The Rajasthan Electricity Regulatory Commission (RERC) has approved the introduction of dual-source electricity supply for high-tension (HT) and extra-high-tension (EHT) consumers, including the Public Health Engineering Department (PHED), data centers, and other essential service categories.

The Commission directed that a new definition of ‘dual source of supply’ be incorporated into the tariff and mandated that HT/EHT consumers availing simultaneous or standby supply from two independent sources must pay twice the applicable fixed charges.

The petition was filed by the three Rajasthan distribution companies (DISCOMs)—Jaipur Vidyut Vitran Nigam (JVVNL), Ajmer Vidyut Vitran Nigam (AVVNL), and Jodhpur Vidyut Vitran Nigam (JdVVNL).

Background

The three Rajasthan DISCOMs filed a petition seeking regulatory approval to provide dual-source electricity supply to reliability-sensitive HT and EHT consumers.

Under the existing framework, the Tariff for Supply of Electricity, 2024/2025 and the RERC Supply Code Regulations, 2021 generally permit only a single point of supply at a single voltage level, except in limited cases for domestic and mixed load categories.

The DISCOMs argued that increasing requests from PHED, data centers, and other essential service providers highlighted the need for enhanced reliability through access to two independent power sources.

They pointed out that while multiple supply points are permitted for certain lower-voltage categories, there was no provision for HT/EHT consumers, creating regulatory uncertainty.

To support their case, the DISCOMs cited successful dual source implementations at NTT Data Centre, Mumbai, and STT Global Data Centre, Noida, demonstrating technical feasibility through summation metering, synchronization, and advanced protection systems.

The DISCOMs proposed charging double the plant cost and double the fixed charges, arguing that dual-source supply requires exclusive reservation of capacity from two independent sources, resulting in double capacity costs.

Commission’s Analysis

While the current tariff structure assumes a single supply point, it does not prohibit the Commission from approving alternative arrangements through tariff amendments under the Electricity Act, 2003.

The Commission observed that permitting dual source supply is a consumer-oriented measure aimed at ensuring higher reliability of supply for critical consumers.

However, the Commission also emphasized that fixed charges are designed to recover capacity-related costs. Since dual source arrangements require DISCOMs to block capacity from two independent sources, it held that recovering double fixed charges from such consumers is justified.

Rejecting the suggestion for selective exemptions for essential services, the Commission observed that any relaxation in fixed charges would lead to cross-subsidization and undermine tariff uniformity, especially when the DISCOMs’ cost obligations remain unchanged. Accordingly, RERC approved the DISCOMs’ proposal in full.

To operationalize the decision, the Commission ordered amendments to the Tariff for Supply of Electricity, 2025, adding a formal definition of dual-source supply and inserting a mandatory note across all HT and EHT tariff schedules requiring double fixed charges for consumers availing of such arrangements.

It directed that these arrangements must comply with prescribed technical safeguards and be harmonised with Supply Code amendments, which are being finalised separately.

Recently, the Ministry of Power released the Draft National Electricity Policy 2026 for public consultation, aiming to align India’s power sector with the country’s long-term energy transition goals.

Last month, RERC approved the detailed procedure for granting green energy open access in the state in line with the RERC (Terms and Conditions for Green Energy Open Access) Regulations, 2025.

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