Madhya Pradesh Revises Open Access Rules, Mandates Clear Demand Declaration and New Billing Norms
Madhya Pradesh Electricity Regulatory Commission has notified the Sixth Amendment to its Intra-State Open Access Regulations, mandating a clear declaration of contract demand usage, revising energy adjustment norms, and standardising surcharge and billing mechanisms for open access consumers.
February 20, 2026. By Mrinmoy Dey
The new regulations mandate that all eligible consumers must clearly specify, at the time of application, whether they intend to avail open access up to their contract demand, over and above their contract demand, or through a combination of both. Existing open access consumers have also been brought under this revised framework. The move is aimed at improving transparency, standardising billing practices, and strengthening grid management.
Under the revised provisions, when open access is availed within the contract demand, only open access energy will be adjusted in the billing meter, while billing demand will remain unchanged. In such cases, no additional surcharge will be levied, and technical feasibility clearance at the drawal end will not be required. Energy will be adjusted in 15-minute time blocks in accordance with applicable priority rules and grid regulations.
For consumers seeking open access over and above their contract demand, the amendment makes technical feasibility clearance mandatory, considering the total connected load on the feeder and system. In these cases, an additional surcharge will be applicable, except for captive power plants. Both energy and corresponding demand will be segregated and adjusted in 15-minute blocks, after accounting for transmission and distribution losses.
In cases where consumers opt for partial open access – within and beyond contract demand – the regulations provide a combined framework. While energy drawn within contract demand will not attract additional surcharge, consumption beyond contract demand will be subject to applicable levies. Separate adjustment mechanisms have been prescribed for each category to ensure accurate settlement and billing.
The amendment also places greater responsibility on generators and open access users injecting power into the grid, requiring them to ensure that actual sent-out capacity does not exceed approved limits. Further, distribution licensees have been directed to submit detailed 15-minute block-wise data on renewable energy credited to consumers to the state load dispatch centre on a weekly basis and by the third day of every month. This is expected to strengthen monitoring and settlement processes.
MPERC has reiterated that all balancing and settlement activities must strictly adhere to the Madhya Pradesh Electricity Balancing and Settlement Code, 2023, the Forecasting and Scheduling Regulations, 2018, and the Madhya Pradesh Electricity Grid Code, 2024, as amended from time to time. This integration is intended to improve operational discipline and grid stability amid rising open access and renewable energy transactions.
The notification is accompanied by detailed illustrations outlining three operational scenarios: open access within contract demand, over and above contract demand, and a combination of both. These examples provide clarity on metering requirements, energy adjustment priorities, surcharge applicability, and billing treatment, helping consumers and utilities implement the revised framework more effectively.
With this amendment, MPERC aims to streamline open access operations, reduce ambiguities in demand and energy settlement, and create a more predictable regulatory environment for large consumers and renewable energy users.
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