Delhi Regulator Sets Four-Year Timeline to Phase Out Open Access Surcharge

The Delhi Electricity Regulatory Commission (DERC) has amended its Principal Regulations, the Delhi Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2005. DERC has added a proviso after Regulation 12(1) of the Principal Regulations, to reduce the additional surcharge from the value applicable in the year in which General Network Access or Open Access was granted.

This amendment applies to a person availing General Network Access or Open Access and aims to bring additional surcharge reduction linearly from the value in the year in which General Network Access or Open Access was granted. This amendment was issued so that, if General Network Access or Open Access continues to be availed by the person, the additional surcharge would be eliminated within four years from the date of grant of General Network Access or Open Access.

The recent announcement of phased removal of the additional surcharge could significantly improve the economics of open access procurement in Delhi, especially for large commercial and industrial (C&I) consumers that have so far stayed away due to high levies. By providing cost visibility and a defined four-year glide path, the move may revive stalled power procurement decisions and encourage long-term PPAs with renewable energy developers.

Moreover, this amendment is expected to support greater renewable energy uptake by C&I consumers in the National Capital Region, as open access remains a key route for corporates to meet sustainability and decarbonisation targets outside the distribution utility framework.

No Refund, Adjustment or Recovery of Earlier Levied Open Access Surcharge

Additionally, the regulation has also created a proviso which further specifies that persons availing General Network Access or Open Access would not be eligible to seek or claim any refund, adjustment, or recovery of the additional surcharge already levied or collected under the existing Open Access Regulations.

Moreover, for Open Access, the regulation prevents the addition of any surcharge which, as per the regulation, would not be applicable for an Open Access consumer to the extent of contract demand being maintained with the distribution licensees. Further, the provision makes the additional surcharge applicable only for Open Access consumers who are or have been consumers of the concerned distribution licensee thus limiting retrospective financial relief.

For regulatory clarity, DERC explained, “For the purpose of these Regulations, General Network Access and Temporary GNA would have the same meaning as defined in the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022, as amended from time to time.”