Gujarat Reduces Additional Surcharge for Open Access Consumers to ₹0.25/kWh

The additional surcharge will apply from April 1, 2022, to September 30, 2022


In a bid to promote open access in the state, the Gujarat Electricity Regulatory Commission (GERC) has reduced the additional surcharge payable by open access consumers to the state distribution companies (DISCOMs) to ₹0.25 (~$0.003)/kWh.

The additional surcharge will be applicable from April 1, 2022, to September 30, 2022.

The state regulator came up with the new additional surcharge based on the data furnished by the Gujarat Urja Vikas Nigam Limited (GUVNL) for the six-month period from April 1, 2021, to September 30, 2021.

It will apply to the consumers of the four state-owned DISCOMs, i.e., Madhya Gujarat Vij Company Limited (MGVCL), Uttar Gujarat Vij Company Limited (UGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and Dakshin Gujarat Vij Company Limited (DGVCL), who avail power through open access from any source other than their respective DISCOMs.

The additional surcharge is a way for DISCOMs to compensate for the cost incurred due to the frequent switch by consumers between the open access and DISCOM for their power needs.

With the additional surcharge set at a lower price, open access installations would get the necessary boost in the state, with more consumers finding it as a viable option.

The additional surcharge has been a topic of contention in various states, and the additional surcharge payable by open access consumers varies in states depending on the demands made by the DISCOMs.

Last September, GERC had increased the additional surcharge to ₹0.69 (~$0.009)/kWh payable by open access consumers of the DISCOMs from October 2021 to March 2022. The increase was from ₹0.51(~$0.007)/kWh it had set earlier.

Recently, the Tamil Nadu Electricity Regulatory Commission ruled that the additional surcharge should be levied only on the quantity of the actual drawn open access power in line with the TNERC Intra-State Open Access Regulation 2014.

In the recent past, many states have reduced additional surcharge in an attempt to promote open access. Last month Haryana reduced the additional surcharge to ₹1.08 (~$0.014)/kWh from ₹1.15 (~$0.015)/kWh it had set earlier.

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