DERC proposes four year phase out of open access additional surcharge

The Delhi Electricity Regulatory Commission (DERC) has proposed amendments to its open access regulations to introduce a mandatory four year phase out of the additional surcharge for consumers.

In a draft notification titled the Delhi Electricity Regulatory Commission (Terms and Conditions for Open Access) (Second Amendment) Regulations, 2025, the regulator has proposed changes to align its framework with the Electricity (Amendment) Rules, 2024 issued by the central government. The key proposal involves an amendment to Regulation 12(1) of the principal 2005 regulations, which governs the additional surcharge levied on consumers procuring power from sources other than their local distribution licensee (discom). The surcharge is intended to compensate discoms for stranded fixed costs.

Under the proposed amendment, any consumer granted General Network Access (GNA) or Open Access would see the additional surcharge reduced on a linear basis from the date of grant. The surcharge would be fully eliminated at the end of four years. An illustration included in the explanatory memorandum states that a consumer granted access in the financial year (FY) 2028-29 would pay 100% of the surcharge in that year, 75% in FY 2029-30, 50% in FY 2030-31, 25% in FY 2031-32, and no surcharge from FY 2032-33 onwards. The draft also clarifies that no refunds would be provided for surcharge amounts already paid under earlier regulations.

The proposal further specifies that the additional surcharge would not apply to the portion of a consumer’s contract demand that continues to be met by the discom. It would apply only to consumers who are, or have previously been, customers of the concerned discom. According to DERC, the proposed changes aim to simplify surcharge calculations, rationalise charges, and promote open access in the National Capital Territory of Delhi, in line with the National Tariff Policy objective of ensuring that surcharges do not restrict competition.

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