| Work Detail |
The Assam Electricity Regulatory Commission (AERC) issued the new “Payment of Fees etc. Regulations, 2024” to update the structure of fees and charges for various applications and processes. This update, intended to replace the 2020 regulations, applies across Assam and introduces changes in licensing fees, tariff applications, penalties, and administrative procedures.
The regulation outlines the fees required when filing petitions or applications with the AERC, including licensing for electricity distribution, transmission, and trading. It specifies the financial requirements for companies wishing to apply for or renew licenses, ranging from an initial application fee to an annual fee based on the license type. These fees are categorized by activity, such as transmission or distribution, with stipulated rates for each, including the imposition of interest for any delayed payments beyond set deadlines.
The updated regulations also detail the procedures for paying fees. Payments must be made via approved financial channels, including electronic transfers and limited cash transactions. Entities filing petitions or applications must also promptly submit proof of payment. Additionally, fees are now structured to include categories for filing multi-year tariff petitions, adjustments, and disputes, each with defined rates based on the type and scale of the activity.
Provisions on penalties outline fines and charges associated with breaches of the AERC regulations. These penalties are determined by regulations set out in 2004 and must be paid using the same procedure as other fees. Some fees, such as those related to Aggregate Revenue Requirements (ARR), are allowable expenses, meaning licensees can factor these into their annual costs. However, penalties are excluded from these allowable expenses, which may affect budget planning for some companies.
Revenue generated from these fees and penalties will be allocated to a state fund managed by the AERC, which is designated to support regulatory functions and studies aimed at advancing Assam’s power sector. A percentage of this revenue will be used to create a corpus fund for studies on power sector improvements, with guidelines to be established by the AERC.
The regulations also address situations requiring special decisions by the Commission, such as adjudicating disputes between licensees, handling grievances, and facilitating open-access electricity transactions. Applications for dispute resolution, changes to contracts, and tariff reviews are all covered, with fees based on application complexity and involvement of stakeholders like generation companies, individual consumers, or the State Load Dispatch Centre.
These regulations also empower the AERC to adjust or modify fees and procedures if necessary, allowing them to waive or alter payments in cases that merit special consideration. This provision grants the Commission flexibility in responding to unique cases while adhering to the framework of the Electricity Act, 2003.
The new regulations emphasize an organized, transparent, and adaptable fee structure for the electricity sector in Assam. The regulations ensure that all entities engaging in generation, transmission, and distribution comply with a clear set of financial and procedural guidelines, enhancing the regulatory framework that underpins the state’s energy sector. |
