UPERC Releases Draft 2025 Regulations For Revised SLDC Fee And Charges Framework

The Uttar Pradesh Electricity Regulatory Commission has released the draft of the 2025 Regulations concerning the fees and charges applicable to the State Load Despatch Centre (SLDC) and related matters. These draft regulations are meant to replace the existing 2020 regulations and will be applicable from April 1, 2025, to March 31, 2030. The Commission has invited the public and stakeholders to submit suggestions or objections by June 12, 2025. A public hearing will follow on June 16, 2025, at the Commission’s office.

The new regulations aim to improve transparency, define clearer financial procedures, and update fee structures in line with current requirements. SLDC is a vital part of the electricity grid, responsible for managing the state’s power transmission and ensuring balanced and secure operations. Given the crucial role played by the SLDC, the new regulations emphasize the importance of up-to-date technology, cybersecurity, and trained personnel.

According to the regulations, the SLDC must submit an annual petition covering the true-up of the previous year’s expenses, mid-year performance review, and annual revenue requirements. This petition needs to be submitted electronically and with all supporting financial documents by November 30 each year. If approved, the charges become effective and must be published in newspapers and online.

The SLDC is required to submit an annual capital investment plan as part of its tariff petition. Any capital expense exceeding ₹1 crore that was not planned in advance must be approved by the Commission within one month of the quarter’s end. If this condition is not met, the Commission may disallow up to 25% of the cost.

Operational and maintenance expenses are divided into three parts: employee expenses, repair and maintenance, and administrative costs. These are determined based on historical audited financials and adjusted for inflation. Employee expenses form the majority of these costs, and any special expenses like training, new technology, or IT upgrades can be recovered if approved by the Commission.

The regulation also sets depreciation rates for assets, distinguishing between those capitalized before and after March 31, 2025. It provides rules for interest on loans, return on equity, tax treatment, and working capital calculations. Importantly, fees collected from users, such as registration fees and charges for short-term access to the grid, are clearly outlined and categorized based on the type of user and capacity.

All entities using the grid—including generating companies, licensees, and open access consumers—must register and pay applicable charges. Billing is done monthly, and timely payment attracts a rebate, while delays beyond 30 days lead to a penalty.

The Commission retains the power to amend, relax, or remove difficulties related to the regulations. These updates reflect the evolving needs of the power sector and aim to strengthen the financial and operational stability of the SLDC while ensuring consumer interests are protected.