Karnataka Open Access Regulatory Policy

Karnataka Open Access Regulatory Policy

Open Access in Karnataka is regulated by the Karnataka Electricity Regulatory Commission (KERC) under the KERC Terms and Conditions for Open Access Regulations, 2025. These new regulations were issued in 2025 and replace the earlier Green Energy Open Access framework. The 2022 Green Energy Open Access Rules and the corresponding KERC GEOA Regulations were struck down by the Karnataka High Court, and the 2024 Draft GEOA First Amendment was subsequently withdrawn. The KERC Terms and Conditions for Open Access Regulations, 2025 have been introduced to fill the resulting regulatory gap and provide a updated and enforceable framework for Open Access in the state.

Open Access is permitted for consumers with a minimum contract demand or sanctioned load of 100 kW for HT consumers, or an aggregated load of 100 kW or more within the same division for LT consumers. This eligibility threshold applies uniformly across short-term, medium-term, and long-term Open Access transactions. Open Access is applicable for Captive, Group Captive, and Third-Party arrangements.

Monthly banking is allowed for renewable energy generators in Karnataka. Banked energy must be consumed within the same calendar month, and any unused banked energy at the end of the month lapses without carry-forward. A banking charge of 8% of the banked energy is applicable in kind, meaning a portion of the banked energy is retained as the charge rather than a monetary levy.

Standby power supply during generator outages is charged at 125% of normal energy rates. Other applicable charges include scheduling and system operating charges, load dispatch centre fees, transmission losses, wheeling losses, reactive power charges, deviation settlement charges, and meter reading charges, all of which are enforced under the Open Access Regulations.

Transmission charges for medium-term and long-term Open Access are calculated based on the Total Transmission System Charges (TTSC) divided by contracted capacity. For short-term Open Access, a separate formula based on energy transmitted is applied. Wheeling charges are determined through periodic tariff orders issued under the Multi-Year Tariff (MYT) framework.

Open Access applications in Karnataka must be processed within 15 working days. If no response is received within this period, the application is deemed approved by default. Application dates for short-term, medium-term, and long-term Open Access are linked to the date of original application, with some backdating provisions applicable for applications submitted prior to 2023.

For short-term Open Access consumers, repeated underutilisation of allocated capacity, defined as more than twice a month with each instance exceeding two hours, or failure to provide adequate prior notification, may result in the licensee or SLDC cancelling or reducing the allocated Open Access capacity.

The regulatory landscape in Karnataka carries an element of legal and transitional risk. The Karnataka High Court’s decision to strike down the central Green Energy Open Access Rules and the state GEOA Regulations of 2022 has created uncertainty around arrangements implemented under those regulations. Interim measures have been put in place, including continuation of some older wheeling and banking agreements and application of interim charges such as 50% transmission charges, until the new 2025 regulations are fully operationalised and legally settled.