# What is cross-subsidy charges?

## What is cross-subsidy charges?

Cross subsidization is the practice of charging higher prices to one type of consumers to artificially lower prices for another group.

### What is cross subsidization example?

Example of Cross Subsidization If each one of them pays \$25, Jeff is cross subsidizing Harry for \$5, since Jeff is paying \$25 for a meal that cost \$20, while Harry is paying \$25 for a meal that cost \$30.

#### What is cross electricity?

In context of electricity, it is the difference between the applicable average tariff of a consumer category and the cost of supply to that consumer category.

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 cross-subsidy Upsc?

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. This is a relevant topic for IAS exam aspirants.

## What is cross subsidization in health care?

Cross subsidies are. empirically measured as the difference between the community rate and a fair. actuarial premium, which is estimated by a multivariate regression model. These. estimates indicate that community rating may unintentionally cross subsidize certain groups of individuals at the expense of others.

### What do you know about subsidy?

A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

#### What is cross subsidy surcharge in Open Access?

b) Cross Subsidy Surcharge: Cross-subsidy surcharge shall be payable by all intra- State open access consumers except those persons who have established captive generating station and are availing open access for carrying the electricity to a destination for their own use.

What is a surcharge rate?

A surcharge is an extra fee, charge, or tax that is added on to the cost of a good or service, beyond the initially quoted price. Often, a surcharge is added to an existing tax and is not included in the stated price of the good or service.

What is cross-subsidy surcharge in Open Access?

## Do hospitals cross subsidize?

Cross-subsidization of individually unprofitable service lines within hospitals is not transparent from an accounting perspective, and therefore direct observation of this practice and its extent is not possible.