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
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?