The state government is going to take a big decision. The Rajasthan Electricity Regulatory Commission has announced a new tariff order that will be in effect for the next five years. Unfortunately, all public interest suggestions have been turned down, with the focus instead on the interests of power corporations. A coal and power purchase adjustment charge has been included in this order, which will impact all consumers.

 

This new regulation will take effect starting April 1st. The Rajasthan Electricity Regulatory Commission (RERC) has released the Electricity Tariff Regulations-2025, covering the period from April 1st for the next five years. A draft of these regulations was shared on November 27th, and feedback was requested from various consumer groups until December 27th. A total of 41 organizations, including state electricity corporations, provided their input.

 

Following a hearing on December 27th, the final order has now been issued. Some adjustments have been made to the existing 2019 regulations prior to the introduction of the new rules, but most suggestions aimed at serving the public interest have been dismissed.

 

The average power purchase rate cap has been set at 20%. The new regulation includes a fuel and power purchase adjustment surcharge, which will have the most significant impact on consumers. This surcharge, which is in addition to the currently approved tariff, has been renamed the Fuel and Power Purchase Adjustment Surcharge, and the cap on the average power purchase rate has been raised from 15% to 20%.

 

 

The amendment in the yule surcharge in the new order is worrisome for electricity consumers and industrial units. Earlier, the recovery in the name of yule surcharge was done on quarterly basis, so to save the consumers from this problem, in the previous tariff order, the average monthly amount of yule surcharge was being recovered in the name of base yule surcharge. This provision has been kept in the new order as well.

 

The price of fuel in the context of electricity rates approved by the Commission will be for adjustment of the increase in power purchase rate due to change in power purchase rate.

2- Discom has been given the right to impose this surcharge on its own without any hearing, whereas till now the rules did not give the right to Discom to impose surcharge without any hearing.

3- If the variable component of the approved tariff in the billing month is more than 20 percent, then Discom can carry forward the Fuel and Power Purchase Adjustment Surcharge for a maximum of 3 months.

4- If the Fuel and Power Purchase Adjustment Surcharge is carried forward, then it will have to be recovered in the next tariff cycle or in one year. On which the annual interest rate of the bank will be applicable.

 

5- If the Fuel and Power Purchase Adjustment Surcharge is up to 5 percent, then Discom can recover it automatically. If it is more than five percent, 90 percent of the remaining amount can be recovered automatically.

 

6- The monthly average of the fuel surcharge of the year 2024-25 will be charged as base fuel surcharge every month in the year 2025-26. This will be adjusted in the final fuel surcharge.