THE GOAN 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.
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' of consumers along with the next tariff petition.
The Electricity Department in its turn has explained that the reason for this request is because the 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 the Electricity Department has no control over generators / generation to meet the seasonal demand of a consumer, the proposal is not viable on a commercial basis, said the Electricity Department.
"Seasonal consumers" could be viable for neighbouring states such as Kerala, Karnataka and Maharashtra as they have a greater demand as well as their own generation to meet the demand of consumers. This provides a cushion for financial relaxations to their seasonal consumers. Goa has a demand of 550MW and it would be difficult to provide such financial benefits to consumers being a small state with low demand compared to other neighbouring state utilities. The Electricity Department fears that in case such benefits are allowed to mining-related consumers, other HT Consumers where business depends on their own business seasons, will submit their request for such re-classification, which is not economically viable for the Electricity Department.
The Electricity 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.
