The Gujarat Electricity Regulatory Commission (GERC) has decided to continue with the existing ₹1.50 per unit banking charge for Green Energy Open Access (GEOA) consumers, rejecting the renewable energy industry’s proposal to replace it with an 8% in-kind adjustment on banked energy.
The decision was taken while extending the current banking charge mechanism until August 31, 2026, or until a new framework is notified earlier. GERC said the present amendment was limited to extending the existing arrangement and not to determining a new banking charge methodology.
During the public consultation process, industry stakeholders, including Indus Towers, the Distributed Solar Power Association (DiSPA), and the Federation of Renewable & Consumers of Energy, argued that the existing monetary charge does not accurately represent the actual costs incurred by distribution companies. They suggested adopting the Forum of Regulators’ (FoR) recommendation of an 8% energy adjustment for banking charges.
However, GERC stated that the methodology for determining banking charges is already under separate review through a dedicated regulatory process. The Commission has issued draft Sixth Amendment Regulations for GEOA and invited stakeholder comments to develop a comprehensive framework.
GERC also clarified that FoR recommendations are advisory in nature and that state regulators have the authority to determine banking charges based on state-specific factors, including network conditions, electricity procurement patterns, and policy requirements.
The renewable energy sector had raised concerns over the repeated extension of the existing ₹1.50 per unit charge, stating that the temporary mechanism had continued for nearly three years and created uncertainty for renewable energy developers and open access consumers. Stakeholders argued that long-term investment decisions require greater clarity and stability in regulations.
Responding to these concerns, GERC said the extension was only a transitional arrangement to prevent regulatory uncertainty until the final framework is approved. The Commission acknowledged that future banking charges should be cost-reflective, reasonable, and supported by proper analysis.
The regulator also declined requests related to changes in other GEOA provisions, including simplified applications for low-tension consumers, waiver of certain charges, standby charge exemptions, and flexibility in energy transfers, stating that these matters were outside the scope of the current amendment.
With the Fifth Amendment now notified, Gujarat’s existing banking charge structure will remain applicable until August 2026, while renewable energy stakeholders await the final outcome of GERC’s new banking charge methodology.
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