REGULATION OVERVIEW
The Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2024 provides a comprehensive legal and procedural framework for facilitating non-discriminatory open access to the transmission and distribution networks within the state. The regulation covers both long-term, medium-term, and short-term open access by eligible consumers and generators, including captive, renewable, and conventional power sources. It defines the rights, obligations, and application process for open access applicants, with an emphasis on grid discipline, fair usage of the network, and enabling consumer choice.
One of the key features of the regulation is the detailed structure of charges applicable to open access transactions. These include wheeling charges, cross-subsidy surcharge (CSS), additional surcharge, standby charges, and scheduling & system operation charges. The regulation outlines clear timelines for approvals, provisions for banking of renewable energy, and lays out connectivity and metering requirements, including ABT (Availability-Based Tariff) compliant meters. It also mandates the involvement of SLDC for scheduling and energy accounting, while holding open access consumers responsible for accurate scheduling and deviation settlements.
This regulation has wide-ranging implications for stakeholders such as renewable power developers, DISCOMs, C&I consumers, transmission utilities, and power traders. Renewable developers and generators are encouraged to utilize the open access route with clearer rules and banking provisions. C&I consumers benefit from enhanced flexibility to procure power competitively but must also bear additional charges and meet compliance obligations such as metering and forecasting. DISCOMs face competitive pressure, particularly from high-paying industrial consumers migrating to open access, while transmission and distribution licensees are tasked with ensuring reliable access without compromising grid security. Overall, the regulation seeks to create a more transparent, efficient, and consumer-centric power market in Karnataka.
Impact Analysis of KERC OA Regulation on Key Power Sector Stakeholders
Table 01
| Stakeholder | Implications/Impacts | Overall Impact |
|---|---|---|
| Renewable Power Developers |
|
Neutral |
| DISCOMs (Distribution Companies) |
|
Negative |
| C&I Consumers (Commercial & Industrial) |
|
Positive |
| Transmission Utilities |
|
Neutral |
| Power Traders |
|
Positive |
Source: eninrac consulting, KERC OA Regulations 2025
Charges Impact on C&I Consumers
Table 02
| Type of Charge | Implications/Impacts |
|---|---|
| Wheeling Charges | Cost to use distribution network to deliver power. Can be significant for intra-state OA. |
| Cross Subsidy Surcharges (CSS) | Levied to compensate DISCOMs for revenue loss from subsidized categories. |
| Additional Surcharge | Charged if power is not scheduled from DISCOM despite availability. |
| Banking Charges | Cost of storing and withdrawing banked RE energy. Varies widely across states. |
| SLDC / Transmission Charges | Covers use of state/national grid. Includes SLDC, STU/CTU, and PoC charges. |
| Deviation Settlement Charges (DSM) | Penalty for deviation from schedule. Higher variability incurs higher penalties. |
| Green Attributes Premium (RECs etc.) | Optional cost for green power/RECs if not sourced directly from RE generator. |
| Scheduling & Metering Charges | Charges for scheduling via SLDC and maintaining special energy meters (ABT compliant). |
Source: eninrac consulting, KERC OA Regulation 2025
Figure 01 Charges Impact on C&I Consumers (with INR/kWh Estimates)
Source: eninrac consulting, KERC OA Regulation 2025
