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Regulatory Approvals
Open access application management in Andhra Pradesh and Telangana — eligible consumers from 100kW contracted load can now source renewable energy directly from third-party generators under APERC 2024 and TGERC 2024 regulations.
Overview
Open access under Section 42 of the Electricity Act 2003 allows eligible consumers to purchase power from any authorised generator or trader and wheel it through the transmission and distribution network to their facility, instead of relying on the DISCOM for supply. The threshold has been significantly reduced: under both the APERC Green Energy Open Access Regulations 2024 and the TGERC Open Access Regulation 2024, consumers with a contracted load of 100kW or above are eligible — down from the earlier 1 MW threshold. The total landed cost of open access power includes transmission charges, wheeling charges, cross-subsidy surcharge, and additional surcharge — Telangana's additional surcharge is revised by TGERC roughly every six months (it has ranged from under ₹0.20/kWh to over ₹1.90/kWh in recent orders), so the current rate needs to be pulled fresh for each landed-cost calculation. Whether open access saves money depends on the specific load profile and charge structure — we model this before clients commit.
Why Daakshyaani
Both APERC Green Energy Open Access Regulations 2024 and TGERC Open Access Regulation 2024 reduced the eligibility threshold from 1 MW to 100kW. A commercial building, a mid-sized factory, or a cold storage unit that previously could not access open access now qualifies. We assess eligibility under the current rules — not the old 1 MW assumption.
Open access savings depend entirely on the spread between the generator tariff and the total landed cost (transmission + wheeling + CSS + additional surcharge). Telangana's additional surcharge is reset by TGERC every six months and has swung between roughly ₹0.13/kWh and ₹1.98/kWh in recent orders, so we always pull the current rate before modelling. We model the full cost stack against the consumer's DISCOM retail tariff before they sign any PPA — not after.
AP open access applications go through APSLDC; Telangana through TSSLDC. Each has its own application format, scheduling protocol, and DISCOM NOC process. We file and coordinate with both — for clients with facilities in both states.
Short-term open access (STOA) suits price arbitrage opportunities; medium-term (MTOA, 1 month–7 years) suits seasonal or project-based needs; long-term (LTOA, up to 25 years) suits renewable energy PPAs. We advise on the appropriate tenure and structure it correctly with the SLDC.
Deviation settlement mechanism (DSM) charges apply whenever actual power drawl deviates from the schedule filed with the SLDC. Unmanaged DSM exposure can eliminate open access savings. We monitor scheduled vs. actual drawl and advise on real-time schedule revisions to minimise penalties.
Open access requires monthly scheduling, billing reconciliation, and annual renewal. We provide continuous management — so clients do not lose their open access status or incur billing errors from DISCOM metering discrepancies.
Blog
Open access lets an eligible consumer buy power from any third-party generator or the power exchange, subject to wheeling and cross-subsidy charges. Group captive is a different route entirely — the consumer takes an equity stake in the generating plant to qualify for captive status, which exempts the arrangement from cross-subsidy surcharge. In AP and Telangana, where CSS is relatively high, group captive is often the more economical structure for consumers who can commit the equity; pure open access tends to suit those who want a shorter-term or more flexible arrangement.
Cross-subsidy surcharge is a charge levied by the DISCOM on open access consumers to recover the subsidy they would otherwise have contributed to lower-tariff categories (like agriculture or residential) had they stayed on the DISCOM supply. APERC and TGERC publish CSS rates in their tariff orders — in AP, recent industrial CSS rates have run in the range of roughly ₹1.4–1.8/kWh depending on voltage level, which is often the single biggest factor in whether open access actually saves money.
Source: APERCThird-party sale is simply a generator selling power directly to a specific consumer (rather than to the DISCOM or the power exchange), using open access to move the power over the grid. It requires a bilateral agreement between generator and consumer plus the SLDC scheduling and DISCOM wheeling arrangements that make open access work in practice.
Industries
The APERC Green Energy Open Access Regulations 2024 and TGERC Open Access Regulation 2024 both dropped the threshold from 1 MW down to 100kW contracted load, opening open access to far more consumers.
STOA is short-term, used for price arbitrage; MTOA runs from 1 month to 7 years for seasonal or project-based needs; LTOA covers long-term power purchase agreements up to 25 years.
Transmission, wheeling, cross-subsidy surcharge, and additional surcharge — the additional surcharge is revised by TGERC roughly every six months, so we always confirm the current rate before quoting rather than relying on a fixed number.
The State Load Despatch Centre (APSLDC or TSSLDC) approves scheduling, and Deviation Settlement Mechanism (DSM) charges apply if actual drawal deviates from the scheduled quantum — we monitor this on the client's behalf.
