Hyderabad: The Telangana State Electricity Regulatory Commission (TGERC) has approved an additional surcharge of Rs 1.09 per kWh for Open Access (OA) consumers for the second half of the 2024-25 financial year. This surcharge will be applicable from October 2024 to March 2025.
The decision came after the Telangana Southern Power Distribution Company Limited (TGSPDCL) and the Telangana Northern Power Distribution Company Limited (TGNPDCL) filed petitions requesting the surcharge. The discoms initially proposed an additional charge of Rs 1.60 per kWh, citing the need to cover costs related to stranded capacity, transmission, distribution, and demand charges from open access users.
After careful examination of the data, the TGERC approved the revised surcharge of Rs 1.09 per kWh. The additional surcharge will apply to all Open Access consumers of TGSPDCL and TGNPDCL, with certain exceptions. Notably, consumers using power from captive power plants or specific green energy sources will be exempt.
The commission’s decision followed a thorough public consultation process. Public hearings were held in September 2024, allowing various stakeholders, including industry representatives, to express their views. Concerns were raised about the calculation of the surcharge and the impact on stranded capacity due to Open Access consumers. However, the commission highlighted that the surcharge is necessary to ensure the financial stability of the distribution companies.
The TGERC stated that while Open Access consumers can continue to benefit from competitive energy supply options, the surcharge will help compensate the discoms for their fixed costs, including the maintenance of infrastructure and power purchase agreements. This balance aims to protect the interests of both the utilities and the consumers.
The new surcharge will be in effect from October 1, 2024, to March 31, 2025.
