Haryana electricity consumers burdened with higher FSA (Fuel Surcharge Adjustment) for indefinite time

Sunday, 7 June, 2015

As per the recent order (March 2015) by HERC, the FSA recoverable from the State Government on account of sale of power to agricultural pumpset consumers is as under.

FY Amount to be recovered from Government for Agriculture subsidy (Rs CR)
2008-09 344.27
2009-10 961.49
2010-11 415.48
2011-12 753.13
2012-13 615.27
2013-14 725.93
Total 3815.57

Now the above money will be recovered from all other consumer categories except agriculture as the Haryana government has not paid the above subsidies back to the Discoms. So the electricity consumers of Haryana will pay the subsidy bill of Agriculture pumpsets!

Added to the above, as per HERC orders, the Discoms will recover the balance unrecovered amount of FSA Rs 3591.5 Cr from the Haryana consumers as apparently the consumers have not paid fully the Fuel Cost in last few years (fro 2010-11).

So overall, the electricity consumers of Haryana are indebted to the Discoms of Rs 7407 Cr. As such the Discoms will keep recovering the FSA for the times to come till all this money is recovered from the consumers. The approved FSA rates at which the Haryana consumers have to pay are as follows –

  Category FSA Rs per Unit
1 Domestic Supply  
  0-40 0.43
  41-250 0.72
  251-500 0.85
  501-800 1.27
  Above 800 1.27
2 Non Domestic Supply / Commercial  
  Upto 5 kW (LT) 1.19
  Above 5 kW and Up to 20 kW (LT) 1.2
  Above 20 kW upto 50 kW (LT) 1.27
  Existing consumers above 50 kW upto 70 kW (LT) 1.29
  Consumers above 50 kW (HT) 1.21
3 HT Industry (above 50 kW) 1.24
  Arc furnaces/ Steel Rolling Mills 1.24
4 LT Industry – upto 50 kW  
  Upto 10 KW 1.21
  10 KW to 20 KW 1.21
  20 KW to 50 KW 1.29
  Existing consumers Above 50 kW upto 70 kW (LT) 1.32
5 Bulk Supply 1.25
6 Bulk Supply (Domestic) (70 kW and above at 11 kV or above voltage) 1.15

Note that the FSA charges are over and above the normal demand and energy charges that a consumer pays to the Discoms.

The FSA charges are generally not increased in the Discom’s tariff orders. They are revised every quarter and are expected to reduce at certain times when the fuel cost goes down. However, with this order in place, it seems that the Haryana electricity consumers will keep paying a high FSA for eternity!