TGERC Sets Additional Surcharge for Open Access Consumers at Nil for H2 FY 2025-26

The Telangana Electricity Regulatory Commission (TGERC) has announced that the Additional Surcharge (AS) for Open Access (OA) consumers will be nil for the second half (H2) of the financial year 2025-26, covering the period from 1 October 2025 to 31 March 2026.

The move follows petitions filed by the Southern and Northern Power Distribution Companies of Telangana (TGSPDCL and TGNPDCL, collectively TGDISCOMs) seeking approval for levying AS on OA consumers, as mandated under Section 42(4) of the Electricity Act, 2003, Tariff Policy 2016, and prior TGERC orders. 

The Commission conducted a public hearing on 1 August 2025. TGDISCOMs presented their filings, including a six-month review of stranded capacity and associated fixed, transmission, and distribution charges. No stakeholders submitted objections or attended the hearing.

Based on TGDISCOMs’ data from October 2024 to March 2025, the average long-term available capacity was 9,633.01 MW, and stranded capacity attributable to OA consumers was approximately 92.96 MW. Fixed charges for stranded capacity were estimated at INR .53.37 crore, while transmission and distribution charges for OA consumers amounted to INR 127.94 crore. Net demand adjustments exceeded the fixed costs for stranded capacity, resulting in no net recoverable stranded charges.

The Commission noted that the TGDISCOMs’ prior calculation of Additional Surcharge of INR .0.35/kWh was therefore unnecessary. After reviewing all relevant filings, audited accounts, and transmission and distribution costs, TGERC determined that the Additional Surcharge for H2 FY 2025-26 shall be INR .0/kWh. It said, "The Additional Surcharge for H2 of FY 2025-26 is determined as NIL and shall be applicable from 01.10.2025 to 31.03.2026.

This regulatory decision aligns with TGERC’s mandate to balance the financial sustainability of distribution companies while ensuring OA consumers are not burdened unnecessarily. The zero surcharge comes after meticulous assessment of energy purchases, sales, short-term market transactions, and HT network costs, ensuring fair treatment for all parties.

The Commission clarified that the fixed charges for H2 FY 2024-25 were provisional and any future adjustments will be reflected in subsequent filings. TGDISCOMs have been instructed to reconcile additional surcharge filings with audited accounts moving forward.

With the AS set to zero, OA consumers in Telangana can continue sourcing power from third-party suppliers without incurring extra charges, providing a boost for industrial and commercial consumers leveraging open access.