DERC (Terms and Conditions for Open Access) (Second Amendment) Regulations, 2026 – EQ

Summary:

**Objective:**
The Delhi Electricity Regulatory Commission amends the “Delhi Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2005” to introduce changes regarding the applicability and phasing out of **Additional Surcharge** for Open Access and General Network Access (GNA) consumers in the National Capital Territory of Delhi.

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### Key Regulatory & Business Points

#### 1. Title & Commencement
– **Short Title:** Delhi Electricity Regulatory Commission (Terms and Conditions for Open Access) (Second Amendment) Regulations, 2026.
– **Commencement:** These regulations come into effect from the date of publication in the official Gazette.
– **Jurisdiction:** Extends to the National Capital Territory of Delhi.

#### 2. Amendment Summary (Regulation 12(1))
The amendment adds four provisos to Regulation 12(1) of the Principal Regulations, fundamentally altering how **Additional Surcharge** is levied on Open Access and General Network Access consumers.

**Key Changes:**

| Proviso | Provision |
|———|———–|
| **First Proviso** | Additional surcharge shall be **linearly reduced** from the value in the year Open Access/GNA was granted, so that it gets **eliminated within four years** from the date of grant. |
| **Second Proviso** | Consumers availing Open Access/GNA **shall not be eligible** to seek or claim any refund, adjustment, or recovery of additional surcharge already levied or collected under the existing regulations. |
| **Third Proviso** | Additional surcharge **shall not be applicable** to Open Access consumers **to the extent of contract demand** being maintained with the distribution licensees. |
| **Fourth Proviso** | Additional surcharge shall be applicable only for Open Access consumers **who are or have been consumers** of the concerned distribution licensee. |

#### 3. Definitions
– **General Network Access (GNA)** and **Temporary-GNA** shall have the same meaning as defined in the **Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022**, as amended from time to time.

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### Business & Compliance Implications

#### 1. Cost Reduction Trajectory for Open Access Consumers
– The **linear reduction mechanism** provides a clear 4-year path to elimination of additional surcharge.
– This reduces the cost burden for commercial and industrial (C&I) consumers availing Open Access, improving the business case for captive power procurement, renewable energy through bilateral agreements, and power exchange purchases.

#### 2. No Refund on Past Payments
– The **second proviso** explicitly bars any claim for refund or adjustment of additional surcharge already paid.
– This provides **finality to past collections** and eliminates retrospective litigation risk for distribution licensees, but may be viewed unfavorably by consumers who had previously challenged such charges.

#### 3. Contract Demand Exemption
– Additional surcharge **does not apply to the extent of contract demand** maintained with the distribution licensee.
– This creates a **incentive structure** where consumers can optimize their contract demand with the DISCOM to minimize surcharge exposure while availing Open Access for the remaining load.

#### 4. Scope Limitation to Existing/Former DISCOM Consumers
– The surcharge applies only to consumers who **are or have been** consumers of the concerned distribution licensee.
– This ensures that **new entrants** establishing direct connectivity without prior DISCOM relationship are not subject to the surcharge, potentially encouraging fresh industrial investment.

#### 5. Alignment with CERC GNA Framework
– By referencing the CERC GNA Regulations, 2022, DERC aligns Delhi’s Open Access framework with **central-level connectivity norms**, facilitating smoother inter-state and intra-state open access coordination.

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### Strategic Business Takeaways

| Aspect | Implication |
|——–|————-|
| **Open Access Consumers (C&I Entities)** | Reduced long-term cost burden; opportunity to plan renewable energy procurement with declining surcharge liability over 4 years. |
| **Distribution Licensees (DISCOMs)** | Loss of additional surcharge revenue over time; may need to revise tariff structures or cross-subsidy mechanisms to compensate. |
| **Renewable Energy Developers** | Improved attractiveness of Open Access-based captive and group captive models due to declining surcharge, potentially increasing demand for corporate renewable PPAs. |
| **New Industrial Entrants** | Potential advantage if they structure connectivity without prior DISCOM relationship, avoiding surcharge entirely. |
| **Existing Consumers with Past Surcharge Payments** | No refund eligibility; however, future surcharge liability is now time-bound and declining. |

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