The Uttarakhand Electricity Regulatory Commission (UERC) has proposed a new regulatory framework for managing deviations between scheduled and actual electricity generation or drawal in the state. The draft, titled the Uttarakhand Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2026, seeks to strengthen grid discipline, improve system security and ensure commercial settlement of power deviations.
The proposed regulations will apply to entities connected to the state grid, including power buyers, general generating stations, municipal solid waste (MSW) plants and renewable energy generators. The framework introduces different deviation settlement rates based on factors such as grid frequency, contractual arrangements and prescribed deviation limits.
Under the draft rules, Run-of-River (RoR) hydro projects and MSW generating stations will face deviation charges that are not linked to grid frequency, provided their deviations remain within specified limits. Wind and solar power generators, meanwhile, will be subject to deviation settlement based on applicable contract rates.
A major feature of the proposed framework is the formal recognition of Qualified Coordinating Agencies (QCAs). These agencies will act as the primary coordinating point for renewable energy generators connected to pooling stations. Their responsibilities will include day-ahead generation forecasting, intra-day schedule revisions, transfer of real-time SCADA data and commercial de-pooling of deviation charges among generators.
To qualify as a QCA, an entity must be a registered Indian company with a minimum net worth of ₹1.50 crore during the previous financial year. It must also have at least one year of experience in forecasting wind or solar power generation.
The State Load Despatch Centre (SLDC) will be responsible for administering the DSM framework. It will issue weekly deviation statements and maintain a dedicated Deviation and Ancillary Service Pool Account. Entities will be required to clear their deviation liabilities within seven days of receiving the statement.
Payments delayed beyond nine days will attract simple interest at 0.04% per day. The regulations also propose financial safeguards against repeated payment defaults. Entities with a record of delayed payments will be required to maintain a Letter of Credit (LC) equal to 110% of their average weekly liability.
If a default continues for more than 30 days, the SLDC may encash the LC or restrict the schedules of the defaulting entity by withholding the required operational clearances.
The draft also proposes channelising any surplus remaining in the deviation pool at the end of each month into a new State Power Systems Development Fund (SPSDF). The fund is intended to support the development and strengthening of power infrastructure in Uttarakhand.
UERC has also included provisions to address “gaming”, defined as intentional mis-declaration of capacity to obtain an unfair commercial advantage. The Commission may investigate suspected cases and disallow revenue earned through such practices.
Once notified, the proposed 2026 regulations will replace Uttarakhand’s existing 2017 DSM framework, creating a revised mechanism for managing deviations and maintaining grid discipline across the state.
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