GERC Imposes ₹1/kWh Additional Surcharge For Open Access Consumers From October 2025

The Gujarat Electricity Regulatory Commission (GERC) has announced a new additional surcharge for open access consumers in the state, which will be applicable from October 1, 2025, to March 31, 2026. According to Order No. 04 of 2025, the surcharge has been set at ₹1.00 per kilowatt-hour (kWh). This fee applies to consumers of the four state-owned distribution companies—DGVCL, MGVCL, PGVCL, and UGVCL—who choose to procure their electricity from sources other than their respective DISCOMs.

The decision comes after a long regulatory process that began with an order in 2014 concerning the applicability and methodology for calculating the additional surcharge. Following this order, Gujarat Urja Vikas Nigam Limited (GUVNL) and the four DISCOMs filed appeals, which led to a 2018 order allowing them to petition for a revised methodology. In the meantime, various industry associations also requested clarifications regarding the calculation process.

A significant update in this regulatory framework came with the Commission’s order dated August 30, 2022. The 2022 order revised the method for calculating the additional surcharge and established that the surcharge would be determined every six months based on data submitted by GUVNL for the previous six-month period. For instance, the surcharge for the period of October to March in any given year is calculated using data from the preceding October to March.

In accordance with this procedure, GUVNL submitted its data for the period of October 1, 2024, to March 31, 2025. The submitted data was certified by both the State Load Despatch Centre (SLDC) and a Chartered Accountant. This data was then made publicly available on the websites of GUVNL and the four DISCOMs. The Commission reviewed the data and applied the revised formula to determine the new surcharge for open access consumers.

Several key factors were considered in this calculation. The Commission took into account the latest trued-up transmission and distribution (T&D) losses for the four DISCOMs, which were recorded at 13.37% for the financial year 2023-24. Additionally, the network-related costs that open access consumers already pay through demand charges were considered at 6.71% as per the 2022 order. By incorporating these elements into the revised formula, the Commission arrived at an additional surcharge of ₹1.00 per kWh for the upcoming six-month period.

The final order confirms that this surcharge will apply to all open access consumers within the service areas of DGVCL, MGVCL, PGVCL, and UGVCL for the six months starting October 1, 2025. This step ensures that the costs associated with transmission and distribution losses, as well as network-related expenses, are fairly distributed while allowing consumers to choose alternative power sources. The periodic review and calculation of the surcharge reflect the Commission’s effort to maintain transparency and fairness in the pricing structure for open access electricity in Gujarat.

This order marks another step in the ongoing regulation of open access in the state, ensuring that both the DISCOMs and consumers are aligned with the cost structures and data-driven methodologies established by the Commission.