UPERC fixes FY27 transmission tariff, cuts LDC charges by 5.6%

The Uttar Pradesh Electricity Regulatory Commission (UPERC) on Tuesday issued two key tariff orders for 2026-27, determining intra-state transmission charges and Load Despatch Centre (LDC) fees, while continuing with its shift to a capacity-based tariff regime.

Under the order on the petition filed by Uttar Pradesh Power Transmission Corporation Ltd (UPPTCL) in its role as State Transmission Utility (STU), the commission fixed the transmission tariff for distribution licensees and Indian Railways at ₹2,34,375.50 per MW per month. The tariff continues to be levied on a capacity (MW) basis, a shift introduced last year from the earlier per-unit (kWh) mechanism.

For other open access consumers, however, UPERC retained the energy-based system, fixing the tariff at ₹0.3075 per kWh, with a cap to limit the increase to 15% over the previous rate to avoid tariff shock and protect open access growth mandated under the Electricity Act, 2003.

The commission approved a base transmission capacity of 30,009.30 MW for discoms and railways and pegged the overall approved transmission charge at ₹2,29,967.62/MW/month, lower than the utility’s claim. It also continued the framework to share transmission system costs, including those of competitively bid projects, among a wider set of users beyond state discoms, reducing their burden.

Separately, on a petition by the Uttar Pradesh State Load Despatch Centre (UPSLDC), the commission reduced LDC charges by 5.6% to ₹639.97 per MW per month for FY27 from ₹678.09 earlier. The charges are based on a contracted capacity of 60,789 MW under long- and medium-term open access.

Both orders followed public consultations and hearings held in February after the petitions were admitted in January.

UPERC said rebates under the Uttar Pradesh Solar Energy Policy, 2022 and Data Centre Policy, 2021 would continue and be adjusted in billing.

The regulator also issued a series of operational directives. UPPTCL has been asked to undertake annual protection audits of 220 kV and above substations, study transmission losses for the control period, and improve coordination with licensees to avoid under-utilisation of assets. It was also directed to move towards functional separation of STU operations in line with the law.

UPSLDC, on its part, has been directed to expedite SCADA/EMS upgrades, establish a cyber security operations centre, strengthen staffing, and prepare a roadmap for grid visibility up to the 33 kV level, besides conducting cyber security and restoration drills.