Electricity regulation for energy-intensive industries

Where the power bill comes from

Under the Electricity Act, 2003, the State commission sets tariffs within the State. In Gujarat, that is the Gujarat Electricity Regulatory Commission (GERC). GERC issued FY 2026-27 tariff orders for the four State-owned distribution companies (DGVCL, MGVCL, PGVCL and UGVCL) on 25 March 2026.

Tariffs do not include electricity duty. GERC's tariff schedule from 1 April 2026 says tariffs are exclusive of electricity duty, which is a separate State levy under the Gujarat Electricity Duty Act, 1958.

Open access and its charges

Open access lets a consumer use the network to buy power from a source other than its distribution company, for a set of charges. The main charges named in the Electricity Act are:

• wheeling charges, for using the distribution network;
• cross-subsidy surcharge, which meets the distribution company's current cross-subsidy;
• additional surcharge, which meets the distribution company's fixed costs from its duty to supply.

Under the Electricity Act, the additional surcharge is specified by the State Commission. In Gujarat, GERC sets wheeling charges and cross-subsidy surcharge in its tariff orders, and specifies the additional surcharge by order. Because these change, savings must be worked out from the orders in force, not past ones.

Under the central Green Energy Open Access Rules, 2022, a consumer with a contracted demand or sanctioned load of 100 kW or more can seek green energy open access. GERC's Green Energy Open Access Regulations, 2024 use the same 100 kW limit and allow it to be met through one connection or several connections in the same electricity division of a distribution licensee. The 100 kW limit does not apply to captive consumers.

Captive power

The Electricity Act lets any person build and run a captive plant and gives a right to open access to carry its power to the point of use. The Act exempts captive use from cross-subsidy surcharge.

Captive status depends on tests in Rule 3 of the Electricity Rules, 2005. As made in 2005, captive users had to hold at least 26% of the ownership and use at least 51% of the plant's yearly output. Rule 3 was amended in September 2023, so we check the text in force for each structure. Group structures set up years ago may need a fresh check.

Renewable energy obligations

Renewable consumption obligation. Under the Energy Conservation Act, 2001, the Centre sets minimum renewable energy shares for designated consumers. Whether it applies depends on your status.

How Adynta Consulting helps

• a breakdown of the regulated parts of your power cost, with the order or regulation behind each one;
• a comparison of grid supply, open access and captive routes: green energy open access and captive power advisory;
• models that show how a tariff order or a new regulation changes your cost: financial modelling and regulatory risk;
• comments and objections on tariff petitions and draft regulations: power sector regulatory advisory;
• an eligibility check for electricity duty exemptions: electricity duty exemption and incentives.

We do not promise savings or outcomes. Read more about how we work.