The Karnataka Electricity Regulatory Commission (KERC) has issued the Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2025. These new regulations replace the 2022 Green Energy Open Access rules, which were struck down by the Karnataka High Court for not aligning with the National Electricity Policy and the tariff policy. The Court instructed KERC to issue revised guidelines considering all stakeholders. The regulations now apply to open access applications submitted on or after January 2, 2023, for long and medium-term access, and January 13, 2023, for short-term access. They govern the use of intra-state and certain inter-state transmission and distribution systems. Customers can access these systems based on availability and subject to conditions outlined in the regulations.
Open access eligibility extends to captive generating projects under Section 9 of the Electricity Act, 2003, and non-captive consumers with either a high-tension contract demand or a low-tension sanctioned load of 100 kW or above. Projects already under power purchase agreements (PPAs) with distribution licensees cannot avail open access for the PPA-covered capacity unless in accordance with agreement terms. Existing entities may continue using open access as per their current agreements or government policies, as long as they do not conflict with the new regulations. Any request for additional capacity beyond existing contracts will be treated as a new application. Procedures for open access grant include application scrutiny, system availability checks, and agreement signing within defined timelines. Applications granted open access must submit signed agreements within 20 working days, and failing to do so will lead to open access being cancelled. The state utility must submit signed agreements to the state nodal agency within 25 working days. Day-ahead transactions require applications by 1:00 PM, with approval or rejection communicated by 3:00 PM the same day, and payments completed by 5:00 PM.
Short-term customers must notify the state load dispatch centre with reasons (SLDC) if underutilisation exceeds four hours. They are still liable for the transmission and wheeling charges based on the initial reserved capacity and the reservation period. Long and medium-term customers need approval to relinquish or transfer access, with compensation equivalent to three months of charges. The SLDC may cancel capacity if the customer underutilises the capacity for more than twice a month, with each instance being more than two hours long or fails to notify the distribution licensee. Transmission charges are calculated monthly based on the total transmission system charges (TTSC) and contracted capacity, with different formulas for short-term open access and medium-term and long-term open access. Wheeling charges, cross-subsidy surcharge (CSS), additional surcharge, and banking charges are determined by the commission through periodic tariff orders. Banking is allowed monthly, with an 8 per cent charge or as decided by the commission. Standby power supply during generator outages will be charged at 125 per cent of normal energy rates.
