Discoms in Dilemma Over Collection of FSA Charges in Election Year

Hyderabad: In the election year, power distribution companies (discoms) are hesitating to collect fuel surcharge adjustment (FSA) charges from consumers. Despite being hit by a massive fund crunch, the southern and northern discoms (TSSPDCL and TSNPDCL) are willing to bear the burden of FSA rather than passing it on to consumers.

The TS Electricity Regulatory Commission (TSERC) amended regulations to enable discoms to recover or refund the FSA/fuel cost adjustment (FCA) charges. During the peak summer, discoms had spent ₹12 per unit to purchase power from India Energy Exchange (IEX).

After computation of demand and supply expenses, the discoms found that they had spent 85 paise per unit to purchase the power.

In view of amended rules, discoms have the option of collecting 30 paise per unit as FSA. TSERC issued orders on March 23 enabling the discoms to collect FSA from the consumers regularly.

Reportedly, both discoms sought clarifications on collection of FSA from March to May. TSERC made it clear that as per the amended rules of the Electricity Act, 2021, discoms must collect the charges periodically.

The commission had a review meeting early this week over FSA charges. After sensitisation, both discoms were mandated to collect the FSA from the consumers, but in vain.

( Source : Deccan Chronicle. )
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