Hyderabad,March 20The Electricity Regulatory Commission (ERC) has issued orders that came as a shock to electricity distribution companies (DISCOMs) proposing to charge significant additional surcharges from industrial companies that purchase electricity from sources other than DISCOMs. The DISCOMs have been proposing to collect substantial amounts in the name of wheeling charges and surcharges for the financial year 2023-24 from companies and industries purchasing electricity at a low price in the open market, apart from the electricity supplied by DISCOMs at the highest price.

The DISCOMs proposed to collect Rs.9.86 paise per kilowatt hour as additional charges from industrial companies that buy power from open access. The ERC, after investigation, has allowed a charge of only 39 paise per kilowatt hour for the first six months of the financial year 2023-24, i.e., from April 1 to September 30. The DISCOMs proposed to collect Rs.210.20 crore as net charges, but the ERC has only allowed them to collect Rs.8.29 crores.

The ERC has proposed distribution charges of Rs.1.17 per unit, but it has only allowed 20 paise. Additionally, the DISCOMs proposed to collect Rs.354.68 crore from open access customers in the form of transmission and distribution charges, but the ERC has allowed only Rs.172.05 crore. These ERC orders will be implemented from April 1, and as a result, the DISCOMs’ expectations have been overturned. The ERC’s move will be a boon for industries that benefit from open access to purchase electricity at lower prices.

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