GERC Draft Amendment Proposes Dynamic Green Energy Banking Charges From FY 2027 In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has released the draft Green Energy Open Access Sixth Amendment Regulations, 2026, introducing new rules for renewable energy open access consumers in Gujarat. The proposed regulations aim to improve transparency, ensure fair cost recovery, and create a more structured framework for banking of renewable energy.

According to the draft regulations, a fixed banking charge of Rs. 1.00 per unit will be applicable from September 1, 2026, to March 31, 2027. After this period, from April 1, 2027 onwards, banking charges will be calculated annually based on actual operational data and a formula prescribed by the commission.

The draft regulations place significant responsibility on distribution companies (discoms) to provide complete and accurate information required for the calculation of banking charges. Discoms will be required to submit the necessary data through a sworn affidavit. The submitted information may be verified by the State Load Despatch Centre (SLDC) or through any other approved verification process.

To ensure compliance, GERC has proposed strict penalties for discoms that fail to provide the required information within the specified timeline. In such cases, the banking charge applicable to that discom will be considered nil. Additionally, a deemed revenue penalty of 1 paisa per unit per year on the total energy handled by the discom will be adjusted against its Aggregate Revenue Requirement. The commission stated that this measure is intended to prevent the burden of non-compliance from being passed on to consumers and green energy open access users.

The draft also introduces safeguards against excessive fluctuations in banking charges. GERC has proposed a minimum banking charge of Rs. 0.50 per unit and a maximum charge of Rs. 1.50 per unit. This mechanism is expected to provide greater certainty for both consumers and distribution utilities.

The commission has also reserved the right to determine a common banking charge for state-owned distribution companies, including DGVCL, PGVCL, MGVCL, and UGVCL, as well as for smaller distribution utilities and private licensees that share power procurement arrangements.

Under the proposed framework, banking calculations will be carried out on a monthly basis. Any banked energy remaining unused at the end of a billing cycle will lapse and cannot be carried forward to the next month. Furthermore, the total banked energy available to a consumer will be limited to 30% of the consumer’s monthly electricity consumption from the discom.

The methodology for determining banking charges will be based on actual 15-minute time-block data. The calculations will consider market prices on the Indian Energy Exchange (IEX), operational costs of thermal and gas-based power plants, transmission expenses, technical losses, and the impact of Battery Energy Storage Systems (BESS). The final banking charge for each year will be determined by dividing the total net banking cost by the total eligible banked energy handled during the period.