Additional Surcharge for Open Access Consumers Increased to ₹0.69/kWh in Gujarat

The Gujarat Electricity Regulatory Commission (GERC), in a recent order, revised the additional surcharge to ₹0.69 (~$0.009)/kWh payable by open access consumers of the state distribution companies (DISCOMs) from ₹0.51 (~$0.007)/kWh it had set earlier.

The additional surcharge will be payable by open access consumers of the state DISCOMs, namely the 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) from October 2021 to March 2022.

Background

The Commission had earlier determined the additional surcharge of ₹0.51 (~$0.009)/kWh based on the data submitted by Gujarat Urja Vikas Nigam Limited (GUVNL). Later, GUVNL cited an error in the order with regard to the consideration of transmission charge as ₹19.7257 billion (~$267.63 million) instead of ₹28.77 billion (~$390.34 million).


After the submission made by GUVNL, the average contracted capacity was found to be 24,025 MW.

Commission’s analysis

The Commission observed that while calculating the additional surcharge, the transmission charge was considered as ₹19.7257 billion (~$267.63 million) instead of ₹28.77 billion (~$390.34 million). But the contracted capacity was 24,025 MW which was correct. Thus, the additional surcharge was calculated as ₹0.51 (~$0.007)/kWh.

The Commission said that the additional surcharge considering the transmission surcharge of ₹28.77 billion (~$390.34 million) worked out to ₹0.69 (~$0.009)/kWh. The surcharge will be payable by open access consumers availing power from sources other than their respective DISCOMs from October 2021 to March 2022.

In June this year, GERC approved the amendments sought by GUVNL to the earlier order passed by the Commission for tariff framework to procure power by DISCOMs. As per the amendments, the cross-subsidy surcharge and additional surcharge were not applicable for captive projects.

Last year, GERC had announced an additional surcharge of ₹0.60 (~$0.008)/kWh for consumers sourcing power through open access from October 01, 2020, to  March 31, 2021.

Additional surcharge payable by open access consumers is different in states. Punjab set the additional surcharge of ₹1.16 (~$0.016)/kWh for open access consumers (partial and full) availing power beyond the contract demand maintained with the distribution licensee. In Tamil Nadu, the additional surcharge payable by open access consumers is ₹0.70 (~$0.0093)/kWh.

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