Approval Sought For ₹1.60/kWh Additional Surcharge On Open Access Consumers In Telangana For H2 FY 2024-25

Northeastern Power Distribution Company of Telangana Limited has filed a petition seeking approval for the Additional Surcharge (AS) to be applied to Open Access consumers for the second half of the financial year 2024-25. This petition aligns with the directions from the Hon’ble Commission’s Order dated September 18, 2020, in OP No. 23 of 2020, as well as the Electricity Act, 2003, and the National Tariff Policy, 2016.

In the aforementioned order, the Commission had established a mechanism to determine stranded capacity and outlined the method for calculating and levying Additional Surcharge on Open Access use₹ This surcharge is intended to cover the fixed costs incurred by distribution licensees as part of their supply obligations. Licensees were instructed to submit their filings for the AS determination for the first half of the financial year (April to September) by November 30 of the current financial year, and for the second half (October to March) by May 31 of the upcoming financial year.

For the second half of FY 2024-25, the licensee has presented its Additional Surcharge proposal based on actual data from the corresponding period of FY 2023-24. The data shows that the average stranded capacity due to open-access consumers from October 2023 to March 2024 was 23.21 megawatts (MW). The fixed charges paid to generators during this period amounted to ₹6,391.74 crore, and the average long-term available capacity was 9,093.12 MW. This calculation results in an average fixed charge of ₹0.70 crore per MW. Therefore, the fixed charges for the stranded capacity of 23.21 MW come to ₹16.31 crore.

Additionally, the transmission charges for the second half of FY 2023-24 were ₹3,197.52 crore, with scheduled energy of 46,040.41 million units (MUs). This results in a transmission cost of ₹0.69 per kilowatt-hour (kWh). The HT distribution wheeling charges, computed according to the Commission’s directions, are ₹0.17 per kWh. Combining these, the total transmission and distribution (T&D) costs amount to ₹0.87 per kWh.

The demand charges collected from Open Access consumers during this period were ₹ 161.19 crore. The Commission had directed that revenue recovery related to the low-tension (LT) network be excluded, as LT distribution charges are not considered on the expenditure side. After excluding LT network costs, the net demand charges for Additional Surcharge calculations are ₹119.17 crore. Consequently, the demand charges that need adjustment or recovery from Open Access consumers amount to ₹5.73 crore.

Taking these values into account, the net stranded charges come to ₹10.59 crore (₹16.31 crore minus ₹5.73 crore), which will be used to calculate the additional surcharge. The total Open Access sales for the second half of FY 2023-24 were 66.05 million units, leading to an additional surcharge of ₹1.60 per kWh.

The licensee has requested the Hon’ble Commission to approve this proposed Additional Surcharge of ₹1.60 per kWh for the second half of FY 2024-25. The licensee also notes that the fixed charges stated are provisional and subject to changes based on final audited accounts. Therefore, they request the Commission to consider any variations in the subsequent filings of Additional Surcharges once the final audited accounts are available.