The Gujarat Electricity Regulatory Commission (GERC) has issued Order No. 02 of 2026, setting the Additional Surcharge for Open Access (OA) consumers for the period from April 1, 2026, to September 30, 2026. As per the order, the surcharge has been fixed at Rs. 0.76 per unit (kWh). This surcharge will be applicable to consumers who procure electricity through open access instead of relying fully on their local distribution companies.
The decision is based on a regulatory framework designed to protect state-owned power distribution companies (DISCOMs) from financial losses due to underutilized power capacity. When consumers shift to third-party power suppliers, DISCOMs are often left with unused contracted power, leading to what is known as stranded capacity costs. The surcharge helps recover these costs and ensures that the financial burden does not fall on regular consumers.
The order applies to four major DISCOMs in Gujarat, namely Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited (MGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and Uttar Gujarat Vij Company Limited (UGVCL). These utilities operate under Gujarat Urja Vikas Nigam Limited (GUVNL), which submitted the required data for the Commission’s analysis.
The calculation of the surcharge is based on actual operational data from April 1, 2025, to September 30, 2025. As per the methodology adopted in earlier orders issued in 2022, the Commission uses data from the same six-month period of the previous year to determine the surcharge for the upcoming period. The data submitted by GUVNL was verified and certified by the State Load Despatch Centre (SLDC) and independent Chartered Accountants to ensure accuracy and transparency.
According to the Commission’s analysis, the total available energy during the reference period was 90,648 million units (MUs), while the scheduled energy for general consumers stood at 65,049 MUs. This resulted in stranded generation of 25,599 MUs. To maintain fairness, the Commission considered transmission and distribution (T&D) losses by adopting the lower value between the normative loss of 12.06% and the trued-up loss of 13.37%.
The Commission also took into account the demand charges already paid by Open Access consumers. It was found that 8.77% of these charges relate to network costs. This portion was deducted from the stranded fixed cost to avoid double recovery from consumers. After all adjustments, the net stranded fixed cost recoverable from Open Access users was calculated at ₹137 crore.
Based on this cost and the total Open Access energy consumption, the Commission derived the final surcharge rate of ₹0.76 per unit. The revised surcharge aims to balance the interests of DISCOMs and consumers, ensuring financial stability in the power sector while avoiding unnecessary tariff increases for non-open access users.
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