RERC plan to levy cross-subsidy charge may take shine off solar

In what has the potential to eclipse the prospects of solar energy in Rajasthan, the state energy regulator Rajasthan Electricity Regulatory Commission (RERC) has proposed to levy cross-subsidy charges on solar plants put up by developers for their industrial or commercial clients (third party).

Cross-subsidy charges, which go up to Rs 2.16 per unit, are collected from general consumers to compensate for the power subsidies given to farmers, a major reason for high electricity tariffs in Rajasthan.

“In the existing regulations, the open access (third party) transaction based on renewable energy projects were exempted from levy of cross-subsidy surcharge. However, as the technology is matured over a period of time, there is no need to provide any such exemption,” said the draft proposal of RERC (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2020.

ET Energy World
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