A common pitfall in evaluating Open Access solar is assuming the generator quoted PPA rate is your final landed cost. In reality, power wheeled across the state transmission and distribution networks incurs statutory regulatory charges determined by the State Electricity Regulatory Commission (MERC in Maharashtra). Understanding each charge component—wheeling, transmission losses, CSS, ASC, banking fees, and electricity duty—is critical to calculating your exact net savings.

Transmission and distribution network usage fees.
Tariffs payable to the State Transmission Utility (MSETCL) and local DISCOM (MSEDCL) for transporting electricity across high-voltage transmission lines and local distribution infrastructure to your plant boundary.
All consumers drawing power via open access, irrespective of captive or third-party status.
Fixed per-unit fee for state high-voltage grid lines
Distribution network fee payable to local DISCOM
Technical transmission losses deducted in-kind
Modeling your landed solar cost accurately requires mapping each charge component against your specific 15-minute Time-of-Day (TOD) consumption profile.
Comprehensive Bill Modeling
Never rely on generator bus-bar tariffs alone; factor in wheeling, SLDC scheduling fees, and transmission loss adjustments.
Surcharge Elimination
Captive status eliminates the single largest charge variable (CSS), locking in long-term tariff discounts of 30% to 45% against utility rates.
Tariff Order Tracking
MERC tariff schedules are updated periodically; financial models must incorporate updated multi-year tariff (MYT) projections.
| Charge Component | Statutory Authority | Third-Party PPA | Captive / Group Captive |
|---|---|---|---|
| Transmission Charges | MSETCL (STU) | Payable per unit wheeled | Payable per unit wheeled |
| Wheeling Charges | MSEDCL (DISCOM) | Payable per unit wheeled | Payable per unit wheeled |
| Transmission Losses | STU Grid Loss | Deducted in-kind (~3-4%) | Deducted in-kind (~3-4%) |
| Cross-Subsidy Surcharge (CSS) | MERC Regulatory Order | Full CSS Payable | 100% Legally Exempt |
| Additional Surcharge (ASC) | MERC Order | Applicable per tariff order | Exempt under captive norms |
| Banking Charges | MSEDCL / MERC | Applicable per order | Applicable per order |
| State Electricity Duty | State Govt (Govt of Maharashtra) | Standard rate applies | Exempt or concessional |