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TGERC Removes Additional Surcharge for Open Access Consumers for H2 FY 2025-26

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

The decision follows petitions filed by the Southern and Northern Power Distribution Companies of Telangana (TGSPDCL and TGNPDCL)—collectively referred to as TGDISCOMs—seeking approval to levy the surcharge on OA consumers as per Section 42(4) of the Electricity Act, 2003, the Tariff Policy 2016, and previous TGERC orders.

TGERC held a public hearing on August 1, 2025, to review the submissions. During the session, TGDISCOMs presented a detailed six-month assessment of stranded capacity, fixed costs, and transmission and distribution (T&D) charges. No objections were raised by stakeholders during the proceedings.

Based on the data submitted for the period October 2024 to March 2025, the Commission noted that the average long-term available capacity stood at 9,633.01 MW, while the stranded capacity due to OA consumers was approximately 92.96 MW. The fixed cost for stranded capacity was estimated at ?53.37 crore, and T&D charges for OA consumers were around ?127.94 crore. However, the net demand adjustments effectively offset these fixed costs, resulting in no recoverable stranded charges.

After reviewing all submissions, TGERC concluded that the previous calculation of ?0.35/kWh as an additional surcharge was not required. Therefore, the Additional Surcharge for H2 FY 2025–26 has been officially set at ?0/kWh, applicable from October 1, 2025, to March 31, 2026.

“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,” the Commission stated in its order.

This decision underscores TGERC’s commitment to maintaining financial stability for distribution companies while ensuring open access consumers are not subjected to unnecessary charges. The Commission also clarified that fixed charges for H2 FY 2024–25 were provisional, and future reconciliations will be reflected in upcoming filings.

With this move, open access consumers in Telangana—especially industrial and commercial users—can continue procuring electricity from third-party suppliers without incurring any additional surcharge, encouraging greater energy market flexibility and competitiveness in the state.