The Punjab State Electricity Regulatory Commission (PSERC) has approved an additional surcharge of ₹1.13 (~$0.013)/kWh for full open access consumers, including green energy open access consumers, availing power beyond their contract demand.

The surcharge will apply from April 1, 2026, to September 30, 2026, to consumers within Punjab State Power Corporation’s (PSPCL) supply area procuring power through open access from sources other than PSPCL.

The approved surcharge is lower than the previous charge of ₹1.47 (~$0.017)/kWh applicable for October 1, 2025, to March 31, 2026.

The Commission also approved an additional surcharge of ₹0.78 (~$0.009)/kWh for partial open access consumers, excluding green energy open access consumers, availing open access up to the contract demand maintained with PSPCL. This is lower than the previous charge of ₹1.09 (~$0.013)/kWh for the same category.

PSPCL had filed the petition seeking determination of additional surcharge under Section 42(4) of the Electricity Act, 2003, and Regulation 27 of the PSERC Terms and Conditions for Intra-State Open Access Regulations, 2011.

PSPCL submitted that it had adequate generating capacity to meet the entire power demand of its consumers, including open access consumers, during the relevant period. It argued that when consumers source power from suppliers other than PSPCL, its contracted generating capacity remains stranded, while it continues to bear fixed cost obligations under long-term power purchase agreements.

The distribution company submitted hourly and monthly data on total availability, scheduled power, surrendered power, open access power availed by consumers, annual fixed costs of generating stations, fixed charges recovered, and consumption by consumers with load above 1 MW for April to September 2025.

PSPCL said open access migration was affecting its financial position and shifting the burden of fixed costs to other consumers who continue to procure power from the distribution company.

The Commission accepted PSPCL’s contention that the utility had installed or contracted adequate generation capacity to meet its supply obligation. It held that PSPCL had demonstrated that its existing power purchase commitments had been and continued to be stranded due to open access consumption.

PSPCL had calculated the additional surcharge at ₹1.14 (~$0.013)/kWh for full open access consumers and ₹0.79 (~$0.009)/kWh for partial open access consumers.

The Commission reduced the fixed cost of power purchase to ₹44.65 billion (~$523.5 million) from PSPCL’s claim of ₹44.72 billion (~$524.3 million). It disallowed ₹69.7 million (~$817,600) in fixed charges for Anta, Auriya, and Dadri thermal generating stations, noting that PSPCL’s power purchase agreements with these stations had already been terminated and the fixed charges had been disallowed in earlier tariff orders.

PSERC worked out the fixed cost of stranded capacity due to open access at ₹254.2 million (~$2.98 million), against PSPCL’s claim of ₹254.6 million (~$2.99 million). The Commission considered open access energy scheduled at 224 million units.

Green Energy Open Access

PSPCL also raised concerns about the implementation of Green Energy Open Access in Punjab, stating that several commercial and industrial consumers were shifting to captive solar power instead of sourcing electricity from PSPCL.

It submitted that 68 industrial consumers had been granted feasibility approval for captive solar generating projects with a combined installed capacity of over 1,150 MW. Of these, six consumers with an aggregate capacity of 125 MW had already been granted long-term access.

PSPCL estimated that the proposed 1,150 MW captive solar capacity would generate around 2.12 billion units annually. It said exemptions available to green energy open access consumers would increase stranded power purchase commitments and result in an annual revenue loss of around ₹2.31 billion (~$27.1 million).

The Commission rejected PSPCL’s attempt to recover this impact through additional surcharge. It said the exemptions granted to green energy open access consumers were statutory mandates under the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.

PSERC noted that its open access regulations exempt green energy open access consumers from payment of additional surcharge if they continue to pay standard fixed charges to the distribution licensee.

The Commission said commercial and industrial consumers migrating to green energy open access remain contractually bound to pay demand or fixed charges to PSPCL for their sanctioned load. Therefore, the fixed costs of the power procurement capacity allocated to them are already recovered.

It added that PSPCL could file a separate petition for amendment of regulations with a comprehensive proposal and supporting data to address its concerns on green energy open access exemptions.

Additional 10% Markup Rejected

PSPCL had also sought approval for an additional 10% increase over the calculated additional surcharge to partly compensate for stranded capacity and corridor blockage.

The Commission rejected the request, stating that the open access regulations do not provide for an arbitrary markup over the calculated surcharge. It said the additional surcharge is a compensatory mechanism to recover verified stranded costs and cannot be treated as an independent source of revenue generation.

PSERC held that allowing a flat 10% premium would convert a cost-reflective charge into an unauthorized penalty on open access consumers.

India added 2.7 GW of solar open access capacity in the first quarter (Q1) of 2026, according to Mercom India’s Q1 2026 India Solar Open Access Market Report, marking a 55% quarter-over-quarter increase from 1.7 GW and a 160% year-over-year increase from 1 GW.

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