TNERC Proposes New SLDC Fee Regulations 2026 And MYT Framework For Tamil Nadu Power Grid Management

The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a draft notification for the “Determination of State Load Despatch Centre Fees and Charges Regulations, 2026,” aimed at creating a transparent and structured mechanism for the collection of fees and charges by the State Load Despatch Centre (SLDC). The SLDC plays a crucial role in managing the real-time operation, scheduling, and monitoring of the state’s electricity grid. Through this draft, the Commission seeks to strengthen the financial and operational framework of the SLDC as Tamil Nadu’s power system becomes more complex with growing renewable energy integration and rising electricity demand.

TNERC has invited comments and suggestions from stakeholders and the public on the draft regulations until May 29, 2026. The proposed regulations introduce a Multi-Year Tariff (MYT) framework for a five-year control period from FY 2027-28 to FY 2031-32. Under this framework, the Aggregate Revenue Requirement (ARR) and applicable charges for the SLDC will be determined for the entire control period. At the same time, annual performance reviews and a mid-term review in 2029 have been proposed to ensure operational efficiency and financial stability.

For the transition year FY 2026-27, the SLDC will continue functioning under the existing regulatory orders. A complete true-up exercise of expenses and revenue is proposed at the beginning of the new control period to ensure proper financial adjustments before the implementation of the new tariff structure.

According to the draft regulations, the SLDC’s ARR will be recovered from various users of the state electricity system. These users include generating companies, transmission licensees, distribution licensees, and open access consumers. The recovery mechanism divides the charges into two categories. Around 70 percent of the net ARR will be recovered through System Operation Charges (SOC), while the remaining 30 percent will be collected as Scheduling Charges (SCh). These charges are intended to cover expenses such as employee costs, repair and maintenance, depreciation, administrative expenses, and interest on working capital.

The draft regulations also propose the establishment of a dedicated “Load Despatch Centre Development Fund” (LDCD Fund). This fund will support infrastructure upgrades and modernization projects, including SCADA system improvements, cyber-security enhancement, and disaster recovery facilities. In addition, the Commission has proposed special allowances and incentives for SLDC personnel, considering the specialized and high-pressure nature of grid management operations. Employees working in shifts may receive a Load Despatch Allowance ranging from ₹2,000 to ₹20,000 per month, depending on their designation. One-time incentives for obtaining professional certifications have also been proposed.

To improve transparency and accountability, the regulations require the SLDC to maintain separate books of accounts. Since SLDC expenses were earlier part of TANTRANSCO’s accounts, the draft provides a methodology for separating assets and liabilities to determine the opening capital cost under the new framework. Through this move, TNERC aims to provide the SLDC with greater financial independence and operational efficiency for managing Tamil Nadu’s evolving power sector.