The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued an important order to resolve difficulties faced by several captive solar power producers in the state regarding the implementation of the revised banking framework under the UPERC Captive and Renewable Energy (CRE) Regulations, 2024.
The matter came before the commission through Petition No. 2368 of 2026 filed by Amplus Green Power Private Limited, Amplus RJ Solar Private Limited, and Amplus Solar Shakti Private Limited. The companies sought regulatory clarification and directions to implement the updated banking provisions introduced under the new regulations.
The issue emerged after UPERC introduced limits on monthly energy banking for renewable-energy-based Captive Generating Plants (CGPs) in late 2025. Following these changes, several captive users were required to reduce or align their existing Open Access (OA) and Long-Term Open Access (LTOA) capacities. To facilitate the transition, the state provided a one-time waiver on relinquishment charges for capacity reduction through Uttar Pradesh Power Transmission Corporation Limited (UPPTCL). At the same time, captive users were required to sign fresh banking agreements with Uttar Pradesh Power Corporation Limited (UPPCL) by January 31, 2026.
However, confusion arose among several captive users, including the petitioners, who believed that their pending capacity reduction applications with UPPTCL had to be completed before they could execute new banking agreements with UPPCL. As a result, the deadline passed without the signing of the required agreements.
UPPCL later refused to execute the agreements after the deadline, stating that it could not extend the regulatory timeline without specific directions from the commission. The utility argued that doing so would effectively alter the regulations. Meanwhile, UPPTCL expressed concerns about a possible liability of around ₹102 crore in relinquishment charges if the captive status of the companies was not confirmed during the final verification process.
After examining the matter, the commission, led by Chairman Arvind Kumar and Member Sanjay Kumar Singh, clarified that the process of reducing transmission capacity and signing banking agreements is a separate and independent activity. The commission observed that the January 31, 2026, deadline was procedural in nature and did not indicate that captive users would permanently lose their banking rights if the deadline was missed.
Using its statutory powers to remove difficulties, UPERC directed UPPCL to execute fresh Wheeling and Banking Agreements for the remaining 13 captive users by June 30, 2026, based on their existing capacities. The commission also allowed banking benefits to continue for the intervening period.
At the same time, UPERC protected the interests of the state by making the petitioners subject to the final verification of their captive status for FY 2024-25. If any adverse findings emerge, the companies will be liable to pay applicable cross-subsidy surcharges, additional surcharges, relinquishment charges, and other legal dues. With these directions, the commission disposed of the petition.
