TGERC Approves Additional Surcharge for Open Access Consumers
The TGERC has sanctioned an additional surcharge effective October 1, 2024, to address stranded costs from open access arrangements, with exemptions for specific renewable energy sources and captive power consumption.
October 11, 2024. By EI News Network
This surcharge, effective from October 1, 2024, to March 31, 2025, is aimed at compensating TGDISCOMs (Telangana Distribution Companies) for stranded costs due to open access transactions. The decision is in response to the petition submitted by Southern Power Distribution Company of Telangana Ltd. (TGSPDCL) and the Northern Power Distribution Company of Telangana Ltd. (TGNPDCL) to establish the additional surcharge for open access consumers for the second half of FY 2024-25 (October 2024 to March 2025).
As per the Commission, the surcharge will be applicable to open access consumers of TGDISCOMs who source power from entities other than their respective DISCOMs.The additional surcharge will not be charged to customers who use power from their own captive power plants (CPPs).
Additionally, customers who benefit from green energy open access (GEOA) will not have to pay the surcharge if they are already covering fixed or demand charges. The surcharge will also not apply if the electricity comes from Waste-to-Energy plants supplied to GEOA customers. Similarly, if green energy is used to produce green hydrogen or green ammonia, the surcharge will be waived. Finally, customers receiving electricity from offshore wind projects will also be exempt from this surcharge.
The Commission further pointed out that the total demand charges recovered by TGDISCOMs from open access consumers amounted to INR 161.19 crore. After adjustments for distribution and LT network cost recovery, the net demand charges stood at INR 119.17 crore. The net stranded charges, after further adjustments, were calculated to be INR 7.22 crore.
For the period from October 2023 to March 2024, open access sales reported by TGDISCOMs were 66.05 million units (MU) for non-captive transactions, and this figure was accepted by the Commission. Based on these figures, the Commission approved a lower additional surcharge than initially claimed by TGDISCOMs, reducing it from INR 1.60 per kWh to INR 1.09 per kWh.
The approved fixed charges for stranded capacity were calculated based on a capacity of 25.19 MW, which resulted in INR 16.69 crore in fixed charges. Transmission and distribution charges were set at INR 0.8396 per kWh, amounting to INR 109.70 crore based on the energy consumption of open access consumers.
This decision is part of the State's efforts to manage open access transactions effectively while supporting the transition to green energy sources.
please contact: contact@energetica-india.net.
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