UPERC issues FY27 tariff orders for UPPTCL and UPSLDC

The Uttar Pradesh Electricity Regulatory Commission issued tariff orders on April 15, 2026 for Uttar Pradesh Power Transmission Corporation Limited and Uttar Pradesh State Load Despatch Centre. The orders cover the True-Up for FY 2024-25, the Annual Performance Review (APR) for FY 2025-26, and the Aggregate Revenue Requirement (ARR) and charges for FY 2026-27.

For UPPTCL, the Commission approved a net revenue surplus of Rs 226.91 crore for FY 2024-25 against an ARR of Rs 3,884.01 crore. After carrying costs and prior period adjustments, the cumulative surplus carried forward stands at Rs 571.31 crore. For FY 2025-26, the ARR was provisionally approved at Rs 5,808.67 crore. UPERC stated that due to the transition from energy-based to capacity-based billing and pending accounting clarity for Tariff-Based Competitive Bidding (TBCB) projects, it applied the Mimansa principle and did not carry forward any projected gap or surplus into FY 2026-27 to maintain tariff stability.

For FY 2026-27, the Commission approved a Total Transmission System Cost of Rs 7,700.36 crore, including UPPTCL’s ARR of Rs 5,960.26 crore and Annual Transmission Service Charges for TBCB projects. Transmission charges for distribution licensees and Indian Railways will be based on Base Transmission Capacity Rights in MW. For other open access users, the intra-state transmission tariff has been set at Rs 0.4838 per kWh.

UPERC approved Operation and Maintenance expenses of Rs 1,417.06 crore for FY 2026-27. Repair and Maintenance expenses were aligned with 1.5% of incremental Gross Fixed Assets under the amended MYT Transmission Regulations, 2025. Intra-state transmission losses were recorded at 3.22% in FY 2024-25 against an approved trajectory of 3.18%. The Commission directed UPPTCL to submit the findings of a loss study by M/s PRDC within three months to assess the impact of the 220 kV and above TBCB network.

During public hearings, industrial consumers raised concerns over open access charges and the increasing share of private TBCB projects. UPERC stated that tariff determination and project allocation are governed by the MYT Transmission Regulations, 2025 and the Modalities of Tariff Determination Regulations, 2023. It also directed UPPTCL to expedite its asset monetisation study, strengthen cyber security systems, and improve calibration and testing of interface meters. Transmission planning is to follow Central Electricity Authority norms based on peak demand rather than connected load.

For UPSLDC, UPERC approved a net ARR of Rs 2,554.15 lakh for FY 2026-27. Including a carried-forward gap of Rs 2,114.18 lakh with carrying costs, the total recoverable amount through Load Despatch Centre charges is Rs 4,668.32 lakh. Monthly LDC charges were set at Rs 639.97 per MW, lower than the Rs 706.02 per MW proposed. These charges apply to Medium and Long Term Open Access users and are based on a contracted capacity of 60,789 MW.

On costs, the Commission approved Operation and Maintenance expenses of Rs 4,371.50 lakh against the requested Rs 4,588.41 lakh. This includes Rs 408.49 lakh on a provisional basis for Annual Maintenance Contract costs related to SCADA Phase-III and Energy Accounting and Scheduling System hardware, along with Rs 40.68 lakh as incentives for certified staff. Depreciation of Rs 46.40 lakh and interest on normative loans of Rs 25.83 lakh were also approved. For the True-Up of FY 2024-25, the ARR was set at Rs 1,581.38 lakh with a net revenue gap of Rs 14.20 lakh.

UPERC rejected UPSLDC’s proposal to reclassify outsourced manpower costs as employee expenses due to lack of supporting evidence. On governance, it directed the appointment of a dedicated Managing Director for UPSLDC, separate from the transmission utility, to ensure functional independence. The Commission also flagged gaps in transparency, including the temporary unavailability of the ARR petition on the UPSLDC website before the public hearing, and called for stronger disclosure controls.

Further directions include expediting the Cyber Security Operation Centre, submitting annual cyber readiness reports, developing a roadmap for grid observability up to the 33 kV level in coordination with distribution licensees, and ensuring regular State Power Committee meetings in line with the Grid Code. 

The featured photograph is for representation only.