Assam Electricity Regulatory Commission (AERC) Introduces Revised Payment Fees and Licensing Regulations, 2024
Introduction:
The Assam Electricity Regulatory Commission (AERC) has issued the “Assam Electricity Regulatory Commission (Payment of Fees etc.) Regulations, 2024,”[1] replacing the 2020 regulations. These regulations, which came into effect on November 4, 2024, outline the fees and procedures for various applications, licenses, and regulatory processes within the electricity sector in Assam.
Explanation (Key Points):
- Fees for Licenses and Applications: The regulations specify fees for various licenses, including transmission, distribution, and trading licenses. They also detail fees for applications related to license amendments, revocations, and exemptions. The fees for the initial grant of a license are set at Rs. 1,00,000, while the annual license fees vary based on the type of license. For instance, the annual fee for a transmission license is Rs. 1,00,00,000, while a distribution license requires an annual payment of Rs. 1,50,00,000.
- Multi-Year Tariff (MYT) Petitions: Fees for MYT petitions, which involve setting electricity tariffs for extended periods, are determined based on the type of applicant (distribution licensee, generating company) and the scale of the proposed electricity transmission or supply. The fee structure is designed to reflect the complexity and scope of the application, with higher fees for larger projects and conventional fuel-based generating plants.
- Truing Up and Dispute Resolution: The regulations outline fees for “truing up” applications, which adjust tariffs based on actual performance, and for resolving disputes related to transmission facilities, open access, and other regulatory matters. The fees for truing up applications are calculated based on the amount of electricity sold or wheeled during the year, while dispute resolution fees vary depending on the nature and complexity of the dispute.
- Review of Orders and Penalties: Fees are specified for reviewing Commission orders, including MYT orders and truing up decisions. The review fee is typically a percentage of the original application fee, and it allows stakeholders to challenge or seek clarification on Commission decisions. Additionally, the regulations address penalties for non-compliance with Commission directives or orders issued by the Consumer Grievances Redressal Forum (CGRF) or Ombudsman. These penalties vary based on the nature of the violation and the type of applicant, with higher penalties for organizations and companies compared to individuals.
- Other Fees and Charges: The regulations cover a wide range of other fees, including those for capital investment plans, power purchase approvals, and various applications related to the Energy Conservation Act and general regulatory processes. Fees for capital investment plans are calculated based on the proposed investment amount, while power purchase approvals are subject to fees depending on the type of generating plant and the capacity involved.
Conclusion:
The 2024 regulations provide a comprehensive system for fees and payments within Assam’s electricity sector. By clarifying these financial obligations, the AERC aims to streamline regulatory processes, promote transparency, and ensure the efficient functioning of the electricity market in the state. The revised regulations are expected to enhance clarity and predictability for stakeholders in the Assam electricity sector, facilitating better compliance and promoting a more stable and investable environment.
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