TNPDCL proposes Rs 0.63/unit surcharge on open access consumers

CHENNAI: The Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has proposed an additional surcharge of Rs 0.63 per unit on HT open access consumers for 6 months from October 1, 2026 to March 31, 2027, citing fixed costs it continues to incur on power purchase commitments.

The proposal has been submitted to the Tamil Nadu Electricity Regulatory Commission (TNERC) as part of the six-monthly exercise to determine the additional surcharge payable by consumers who source power through open access.

TNPDCL said that its existing power purchase agreements left it with fixed financial commitments even when some consumers bought electricity from sources other than the distribution utility. It has sought to recover the resulting stranded costs through the proposed surcharge.

According to the latest petition, TNPDCL has calculated Rs 180.91 crore as the net stranded charges recoverable from open access consumers. The calculation is based on data for the said period. The utility has estimated an adjusted open access quantum of 2,891.13 MU and arrived at the surcharge of Rs 0.63/unit.

The proposal comes against the backdrop of TNPDCL seeking no additional surcharge for the preceding six-month period, from April 1 to September 30, 2026. In that petition, based on data from April to September 2025, TNPDCL calculated the net stranded charge as zero after adjusting the demand charges recovered from open access consumers and had asked TNERC to determine the surcharge as nil.

At the same time, TNPDCL told the regulator that Rs 282.64 crore in net stranded charges for the October 2025-March 2026 period remained unrecovered, as the corresponding petition was yet to be decided. It sought an early order on that petition as well.

The latest petition shows that open access consumers had an average allowed capacity of 712.25 MW during the assessment period, while the capacity stranded due to open access was estimated at 486.76 MW. TNPDCL has put its total fixed cost at Rs 8,795.15 crore and the fixed cost attributable to stranded capacity at Rs 384.18 crore.

After accounting for transmission and distribution charges recovered from open access consumers, the utility arrived at the net stranded cost of Rs 180.91 crore.

TNPDCL has now invited suggestions and comments from stakeholders on the petition filed before TNERC.