HERC Imposes Rs 1.37 Per Unit Surcharge On Open Access Consumers

The matter was brought by the two state distribution companies, Uttar Haryana Bijli Vitran Nigam Limited and Dakshin Haryana Bijli Vitran Nigam Limited, which said they enter long-term contracts with generators to secure continuous supply and incur fixed charges. A growing number of large consumers are opting for open access, leaving procured electricity unused and creating stranded power. The distribution companies continue to bear fixed costs for contracted capacity despite reduced offtake, leading to financial strain.

The Commission analysed data from October 2024 to March 2025 and found that about 144.70 million (mn) units remained unused owing to open access consumption. The approved fixed cost for power purchase during 2025–26 was determined at Rs 1.44 per unit. On that basis the total recoverable cost was calculated at Rs 207.9 mn.

The recoverable amount was apportioned over projected open access consumption of 152.26 mn units to arrive at the Rs 1.37 per unit surcharge, up from Rs 1.21 per unit in the first half of the year. The levy will apply to all consumers within the operational areas of UHBVNL and DHBVNL who use intra-state or inter-state transmission systems, while consumers generating electricity for their own use through captive plants are exempt. The Commission said the surcharge is intended to enable distribution companies to recover unavoidable fixed procurement and network costs. No objections were recorded during the public consultation, and the order was issued by the Commission chair and members.