The Karnataka Electricity Regulatory Commission (KERC) has issued a draft of the Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2025, intending to enhance the framework for open access within the state. This draft supersedes the earlier regulations, emphasizing the facilitation of renewable energy integration and addressing gaps identified in past policies. The draft is part of the Commission’s broader agenda to align with the National Electricity Policy and Tariff Policy of India.
The draft follows the Karnataka High Court’s judgment striking down earlier regulations related to green energy open access. The Court emphasized the need for the Commission to independently frame regulations while considering all stakeholder interests and adhering to national policies. Interim measures have been introduced to avoid a regulatory vacuum, including provisions for wheeling and banking agreements with specific charges and constraints.
A salient feature of the proposed regulations is the categorization of open-access customers based on the duration of their agreements—short-term, medium-term, and long-term. Eligibility criteria have been defined, including technical and financial prerequisites, aimed at ensuring system reliability and equitable resource allocation. Furthermore, the regulations specify application procedures, timelines, and charges applicable to open-access consumers. The charges encompass transmission and wheeling fees, cross-subsidy surcharges, and additional surcharges. Special provisions are included for renewable energy generators, reflecting a commitment to promoting sustainable practices.
The draft introduces enhanced measures for banking renewable energy, now every month, with unutilized energy eligible for Renewable Energy Certificates. Adjustments to standby charges and the incorporation of grid loss charges are also proposed, ensuring that open access usage remains consistent with grid security requirements. To streamline operations, the regulations mandate the digital execution of agreements and provide detailed guidelines for dispute resolution, curtailment priorities, and communication standards.
Public engagement is a cornerstone of this regulatory initiative. Stakeholders and interested parties are invited to submit objections, suggestions, or views within 30 days of publication. A public hearing is scheduled to further refine the draft. The Commission has expressed its commitment to addressing challenges related to grid reliability and stakeholder coordination by proposing an information system to maintain transparency in open-access operations.
The draft represents a critical step toward fostering a balanced energy ecosystem in Karnataka, promoting transparency, and enabling a smoother transition to renewable energy integration. It seeks to address current market dynamics and stakeholder expectations, ensuring a robust and equitable energy framework for the state.
