The Gujarat Electricity Regulatory Commission (GERC) has issued the Statement of Reasons for the GERC (Terms and Conditions for Green Energy Open Access) (Fifth Amendment) Regulations, 2026. The order was issued under the leadership of Chairman Pankaj Joshi and Member Hiren Shah. The amendment mainly extends the existing interim banking charge for consumers using green energy through open access.
Under the earlier Fourth Amendment, the temporary banking charge of ₹1.50 per unit was valid only until June 30, 2026. However, the Commission said it has not yet completed its detailed study to develop a permanent and scientifically justified banking charge mechanism. According to GERC, the process has taken longer than expected because it requires collecting and analyzing a large amount of data from power utilities across the state.
To avoid any regulatory gap before the new framework is finalized, the Commission has decided to continue the interim banking charge of ₹1.50 per unit. The revised timeline extends the charge until August 31, 2026, or until a new banking charge framework is officially notified, whichever comes first.
Before approving the amendment, GERC followed a public consultation process. It published the draft regulations on June 6, 2026, and issued public notices in both English and Gujarati newspapers to invite comments from stakeholders. A public hearing was held on June 22, 2026, where several organizations and industry representatives submitted written and oral suggestions. These included Indus Towers, the Distributed Solar Power Association (DISPA), Torrent Power Limited, and Gujarat Urja Vikas Nigam Limited (GUVNL).
During the consultation, stakeholders expressed concerns over the repeated extensions of the interim banking charge. They pointed out that the temporary arrangement has continued through five amendments over nearly three years, creating uncertainty for renewable energy developers and open access consumers planning long-term investments. Many participants argued that a fixed monetary charge does not accurately represent the actual cost of using the electricity network.
Several stakeholders recommended that Gujarat adopt the Forum of Regulators’ (FoR) model, which proposes an in-kind banking charge equal to 8% of the banked energy instead of a fixed per-unit fee. Some also stated that the Commission’s explanatory note did not include sufficient cost-based analysis and referred to Article 254 of the Constitution while requesting better alignment between state regulations and central guidelines.
In its response, GERC clarified that the Fifth Amendment is only meant to extend the validity of the existing interim charge and not to determine the final banking charge structure. The Commission said the FoR guidelines are only recommendatory, and each state has the legal authority to adopt a framework based on its own power system and network conditions.
GERC also informed stakeholders that it has already published the draft Sixth Amendment along with a consultation paper explaining the proposed methodology for determining permanent banking charges. The Commission encouraged all interested parties to submit their comments during that consultation process. It further rejected requests related to smart meters, billing arrangements, and exemptions for low-voltage consumers, stating that these matters are outside the scope of the current amendment. The Fifth Amendment Regulations were approved for publication in the Government Gazette on June 30, 2026.
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