally loaded. The fixed cost refers to peak cost.
Response of the Licensee: The licensee has submitted that the fixed charges are
levied from the consumer to recover company‟s fixed cost which the company will
incur irrespective of consumption and time of consumption by the consumer. Fixed
charges mainly cover cost components like cost of infrastructure, employee cost,
Gujarat Electricity Regulatory Commission Page 18
June 2012