The FSA charges are collected through the monthly bills over and above the sum payable by the consumers against the monthly consumption on the plea that the variable cost of power generation relating to prices of fuels of coal/gas, has gone up steeply.
The discoms have also sought FSA charges on the ground that they are shelling out huge amounts on purchase of power from external sources to meet the demand that has shot up by 12 per cent.
For the first quarter of the fiscal (April, May and June), the discoms have proposed to collect Rs.2,165.98 crore, citing the same reasons and the APERC, which held public hearings, is likely to issue its order anytime now indicating the extent up to which the collections can be made.
Once APERC order is out, per-unit cost will be collected as against the approved amount for the period in question through the bills in proportion to the consumption of a particular consumer at the rates specified for each category — domestic, commercial, industrial etc.
The discoms are already collecting FSA charges of Rs.6,025.4 crore as approved by APERC for 2010-11 and 2011-12. They have approached the Supreme Court to get another Rs.3,038.82 crore for 2008-09 and 2009-10.
The matter relating to these two fiscals had gone to the apex court because the discoms failed to file their proposals before APERC within 30 days after the close of the quarter(s) in question. The High Court had held that it had no power to condone the delayed filing of the proposals by the utilities.
The total, which the discoms proposed as FSA charges for the period from 2008-09 till now, amounted to Rs.15,792.29 crore, but out of that, APERC approved only Rs.9.064.4 crore.