UPCL Seeks UERC Approval For INR 0.88/Unit Additional Surcharge On Open Access Consumers In Uttarakhand

The Uttarakhand Power Corporation Limited (UPCL) has filed a petition with the Uttarakhand Electricity Regulatory Commission (UERC) seeking approval for an additional surcharge on consumers using open access. Through the petition, the state-owned power distribution utility aims to recover fixed costs that continue to be incurred even when consumers purchase electricity from suppliers other than the local distribution licensee.

The petition has been submitted by the Director of Distribution and Projects, UPCL. The utility stated that it remains responsible for maintaining long-term power purchase commitments to ensure a reliable electricity supply. When consumers opt for open access and procure electricity from alternative sources, a portion of the contracted power remains unused, resulting in stranded fixed costs. UPCL argued that these costs should not be passed on to regular consumers and should instead be recovered from open access users through an additional surcharge.

The petition has been filed under Section 42(4) of the Electricity Act, 2003, and Regulation 23 of the UERC Intra-State Open Access Regulations, 2015. These provisions allow distribution licensees to recover stranded fixed costs arising from open access transactions. However, consumers using open access for electricity generated from their own captive power plants will remain exempt from paying the additional surcharge, as provided under the applicable regulations.

UPCL also noted that the petition has been submitted within the timeline specified by the Commission in its order dated August 29, 2019. The order requires the utility to file surcharge petitions for the October to March period by June 30 of the same financial year. Accordingly, the present petition was submitted on June 29, 2026, seeking approval for the surcharge applicable from October 1, 2026, to March 31, 2027. The calculations are based on operational data from the corresponding period between October 2025 and March 2026.

According to the petition, open access energy at the state periphery during the six-month period stood at 383.39 million units (MU). During the same period, stranded energy was calculated at 324.94 MU. March 2026 recorded the highest monthly open access consumption of 73.47 MU, resulting in stranded energy of 52.92 MU.

UPCL also analyzed data from six generating stations, including Dadri Gas, Auriya, and FG Unchahar Units 3 and 4. The utility reported that these plants together accounted for 317.34 MU of surrendered energy, leading to fixed costs of approximately ₹37.91 crore.

Based on these figures, UPCL calculated an average fixed cost of ₹0.90 per unit at the state periphery. After accounting for approved transmission losses of 1.03% under the Power Transmission Corporation of Uttarakhand Limited (PTCUL) network and distribution losses of 12.75%, the fixed cost at the consumer end was estimated at ₹1.04 per unit.

Using the ratio of stranded energy to open access energy, the utility has proposed an additional surcharge of ₹0.88 per unit on open access electricity consumption. Along with the prescribed application fee of ₹20,000, UPCL has requested the Uttarakhand Electricity Regulatory Commission to approve the proposed surcharge for the period from October 1, 2026, to March 31, 2027.