The Telangana State Electricity Regulatory Commission (TSERC) has set an additional surcharge of Rs1.09/kWh for open access consumers in its latest announcement. This surcharge will apply to industries and consumers who procure electricity through open access, outside of state distribution companies (DISCOMs), aiming to manage the financial burden placed on the power grid by such transactions. The surcharge, applicable from October 2023 to March 2024, is designed to cover the costs incurred by the DISCOMs when consumers shift to alternative sources, ensuring financial stability for the grid.

Open access allows consumers, primarily in the industrial and commercial sectors, to purchase electricity directly from power generators at competitive rates. However, when these consumers bypass the traditional distribution network, DISCOMs still bear infrastructure costs, which the surcharge helps recover. The new Rs1.09/kWh additional surcharge reflects the commission's effort to maintain a balanced energy market while promoting renewable energy sources and ensuring grid stability.

This surcharge is particularly relevant for renewable energy developers and industries that rely on open access for cost-effective power procurement. While it may raise costs for some, it is seen as a necessary move to ensure that DISCOMs can sustain their operations and the grid can accommodate more renewable energy generation. As Telangana continues to promote renewable energy growth, balancing open access with financial viability for the state’s power utilities remains a key policy challenge.

The decision by TSERC will have implications for large-scale power consumers and the renewable energy sector, which must now consider these additional costs in their long-term energy strategies. The surcharge underscores the complexity of transitioning to a more open and flexible energy market while managing grid reliability and cost recovery.