Maharashtra Raises Banking Fees under New Open Access Rules

16 Nov 2023 CW Team

Under the revised regulations, effective from April 1, 2022, electricity consumers in Maharashtra seeking open access will have to pay a higher fee for banking power. Banking power refers to the system where surplus electricity generated by a consumer can be injected into the grid and withdrawn later as per requirements.

Previously, Maharashtra had imposed a banking fee of INR 0.05 ($0.0007) per unit on surplus electricity. However, the revision increases the banking fee to INR 0.45 ($0.006) per unit, marking a substantial rise. The higher fees are expected to ensure the financial sustainability of the DISCOMs while promoting renewable energy generation.

The move comes as a result of DISCOMs' concerns that the lower banking fees were causing an increase in the cost of power for non-open access consumers. DISCOMs argued that open access consumers were enjoying significant benefits due to the current minimal banking fees. By increasing the fees, the state intends to strike a balance and alleviate the financial stress on DISCOMs.

Moreover, the MERC has also addressed the concerns of small-scale consumers by allowing them to fully offset their total energy consumption against generation from renewable energy sources. This provision aims to encourage smaller consumers to adopt renewable energy solutions and contribute to the state's clean energy goals.

The revised open access regulations align with the state's commitment to renewable energy growth and the reduction of carbon emissions. Maharashtra has set a target to achieve 40% of its electricity generation from renewable energy sources by 2030. The state is already one of the leaders in India's clean energy transition, with significant investments in solar and wind power projects.

While the higher banking fees may pose challenges for renewable energy generators, it is hoped that the revised regulations will create a more balanced and sustainable framework for open access in Maharashtra. The state aims to strike a balance between promoting renewable energy and ensuring the financial viability of the DISCOMs, enabling a greener and more resilient electricity sector.

The Maharashtra Electricity Regulatory Commission (MERC) has revised its open access regulations, introducing higher banking fees for renewable energy projects in the state. The move aims to address concerns raised by electricity distribution companies (DISCOMs) about the financial burden caused by banking provisions. Under the revised regulations, effective from April 1, 2022, electricity consumers in Maharashtra seeking open access will have to pay a higher fee for banking power. Banking power refers to the system where surplus electricity generated by a consumer can be injected into the grid and withdrawn later as per requirements. Previously, Maharashtra had imposed a banking fee of INR 0.05 ($0.0007) per unit on surplus electricity. However, the revision increases the banking fee to INR 0.45 ($0.006) per unit, marking a substantial rise. The higher fees are expected to ensure the financial sustainability of the DISCOMs while promoting renewable energy generation. The move comes as a result of DISCOMs' concerns that the lower banking fees were causing an increase in the cost of power for non-open access consumers. DISCOMs argued that open access consumers were enjoying significant benefits due to the current minimal banking fees. By increasing the fees, the state intends to strike a balance and alleviate the financial stress on DISCOMs. Moreover, the MERC has also addressed the concerns of small-scale consumers by allowing them to fully offset their total energy consumption against generation from renewable energy sources. This provision aims to encourage smaller consumers to adopt renewable energy solutions and contribute to the state's clean energy goals. The revised open access regulations align with the state's commitment to renewable energy growth and the reduction of carbon emissions. Maharashtra has set a target to achieve 40% of its electricity generation from renewable energy sources by 2030. The state is already one of the leaders in India's clean energy transition, with significant investments in solar and wind power projects. While the higher banking fees may pose challenges for renewable energy generators, it is hoped that the revised regulations will create a more balanced and sustainable framework for open access in Maharashtra. The state aims to strike a balance between promoting renewable energy and ensuring the financial viability of the DISCOMs, enabling a greener and more resilient electricity sector.

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Products

07 Jul 2026

EUROBOND Expands NABL Accreditation to 51 Testing Parameters

EUROBOND, the flagship brand of Euro Panel Products, has expanded the National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation of its in-house laboratory from 16 to 51 mechanical and chemical testing parameters, making it the only Indian aluminium composite panel (ACP) manufacturer with accreditation covering such an extensive testing scope.The expanded accreditation enables the company to independently test coils, coatings, cores, aluminium composite panels (ACP) and metal composite panels (MCP) in accordance with international standards, including IS, ASTM, ..