The Karnataka Electricity Regulatory Commission (KERC) has issued draft regulations to govern the connectivity and general network access for intrastate transmission and distribution systems.

The draft Connectivity and General Network Access (GNA) to the Intra-State Transmission and State Distribution System Regulations, 2026, will come into force on October 1, 2026. Stakeholders have 30 days from the publication of the order in the official gazette to submit their feedback.

The proposed regulations are intended to govern intrastate open access and wheeling transactions, including interstate transmission system transactions to the extent they use the state’s intrastate transmission or state distribution network.

The State Transmission Utility (STU) will act as the nodal agency for transmission-level connectivity and GNA, while the distribution licensee will act as the nodal agency at the distribution level.

For Temporary GNA (T-GNA) through the state open access registry, the State Load Despatch Center (SLDC) will be the agency at the transmission level, and the Area Load Despatch Center (ALDC) at the distribution level.

Eligibility for Connectivity

At the intrastate transmission level, generating stations, renewable energy generating stations with or without energy storage, captive generating projects, standalone energy storage systems, and renewable power park developers with capacities of 5 MW and above may apply for connectivity. At the distribution level, similar entities below 5 MW may seek connectivity.

Application for Connectivity

Renewable energy generating stations with storage must specify the maximum injection and maximum drawal required for charging storage within the connectivity quantum. Standalone energy storage systems must apply for connectivity based on their proposed maximum injection or maximum drawal, whichever is higher.

Interconnection Study

The Commission has proposed a detailed process for granting connectivity. Once applications are received, the nodal agency must conduct an interconnection study based on CEA technical standards or the State Grid Code and assess whether augmentation of the transmission or distribution system is required.

If no augmentation is required, in-principle connectivity must be intimated within 60 days from the last day of the month in which the application was received. If augmentation with an associated transmission system is required, the in-principle grant must be intimated within 90 days.

Connectivity Bank Guarantee

For transmission-level projects, Conn-BG1 is fixed at ₹1 million (~$10,491), while Conn-BG2 and Conn-BG3 are determined by augmentation requirements and capacity enhancements.

At the distribution level, Conn-BG1 is fixed at ₹500,000 (~$5,246), with Conn-BG2 and Conn-BG3 applying on similar principles.

The final grant of connectivity must be issued within 15 days after receipt of the required bank guarantees or payment toward terminal bays, as applicable. A connectivity agreement must be signed within 30 days of the final grant.

In the case of intrastate transmission or distribution connectivity, the agreement will be tripartite, involving the STU as nodal agency, the concerned transmission or distribution licensee, and the connectivity grantee.

General Network Access

At the distribution level, consumers with a contracted demand or sanctioned load of 100 kW or more, including entities with multiple connections that aggregate 100 kW or more within the same electricity division, are eligible to apply for GNA. This load limit does not apply to captive consumers.

Existing intrastate entities connected to the transmission or distribution system will be eligible for deemed GNA. Distribution licensees and other drawee entities connected to the intrastate transmission system will be deemed to have GNA equivalent to the contracted MW capacity for the remaining period of their long-term or medium-term open access contracts.

T-GNA may be applied for a period ranging from a one-time block to 11 months and will be processed through the state open access registry. The registry will provide an audit trail of applications, interface with SLDC or ALDC software, connect with power exchanges, enable payment processing, and act as a repository of T-GNA-related information.

The Commission has proposed that GNA grantees will have priority over T-GNA grantees in the use of the transmission or distribution network. In case of curtailment due to transmission or distribution constraints or grid security, T-GNA transactions will be curtailed first, followed by GNA transactions.

The draft specifies that GNA charges will include transmission charges, wheeling charges, cross-subsidy surcharge, additional surcharge, banking charges, standby charges, losses in kind, load dispatch center fees, scheduling and system operation charges, grid support charges, reactive power charges, deviation settlement charges, monthly transaction charges, and other charges specified by the Commission.

The draft allows monthly banking of renewable energy until March 31, 2030, for wheeling and banking agreements. Unutilized banked energy at the end of a month will not be carried forward, though renewable energy generating stations may be entitled to renewable energy certificates for such unutilized energy in accordance with CERC regulations.

Banking charges are proposed at 8% of the banked energy in kind or as determined by the Commission from time to time.

In case of outages of generators supplying a consumer on open access, the licensee should provide standby arrangements upon payment of 125% (normal energy charges plus 25% of normal energy charges) of the energy charges applicable to that consumer category, as determined by the Commission in its tariff orders.

For payment security, GNA applicants must provide a security deposit equal to two months of estimated GNA charges. In case of non-payment, the security deposit may be forfeited and must be replenished within 15 days.

The draft states that disputes and complaints relating to connectivity and GNA must first be raised with the nodal agency, which may attempt to resolve them. If the state nodal agency is unable to redress the complaint, a petition may be filed before the Commission.

Last December, KERC issued the draft Roadmap for Reducing Cross-Subsidy and Cross-Subsidy Surcharge Regulations, 2025.

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