The Gujarat Electricity Regulatory Commission (GERC) has set the Additional Surcharge for Open Access electricity consumers in Gujarat at Rs. 0.99 per kWh for the six-month period from October 1, 2026, to March 31, 2027. The decision was issued through Order No. 05 of 2026 in Gandhinagar by GERC Chairman Pankaj Joshi and Members Hiren Shah and Jatin N. Thakkar.
The surcharge will apply to commercial and industrial consumers connected to Gujarat’s four state-owned distribution companies—Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited (MGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and Uttar Gujarat Vij Company Limited (UGVCL). It covers consumers purchasing electricity from third-party sources through Open Access instead of directly sourcing power from their respective distribution companies.
GERC’s decision follows the methodology revised by the Commission on August 30, 2022. The framework was introduced after earlier legal proceedings and petitions submitted by Gujarat Urja Vikas Nigam Limited (GUVNL), the state distribution companies, and industrial associations.
Under the methodology, GUVNL is required to submit certified operational data every six months for determining the Additional Surcharge. The data for one six-month period is used to calculate the surcharge applicable during the corresponding period of the following year.
For the latest calculation, GUVNL submitted data for the period from October 1, 2025, to March 31, 2026. The information was verified by the State Load Despatch Centre (SLDC) and an independent Chartered Accountant. The data was also published on the websites of the distribution companies before being considered by GERC.
The submitted data showed available energy of 96,129 Million Units (MUs), compared with scheduled energy requirements of 63,110 MUs. This resulted in stranded generation of 33,018 MUs. Meanwhile, fixed costs paid to long-term conventional power generators amounted to Rs. 8,193 crore.
GERC considered a transmission and distribution loss factor of 12.06% for the calculation. This was based on the lower of the approved normative losses for FY 2025–26 and the actual trued-up losses of 12.77% recorded for FY 2024–25.
The Commission determined that 2,525 MUs of stranded energy were attributable to Open Access consumers. This included 1,630 MUs from direct Open Access scheduling and 895 MUs representing the apportioned stranded balance energy.
The net stranded fixed cost attributable to Open Access consumers was calculated at Rs. 215 crore. GERC deducted Rs. 53 crore towards network-related cost offsets, linked to an 8.77% network cost factor against Rs. 606 crore in recovered demand charges.
After this adjustment, the net recoverable stranded fixed cost stood at Rs. 162 crore. Based on the approved methodology and the submitted operational data, GERC consequently fixed the Additional Surcharge at Rs. 0.99 per kWh for the October 2026–March 2027 period.
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