Draft GERC (Terms and Conditions for Green Energy Open Access) (Fourth Amendment) Regulations, 2026 – EQ
Summary:
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#### 1. Core Objective of the Amendment
– **What it is:** The amendment modifies Regulation 17.6 (viii) of the principal GEOA Regulations, 2024, which deals with “Banking facility and Charges.”
– **The Change:** It introduces a specific, fixed **banking charge of ₹1.50 per unit**.
– **Business Implication:** Banking allows a generator (like a solar power producer) to deposit excess power into the grid and withdraw it later. This charge is the cost of that facility. Fixing it at ₹1.50/unit provides certainty to developers and open access consumers, removing ambiguity.
#### 2. Key Provision: Fixed Banking Charge with Sunset Clause (Regulation 17.6 (viii))
– **The Charge:** Banking will be charged at a rate of **₹1.50 per unit**.
– **Effective Period:**
– **Start Date:** From the date of notification of these amendment regulations.
– **End Date:** **June 30, 2026**.
– **Post-June 2026:** The charge will be replaced by whatever new banking charges are notified by the Commission through a separate regulation.
– **Business Implication:**
– **For RE Developers/Consumers:** This provides a predictable cost for banking for the next 15+ months (from notification around March 2026 to June 2026). This certainty is crucial for financial modeling of solar/wind projects that rely on banking to manage variability.
– **For DISCOMs:** It ensures a fixed revenue stream for providing the banking service during this period.
#### 3. Amendment to Regulation 1(4) – Effective Date of Charge
– **The Change:** This is a consequential amendment. It aligns the principal regulation’s introductory clause to state that the banking charge specified in 17.6(viii) will be effective from the date of notification until June 30, 2026 (or until a new charge is notified).
– **Business Implication:** This is a technical but important clarification. It confirms that the ₹1.50/unit charge is a **temporary, fixed measure** and not a permanent rate. Businesses must plan for a potential change in banking costs after June 2026.
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