Gujarat Increases Additional Surcharge for Open-Access Power by ₹1/kWh

Gujarat Increases Additional Surcharge for Open-Access Power by ₹1/kWh

September 26, 2025

Gandhinagar, November 2025 — The GERC has raised the additional surcharge for open-access electricity consumers to ₹1.00/kWh from October 1, 2025, to March 31, 2026.According to the update by GERC, this represents an increase of ₹0.18/kWh over the previous six-month period, i.e., April 1-September 30, 2025, in which the surcharge was ₹0.82/kWh.

This surcharge has been levied on consumers of four state-owned distribution companies, namely Dakshin Gujarat Vij Company (DGVCL), Madhya Gujarat Vij Company (MGVCL), Paschim Gujarat Vij Company (PGVCL) and Uttar Gujarat Vij Company (UGVCL), who receive electricity through open access from any supplier other than their respective DISCOM. GERC arrived at this determination after issuing an order in August 2022 revising the methodology under which surcharge calculations are to be carried out bi-annually. It works by estimating stranded fixed costs accrued to DISCOMs on account of open-access migration, net of demand charges already collected and transmission/distribution losses. The analysis by GERC indicated that, for the period from October 2024 to March 2025, the fixed-cost liabilities of DISCOMs stood at ₹76.65 billion, out of which ₹23.36 billion comprised stranded capacity-after considering network cost and past recoveries, the net recoverable amount came to ₹1.49 billion.

Divided by the scheduled open-access energy used by consumers during that period, this resulted in the surcharge of ₹1/kWh. The regulator argues that this surcharge is necessary to offset the costs that DISCOMs bear instead when open-access consumers migrate away from traditional supply. Periodic review at six-monthly intervals is meant to strike a balance between interests of open-access buyers and financial sustainability of state distribution utilities.