Open Access Charges

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Types of Transactions:

Bilateral Transaction:

In bilateral transactions a PPA is signed between the buyer and seller, which is generally facilitated by a trader/consultant for a little margin.

Collective Transaction:

In collective transactions the electricity is traded through exchanges such as IEX & PXIL & exchange members charge a very small margin fixed by commission.


Open Access Charges:

There are various charges to be paid by open access consumers to distribution licensee, state transmission licensees, central transmission utility and other related entities, other than the power purchase cost paid to the generator or supplying entity. These charges include:

  • Connectivity Charges
  • PoC Charges
  • CTU Charges
  • Transmission Charges / Losses – Transmission licensee
  • Wheeling Charges / Losses – Distribution licensee
  • Cross Subsidy Surcharge – Distribution Licensee
  • Additional Surcharge – Distribution Licensee
  • SLDC Charges
  • RLDC Charges


Cross Subsidy Surcharge Computation:

The cross subsidy surcharge is based on the formula given in the Tariff Policy as below:

S = T-[C*(1+L/100)+D]


S is the surcharge

T is the tariff payable by the relevant category of consumers;

C is the weighted average cost of power purchase of top 5% at the margin.

D is the Wheeling charges.

L is the system losses for the applicable voltage level, expressed as percentage

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