Draft KERC (Roadmap for Reducing Cross-Subsidy and Cross Subsidy Surcharge) Regulations, 2025 – EQ
Summary:
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### **Key Provisions**
#### **1. Roadmap for Cross-Subsidy Reduction**
– **LT-6c (EV Charging Stations)**:
– Current subsidy: -48.83% (2027-28)
– **Timeline**: 6 years starting FY 2028-29
– **Annual reduction**: 5% per year
– Target: Below -20% by FY 2033-34
– **HT-3 (Lift Irrigation – Private Consumers)**:
– Current subsidy: -78.98% (2027-28)
– **Timeline**: 6 years starting FY 2028-29
– **Annual reduction**: 10% per year
– Target: Below -20% by FY 2033-34
– **Other categories**: Cross-subsidy levels to be readjusted to maintain overall balance.
#### **2. Cross-Subsidy Band Limit**
– KERC shall endeavor to maintain cross-subsidy levels within **±20%** of ACS.
– For other categories, adjustments shall not exceed **5%** of the 2027-28 level and shall remain within the 20% band.
#### **3. Exclusions**
– Temporary power supply and similar categories with varied usage patterns are **exempt** from cross-subsidy reduction requirements.
#### **4. Cross-Subsidy Surcharge (CSS)**
– Methodology and rates for CSS shall be as per the **Tariff Policy** issued by the Government of India.
#### **5. Savings & Flexibility**
– KERC retains the power to:
– Make necessary orders for justice
– Deviate from regulations in special circumstances
– Amend regulations as needed
– Interpret regulations finally
#### **6. Removal of Difficulties & Amendments**
– KERC may issue orders to remove difficulties in implementation.
– Regulations may be amended if consistent with the Electricity Act.
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### **Cross-Subsidy Status (as per Tariff Order 2025)**
Most categories are within ±20%, except:
– **LT-6c (EV Charging)**: -48.83%
– **HT-3 (Lift Irrigation – Private)**: -78.98%
– **LT-6a (Water Supply)**: -19.58% (within limit)
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