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

16. FPPPA Charges
Dakshin Gujarat Vij Company Limited
Truing up for FY 2010-11
and Determination of Tariff for FY 2012-13
Objection: DISCOMs in Gujarat are charging very high FPPPA charges and
increasing the same day by day, whereas no other SEBs have done like this, while
the hike in fuel prices equally implies to all States. Hence, it is not justified to levy
steeply hiked FPPPA.
Response of the Licensee: The FPPPA charges are calculated as per the formula
approved by Hon‟ble Commission and recovered as per the order of the Hon‟ble
Commission.
Commission’s View: The licensee is entitled to recover increase with reference to
the base price approved by the Commission in the Tariff Order during the year from
the consumers as per the FPPPA formula. The Commission would like to highlight
that the APTEL vide its order dated 11 th November, 2011 has asked the State
Electricity Regulatory Commissions in India to pass the power purchase hike to the
consumers preferably on monthly basis.
17. Simultaneous Maximum Demand (MD) for Railways
Objection: The representative of railways has requested that the demand charges
should be based on Simultaneous Maximum Demand recorded at various traction
substations. If not, railway traction tariff should be made a single part tariff.
Response of the Licensee: The licensee has submitted that for motive power
consumer two part tariff is universally accepted i.e. Fixed/Demand charges & Energy
charges. As such, the company incurs substantial “fixed costs” in maintaining the
power supply to consumers apart from the energy/ variable charges it pays for the
energy bought by it. These fixed costs include fixed charges paid to power plants,
recurring costs of capital expenditure such as interest costs, depreciation and other
O&M expenses etc. In respect of the above, It is submitted that the Appellant‟s
request that the Demand Charges be based on the Maximum Demand recorded at
all the Railway Traction Sub-Station [TSS] of the DISCOMs is not reasonable due to
the fact that the distribution network has to service to the maximum local demands
and hence, investments are triggered by the local (in other words, noncoincident/separate)
peaks in demand.
Commission’s View: The objection and the response are noted.
Gujarat Electricity Regulatory Commission Page 24
June 2012