UP Electricity Regulatory Commission Raises Transmission Dividend, Charges Large Consumers

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has increased the dividend of the Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) from 2 per cent to 14.5 per cent, while also mandating that large electricity consumers, including the Railways and Noida Power Company Ltd. (NPCL), pay transmission charges for using state power lines.

The commission’s decision, announced Monday, is expected to place an additional financial burden of around Rs 1,000 crore on UPPTCL, making a future rise in electricity tariffs likely. The charges were set as part of the Annual Revenue Requirement (ARR) for UPPTCL and the Uttar Pradesh State Load Despatch Centre (UPSLDC) for FY 2025-26, and new tariffs for consumers are expected to be announced this month.

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For the first time, UPERC has fixed transmission charges at a per megawatt per month rate instead of per unit, improving the financial condition of the Transmission Corporation. Large open-access consumers such as the Railways and NPCL will now pay Rs 2,13,284 per month per megawatt, potentially saving the Corporation around Rs 400 crore. Small open-access consumers will continue to pay 26.74 paise per unit.

However, the increase in UPPTCL’s dividend will raise its financial obligations from Rs 247 crore to Rs 1,797 crore, making an electricity tariff hike inevitable. The commission has approved an ARR of Rs 5,442.82 crore for UPPTCL and Rs 2,294.39 crore for Tariff-Based Competitive Bidding (TBCB) projects, while a monthly charge of Rs 678.09 per megawatt has been set for UPSLDC.

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Following the announcement, Avdhesh Verma, president of the Electricity Consumers’ Council, met the commission chairman, proposing that projects up to Rs 500 crore should be executed directly by the Transmission Corporation rather than private entities.