Concept & impact of Fixed charges and way Forward for reduction of electricity tariff post covid-19

During the lockdown in the country, the commercial and industrial establishments have gone into almost complete shutdown except a few such as pharma and food processing industries. These category of consumers are demanding-waiver of fixed charges from Government and Discoms. While taking any decision in the matter, it is necessary to understand the concept of fixed charges as it involves huge financial implication and its waiver will create a huge revenue gap into the already financially stressed Discoms. This paper refers and analyses The Electricity Act, 2003, Tariff Regulations of Central Electricity Regulatory Commission (CERC) & Uttarakhand Electricity Regulatory Commission (UERC), financial statements of Uttarakhand Power Corporation Limited (UPCL) and Tariff Orders of UERC with reference to fixed charges. This paper concludes that waiver of fixed charges is partly-possible only through reduction in the cost of entire power supply chain.