The Delhi Electricity Regulatory Commission (DERC) has notified a phased reduction of the additional surcharge applicable to consumers availing open access and general network access (GNA), setting out a four-year sunset for the levy.

Under the amendment to the Terms and Conditions for Open Access Regulations, the additional surcharge payable by such consumers will be reduced linearly starting in the year access is granted. The surcharge will be fully eliminated at the end of four years. The move introduces a sunset trajectory for a charge that has historically been a key cost component for consumers procuring power outside the distribution network.

The Commission has clarified that the change will operate prospectively. Consumers will not be eligible to seek refunds, adjustments, or recovery of the additional surcharge already paid under the existing regulatory framework, ensuring that past collections remain undisturbed.

DERC has also provided a limited carve-out for consumers adopting a hybrid procurement approach. The additional surcharge will not apply to the extent of the contract demand maintained with the distribution licensee, allowing consumers to retain a portion of their supply from the distribution company while sourcing the remainder through open access.

The surcharge will be levied only on consumers who are or have been connected to the distribution licensee concerned, thereby reinforcing its role as a mechanism to compensate utilities for stranded fixed costs resulting from consumer migration.

The Delhi notification aligns with the broader framework for the additional surcharge under the Electricity Rules. The Ministry of Power amended the rules to provide that the additional surcharge for consumers availing General Network Access or open access will be reduced over four years from the date of grant of access, subject to certain conditions.

These include limiting the surcharge’s applicability to consumers who are or have been connected to the distribution licensee and exempting it to the extent that contract demand is maintained, signalling a wider policy push to rationalise open-access charges and ease the transition for large consumers.

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