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Cross Subsidy Surcharge
1. What is cross subsidy surcharge?
 
Cross subsidy surcharge is that part of the electricity bill which takes care of subsidies provided to certain category of consumers. This is not actually energy charges. This is from the concept of privileged consumers taking care of subsidies provided to lesser privileged consumers.
   
2. Do the open access consumers need to pay cross subsidy surcharge?
 
Yes. Even though they buy power in the open market, they need to pay cross subsidy surcharge to local distribution companies?
   
3. Who will fix the cross subsidy surcharge?
 
The State Electricity Regulatory Commission (SERC) decides the cross subsidy surcharge for each category of open access consumer in each sub division.
   
4. Does the Electricity Act 2003 allow to charge cross subsidy surcharge?
 
Yes. But it asks the SERCs to gradually reduce and finally eliminate this cross subsidy surcharge.
   
5. Are there any ways to get waiver of this cross subsidy surcharge for the open access consumers?
 
Yes. The Electricity Act 2003 says the captive power consumers need not pay cross subsidy surcharge.
   
6. What are rules for Captive power?
  For complete rules you can check The Electricity Rules, 2005.
   
7. Do you provide captive power solutions?
 
You can become captive power consumer using our solutions and facilities. We can provide you customized solutions to reduce your power bills with assured power supply.
 
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