Uttarakhand Regulator Sets ₹1.12/kWh Additional Surcharge for Open Access

The additional surcharge aims to compensate UPCL for stranded power costs

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The Uttarakhand Electricity Regulatory Commission (UERC) has determined an additional surcharge of ₹1.12 (~$0.013) per unit for open-access power consumers from October 1, 2024, to March 31, 2025.

The decision comes in response to a petition filed by Uttarakhand Power Corporation (UPCL) seeking to recover fixed costs arising from its obligation to supply electricity to open-access consumers.

The additional surcharge aims to compensate UPCL for stranded power costs due to consumers opting for open access.

UERC calculated the surcharge based on data from October 2023 to March 2024, considering factors such as slot-wise surrendered and stranded power, open access energy consumption, and fixed costs of six generating stations.

The Commission determined that 35.97 million units (MUs) of power were stranded at the state periphery due to open access consumers during the reference period.

UPCL’s fixed costs for the six generating stations totaled ₹697.6 million (~$8.3 million) during this time.

Stakeholders raised objections to UPCL’s petition, including questions surrounding the use of estimated data versus audited figures, concerns about the calculation of stranded power, and queries regarding UPCL’s power purchases from energy exchanges.

UPCL responded to these concerns, stating that its calculations were based on actual data and followed established regulations and methodologies.

The UERC examined the data provided by UPCL and stakeholder comments before arriving at its decision. The Commission emphasized that the additional surcharge was determined in accordance with the Electricity Act, 2003, National Tariff Policy, 2016, and UERC (Terms and Conditions of Intra-State Open Access) Regulations, 2015.

The charge will be applicable to open-access consumers for the specified six-month period, subject to any future revisions by the Commission.

The Gujarat Electricity Regulatory Commission recently set an additional surcharge of ₹0.93 (~$0.011)/kWh for the consumers of four state-owned distribution companies who avail power through open access.

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