ERC allows power Discoms to impose additional surcharge on Open Access consumers

After scrutiny, the Commission approved an Additional Surcharge of Rs.1.09 per kWh, which is to be applied to all Open Access consumers of TGSPDCL and TGNPDCL

Hyderabad: The Telangana State Electricity Regulatory Commission (TGERC) has allowed State-run power utilities to impose an additional surcharge of Rs.1.09/kWh on Open Access (OA) consumers for the second half of the financial year 2024-25, covering the period from October 2024 to March 2025.

The Commission issued a ruling regarding the petitions filed by the Telangana Southern Power Distribution Company of Limited (TGSPDCL) and Telangana Northern Power Distribution Company of Limited (TGNPDCL).

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The two discoms have urged the commission to allow them to charge Rs. 1.60/kWh as additional surcharge from open access consumers.

The Commission undertook a detailed analysis of the filings, including data on stranded capacity, fixed charges, transmission and distribution charges, and demand charges recovered from Open Access consumers.

After scrutiny, the Commission approved an Additional Surcharge of Rs.1.09 per kWh, which is to be applied to all Open Access consumers of TGSPDCL and TGNPDCL from October 1, 2024, to March 31, 2025.

However, this surcharge will not apply to certain categories of consumers, such as those using power from their own captive power plants or specific green energy sources.

The petitions were reviewed and admitted by the Commission, and the matter proceeded through a public consultation process. Public hearings were held on September 18 and September 27, during which stakeholders, including representatives from industry bodies, provided their input.

Objections and suggestions primarily revolved around the applicability and calculation of the Additional Surcharge, the stranded capacity due to Open Access consumers, and concerns about excessive charges.

The Commission in its order reiterated the necessity of the Additional Surcharge to ensure the financial stability of the distribution companies, while balancing the interests of consumers who seek to benefit from Open Access.

The ruling ensures that while consumers can continue to take advantage of competitive power supply options through Open Access, the distribution companies are compensated for the fixed costs they incur in maintaining infrastructure and power purchase agreements.