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TGERC Approves ₹1.09/kWh Surcharge for Open Access Consumers Insight

Last Update 11 October 2024

The Telangana State Regulatory Commission approved an additional surcharge of ₹1.09 (~$0.012) per kWh for open-access consumers in the second half of FY 2024-25. This surcharge addresses fixed costs from stranded generation capacity as consumers bypass distribution companies. The surcharge excludes those using captive or Green Energy sources and Waste-to-Energy projects.

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The recent approval of a ₹1.09 surcharge for open-access consumers in Telangana aims to address the financial challenges faced by distribution companies due to stranded generation capacity. While this surcharge might initially seem like a barrier, it could encourage increased participation in open access for several reasons. The exemption of renewable energy sources from the surcharge also promotes sustainability, attracting eco-conscious consumers. Additionally, open access offers greater flexibility and control over energy sourcing, making it appealing despite the extra cost. Over time, the potential for long-term savings and improved service reliability may outweigh the surcharge, leading consumers to view open access as a valuable option. Overall, if consumers recognize the advantages of direct purchasing, they may be more inclined to participate in this model, ultimately reshaping the energy landscape in the region.

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