The Karnataka Electricity Regulatory Commission (KERC) has unveiled the Terms and Conditions for Open Access Regulations, 2024, a pivotal step towards democratizing the power market in Karnataka by enabling non-discriminatory open access to transmission and distribution networks. These regulations mark a major shift in how electricity is traded and consumed, with a strong focus on renewable integration, consumer empowerment, and grid reliability.
The regulation provides a structured framework for short-term, medium-term, and long-term open access, applicable to all eligible consumers and generators, including captive, renewable, and conventional sources. With clearly defined rights, obligations, and application procedures, the new rules aim to enhance transparency, grid discipline, and promote competitive energy procurement.
Structured charges for wheeling, cross-subsidy, additional surcharge, banking, scheduling, and system operations.
Inclusion of ABT-compliant metering, renewable energy banking provisions, and timelines for approvals.
Enhanced responsibilities for scheduling, forecasting, and deviation settlement through the involvement of SLDC.
According to our team at eninrac consulting, the regulation impacts stakeholders as follows:
Renewable Power Developers: Must align with stricter scheduling and grid code norms, potentially increasing CAPEX for forecasting tools. (Neutral Impact)
DISCOMs: Face revenue pressures due to possible migration of high-paying C&I consumers and must invest in better load management. (Negative Impact)
C&I Consumers: Gain flexibility in sourcing cheaper and greener energy, but must manage scheduling and complex contracts. (Positive Impact)
Transmission Utilities: Required to invest in smart grid tools and improve infrastructure to handle RE variability. (Neutral Impact)
Power Traders: Access to new trading avenues but with added regulatory and portfolio management complexities. (Positive Impact)
C&I consumers must factor in a range of charges which significantly influence energy procurement strategies:
| Type of Charge | Impact |
|---|---|
| Wheeling Charges | Cost of using the distribution network |
| Cross Subsidy Surcharge (CSS) | Compensates DISCOMs for revenue loss |
| Additional Surcharge | Levied if DISCOM power isn’t scheduled |
| Banking Charges | Cost of storing and withdrawing banked RE power |
| SLDC/Transmission Charges | State/national grid usage charges |
| Deviation Settlement Charges | Penalties for scheduling deviations |
| Green Attributes Premium | Optional cost for RECs/green energy |
| Scheduling & Metering Charges | Related to SLDC scheduling and ABT meters |
These charges, while encouraging responsible grid participation, also prompt C&I consumers to adopt efficient procurement and forecasting mechanisms.
The KERC Open Access Regulations, 2024 establish a robust legal and operational foundation for Karnataka’s power market. By incentivizing renewable adoption, promoting consumer choice, and reinforcing grid security, these reforms pave the way for a transparent, efficient, and future-ready electricity ecosystem.
Source: eninrac consulting, KERC OA Regulation 2025
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