Discoms to collect additional surcharge from open access consumers from April 1

Hyderabad: The Telangana State Electricity Regulatory Commission (TSERC) has allowed the State run power distribution companies to collect additional surcharge of Rs. 1.40 per kWh from open-access consumers from April 1 to September 30, 2024.

The commission’s decision was based on the request by the two discoms for an extra surcharge assessment for the first half of the fiscal year 2024-25, spanning from April to September.

According to ERC, the measure aims to ensure that distribution licenses meet their fixed cost obligations resulting from supply commitments. An additional surcharge will be imposed based on the amount of electricity these consumers schedule, the commission added.

However, the additional surcharge will not be applied to open-access consumers for their self-consumption to the extent that open access is utilized to transmit power from their own captive power projects (CPPs).

It will not be applicable for green energy open access (GEOA) consumers if fixed charges/demand charges are paid by them and also if power from a waste-to- energy project is supplied to GEOA consumers.

The additional surcharge would also not apply if green energy was utilized to produce green hydrogen and green ammonia and for electricity produced from offshore wind projects commissioned up to December 2032 and supplied to GEOA consumers, the commission said, adding that the additional surcharge would not be levied on open access consumers to the extent of open access used for wheeling power from their own captive power projects.

The commission further stated that any exemption from paying an additional surcharge for eligible open- access consumers would be in accordance with the current government policy.

According to the commission the Discoms average stranded capacity resulting from open-access consumers over the six-month period (April 2023 to September 2023) was 113.89 MW.