Haryana Regulator Rejects DISCOMs’ Open Access Surcharge Of ₹0.82/kWh

The Haryana Electricity Regulatory Commission recently reviewed petitions submitted by the Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL). These petitions were aimed at determining an additional surcharge to be levied on consumers using the open access system for electricity in the second half of the fiscal year 2023-24. The petitioners sought approval to levy this surcharge until a new order is issued.

The distribution companies (DISCOMs) presented their case based on data from the first half of the fiscal year 2023-24. They argued that the additional surcharge was necessary to cover costs related to stranded power, which refers to electricity that has been generated but not used due to reduced demand from open access consumers. The DISCOMs calculated the stranded power by considering the lesser amount between the open access power and the surrendered power after adjusting for power purchased on the Day Ahead Market (DAM). The total amount of power that had to be backed down was then multiplied by a per-unit fixed charge to determine the surcharge amount.

The fixed charge used for this calculation was ₹0.94 per kWh, as approved in a tariff order from February 2023. Based on this, the DISCOMs calculated an additional surcharge of ₹0.82 per unit. This rate was determined by dividing the total additional surcharge by the estimated units of power purchased under the open access mechanism for the second half of the fiscal year, assuming the same power consumption pattern as in the first half.

To inform the public and gather feedback, the Commission issued a notice inviting comments on the petitions. However, no comments were received from stakeholders or the general public. During the hearing, the Commission observed that both petitions were identical and decided to handle them together. The DISCOMs reiterated their position during the hearing, emphasizing the need for the surcharge due to increased open access consumption, which resulted in higher stranded power and associated costs.

The Commission asked the DISCOMs for more detailed information regarding the increase in the surcharge from ₹0.53 per kWh to ₹0.82 per kWh. The DISCOMs explained that the increase was due to higher open access usage in the second half of the fiscal year, leading to more stranded power. They also provided a detailed description of the methodology used to calculate the stranded power and the additional surcharge.

Upon reviewing the data, the Commission noted that the second half of the fiscal year 2023-24 had already concluded, and data for this period was available. Consequently, the Commission instructed the DISCOMs to submit actual data for the second half of the fiscal year. The DISCOMs complied, providing information on stranded power and open access power based on actual data for the latter half of the fiscal year.

After considering all aspects of the case, the Commission found that the petitions were not filed with the most current data, which was necessary for an accurate determination of the surcharge. The Commission also emphasized that any surcharge determined based on outdated data would not be fair to consumers and would not reflect the actual power usage and cost scenarios.

As a result, the Commission dismissed the current petitions and advised the DISCOMs to submit new petitions based on data from the second half of the fiscal year 2023-24. This new data would provide a more accurate basis for determining any additional surcharge to be levied in the second half of the fiscal year 2024-25.

The Commission’s decision reflects its commitment to ensuring that charges levied on consumers are fair and based on accurate, up-to-date information. This approach helps maintain transparency and accountability in the regulation of electricity distribution and ensures that consumers are not unfairly burdened by charges that do not reflect actual costs.