UGVCL issues uniform method for banking charge and setoff calculations

Uttar Gujarat Vij Company Limited (UGVCL) has directed all circle offices to follow a uniform method for calculating banking charges and energy setoff for captive and third-party sale solar projects. The instruction defines a fixed calculation sequence for net payable units and includes an illustrative example to guide implementation.

The directive states that the methodology needs to remain uniform across DISCOMs. It cites the Gujarat Electricity Regulatory Commission Tariff Order No. 6 of 2024 on procurement from solar projects. It also directs officials to refer to Clause 17.6(ii) and (iii) of the Green Energy Open Access Regulation 2024 and Clause 3.8.1 of GERC Tariff Order No. 6 of 2023. These references define how banking units eligible for setoff are to be calculated.

The letter includes a tabular example under Case 1. It explains how solar generation certified by SLDC at the injection point is adjusted for wheeling losses to arrive at the units available to the consumer. The method then compares this energy with the consumer’s monthly grid consumption. It identifies the available banked units. This figure equals 30 percent of net consumption after deducting real-time open access power and any other setoff sources. These banked units are separated into peak and off-peak periods. The final net payable units from the DISCOM are computed after subtracting total banked units.

The Chief Engineer has instructed all circle offices to apply this methodology for setoff in relevant ground-mounted solar projects.  

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