The Haryana Electricity Regulatory Commission (HERC) has approved the additional surcharge on electricity consumed through open access by consumers within the areas served by Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam.

The surcharge of ₹1.37 (~$0.0144)/kWh determined for the second half (2H) of FY 2026, a 13% increase from the previous ₹1.21 (~$0.0127)/kWh, will apply from April 30, 2026.

The levy applies to all consumers availing power through open access from sources other than the respective distribution licensees under the Haryana Electricity Regulatory Commission Open Access Regulations, 2012.

Background

The petitions were filed by Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam seeking approval for the determination and levy of additional surcharge for the second half of FY 2025-26 on consumers procuring power through open access.

The regulatory framework requires that open access consumers pay an additional surcharge to compensate the distribution licensee for fixed costs arising from its obligation to supply electricity. This obligation persists even when consumers choose alternative sources of supply. The surcharge addresses situations where contracted power remains stranded due to such migration.

The petitioners explained that they maintain long-term power purchase agreements to meet universal supply obligations under Section 43 of the Electricity Act. When consumers opt for open access, part of this contracted capacity becomes underutilized. Despite this, the DISCOMs remain liable to pay fixed charges under these agreements.

The petitioners relied on a Supreme Court ruling affirming that open-access consumers are liable to bear an additional surcharge to cover stranded fixed costs.

For the surcharge calculation, the petitioners used actual operational data from October 2024 to March 2025. They considered backing down of power, Day-Ahead Market purchases, and open-access consumption. To isolate stranded power attributable to open access, they adopted a conservative approach by taking the lower of open-access consumption and backed-down power, after adjusting for market purchases on a time-slot basis.

They computed the admissible stranded energy to be 144.70 million units. Using the approved fixed cost of ₹1.44 (~$0.0151)/kWh, they estimated the total stranded cost at ₹207.9 million (~$2.18 million). Dividing this by the projected open-access consumption of 152.26 million units yielded a surcharge of ₹1.37 (~$0.0144)/kWh.

The petitioners requested approval of this surcharge and permission to recover it from open access consumers for the second half of FY 2025-26 and until further revision.

Commission’s Analysis

The Commission confirmed that the additional surcharge is intended to recover fixed costs associated with stranded power resulting from open-access usage. It evaluated whether the data submitted by the DISCOMs correctly quantified such stranded capacity.

The analysis focused on the method used to determine stranded power. The DISCOMs calculated the backing down of generation on a day-wise and time-slot basis using actual schedules and entitlements.

The Commission accepted the approach of taking the lower of open-access consumption and backed-down power, net of Day-Ahead Market purchases. This ensured that only the power stranded due to open access was considered.

The Commission also verified that changes in generation capacity and corresponding entitlements were appropriately accounted for. It noted that only the backing down of operational generating units was included, while non-operational units, due to low demand, were excluded. This prevented inflation of stranded cost.

For cost estimation, the Commission accepted the approved average fixed cost of ₹1.44 (~$0.0151)/kWh from the tariff order for FY 2025-26. It reviewed the aggregation of stranded energy across months and confirmed the total of 144.70 million units.

The Commission also accepted the assumption that open access consumption for the second half of FY 2025-26 would mirror the same period of the previous year, yielding 152.26 million units.

Based on these inputs, the Commission verified the resulting surcharge of ₹1.37 (~$0.0144)/kWh. It concluded that the methodology aligns with regulatory provisions and prior determinations, and that the calculations are accurate.

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