The Delhi Electricity Regulatory Commission (DERC) has proposed gradually eliminating the additional surcharge for consumers availing of general network access (GNA) or open access.

Under the proposed Terms and Conditions for Open Access (Second Amendment) Regulations, 2025, the additional surcharge will be reduced linearly from the level prevailing at the time the access was granted and eliminated within four years, provided the consumer continues to avail such access.

The proposed regulations will apply to the National Capital Territory of Delhi and will come into force from the date of their publication in the official Gazette, following stakeholder consultation.

However, the draft notification makes it clear that consumers availing open access or GNA will not be eligible to seek any refund, adjustment, or recovery of additional surcharge already levied or collected under the existing regulations.

The draft also specifies that the additional surcharge will not apply to an open access consumer to the extent of the contract demand maintained with the concerned distribution licensee (DISCOM). It will apply only to consumers who are or have been consumers of the concerned DISCOM.

The explanatory memorandum accompanying the draft amendment notes that, in several states, open access has not been utilized to the desired level due to very high open access charges.

It emphasizes that open access charges must be reasonable and uniform to enable consumers, including commercial establishments and industries, to procure electricity through open access at competitive, affordable rates.

The memorandum reiterates the statutory and policy basis for the additional surcharge framework, citing Section 42(4) of the Electricity Act, under which an additional surcharge may be specified to meet the fixed costs of a DISCOM arising from its obligation to supply power when a consumer opts to procure electricity from a source other than the area DISCOM.

It also refers to the National Tariff Policy, which states that cross-subsidy surcharge and additional surcharge should not be so onerous as to eliminate the competition intended to be fostered through open access.

Further, the policy provides that the additional surcharge should become applicable only if it is demonstrated that the DISCOM’s power purchase commitments have been and continue to be stranded, or that there is an unavoidable incidence of fixed costs.

The explanatory memorandum notes that the proposed amendment is being carried out in line with the Electricity (Amendment) Rules, 2024, which stipulate that the additional surcharge should not exceed the per-unit fixed cost of power purchase of the concerned DISCOM and mandates its progressive reduction and eventual elimination.

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