Telangana Commission Sets Open Access Surcharge
POWER & RENEWABLE ENERGY

Telangana Commission Sets Open Access Surcharge

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.

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.

Next Story
Infrastructure Urban

ABB to Invest Rs 6.25 Billion to Expand India Manufacturing

ABB recently announced plans to invest approximately Rs 6.25 billion ($75 million) in India during 2026 to expand its manufacturing footprint and research and development capabilities. The investment follows more than $35 million spent in 2025 and reflects the company’s continued focus on strengthening its ‘local-for-local’ strategy in the country.The investment will support ABB’s Electrification, Motion and Automation businesses and expand manufacturing capacity for infrastructure sectors such as renewable energy, metro rail, data centres and industrial applications. Approximately 300..

Next Story
Equipment

Six WOLFF Cranes Handle 60,000 m³ Concrete for German Hospital

Six WOLFF tower cranes are playing a key role in constructing a new hospital complex in Memmingen, Germany, supporting large-scale material handling for the project. The facility is being built on a 7.7-hectare site and will feature six floors, around 480 beds and a gross floor area exceeding 75,000 sq m.Building shell works began recently in February 2025. One WOLFF 6531.12 Cross crane supported early site preparation before being dismantled in autumn 2025, while five remaining cranes continue operations. Over an average deployment period of 16 months, the cranes are expected to move approxim..

Next Story
Equipment

REC Funds Rs 115.6 Million CSR Support for Bihar Eye Hospital

REC recently committed Rs 115.6 million under its Corporate Social Responsibility (CSR) programme for the procurement of clinical and non-clinical equipment at Sankara Eye Hospital in Saharsa, Bihar. The initiative aims to strengthen healthcare infrastructure and improve access to specialised eye care services in the region.A Memorandum of Agreement (MoA) was recently signed between Pradeep Fellows, Executive Director (CSR), REC Limited, and Wg Cdr V. Shankar (Retd), Trustee and Executive Director of Sankara Eye Hospital, at the REC office in the SCOPE Complex, New Delhi.The support is expecte..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement