The Haryana Electricity Regulatory Commission (HERC), in a recent ruling, set ₹1.08 (~$0.014)/kWh as the additional surcharge for the consumers of the Uttar Haryana Bijli Vitran Nigam (UHBVN) and the Dakshin Haryana Bijli Vitran Nigam (DHBVN) availing power under the open access mechanism.

The additional surcharge will continue to be effective until it is amended or revised by the state Commission.

The state distribution companies (DISCOMs) had filed the petition seeking approval of the additional surcharge of ₹1.08 (~$0.014)/kWh recoverable from open access consumers during the second half of the financial year (FY) 2021-22 and onwards.

The additional surcharge earlier was ₹1.15 (~$0.015)/kWh.

Background

The DISCOMs had proposed to recover ₹1.08 (~$0.014)/kWh from open access consumers as an additional surcharge, calculated on the basis of slot-wise surrendered power and slot-wise open access power, considering data for all days.

Later, the Commission invited suggestions from stakeholders on or before January 27, 2022. The said notice was also posted on the Commission’s website under the ‘Public Notice’ heading. In response to the public notice, no response or suggestion was received by the Commission.

Commission’s analysis

The Commission observed that while passing the order dated March 6, 2020, approving the additional surcharge to be recovered from October 22, 2019, it had dealt with almost all the issues, including the methodology of calculating the additional surcharge. 

The Commission examined the data provided by the DISCOMs as per the Open Access Regulations, 2012, to determine the additional surcharge.

The regulatory body further noted that the generating units not at bar due to less demand had not been considered. Only the backing down of running units had been considered for arriving at the stranded cost of power to determine the additional surcharge.

Also, while calculating the fixed cost for estimating the additional surcharge, the DISCOMs had taken the average fixed cost approved by the Commission for the FY 2021-22. The Commission had approved the fixed cost at ₹1.17 (~$0.016)/kWh.

The Commission said that the methodology and the calculations used to determine the additional surcharge were in order. Thus the additional surcharge of ₹1.08 (~$0.014)/kWh would be applicable for open access consumers of the state.

Last September, HERC announced that it would prepare a consultation paper to revisit the Multi-Year Tariff (MYT) Regulations, 2019. After holding a public hearing, the Commission would take a final view.

Earlier, HERC had announced that open access consumers would not have the net metering facility. According to HERC, the absence of provisions relating to gross metering in the existing regulations necessitated the revision.

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