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					</table>The Uttarakhand Electricity Regulatory Commission (<a href="http://uerc.gov.in/" target="_blank" rel="noopener">UERC</a>) has approved Uttarakhand Power Corporation’s (<a href="https://www.upcl.org/" target="_blank" rel="noopener">UPCL</a>) additional surcharge of ₹1.14 (~$0.013)/kWh for open access power consumers.
The additional surcharge will be effective between April 1, 2024, and September 30, 2025.
Background
The petitioner, UPCL, approached the Commission to approve levying an additional surcharge of ₹1.2 (~$0.013)/kWh from April 2025 to September 2025.
The distribution company (DISCOM) said the increased surcharge to consumers procuring power through open access was justified since such consumers’ surrendered capacities led to stranded energy of 38.02 million units (MU).<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78529 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1.png" alt="" width="668" height="338" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1.png 668w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1-300x152.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1-650x329.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1-624x316.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-1-600x304.png 600w" sizes="(max-width: 668px) 100vw, 668px" /></a>Stakeholders objected to UPCL&#8217;s proposal for an additional surcharge of ₹1.2 (~$0.013)/kWh, stating that, according to the Electricity Rules, 2005, the additional surcharge must not exceed 20% of the average supply cost.
They argued that the additional surcharge would not apply to open access consumers for the contract demand maintained. The rule also states that consumers are not liable to pay a demand surcharge for the maximum demand.
They contended hat UPCL is facing a power shortage and hence cannot claim the surrender of power.
UPCL also argued that the Electricity Rules, 2005 talks about cross-subsidy surcharge, not additional surcharge.
It added that it is meeting the deficit power by purchasing from energy exchanges, floating tenders, and banking arrangements. Due to openaccess power purchases, the DISCOM was forced to surrender its power and must bear the fixed cost of the stranded energy.
Commission’s Analysis
The Commission calculated the monthly surrendered power between April 2024 and September 2024 by taking the difference of power entitled with the power scheduled.
It also calculated the monthly stranded power by considering the lower of the quantum of open access power transactions and surrendered power.
The Commission observed that between April 2024 and September 2024, the DISCOM had 71 MU of stranded energy, equivalent to the power procured by consumers through open-access power transactions.
It noted that the petitioner had a total of 545.6 MU of entitled power and a total fixed cost of ₹535.1 million (~$6.2 million) from six of its generators. It also observed that the DISCOM endured distribution losses of 13% and transmission losses of 1.1%.
The Commission calculated the stranded power cost by considering the weighted average cost and stranded power due to open access drawal.
The Commission proposed the following additional surcharge for the next six months.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78531 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2.png" alt="" width="808" height="532" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2.png 808w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2-300x198.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2-768x506.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2-650x428.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2-624x411.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/UERC-2-600x395.png 600w" sizes="(max-width: 808px) 100vw, 808px" /></a>
In October 2024, UERC <a href="https://www.mercomindia.com/uttarakhand-regulator-surcharge-for-open-access" target="_blank" rel="noopener">determined</a> an additional surcharge of ₹1.12 (~$0.013)/kWh for open access power consumers from October 1, 2024, to March 31, 2025.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

UERC Approves Additional Surcharge of ₹1.14/kWh for Open Access Consumers

The Gujarat Electricity Regulatory Commission (GERC) has announced an additional surcharge of ₹0.60 (~$0.008)/kWh for consumers&#8217; sourcing power through open access for the period between October 01, 2020, and March 31, 2021. The charge would apply to anyone who acquires power through open access from any source other than their respective DISCOMs.
The Commission said the additional surcharge would apply to consumers of four state distribution companies (DISCOMS) &#8211; Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited (MGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and the Uttar Gujarat Vij Company Limited (UGVCL).
The Commission said that it has been working out additional surcharges on a six-month basis on data provided by the Gujarat Urja Vikas Nigam Limited (GUVNL). It had directed the GUVNL to provide this data every six months (for the period between April -September of each year and October &#8211; March of the subsequent year) within 30 days of the completion of this period.
Background
The state had previously <a href="https://mercomindia.com/gujarat-additional-surcharge-open-access-consumers/" target="_blank" rel="noopener noreferrer">determined</a> additional surcharges of ₹0.37 (~$0.0049)/kWh for the period of April 01, 2020, to September 30, 2020. This additional surcharge was also applicable to consumers of the four state-owned DISCOMs. The Commission had previously determined the additional surcharge of ₹0.10/ ($0.0013)/kWh for the period of October 01, 2019, to March 31, 2020, based on the data furnished by GUVNL for the period between October 01, 2018, to March 31, 2019.
In October 2018, the GERC had <a href="https://mercomindia.com/open-access-gujarat-additional-surcharge/" target="_blank" rel="noopener noreferrer">issued</a> an order stating that an additional surcharge of ₹0.44 (~$0.0060)/kWh will be applicable in case of open access consumers who avail power through open access from any source other than their respective distribution companies and for open access transactions from October 1, 2018, to March 31, 2019.
Then in 2019, it <a href="https://mercomindia.com/gerc-impose-additional-surcharge-open-access/" target="_blank" rel="noopener noreferrer">passed</a> an order stating that no additional surcharge will apply to consumers of four of Gujarat&#8217;s DISCOMs for utilizing power through open access between April and September 2019.

Gujarat Increases Additional Surcharge for Open Access Consumers to ₹0.60/kWh

The Karnataka Electricity Regulatory Commission (<a href="http://www.karnataka.gov.in/kerc/pages/home.aspx" target="_blank" rel="noopener noreferrer">KERC</a>) has passed an order directing the Bangalore Electricity Supply Company Limited (<a href="https://bescom.org/en/pay-bill/" target="_blank" rel="noopener noreferrer">BESCOM</a>) to pay Walwhan Renewable Energy Limited for the supply of solar power supplied beyond the contracted amount.
Walwhan, a subsidiary of Tata Power Renewable Energy Limited, had filed a petition before the Commission asking it to direct BESCOM to pay for the additional power supplied above the contracted amount of 91.98 million units (MU) from its two solar power projects of 50 MW each.
The company stated that while implementing these projects, it had installed an additional 50 MW  capacity, and this led to the supply of power over the contracted amount. It requested the Commission to direct BESCOM to purchase the additional power produced retrospectively for ₹6.51 (~$0.087)/kWh in accordance with the Commission’s Generic Tariff order.
Walwhan also asked the KERC to direct BESCOM to continue procuring the additional power and enter into a supplemental power purchase agreement (PPA) for it.
BESCOM, in its response, said that as per the Commission’s orders, additional power can be purchased only after the execution of a supplemental PPA and that Walwhan did not propose to do so until now. It maintained that it was not liable to pay for the additional power supplied.
The Commission, after analysis, noted that Walwhan did not approach BESCOM to sign a supplemental PPA for the additional power at a tariff of ₹4.11 (~$0.055)/kWh, as per the regulations, and that it sought a much higher tariff instead. It also said that the petitioner did not take any steps towards signing a supplemental PPA with BESCOM and has instead come to the Commission after ten months. The Commission condemned these actions.
However, it pointed out that BESCOM did not take any appropriate legal action in protest of purchasing the additional power even after it received a notice from Walwhan on August 7, 2019. Considering this, the Commission stated that Walwhan was entitled to inject the additional power and seek payment for it.
In its order, the Commission directed BESCOM to pay for any excess power it received from Walwhan after August 7, 2019, at a rate of ₹4.11 (~$0.055)/kWh, as specified by KERC’s regulations.
It also directed both parties to sign a supplemental PPA within four weeks from the date of the order incorporating provisions for the purchase of additional energy injected into the grid from August 7, 2019, at ₹4.11 (~$0.055)/kWh for the duration of the PPA and to send it to the Commission for approval.
Recently, Mercom reported that the KERC <a href="https://mercomindia.com/karnataka-extends-tariff-structure-solar/" target="_blank" rel="noopener noreferrer">extended</a> the validity of the existing tariff structure determined by the Commission in August 2019. The earlier regulation had expired in April 2020.
A little earlier, KERC  <a href="https://mercomindia.com/karnataka-discoms-pay-lower-late-payment/" target="_blank" rel="noopener noreferrer">issued</a> an order lowering the late payment surcharges by distribution companies to generation companies and transmission licensees in light of the ongoing coronavirus crisis.

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