What is cross subsidy charges?
Cross subsidization is defined as the variation in the price policy for 2 sets of buyers or it can be stated as When a marketer charges higher prices to a group of consumers in order to subsidise lower prices for another group, it is referred to as cross-subsidisation.
How is cross subsidy surcharge calculated?
“Surcharge formula: S= T – [C/ (1-L/100) + D+ R] Where, S is the surcharge T is the tariff payable by the relevant category of consumers, including reflecting the Renewable Purchase Obligation C is the per unit weighted average cost of power purchase by the Licensee, including meeting the Renewable Purchase Obligation …
What is additional surcharge in Open Access?
An additional surcharge may also be levied under sub-section (4) of Section 42 for meeting the fixed cost of the distribution licensee arising out of his obligation to supply in cases where consumers are allowed open access.
How are open access charges calculated?
- ANNEXURE – 2. Open Access Charges Calculation (Cross Subsidy Surcharge)
- TPDDL.
- Distribution Loss (L) in % Wheeling charges (D) in paise.
- per unit. Above 66 kV.
- Surcharge formula (S ) : S = T – [C (1+ L / 100) + D] If X = C (1+ L / 100 ), where C is Rs. 6.22/kWhr,
- levels. X paise.
- / kwh. X + D.
- Paise/ kwh.
What is cross-subsidy housing?
The cross-subsidy model – where associations build private homes for sale to fund social housing – has “reached its limit”, the report added. “Without grant funding from central government, providers will be vulnerable to the economic impact of COVID-19.”
What is cross-subsidy in electricity in India?
Industrial and commercial power consumers in India cross subsidise the power consumption of rural, residential, and agricultural consumers by paying significantly higher tariffs.
What is cross subsidy in electricity in India?
What is Open Access charges?
Open access charges primarily comprise Cross Subsidy Surcharge (CSS), additional surcharge, wheeling & transmission charges and transmission & distribution losses in kind.
What is Open Access power?
The definition of Open Access in the Electricity Act, 2003, is “the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the …
Who buys power under open access?
According to sub-section 2, of section 42 of the Electricity Act 2003, electricity consumers now have the right to procure power from the supplier of their choice other than the distribution company that they were buying from.
What is cross subsidy housing?
What is product cost cross subsidization?
Product-cost cross-subsidization is the strategy of pricing a product above its market value to subsidize the loss of pricing a different product below its market value. For instance, if you have a sporting goods business, and you’re hoping to increase the sale of baseballs, you might price these below your own cost.
What is the surcharge for FY 2020 21?
12%
SURCHARGE:The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees….Income Tax Slab Rate & Surcharge For Ay 2020-21.
| Net income range | Rate |
|---|---|
| Up to Rs. 2,50,000 | – |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
What is cross subsidy example?
a situation in which profits from one activity are used to pay for another activity that is losing money or making less money: He wants to end the cross-subsidization of the different products which are sold by different parts of the bank.
How does cross-subsidization work?
Cross subsidization is the practice of funding one product with the profits generated by a different product. This means that one group of customers is paying for the consumption of other customers.
What is the current surcharge rate?
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| Level of Income | Surcharge on Income Tax |
|---|---|
| Less than Rs. 50 Lakhs | Nil |
| Rs. 50 Lakhs to Rs. 1 Crore | 10% |
| Rs. 1 Crore to Rs. 2 Crores | 15% |
| Rs. 2 Crores to Rs. 5 Crores | 25% |