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Gujarat Sets Additional Surcharge at INR 0.99/kWh for Open Access Consumers

The Gujarat Electricity Regulatory Commission has set the additional surcharge for open access consumers at INR 0.99/kWh for October 2026–March 2027, based on stranded generation and fixed-cost recovery calculations.

September 18, 2026. By Mrinmoy Dey

The Gujarat Electricity Regulatory Commission (GERC) has determined an additional surcharge of INR 0.99/kWh for open access consumers of the four state-owned distribution companies for the period from October 1, 2026 to March 31, 2027.

The surcharge will apply to consumers of Dakshin Gujarat Vij Company (DGVCL), Madhya Gujarat Vij Company (MGVCL), Paschim Gujarat Vij Company (PGVCL) and Uttar Gujarat Vij Company (UGVCL) that procure electricity through open access from a source other than their respective distribution companies.

GERC’s latest determination follows the methodology revised by the Commission in its August 30, 2022 order. Under this methodology, Gujarat Urja Vikas Nigam (GUVNL) is required to submit data for each six-month period, duly certified by the State Load Despatch Centre (SLDC) and a Chartered Accountant, for determining the additional surcharge applicable to the corresponding future period.

For the present determination, GUVNL submitted data for the period from October 1, 2025 to March 31, 2026, which was used to calculate the surcharge applicable from October 2026 to March 2027. The Commission noted that the submitted data had been certified by the SLDC and Chartered Accountant, while GUVNL and the four state-owned DISCOMs had also uploaded the data and certificates on their respective websites.

According to the calculation annexed to the GERC order, the available energy during the six-month period stood at 96,129 MUs, while scheduled energy for meeting the requirements of the general body of consumers was 63,110 MUs. After accounting for the applicable transmission and distribution losses, energy supplied to the general body of consumers was calculated at 55,497 MUs.

The calculation resulted in 33,018 MUs of stranded generation. GUVNL had paid INR 8,193 crore as fixed costs to conventional energy generators against capacity tied up on a long-term basis. Of this, INR 2,814 crore was identified as the fixed cost attributable to stranded capacity.

The Commission's calculation also considered 1,630 MUs of open access scheduled energy at the DISCOM periphery/consumer end, with the same quantum identified as stranded capacity directly attributable to open access customers. After proportionately allocating the balance stranded energy, the aggregate stranded energy attributable to open access consumers was determined at 2,525 MUs.

The fixed cost corresponding to available energy was calculated at INR 0.85/unit, resulting in a stranded fixed cost attributable to open access users of INR 215 crore. The Commission then accounted for INR 606 crore recovered from open access consumers through demand charges. Applying the 8.77 percent network-related cost considered recoverable through these demand charges resulted in an adjustment of INR 53 crore.

After this adjustment, the stranded fixed cost recoverable from open access users was determined at INR 162 crore, which translated into the final additional surcharge of INR 0.99/kWh.

While calculating the surcharge, GERC considered a 12.06 percent normative T&D loss approved for FY 2025-26, as this was lower than the latest trued-up T&D loss of 12.77 percent for the four state-owned DISCOMs collectively for FY 2024-25. The Commission also considered 8.77 percent as the network-related cost paid by open access consumers through demand charges.

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GERC order

Open access surcharge

Open access additional surcharge in Gujarat