Consumers In Karnataka To Pay 8 Charges For Open Access: KERC

Open Access Consumers In Karnataka To Pay 8 Charges: KERC

Months after the Karnataka High Court struck down the state’s existing open access rules, the Karnataka Electricity Regulatory Commission (KERC) has introduced a revised regulatory framework. The newly notified KERC (Terms and Conditions for Open Access) Regulations, 2025, aim to streamline access for power consumers and generators.

Eight Charges for Open Access Connections

Under the updated rules, open access consumers in Karnataka will be subject to eight charges:

1. Transmission charges
2. Wheeling charges
3. Cross Subsidy Surcharge (CSS), where applicable
4. Additional Surcharge (ASC), where applicable
5. Banking charges in kind, where applicable
6. Standby charges, where applicable
7. Losses in kind as determined by the Commission
8. Other fees and charges, including Load Despatch Centre fees, scheduling and system operating charges, applicable parallel operation/grid support charges, reactive power charges, deviation settlement charges, monthly transaction charges, and meter reading charges

Ten Charges for Power Generators

To avail of open access connections, power generators in Karnataka must pay the following ten charges as per the new KERC Open Access Rules. 

• Transmission charges
• Banking charges (in kind)
• Transmission losses (in kind, as applicable)
• Load Despatch Centre fees/charges
• Scheduling and system operating charges
• Applicable parallel operation/grid support charges
• Reactive power charges
• Deviation settlement charges
• Monthly transaction charges
• Meter reading charges

Wheeling Charges and Banking Provisions

The KERC regulations specify that wheeling charges will be determined in tariff orders issued periodically in accordance with Multi-Year Tariff (MYT) regulations. The rules also allow for monthly banking of power for five years from the effective date of implementation.

Timelines for Open Access Approvals

The regulator has introduced fixed timelines for processing open access applications. Authorities must either approve or reject an application within 15 days from the date of submission. The effective date for wheeling operations will be the date of open access approval. For solar, wind, mini-hydel, and hybrid renewable plants, the same effective date will also apply to banking operations.

Background of HC Ruling 

Earlier this year, the Karnataka High Court had ordered striking down the state open access rules and the Centre’s Green Energy Open Access norms. The order was passed after some mini-hydel project owners approached the HC seeking its intervention. The petitioners had questioned the powers of the central government on directing states on framing open access rules. While striking down the state open access rules, the court asked the KERC to frame a revised framework to regulate open access consumers in the state.