UPERC Repeals 2022 Captive Power Verification Regulations, Aligns Framework With New Central Rules In Uttar Pradesh

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has repealed its 2022 regulations governing the verification of generating plants and captive consumers in the state. The decision was notified on August 5, 2026, through the Uttar Pradesh Electricity Regulatory Commission (Verification of Generating Plants and Captive Consumers) (Repeal) Regulations, 2026.

The repeal regulations, issued under notification number UPERC/SECY/REGULATION/2026/018, have been made effective retrospectively from April 1, 2026. The move follows changes introduced by the Central Government through the Electricity (Amendment) Rules, 2026, notified on March 13, 2026.

The amended central rules replaced Rule 3 of the Electricity Rules, 2005, and introduced a revised framework for captive generating plants. The changes provide broader definitions of captive users and include electricity consumption through Energy Storage Systems. They also clarify ownership requirements involving group entities and provide specific treatment for Special Purpose Vehicles (SPVs) functioning as Associations of Persons (AoP).

The revised rules also specify proportionate electricity consumption requirements for individual users within an AoP. These changes have resulted in a shift in the responsibility for verifying captive status from state regulatory frameworks to designated state-level nodal agencies.

Under Rule 3(4)(a), state governments are required to appoint a nodal agency for verifying the captive status of intra-state generating plants. The designated agency will establish the verification procedure and prescribe declaration formats for captive users seeking interim protection from cross-subsidy surcharge.

The amended framework also requires state governments to establish a Grievance Redressal Committee (GRC). Under Rule 3(4)(b), the committee will consider appeals against decisions taken by the designated nodal agency.

Since the amended central rules came into force on March 13, 2026, with the relevant verification provisions applying from April 1, 2026, UPERC decided to withdraw its earlier regulations and bring the state framework in line with the national rules.

The Commission exercised its powers under Section 181(1) and Section 9 of the Electricity Act, 2003, to issue the repeal regulations.

The notification also includes important savings provisions to ensure continuity during the regulatory transition. Verification of generating plants and captive consumers in Uttar Pradesh for the financial year ending March 31, 2026, will remain valid and will continue to be governed by the repealed 2022 regulations.

The order also preserves applicable legal rights and obligations under Section 6 of the General Clauses Act, 1897.