UERC Sets INR 0.67/Unit Additional Surcharge On Open Access Power In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) has approved an additional surcharge of Rs. 0.67 per unit on open access power consumers in the state. The surcharge will apply prospectively for six months from October 1, 2026, to March 31, 2027.

The order was issued by a three-member Commission comprising Chairman M. L. Prasad, Member (Law) Anurag Sharma, and Member (Technical) Prabhat Kishor Dimri.

The proceedings followed a petition filed by Uttarakhand Power Corporation Limited (UPCL) on June 29, 2026. UPCL sought the additional surcharge under Section 42(4) of the Electricity Act, 2003, Clause 8.5.4 of the National Tariff Policy, 2016, and Regulation 23 of the UERC Intra-State Open Access Regulations, 2015.

UPCL had initially proposed an additional surcharge of Rs. 0.88 per unit. The distribution utility submitted that it makes adequate power procurement commitments to meet the requirements of its consumers, including consumers that subsequently use open access. According to UPCL, when such consumers shift to open access during particular time slots, the power contracted by the utility may remain unused, resulting in stranded capacity and unavoidable fixed power purchase costs.

The petition attracted objections from industrial stakeholders following public notices issued in July 2026 in Dainik Jagran and The Hindustan Times. Representatives of Galwalia Ispat Udyog Pvt. Ltd., Kashi Vishwanath Textile Mill (P) Ltd., and the Kumaon Garhwal Chamber of Commerce & Industry argued that the additional surcharge should not be imposed on consumers connected at 132 kV and above.

The objectors stated that there was no genuine stranded power attributable to such consumers and also questioned the supporting details submitted with the petition. UPCL, however, maintained that the applicable provisions require recovery of stranded fixed costs from open access consumers irrespective of their voltage level. The utility also stated that the required information had been submitted in accordance with the methodologies approved by the Commission.

UERC examined the issue by analyzing actual data for the period from October 2025 to March 2026. The Commission considered slot-wise surrendered power and open access drawls from six Inter-State Generating Stations (ISGS)—Jhajjar, Dadri Gas, FG Unchahar-3, FG Unchahar-4, Anta, and Auriya.

For determining power stranded specifically because of open access transactions, the Commission considered the lower of open access drawls and surrendered power in each time slot. The calculations also accounted for a 1.03% transmission loss applicable to PTCUL and a 12.75% distribution loss.

Based on actual billing data, open access energy at the state periphery was 404.20 million units (MUs), while stranded energy was determined at 279.77 MUs. The total fixed cost billed for the six generating stations was Rs. 34.26 crore against an entitlement of 410.36 MUs.

The Commission calculated a weighted average fixed cost of Rs. 0.97 per unit at the consumer end, resulting in a stranded power cost of Rs. 23.35 crore. After spreading this cost over 349.03 MUs of consumer-end open access energy, UERC finalized the additional surcharge at Rs. 0.67 per unit for the October 2026–March 2027 period.