The Gujarat Electricity Regulatory Commission (GERC) has reduced the additional surcharge by ₹0.24 (~$0.002)/kWh to ₹0.76 (~$0.008)/kWh, payable by open access power consumers, from April 1, 2026, to September 30, 2026.

The additional surcharge from October 1, 2025, to March 31, 2026, was ₹1 (~$0.011)/kWh.

The surcharge will apply to consumers of the four state distribution companies (DISCOMs)-Dakshin Gujarat Vij Company, Madhya Gujarat Vij Company, Paschim Gujarat Vij Company, and Uttar Gujarat Vij Company-who procure power through open access from sources other than their respective DISCOMs.

The Commission ordered implementation of this surcharge based on data submitted by Gujarat Urja Vikas Nigam (GUVNL).

Background

The issue of an additional surcharge on open access consumers has evolved through multiple regulatory proceedings.

In 2014, GERC established the methodology for computing additional surcharge after stakeholder consultations.

The methodology was challenged before the Appellate Tribunal for Electricity, which, in 2018, allowed stakeholders to seek revisions from the Commission.

In August 2022, the Commission revised its methodology and directed GUVNL to submit certified data every six months to determine surcharges.

In the order, it was decided that the additional surcharge would be determined by the Commission on the submitted data for the subsequent six-month period, i.e., the additional surcharge determined on the basis of data for April to September of a particular year will be applicable for the April to September period of the next year and so on.

For the present order, GUVNL submitted data for the period April to September 2025, certified by the State Load Despatch Centre, forming the basis for determining the surcharge for the corresponding period in 2026.

Commission’s Analysis

The Commission analyzed the data submitted by GUVNL and applied the revised methodology mentioned in its 2022 order.

It verified compliance with procedural requirements, including certification and public data disclosure.

The surcharge is primarily driven by stranded generation capacity and the associated fixed costs incurred by open access consumers sourcing power outside DISCOMs.

In its calculations, the Commission considered transmission and distribution losses at 12.06%, the lower of the normative and actual levels, and applied a network cost recovery factor of 8.77% paid by open access consumers through demand charges.

Last October, GERC retained banking charges of ₹1.5 (~$0.016)/kWh for open access consumers, amending the Gujarat Electricity Regulatory Commission (Terms & Conditions for Green Energy Open Access) to include these charges.

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