UERC adopts tariff for 500 MW medium-term RTC power procurement by UPCL

The Uttarakhand Electricity Regulatory Commission (UERC), in an order dated 17 December 2025, adopted the tariff discovered through competitive bidding for procurement of 500 MW Round-the-Clock coal-based power by Uttarakhand Power Corporation Limited. The Commission approved procurement from Jindal Power Limited for 150 MW and Power Pulse Trading Solutions Limited for 350 MW for four years, extendable by one year. The discovered tariff is Rs 5.85 per kWh at the Central Transmission Utility periphery, translating to about Rs 6.06 per kWh at the state periphery after losses.

Background and petition
UPCL approached the Commission under Section 86(1)(b) read with Section 63 of the Electricity Act seeking adoption of tariff discovered through a bidding process on the Ministry of Power’s DEEP portal. The utility stated that the procurement was needed to reduce exposure to short-term power markets and secure reliable medium-term power, in line with repeated regulatory directions.

Conditions linked to power surrender and operational flexibility
A major part of the proceedings dealt with UPCL’s plea to relax conditions imposed in an earlier in-principle approval order dated 06 November 2025. Those conditions restricted backing down contracted power and required prior banking arrangements for surplus power. UPCL argued these restrictions were impractical in system operations and sought flexibility to follow Merit Order Dispatch.

Commission’s observations on consumer protection and prudence
The Commission refused to grant a blanket waiver. It reiterated that costs arising from inefficient planning or avoidable surrender of contracted power cannot be passed to consumers. It clarified that only genuinely exceptional circumstances, beyond UPCL’s control, could be examined if surrender costs arise, and such situations cannot include routine planning deficiencies. It restated that surrendering medium-term contracted power must not be treated as an operational option.

Final decision
After reviewing bidding records and comparing tariffs with similar procurements in other states, the Commission found the discovered tariff reasonable and confirmed compliance with competitive bidding guidelines. A procedural delay in issuing the Letter of Award was rectified during the proceedings through Letters of Intent issuance. The Commission also approved the draft procurement agreements and directed UPCL to submit signed copies within ten days. The petition was allowed and the tariff formally adopted.

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