UPERC Releases Draft 2025 Regulations For Revised SLDC Fee And Charges Framework
Introduction
After the 2020 regulations expired, a significant regulatory milestone was reached with the draft UPERC (Fees & Charges of State Load Despatch Centre and other related matters) Regulations, 2025. Since the State Load Despatch Centre is essential to maintaining integrated power system operations and efficient electricity scheduling in Uttar Pradesh, these new rules take into account lessons learnt from the previous control period while addressing new issues. With a public hearing set for June 16, 2025, the Commission has launched a public consultation process, asking interested parties to submit written comments and objections by June 12, 2025.
Explanation (Key Points)
Increased Openness and Responsibility:
The new rules impose strict guidelines on public consultation procedures, requiring UPSLDC to post petitions on their website in spreadsheet formats that can be downloaded and searched by text within three working days of admittance orders. This resolves earlier stakeholder concerns regarding the tariff determination process’s transparency and accessibility.
Simplified Capital Investment Planning:
The Commission has removed the need for comprehensive individual capital expenditure scheme approvals in recognition of UPSLDC’s statutory status and vital grid functions. Instead, as part of its Aggregate Revenue Requirement (ARR) petition, UPSLDC is required to submit an annual Capital Investment Plan that lists all of the capital expenditure projects that are scheduled for the following year. Within a month of the quarter’s end, projects costing more than ₹1 crore that weren’t part of the original plan must be approved by the Commission.
Consolidated Operation and Maintenance Framework:
The regulations take a unified approach to operation and maintenance (O&M) costs instead of evaluating them component-by-component because UPSLDC was incorporated as an independent entity in August 2022. The nascent organisation can effectively plan its operations with regulatory certainty thanks to this framework, which includes employee expenses, repair and maintenance costs, and administrative and general expenses.
Updated Financial Parameters:
In light of the macroeconomic climate, the regulations implement a number of financial improvements, such as lowering working capital interest rates from 250 to 200 basis points above SBI MCLR. Additionally, during the control period, the framework sets distinct depreciation schedules for new assets and existing assets (capitalised prior to March 31, 2025), with the loan tenure for new investments set at 15 years.
Modernised Fee Structure:
The regulations add special provisions for Green Energy Open Access users and increased operational fees for applications requiring short-term access, while maintaining the current registration fees for various user categories. By permitting additional spending on system automation, new technologies, and IT implementation—subject to prior approval and cost-benefit analysis—the framework also acknowledges the technical complexity of UPSLDC operations.
Conclusion
A progressive approach to SLDC regulation, the draft UPERC 2025 regulations strike a balance between strong oversight procedures and operational autonomy. These rules put UPSLDC in a position to handle changing grid management challenges while guaranteeing equitable cost recovery by placing a strong emphasis on openness, technological innovation, and financial responsibility. To ensure that stakeholder concerns are sufficiently addressed in this revolutionary regulatory framework, the forthcoming public consultation process will be essential in honing these provisions prior to final implementation.
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