Bagasse-based Cogeneration Plants in Karnataka Asked to Pay Cross-Subsidy Surcharge
Treating solar projects differently from other renewable sources to levy a cross-subsidy surcharge was a well-reasoned decision and not discriminatory
December 7, 2021
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The Karnataka Electricity Regulatory Commission (KERC) recently rejected bagasse-based cogeneration project owners’ contention that the levying of the cross-subsidy surcharge was discriminatory in nature. It directed the generators to pay a cross-subsidy surcharge as determined in its tariff orders.
Rakesh Ranjan
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