Uttarakhand Electricity Regulatory Commission (UERC) has revised the additional surcharge to ₹1.05 (~$0.013)/kWh for consumers sourcing power through open access from October 1, 2023, to March 31, 2024.

In its petition, Uttarakhand Power Corporation (UPCL) sought an additional surcharge of ₹1.22 (~$0.015)/kWh.

The states usually issue changes to additional surcharges annually to avoid confusion amongst the industry stakeholders and help in effective planning.

The bi-annual revision of the additional surcharge by Uttarakhand would directly reflect on the net landed cost for the developers.

Background

In its petition, UPCL pointed out that the consumers drew 5.97 million units (MU) of open access energy at the state periphery from October 2022 to March 2023 and that 5.65 MU was the total stranded energy due to open access.

UPCL claimed that the average fixed cost at the state periphery is ₹1.10 (~$0.013)/kWh. In comparison, the average fixed cost at the consumer end after considering approved Power Transmission Corporation of Uttarakhand (PTCUL) losses at 1.40% and distribution losses at the rate of 13.5% is ₹1.29 (~$0.015)/kWh.

UPCL proposed that the additional surcharge for October 1, 2023, to March 31, 2024, must be ₹1.22 (~$0.015)/kWh.

This amount was determined using the following calculation – average fixed cost at the state periphery multiplied by average fixed cost at the consumer end after considering approved PTCUL losses and distribution losses divided by the open access energy.

A public notice inviting comments from the stakeholders on UPCL’s petition was published. However, no stakeholders filed their written objections.

Commission’s Analysis

The Commission calculated stranded power, energy received, and open access power at the consumer end by considering distribution losses as 13.5% and transmission losses as 1.40%.

For arriving at the stranded cost of power due to open access consumers from October 1, 2022, to March 31, 2023, the Commission considered the weighted average fixed cost and the amount of stranded power due to open access drawal. It also considered the recovering stranded cost over the next six months, i.e., from October 1, 2023, to March 31, 2024.

After analyzing the data provided by UPCL, the Commission stated the applicable additional surcharge for October 2023 to March 2024 should be ₹1.05 (~$0.013)/ kWh.

The Commission ruled that the new additional surcharge would apply to consumers sourcing power through open access from October 1, 2023, to March 31, 2024.

Earlier this year, the Ministry of Power changed the Electricity Rules, 2005. According to the notification, the surcharge that open-access consumers must pay, as determined by the state commissions, should not exceed 20% of the average power supply cost.

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