So why this charge is surface charge not volumetric one.
The reason that it is a surface charge and not a volumetric charge is because a surface charge causes a sudden change in the E-field direction from outside to inside the wire.
Inside the wire the E-field points along the wire. This is necessary due to Ohm's law and the fact that current flows along the wire. So the E-field and the current point in the same direction. However, by Poynting's theorem, the flow of energy is perpendicular to both the E-field and the B-field. Inside the wire the B-field is circumferential and the E-field is along the axis of the wire, so the energy flow is radially into the wire. This power flux inside the wire is equal to the power dissipated by resistive heating of the wire itself.
Outside the wire the E-field points predominantly radially into or out of the wire. So outside the wire the B-field is still circumferential and with a radial E-field we get power flowing longitudinally along the wire from the source to the load.
Thus, we have a situation where the E-field changes direction suddenly at the surface of the wire. It goes from mostly radial outside the wire to longitudinal inside the wire. The surface charge is what accomplishes that sudden change in the direction of the E-field. A volumetric charge density would provide for a gradual change in the E-field, not the needed sharp change. That is essential for understanding power flow.