HERC Imposes ₹1.37/Unit Additional Surcharge On Open Access Consumers In Haryana

The Haryana Electricity Regulatory Commission has issued a new order introducing an additional surcharge that will impact businesses and industrial consumers purchasing electricity through open access. The Commission has approved a surcharge of Rs 1.37 per unit for the second half of the financial year 2025–26, increasing the cost for consumers who procure power from private suppliers instead of state-run utilities.

The matter was raised through a petition filed by Haryana’s two main power distribution companies, Uttar Haryana Bijli Vitran Nigam Limited and Dakshin Haryana Bijli Vitran Nigam Limited. These DISCOMs are responsible for ensuring a continuous electricity supply to all consumers under the provisions of the Electricity Act, 2003. To fulfill this obligation, they enter into long-term agreements with power generators to secure an adequate electricity supply.

However, a growing number of large consumers are opting for open access, which allows them to purchase electricity from alternative sources such as power exchanges or private generators, often at lower rates. As a result, the electricity already procured by DISCOMs for these consumers remains unused. Despite this, the DISCOMs are still required to pay fixed charges for the contracted power, leading to what is known as stranded power and financial losses.

To address this issue, the Commission analyzed data from October 2024 to March 2025 to calculate the surcharge. It found that around 144.70 million units of electricity remained unused due to open access consumers. The approved fixed cost for power purchase during 2025–26 was determined to be ₹1.44 per unit. Based on these figures, the total recoverable cost was calculated at approximately ₹20.79 crore.

This cost was then distributed over the projected open access consumption of 152.26 million units, resulting in the final surcharge of ₹1.37 per unit. This marks an increase from the ₹1.21 per unit surcharge applicable in the first half of the financial year.

The Commission stated that the surcharge is necessary to help DISCOMs recover unavoidable fixed costs related to power procurement and infrastructure. The order will apply to all consumers within the operational areas of UHBVNL and DHBVNL who use intra-state or inter-state transmission systems to source electricity. However, consumers who generate electricity for their own use through captive power plants are exempt from this surcharge.

The decision was issued by the Commission’s Chairman, along with other Members. The order has come into effect immediately and will remain valid until further revision. The Commission also noted that no objections were received from the public during the consultation process prior to finalizing the decision.