the goan I network
PANAJI
Pertaining to the grant of seasonal tariff to the mining industry, a consumer-stakeholder has requested the Joint Electricity Regulatory Commission (JERC) to approve and define ‘Seasonal Consumer’, so that these consumers are charged only a ‘seasonal tariff.’
It its tariff order released on May 20, in which the stakeholder’s comment is recorded, the stakeholder has asked the JERC to provide a methodology for the billing of the demand and energy charges for seasonal consumers, and has also asked for the mining industry to be assigned a seasonal tariff, instead of being charged for electricity all year round.
The Electricity Department in its turn explained that the reason for this request is because mining industry is a ‘seasonal consumer’ of electricity as they are operating as per the mining season and had to pay a huge minimum demand charges during the non-mining season. It also explained that currently, there is no category classified under the existing Tariff Order that bills consumers only per season.
The Electricity Department has also explained why creating such a category would be a burden to the department: It will lead to reduction of revenue from fixed charges, and increase the revenue gap for the fiscal year. Goa does not have its own power generation, hence power has to be procured from Central Generating Stations of NTPC and the Electricity Department has to pay capacity charges for drawing power from Long Term Agreement power stations.
As Electricity Department has no control over generators / generation to meet seasonal demand, the proposal is not viable on a commercial basis, said the Department.
‘Seasonal consumers’ could be viable for states like Kerala, Karnataka and Maharashtra which have greater demand as well as own generation to meet the demand. This provides a cushion for financial relaxations to seasonal consumers. Goa being a small state with low demand, it would be difficult to provide such financial benefits to consumers.
The Department also fears that in case such benefits are allowed to mining-related consumers, other HT Consumers where business is seasonal will submit requests for such re-classification, which is not economically viable.
The Department thus feels that in case the request of the consumers is considered, then a separate high tariff category for ‘seasonal consumers’ has to be formulated in anticipation of receiving many such requests from other industries in
the future.
In view of the above, the JERC has asked the department to submit the requisite information of energy sales, connected load and number of consumers falling under the ‘seasonal category’ along with the next tariff petition.
