TNERC Approves Reduced Surcharge For Open Access Consumers, Cuts Proposed To ₹0.54 Per Unit

Representational image. Credit: Canva

The Tamil Nadu Electricity Regulatory Commission addressed the petition filed by the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) regarding the determination of an additional surcharge for open-access consumers. TNPDCL argued that their power purchase obligations were being stranded due to the shift of certain consumers to open access systems. This resulted in an unavoidable fixed cost burden. They proposed an additional surcharge of ₹1.06 per unit for the period between October 2024 and March 2025.

The petition emphasized the need to recover fixed costs incurred due to stranded capacities from open access consumers, referencing relevant sections of the Electricity Act, 2003, and Tamil Nadu Electricity Regulatory Commission (TNERC) regulations. TNPDCL detailed its power generation and purchase capacities, the demand and supply positions, and the methodology for calculating the proposed surcharge. The petitioner claimed that the stranded capacity due to open access averaged 290.17 MW during the period under review.

The Commission considered extensive data, including 15-minute block-wise details of power availability and usage. TNPDCL’s calculations demonstrated stranded capacities resulting from open access, and the fixed costs were justified accordingly. However, stakeholders raised concerns that these costs should only be applied when consistently stranded capacity could be proven.

The TNERC verified and adjusted the calculations, reducing the proposed surcharge from ₹1.06 to ₹0.54 per unit. This decision balanced the interests of all stakeholders while adhering to legal and regulatory frameworks. The Commission stated that the surcharge applies solely to the actual quantum of power drawn by open-access consumers from third-party sources.

The order also directed TNPDCL to ensure regular submission of six-monthly data and monthly reports on energy consumption, among other requirements. The additional surcharge is set to be reviewed periodically, based on updated block-wise data and stakeholder inputs.

 

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