UPERC (MYT for Transmission)… Bare Act

The source publishes this enactment as a single document rather than provision by provision, so the whole text is below and there are no per-section pages for it. Nothing has been shortened.

Type	Regulations
Year	2003
Jurisdiction	State of Uttar Pradesh
Status	In force as published by the source
Text	Published as one document, as the source published it
Subjects	environment

UPERC (MYT for Transmission) Regulations, 2025 1 UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION (MULTI YEAR TARIFF FOR TRANSMISSION) REGULATIONS, 2025 CONTENTS

1. Short title, Extent, Applicability and Commencement 4

2. Definitions 5

CHAPTER 1 13 TARIFF PETITION AND PROCEDURE FOR DETERMINATION OF TARIFF 13

3. General Principles 13

4. Method for Determination of Tariff for augmentation/strengthening works executed by TBCB Transmission Licensee 18

5. Controllable and Uncontrollable Factors 19

6. Treatment of Gains or Losses on account of Uncontrollable Factors 19

7. Treatment of Gains or Losses on account of Controllable Factors20

CHAPTER 2 21 DELAY IN COMMERCIAL OPERATION 21

8. Procedure for Delay in Commercial Operation 21

9. Commercial Settlement in case of Mismatch in Date of Commercial Operation 22

CHAPTER 3 24 FINANCIAL PRINCIPLES 24

10. Financial Prudence 24

11. Capital Expenditure/ Cost and Capital Structure 25

12. Additional Capitalisation 27

13. Operation and Maintenance Expenses 30

14. Debt-Equity 33

15. Depreciation 34

16. Return on Equity 35

17. Interest on Long- Term Loan 36

18. Banking and Finance Charges 37

19. Interest During Construction (IDC)/Incidental Expenditure During Construction (IEDC) 37

20. Hedging Cost of Foreign Exchange Rate Variation (FERV) 39

21. Interest on Working Capital 39 UPERC (MYT for Transmission) Regulations, 2025 2

22. Tax on Return on Equity 40

23. Non-Tariff Income 41

24. Income from Other Business 42

25. Rebate, Incentive, Penalties and Miscellaneous 43

CHAPTER 4 44 OPERATIONAL PRINCIPLES 44

26. Components of Tariff 44

27. Capital Investment Plan 47

CHAPTER 5 49 NORMS OF OPERATION 49

28. Norms of Operation 49

CHAPTER 6 51 INTRA-STATE TRANSMISSION TARIFF AND SHARING OF TTSC 51

29. Determination of Intra-State Transmission Tariff 51

CHAPTER 7 55 RECOVERY OF INTRA-STATE TRANSMISSION CHARGES 55

30. Billing and Payment of the InSTS Charges 55

31. Treatment of Rebate on intra-State Transmission Charges 56

32. Transmission Pricing Framework 57

33. Transmission Losses 57

CHAPTER 8 58 GRANT OF SUBSIDIES BY STATE GOVERNMENT 58

34. Manner of grant of subsidy by State Government 58

CHAPTER 9 59 MISCELLANEOUS 59

35. Saving of Inherent Powers of the Commission 59

36. Repeal and Saving 59

37. Power to remove difficulties 59

38. Power to Amend 59

39. Power to Relax 59 Annexure-A 60 UPERC (MYT for Transmission) Regulations, 2025 3 Depreciation Schedule for Existing Assets Capitalised on or before

31.03.2025 60 Annexure-B 61 Depreciation Schedule for Existing Assets Capitalised After 31.03.2025 62 Annexure-C 63 Procedure for calculation of Transmission System Availability Factor for a Month 64 UPERC (MYT for Transmission) Regulations, 2025 4 UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION (MULTI YEAR TARIFF FOR TRANSMISSION) REGULATIONS, 2025 Regulation No.: UPERC/D(T)/JD(Transmission)/156-012 Lucknow, Dated: 06.06.2025 In exercise of the powers conferred Section 181 read with the Section 36, Section 39, Section 40, Section 41, Section 61, Section 62, Section 64, Section 65, Section 86 of the Electricity Act, 2003 (36 of 2003) and all other powers enabling it in that behalf, the Uttar Pradesh Electricity Regulatory Commission hereby makes the following Regulations. These Regulations shall supersede the Uttar Pradesh Electricity Regulatory Commission (Multi Year Tariff for Distribution and Transmission) Regulations, 2019 and its amendments for determination of Transmission Tariff and all aspects given thereto related to Transmission.

1. Short title, Extent, Applicability and Commencement

(1) These Regulations shall be called the Uttar Pradesh Electricity Regulatory Commission (Multi Year Tariff for Transmission) Regulations, 2025.

(2) These Regulations shall extend to the whole of the State of Uttar Pradesh.

(3) These Regulations shall be applicable to State Transmission Utility (STU) & Transmission Licensees whose Tariff is to be determined under Section 62 of the Act for determination of Aggregate Revenue Requirement (ARR), Annual Performance Review (APR), Tariff, True-Up and associated matters as covered under these Regulations:

Provided that clause 4 of these Regulations shall be applicable on TBCB Transmission Licensee and clause 8 and clause 9 of these Regulations shall also be applicable on TBCB Transmission Licensee and Generating Companies in absence of co-terminus provisions in the TSA/ connection/implementation agreement or in any other agreement executed between the parties:

Provided further that the tariff of Dedicated Transmission Line/system of an existing generator may be determined as per the principles underlined in these Regulations, wherever applicable, as per the methodology adopted by the Commission in its Orders issued from time to time.

UPERC (MYT for Transmission) Regulations, 2025 5

(4) These Regulations shall come into force from April 01,2025 and unless reviewed earlier or extended by the Commission, shall remain in force for a period of five years:

Provided that for all purposes, the issues relating to the determination of ARR, APR, Tariff, True-Up and other associated matters, including review matters, for respective Financial Years shall be governed by the respective Tariff Regulations applicable for that specific year.

2. Definitions

(1) In these Regulations, unless the context otherwise requires:

(a) “Accounting Statement” means for each financial year the following statements, namely: - i. Audited Balance sheet, prepared in accordance with the form contained in Part I of Schedule 3 to the Companies Act 2013, as amended from time to time;

ii. Audited Profit and loss accounts, complying with the requirements contained in Part II of Schedule 3 to the Companies Act 2013, as amended from time to time;

iii. Audited Cash flow statement, prepared in accordance with the Accounting Standard on cash flow Statement (IND AS-3) of the Institute of Chartered Accountants of India, as amended from time to time.;

iv. Report of statutory auditors of the Licensee;

v. Cost records if any, prescribed by the Central Government under Section 148 of the Companies Act 2013, as amended from time to time;

vi. Together with notes thereto, and such other supporting statements and information as the Commission may direct from time to time;

vii. Trial Balance for the year matching the accounts with Financial Statements.

(b) “Act” means the Electricity Act, 2003 (36 of 2003), as amended from time to time;

(c) ‘Additional Capitalization’ means the capital expenditure incurred or projected to be incurred, after the date of commercial operation of the UPERC (MYT for Transmission) Regulations, 2025 6 project, admitted by the Commission after prudence check, subject to the provisions of these Regulations;

(d) “Aggregate Revenue Requirement” or “ARR” means the costs pertaining to the licensed business which are permitted, in accordance with these Regulations, to be recovered from the Tariffs determined by the Commission;

(e) “Allocation Statement” means for each Financial Year, statements in respect of each of the businesses of the Transmission Licensee for optimum utilization of its assets, showing the amounts of any revenue, cost, asset, liability, reserve or provision etc., which has been either:

i. Determined by apportionment or allocation between different Businesses of the Licensee, including the Licensed business, together with a description of the basis of the apportionment or allocation; or ii. Charged from or to each such Other Business together with a description of the basis of that charge.

(f) “Availability” in relation to a Transmission System for a given period means the time in hours during that period for which the Transmission System is capable of transmitting electricity at its rated voltage, expressed in percentage of total hours in the given period, and shall be computed as provided in Annexure-C of these Regulations;

(g) “Base Year” means the Financial Year immediately preceding first year of the Control Period and used for the purpose of these Regulations i.e FY 2024-25;

(h) “Bank Rate” shall mean the Bank Rate as declared by the Reserve Bank of India from time to time;

(i) “Bulk Power Transmission Agreement” means executed agreement that contains the terms and conditions under which a Transmission System User is entitled to access to an Intra-State Transmission System of a Transmission Licensee;

(j) “Competitive Bidding” means a transparent process for procurement of equipment, services and works in which bids are invited by the project developer by open advertisement covering the scope and specifications of UPERC (MYT for Transmission) Regulations, 2025 7 the equipment, services and works required for the project, and the terms and conditions of the proposed contract as well as the criteria by which bids shall be evaluated, and shall include domestic competitive bidding and international competitive bidding;

(k) "Change in Law" means occurrence of any of the following events:

i. enactment, bringing into effect or promulgation of any new Indian law; or ii. adoption, amendment, modification, repeal or re-enactment of any existing Indian law; or iii. judicial pronouncements, Orders of Central Government and/ or State Government; or iv. change in interpretation or application of any Indian law by a competent court, Tribunal or Indian Governmental Instrumentality, which is the final authority under law for such interpretation or application; or v. change in condition or covenant by any competent statutory authority in relation to any consent or clearances or approval or License available or obtained for the Project; or vi. coming into force or change in any bilateral or multilateral agreement or treaty between the Government of India and any other Sovereign Government having implications for the Transmission System regulated under these Regulations;

vii. Any change in taxes or duties, or introduction of any taxes or duties levied by the Central or any State Government, unless specified otherwise in this Regulation.

(l) “Commission” means the Uttar Pradesh Electricity Regulatory Commission (UPERC);

(m) “Conduct of Business Regulations” means the Uttar Pradesh Electricity Regulatory Commission (Conduct of Business) Regulations, 2019 and its subsequent amendments / addendum / re-enactment subsequent to its repeal;

UPERC (MYT for Transmission) Regulations, 2025 8

(n) “Control Period” means the period comprising of five financial years from April 1, 2025 to March 31, 2030, and unless extended by the Commission;

(o) “Connection Agreement” means the agreement defined in UPERC (Grant of Connectivity to Intra-State System) Regulation, 2010 as amended from time to time;

(p) “Cut-off Date” shall mean the last day of the financial year closing after Twelve months from the date of commercial operation of the project;

(q) “Date of Commercial Operation” (COD) shall mean the date declared by the Transmission Licensee from 00:00 hour of which element of the Transmission System is in regular service after successful charging and trial operation for transmitting electricity and communication signal from sending end to receiving end:

Provided that where the transmission line or substation is dedicated for evacuation of power from a particular generating station, the Generating Company and Transmission Licensee shall endeavour to commission the generating station and the Transmission System simultaneously as far as practicable and shall ensure the same through appropriate Implementation Agreement:

Provided further that in case a Transmission System or an element thereof is prevented from regular service for reasons not attributable to the Transmission Licensee or its supplier or its contractors but is on account of the delay in commissioning of the concerned generating station or in commissioning of the upstream or downstream, the Transmission Licensee shall approach the Commission through an appropriate application for approval of the date of commercial operation of such Transmission System or an element thereof:

Provided also that in case of an existing Transmission Licensee, such request may be included as part of its Aggregate Revenue Requirement Petition or Annual Performance Review Petition or True-Up Petition to be filed under these Regulations;

(r) "Distribution Licensee" means a person who has been granted a License under sub-section (b) of Section 14 of the Act and shall include a deemed Licensee;

UPERC (MYT for Transmission) Regulations, 2025 9

(s) “Force Majeure” for the purpose of these Regulations means the event or circumstance or combination of events or circumstances including but not limited to those stated below that wholly or partly prevents or unavoidably delays the Transmission Licensee from completing the project within the time specified in the Capital Investment Approval/ contract agreement, and only if such events or circumstances are not within the control of the Transmission Licensee and could not have been avoided, had the Transmission Licensee taken reasonable care or complied with prudent utility practices:

i. Act of God including but not limited to lightning, drought, fire and explosion, earthquake, volcanic eruption, landslide, flood, cyclone, typhoon, tornado, geological surprises; or ii. Any act of war, invasion, armed conflict or act of a foreign enemy, blockade, embargo, revolution, riot, insurrection, terrorist or military action; or iii. Industry wide strikes and labour disturbances having a nationwide impact in India;

iv. Delay in obtaining statutory approvals for the projects where the delay is not attributable to Licensee;

v. Delay in land acquisition for the projects where the delay is not attributable to Licensee;

(t) “Implementation Agreement” means any multi-party agreement or covenant entered among the Generating Company and/ or the Transmission Licensee(s) of the interconnected/associated transmission system for the execution of generation and transmission projects in a coordinated manner, laying down the project implementation schedule and mechanism for monitoring the progress of the projects;

(u) "Indian Government Instrumentality" means any ministry department, board, authority, agency, corporation and commission under direct or indirect control of the Government of India or the State Government(s) or both or Appropriate Commission (s) or tribunal or judicial or quasi-judicial body;

UPERC (MYT for Transmission) Regulations, 2025 10

(v) "License" means a license granted under Section 14 of the Act;

(w) “Licensed Business” means the functions and activities for which the Licensee is required to undertake in terms of the license granted by the Commission or on account of being a deemed Licensee under the Act;

(x) “Long-term Transmission customer” means a person as defined in UPERC (Terms & Conditions of Open Access) Regulation, 2019 as amended from time to time;

(y) “Medium-term Transmission customer” means a person as defined in UPERC (Terms & Conditions of Open Access) Regulation, 2019 as amended from time to time;

(z) “Other Business” means any business of the Licensee for optimum utilization of its assets within the meaning of Section 41 of the Act;

(aa) “Open Access Customer” means as defined in UPERC (Terms & Conditions of Open Access) Regulation, 2019 as amended from time to time;

(bb) “Project” means all components and elements of the Transmission system including communication system;

(cc) “Rated voltage” means the manufacturer's design voltage at which the Transmission System is designed to operate and includes such lower voltage at which Transmission line is charged or for the time being charged, in consultation with long- term Transmission customers;

(dd) “Short term Transmission Customer” means a person as defined in UPERC (Terms & Conditions of Open Access) Regulation, 2019 as amended from time to time;

(ee) “Tariff Based Competitive Bidding (TBCB) Transmission Licensee” means Transmission Licensee, whose tariff is discovered through competitive bidding and adopted by the Commission under Section 63 of the Act;

(ff) “Transmission Service Agreement (TSA)” means the Agreement, Contract, Memorandum of Understanding, or any such covenant, entered into between the Transmission Licensees and the long-term Transmission customer for the operational phase of the Transmission system;

UPERC (MYT for Transmission) Regulations, 2025 11

(gg) “Transmission System” means a line or a group of lines together with or without associated Sub- Stations, and includes equipment associated with Transmission lines and Sub- Stations;

(hh) “Transmission System Users (TSU’s)” for the purpose of these Regulations means the Open Access Customers which includes distribution licensee using Intra State Transmission System;

(ii) “Transmission Capacity Rights (TCR)” means the right of a Transmission System User to transfer power in MW, under normal circumstances, between such points of injection and drawal;

(jj) “Transmission Licensee” means a person who has been granted a License under sub-section (a) of Section 14 of the Act;

(kk) “Total Transmission System Cost (TTSC)” means as provided under clause 29(1) of these Regulations;

(ll) “Year” means the financial year ending on 31st March;

i. “Current Year” means the year in which the statement of annual accounts or application for determination of Tariff is filed;

ii. “Ensuing Year” means the year next following the current year;

iii. “Previous Year” means the year immediately preceding the current year.

(2) The words and expressions used in these Regulations and not defined herein, but defined in the Act, shall bear the same meaning as in the Electricity Act, 2003 or any other Regulations of the Commission, as amended from time to time. Expressions used herein but not specifically defined in these Regulations or in the Electricity Act, 2003 but defined under any law passed by a competent legislature and applicable to the electricity industry in the State shall have the meaning assigned to them in such law.

Expressions used herein but not specifically defined in these Regulations or in the Act or any law passed by a competent legislature shall have the meaning as is generally assigned in the electricity industry.

(3) The words “Application” or “Petition” shall be used interchangeably.

UPERC (MYT for Transmission) Regulations, 2025 12

(4) In the interpretation of these Regulations, unless the context otherwise requires:

(a) words in the singular or plural term, as the case may be, shall also be deemed to include the plural or the singular term, respectively;

(b) references herein to the “Regulations” shall be construed as a reference to these Regulations as amended or modified by the Commission from time to time in accordance with the applicable laws in force;

(c) the headings are inserted for convenience and may not be taken into account for the purpose of interpretation of these Regulations;

(d) references to the Statutes, Regulations or Guidelines shall be construed as including all statutory provisions consolidating, amending or replacing such Statutes, Regulations or Guidelines, as the case may be;

(e) in case of dispute in interpretation between English and Hindi version of these Regulations, the English version shall prevail.

UPERC (MYT for Transmission) Regulations, 2025 13

CHAPTER 1 TARIFF PETITION AND PROCEDURE FOR DETERMINATION OF TARIFF

3. General Principles

(1) The Commission shall determine the Intra-State Transmission Tariff every year during five-year control period under a Multi-Year Tariff framework based upon the principles specified in these Regulations.

(2) The Transmission Licensee shall file an annual petition complete in all respect every year during control period for True-up of ARR for previous year, APR of current year and ARR / Tariff of ensuing year in such form and in such manner as specified in these Regulations along with relevant formats, duly supported with detailed computations, by 30th November of each year as per table below:

Table 1: Details of Petitions to be filed under the Control Period Filing date True- Up APR ARR / Tariff

30.11.2024 FY 2023-24* FY2024-25* FY 2025-26**

30.11.2025 FY 2024-25*** FY 2025-26 FY 2026-27

30.11.2026 FY 2025-26 FY 2026-27 FY 2027-28

30.11.2027 FY 2026-27 FY 2027-28 FY 2028-29

30.11.2028 FY 2027-28 FY 2028-29 FY 2029-30 *The Petitions have already been filed as per UPERC (Multi-Year Tariff for Distribution & Transmission Tariff) Regulation, 2019.

**As per the directions of the Commission, the Petitions have already been filed. Further submissions will be sought as per these Regulations for determination of ARR for FY 2025-26.

***The filings shall be as per UPERC (Multi-Year Tariff for Distribution & Transmission Tariff) Regulation, 2019, however, filings have to be made on 30th November of the respective year as per these Regulations.

UPERC (MYT for Transmission) Regulations, 2025 14

Provided that True-up of ARR of Transmission Licensee for those years falling under past control period shall be filed by Transmission Licensee in such form and in such manner as specified in UPERC (Multi- Year Tariff for Distribution & Transmission Tariff) Regulations, 2019.

(3) STU shall file the annual Petition for True-up of TTSC (Total Transmission System Cost) for previous year, APR of current year and TTSC of ensuing year for determination of Intra State Transmission Tariff in such form and in such manner as specified in these Regulations along with relevant formats, duly supported with detailed computations, by 30th November of each year:

Provided that Uttar Pradesh Power Transmission Corporation Ltd. in the capacity of State Transmission Utility shall file a single Petition for compliance of clause 2 and clause 3 of these Regulations till functions of STU are assigned to a separate entity.

(4) The Transmission Licensee shall file the True-Up/ APR/ ARR Petition, in accordance with the guidelines and formats as may be prescribed by the Commission, electronically on e-filing portal of the Commission, after due authorization by the Board of Directors or by any Committee/person authorised by the Board in this regard, digitally signed by the authorized representative:

Provided that the Capital Investments of Transmission Licensee without prior approval of the Commission shall not be included in the ARR Petition.

(5) Hard copies of the Petition shall also be filed as provided for in the UPERC (Conduct of Business) Regulations, 2019, as amended from time to time, accompanied with applicable fees as per the UPERC (Fee and Fines) Regulations, 2010 as amended from time to time:

Provided that the fees for filing Petition under these Regulations by STU shall be exempted till functions of STU are assigned to a separate entity.

(6) The Petitioner shall furnish to the Commission all such books and records (or certified true copies thereof), including the audited/ provisional Accounting Statements, operational, cost and Performance related data as may be required by it. The Petition filed by the Transmission Licensee/ STU, UPERC (MYT for Transmission) Regulations, 2025 15 as the case may be, shall comprise and be accompanied by the requisite information, which shall include but not limited to the following information:

(i) ARR/Tariff Filling

(a) The Transmission System or network usage forecast for the year, Projected Transmission Capacity, Circuit line length, Number of Sub- Stations, Capital Investment Plan, Financing Plan and Physical targets, Equity, Grants, etc.

(b) Projected list of Schemes as approved under STU Transmission Plan that will be Capitalised during the year by the Transmission Licensee;

(c) Proposal(s) for transmission charges including the transmission losses for the year supported by adequate justification;

(d) Expected Revenue from the Licensed Business, Non-Tariff Income and income from Other Business and other matters considered appropriate by the Transmission Licensee.

(ii) Annual Performance Review

(a) The Actual (as on date of filing of Petition) vs Projected Transmission Capacity, Circuit line length, Number of Sub-Stations, Capital Investment Plan, Financing Plan and Physical targets, Equity, Grants, etc.

(b) Details of Capital expenditure and additional capital expenditure incurred during the period under review along with supporting documents.

(iii) True Up

(a) Actual vs Projected Transmission Capacity, Circuit line length, Number of Sub-Stations, Capital Investment, Financing Plan and Physical targets, Equity, Grants, etc.

(b) Details of scheme wise capitalisation viz á viz with approval obtained from the Commission;

(d) Statement of source of financing including equity infusion;

UPERC (MYT for Transmission) Regulations, 2025 16

(e) Loan utilisation certificate for all the loans availed by the Transmission Licensee during the relevant year duly reconciled with Statutory books of accounts including;

i. Capital Expenditure ii. Capital work in Progress iii. Working Capital

(f) Gain/loss sharing with respect to controllable parameters;

(g) Audited Statement of Accounts and trial balance;

Any other detail in as specified in these Regulations or as required by the Commission from time to time.

Provided that if the true-up petition is not submitted within timelines as stipulated in these Regulations, no carrying cost for the period of delay shall be allowed for the gap arrived for the true-up year. However, in case of surplus, the same with carrying cost shall be recovered:

Provided also that the Transmission Licensee shall submit a yearly statement on the status of compliance to Directives, issued by the Commission in the previous Tariff Order, along with the Petition.

(7) The Commission shall conduct a Technical Validation before admission of the Petition. On completion of the required proceedings and submissions made to the satisfaction of the Commission, the Commission will admit the Petition and shall issue an Admittance Order.

(8) The Petitioner shall within three working days of the issuance of the Admittance Order, publish a Public Notice in at least two English and two Hindi daily newspapers having wide circulation in its license area, outlining the True-Up/APR/ARR, proposed Tariff and such other matters as may be directed by the Commission, inviting suggestions and objections from the stakeholders and public at large:

Provided that the Petitioner shall also provide on its website the Petition filed before the Commission along with all regulatory filings, detailed computations, particulars and documents, in text-searchable format or in downloadable spreadsheet format in the manner stipulated by the Commission:

UPERC (MYT for Transmission) Regulations, 2025 17

Provided also that the web link to the information mentioned in the first proviso to this Regulation should be easily accessible, archived for downloading and be prominently displayed on the Petitioner’s website:

Provided also that Petitioner shall intimate its stakeholders about filing of such Petition, period of public consultation, date of Public Hearing etc.

through appropriate notice on its website and newspapers:

Provided further that the Petitioner may be exempted by the Commission from providing any such information, particulars or documents considered confidential in nature.

(9) The Commission shall, within one hundred and twenty days from admittance, after considering all suggestions and objections received from the stakeholders and public at large and in accordance with the provisions contained in these Regulations:

(a) Issue an Order for True-Up/APR/ARR & Tariff accepting the Petition with such modifications or such conditions as may be specified in that Order; or

(b) Reject the Petition for reasons to be recorded in writing if such Petition is not in accordance with the provisions of the Act, Rules and Regulations made there under or any other provisions of law, after giving the Petitioner a reasonable opportunity of being heard.

(10) The State Transmission Utility shall publish the Intra State Transmission Tariff within three working days approved by the Commission in at least two English and two Hindi daily newspapers having wide circulation in its license area and shall upload the approved Tariff on its internet website both in English and Hindi.

(11) The Tariff so published shall be in force from the date stipulated in the Order and shall, unless amended or revised, continue to be in force for such period as may be stipulated therein.

(12) The Commission shall carry out Truing-Up exercise stipulated in the provisions of these Regulations. True-Up of Expenses and Revenue shall be on the basis of approved and actual expenses, revenue, etc., based on the UPERC (MYT for Transmission) Regulations, 2025 18 prudence check of Accounting Statements of the Transmission Licensee for the Financial Year.

4. Method for Determination of Tariff for augmentation/strengthening works executed by TBCB Transmission Licensee

(1) Implementation of augmentation/strengthening works at the intra-State transmission sub-station and /or line being part of the STU Transmission Plan shall be carried out by the respective TBCB Transmission Licensee in whose premises work is to be carried out:

Provided that the cost of the works, as approved by the Commission, shall be transferred by UPPTCL to the respective TBCB Transmission Licensee, which shall be passed on in the ARR of UPPTCL in accordance with these Regulations:

Provided further that Regulation 7.2 of UPERC (Modalities of Tariff) Regulations, 2023 shall stand superseded to the extent specified in these Regulations.

(2) UPPTCL shall take prior approval of these schemes/works and the Commission may approve the scheme along with such terms and conditions as considered appropriate.

(3) The Operation and Maintenance of such works shall be carried out by the respective developer for which Normative Repair & Maintenance expenses shall be transferred by UPPTCL to the respective developer/Transmission Licensee in whose premises work is to be carried out, as per tariff order issued by the Commission for the respective year.

(4) UPPTCL shall submit a procedure for finalisation of cost of works, bid process to be conducted by TBCB Transmission Licensee and its finalisation, transfer of funds for carrying out the works, funds for operation & maintenance requirements etc. within three months of the notification of these Regulations for approval of the Commission.

(5) The Commission through its Orders may issue directive to TBCB Transmission Licensee and may call for compliance status.

UPERC (MYT for Transmission) Regulations, 2025 19

5. Controllable and Uncontrollable Factors

(1) The “Uncontrollable Factors” shall comprise the following factors, which were beyond the control of, and could not be mitigated by the Transmission Licensee, as determined by the Commission:

(a) Force Majeure events;

(b) Change in Law;

(d) Any other expenses allowed by the Commission.

(2) The “Controllable Factors” shall include, but shall not be limited to the following:

(a) Variations in Capital Expenditure on account of time and/ or cost overruns/ efficiencies in the implementation of capital expenditure project not attributable to an approved change in scope of such project or change in statutory levies or force majeure events, and due to delay in execution of the project on account of contractor, supplier or agency of the Transmission Licensee;

(b) Provision for Write-off of Bad and Doubtful debts;

(d) Variation in interest on working capital;

(e) Variation in Intra-State Transmission losses;

(f) Variation in expenses under any component(s) of Operation & Maintenance expenses;

(g) Variation in availability of transmission system.

6. Treatment of Gains or Losses on account of Uncontrollable Factors

(1) The approved gain or loss to the Transmission Licensee on account of Uncontrollable Factors shall be adjusted in the ARR or Tariff of the Transmission Licensee, as stipulated in these Regulations and as may be determined in the Order of the Commission passed under these Regulations.

(2) The Transmission Licensee shall submit such details of the variation on account of Uncontrollable factors along with the detailed computations and UPERC (MYT for Transmission) Regulations, 2025 20 supporting documents as may be required for verification by the Commission.

7. Treatment of Gains or Losses on account of Controllable Factors

(1) The financial gain or loss shall be computed with respect to each component of Operation & Maintenance expenses.

(2) The approved gain to the Transmission Licensee, as per clause 7 (1), shall be dealt with in the following manner:

(a) Two-third of the amount of such gain shall be passed on in Tariff/ARR over such period as may be stipulated in the Order of the Commission;

(b) The balance amount of such gain shall be utilised at the discretion of the Transmission Licensee.

(3) The approved loss to the Transmission Licensee, as per clause 7 (1), shall be dealt with in the following manner:

(a) One-third of the amount of such loss shall be passed on in Tariff/ARR over such period as may be stipulated in the Order of the Commission;

(b) The balance amount of such loss shall be absorbed by the Transmission Licensee.

UPERC (MYT for Transmission) Regulations, 2025 21

CHAPTER 2 DELAY IN COMMERCIAL OPERATION

8. Procedure for Delay in Commercial Operation

(1) The Transmission Licensee(s) and/ or the Generating Company shall necessarily enter into an “implementation agreement” for the execution of transmission projects including interconnection facilities in a timely and coordinated manner to avoid any mismatch of commercial operation date.

(2) The date of commercial operation of a transmission system or element thereof and associated communication system shall be in accordance with the provisions of the Grid Code.

(3) In case the transmission system or element thereof executed by a Transmission Licensee is ready for commercial operation but the interconnected generating station or the transmission system of other Transmission Licensee, as per the agreed scheduled date of commissioning, is not ready for commercial operation, the Transmission Licensee may file a petition before the Commission for approval of the date of commercial operation of such transmission system or element thereof or proceed in terms of TSA approved by the Commission:

Provided that the Transmission Licensee seeking approval of the date of commercial operation under this clause shall give prior notice of at least one month, to the Generating Company and/ or the other Transmission Licensee and the long-term customers of its transmission system, as the case may be, regarding the date of commercial operation:

Provided further that the Transmission Licensee seeking the approval of the date of commercial operation of the transmission system under this clause shall be required to submit the following documents along with the petition:

(a) Clearance for Energisation issued by the Electrical Inspector;

(b) Trial operation certificate issued by the SLDC for charging element with or without electrical load;

UPERC (MYT for Transmission) Regulations, 2025 22

(d) Notice issued by the Transmission Licensee as per the first proviso under this clause and the response;

(e) Certificate of the Competent Authority of the company regarding the completion of the transmission system including associated communication system in all respects;

(4) The Commission shall, on consideration of the submissions of the Transmission Licensee as aforesaid, shall pass such orders or give such directions as may be necessary.

9. Commercial Settlement in case of Mismatch in Date of Commercial Operation

(1) In case of mismatch of the date of commercial operation of the Generating Station or Transmission Licensee(s) with the transmission system of TBCB developer, the liability for the transmission charges of TBCB Transmission licensee shall be determined as under: -

(a) Where the generating station has not achieved the commercial operation as on the date of commercial operation of the associated transmission system (which is not before the SCOD of the generating station), the Generating Company shall be liable to pay the transmission charges of the associated transmission system as approved by the Commission to the TBCB Transmission Licensee till the generating station or unit thereof achieves commercial operation;

(b) Where the transmission system of the Transmission Licensee(s) has not achieved the commercial operation as on the date of commercial operation of the interconnected transmission system of TBCB Transmission Licensee (which is not before the SCOD of the transmission system), the said Transmission Licensee shall be liable to pay the transmission charges of such interconnected transmission system to the TBCB Transmission Licensee as approved by the Commission till the transmission system achieves the commercial operation.

Provided that in case of default by more than one entity, the liability for the transmission charges of TBCB Transmission Licensee shall be shared in equal ratio by the defaulting entities until the default is rectified by any of UPERC (MYT for Transmission) Regulations, 2025 23 the entity. Upon rectification of the default by any entity, the entire liability shall be equally shared amongst the remaining defaulting entity/ies again in equal ratio among the defaulting parties until there remains only one defaulting party in which case entire liability of transmission charges shall be on the same defaulting party till it cures its default.

(2) The Commission shall, on consideration of the submissions of the Transmission Licensee as aforesaid, pass such orders or give such directions as may be necessary.

UPERC (MYT for Transmission) Regulations, 2025 24

CHAPTER 3 FINANCIAL PRINCIPLES

10. Financial Prudence

(1) The Transmission Licensee shall manage its finances in an optimum and prudent manner.

(2) In determining the ARR and Tariff of the Transmission Licensee, the Commission shall assess the financial prudence with regard to the following factors:

(a) Whether projected capital expenditure and capitalisation is based on realistic estimates, and adequate justification has been provided for any anomalous increase in capital expenditure and capitalisation projected by the Transmission Licensee;

(b) Mechanism put in place for monitoring the physical progress of projects with respect to their original schedule;

(c) Optimum drawal of loans in accordance with the physical progress of the capital expenditure schemes, and efficient utilisation of such loans;

(d) In case the actual capital expenditure and capitalisation during the year varies more than 10% of that approved under STU Transmission Plan by the Commission, the Transmission Licensee shall submit a detailed justification for such variation along with its True-Up Petition;

(e) In case any scheme has not been commenced during the year despite the Commission's approval, detailed justification shall be submitted along with the Petition for True-Up;

(f) Creation of assets in accordance with Capex Plan approved by the Commission along with their retirement, replacement or deletion/adjustments;

(g) Procurement of Goods and Services in competitive and transparent manner;

(h) Proper recording of assets in Fixed Asset Register;

UPERC (MYT for Transmission) Regulations, 2025 25

(i) Whether the procured asset, such as land, has actually been put to use;

(j) Mechanism put in place for monitoring adherence to the approved expenditure, including schedule of interest payments for long-term loans and working capital.

11. Capital Expenditure/ Cost and Capital Structure

(1) Capital cost for a Capital investment project shall include:

(a) The expenditure incurred or projected to be incurred, including interest during construction and financing charges, as admitted by the Commission after prudence check;

(b) Capitalised initial spares subject to the ceiling rates stipulated in these Regulations;

(c) Expenses incurred by the Transmission Licensee on obtaining right of way, as admitted by the Commission after prudence check;

(d) Additional capital expenditure determined under clause 12 of these Regulations;

(e) Incidental expenditure during construction including apportioned expenditure on relevant components of O&M;

(f) Any gain or loss on account of foreign exchange risk variation pertaining to the loan amount availed up to the date of commercial operation, as admitted by the Commission after prudence check:

Provided that any gain or loss on account of foreign exchange risk variation pertaining to the loan amount availed up to the date of commercial operation shall be adjusted only against the debt component of the capital cost:

Provided further that the capital cost of the assets forming part of the Project but not put to use or not in use, shall be excluded from the capital cost:

Provided also that the Transmission Licensee shall submit documentary evidence in support of its claim of assets being put to use.

UPERC (MYT for Transmission) Regulations, 2025 26

(2) The capital cost admitted by the Commission after prudence check shall form the basis for determination of Tariff.

(3) The actual capital expenditure on a Project as on COD for the original scope of work based on audited accounts of the Transmission Licensee, as the case may be, shall be considered subject to prudence check by the Commission.

(4) Capital cost to be allowed by the Commission for the purpose of determination of Tariff will be based on the Transmission Plan prepared by the STU under Modalities of Tariff Determination Regulation, 2023 and Annual Capital Investment Plan approved by the Commission.

(5) The capital cost may include initial spares capitalised as a percentage of the Plant and Machinery cost up to the cut-off date, subject to the following ceiling norms:

(a) Transmission System i. Transmission Line: 1.0 % ii. Transmission Sub-Station (AIS):

Green field 4.0 % Brown field 6.0 % iii. Gas Insulated/Hybrid Sub-Station (GIS/HGIS):

Green field 5.0 % Brown field 7.0 % iv. Series compensation devices and HVDC Sub-Station

4.0 % v. Static Synchronous Compensator:

6.0 % vi. Communication System: 3.5 %

(b) Battery Energy Storage System: 1.0 %

(6) The impact of revaluation of assets shall be permitted provided it does not result in increase in Tariff of the Transmission Licensee:

UPERC (MYT for Transmission) Regulations, 2025 27

Provided that any benefit from such revaluation shall be passed on to longterm Intra-State Open Access Customers of the Transmission Licensee, at the time of ARR / Tariff determination or Truing-Up, as the case may be.

(7) Any expenditure on replacement, Renovation and Modernisation or extension of life of old fixed assets, as applicable to Transmission Licensees, shall be considered after writing off the net value of such replaced assets from the original capital cost, and shall be computed as follows:

Net Value of Replaced Assets = OCRA – AD;

Where;

OCRA: Original Capital Cost of Replaced Assets:

AD: Accumulated depreciation pertaining to the Replaced Assets

Provided that in case the original capital cost of the replaced asset is not available for any reason, it shall be considered by the Commission on a case to case basis:

Provided further that the amount of insurance proceeds received, if any, towards damage to any asset requiring its replacement shall be first adjusted towards outstanding actual or normative loan; and the balance amount, if any, shall be utilised to reduce the capital cost of such replaced asset, and any further balance amount shall be considered as Non-Tariff Income.

12. Additional Capitalisation A. Additional Capitalisation within the original scope and up to the cut-off date

(1) The additional capital expenditure in respect of a new project or an existing project, on the following counts within the original scope of work as per Detailed Project Report (DPR), actually incurred after the date of commercial operation and up to the cutoff date may be admitted by the Commission, subject to prudence check:

a. Deferred liabilities;

b. Works deferred for execution;

UPERC (MYT for Transmission) Regulations, 2025 28 c. Procurement of initial capital spares in the original scope of work, subject to ceiling specified in these Regulations;

d. Payment against the award of arbitration or for compliance of the directions or order of any statutory authority or order or decree of a Court;

e. On account of change in law or compliance with any existing law which is not provided for in the original scope of work;

f. Force majeure events:

Provided that original scope of work along with estimates of expenditure shall be submitted along with the application for provisional and final tariff:

Provided that in case of any replacement of the assets, the additional capitalization shall be worked out after adjusting the gross fixed assets and cumulative depreciation of the assets replaced on account of decapitalization:

Provided further that a list of the deferred liabilities to be payable at a future date and works deferred for execution shall be submitted along with the application for final tariff after the date of commercial operation.

B. Additional Capitalisation within the original scope and after the cut-off date

(1) The additional capital expenditure actually incurred in respect of an existing project or a new project on the following counts within the original scope of work and after the cut-off date may be admitted by the Commission, subject to prudence check:

a. Payment made against award of arbitration or for compliance of the directions or order of any statutory authority, or order or decree of a Court;

b. Change in Law or compliance with any existing law which has not been provided for in the original scope of work;

c. Force majeure events;

d. Payment made towards liability admitted for works within the original scope executed prior to the cut-off date;

UPERC (MYT for Transmission) Regulations, 2025 29 e. Works within original scope executed after the cut-off date and admitted by the Commission, to the extent of actual payments made.

(2) In case of replacement of assets deployed under the original scope of the existing project after the cut-off date, the additional capitalization may be admitted by the Commission after making necessary adjustments in the gross fixed assets and the cumulative depreciation, subject to prudence check on following grounds:

a. Assets whose useful life is not commensurate with the useful life of the project and such assets have been fully depreciated in accordance with the provisions of these Regulations;

b. The replacement of the asset or equipment is necessary on account of a change in law or Force Majeure conditions; or c. The replacement of such asset or equipment is necessary on account of obsolescence of technology; or d. The replacement of such asset or equipment has otherwise been allowed by the Commission:

C. Additional Capitalisation beyond the original scope

(1) The capital expenditure, in respect of the existing transmission project incurred on the following counts beyond the original scope, may be admitted by the Commission, subject to prudence check:

a. Payment made against award of arbitration or for compliance of order or directions of any statutory authority, or order or decree of any court of law;

b. Change in law or compliance of any existing law;

c. Force Majeure events;

d. Need for higher security and safety of the project as advised or directed by appropriate Indian Government Instrumentality or statutory authorities responsible for national or internal security:

Provided also that if any expenditure has been claimed under Renovation and Modernisation (R&M) or repairs and maintenance under O&M expenses, the same shall not be claimed under this Regulation;

UPERC (MYT for Transmission) Regulations, 2025 30

13. Operation and Maintenance Expenses

(1) The Operation and Maintenance (O&M) expenses for the Transmission Licensee shall be computed for three components i.e (i) Employee Expenses, (ii) Repair and Maintenance (R&M) Expenses, and (iii) Administrative and General Expenses.

(2) The Norms for each component of O&M Expenses shall be determined as per these Regulations. Thereafter O&M Expenses for each year of the Control Period shall be computed based on the formula shown below:

O&Mn = EMPn + R&Mn + A&Gn Where:

O&Mn – O&M expenses for nth year EMPn - Employee expenses for nth year R&Mn - R&M expenses for nth year A&Gn - A&G expenses for nth year

(3) At the time of Truing-Up, gains or losses for each component of Operation and Maintenance Expenses shall be shared as per clause 7 of these Regulations.

(4) The impact of Pay Revision, change in Pension Scheme etc., shall be allowed by the Commission over and above normative Expenses of the respective component after prudence check. However, one-time expenses such as payment of Arears due to impact of pay revision, change in pension scheme etc., shall not be considered for the determination of norm of the respective component.

(5) In case data required for establishing the norms is not available, the Transmission Licensee shall propose O&M norms with justification. The Commission shall approve the norms for the Transmission Licensee after prudence check which shall be applicable for the remaining Control Period.

(6) Employee Cost

(a) The Employee Cost shall be derived on the basis of the average of the values in the Audited Accounts for the last five (5) financial years ending March 31, 2025 subject to prudence check by the Commission.

However, if Audited Accounts are not available for FY 2024-25, UPERC (MYT for Transmission) Regulations, 2025 31 Audited Accounts available for the last five (5) years will be considered and subsequently when the same are available the base year value (i.e. FY 2024-25) will be recomputed.

(b) The average of such Employee Cost shall be considered as Employee Cost for the middle year of the previous Control Period (01.04.2020 to 31.03.2025) and shall be escalated year on year with the escalation factor considering CPI of respective years, for subsequent years up to FY 2024-25:

Provided that impact of one time expenses such as Arears due to impact of pay revision, change in pension scheme etc. shall be removed from the base Employee Cost.

After arriving the figure of FY 2024-25, the normative employee expenses shall be computed as per formula below:

EMPn = EMPn-1 X (1+ CPI inflation) X (1+ Gn) Where:

EMPn: Employee expense for the nth year;

EMPn-1: Employee expense for the (n-1)th year;

For the purpose of ARR, CPI inflation is the average of Consumer Price Index (CPI) for Industrial Workers (All India) as per Labour Bureau, Government of India for the immediately preceding three Financial Years.

For the purpose of True-Up, CPI inflation is the actual point to point inflation for the concerned Financial Year.

Gn is a growth factor for the nth year and it may be greater than or less than zero based on the actual performance. Value of Gn shall be determined by the Commission in the Tariff Order for meeting the additional manpower requirement based on the Licensees’ filing, benchmarking or any other factor that the Commission feels appropriate.

UPERC (MYT for Transmission) Regulations, 2025 32

(7) Repairs and Maintenance Expense The normative Repair and Maintenance expense for first year of Control period shall be allowed at the rate of 2% of the opening GFA of the year as approved by the Commission. The normative Repair and Maintenance expense for subsequent years of the control period, shall be allowed at 2% of the incremental GFA of the respective year in addition to the normative R&M value of previous year along with an annual escalation based on the Wholesale Price Index (WPI) inflation:

Provided that the normative R&M expense determined as per the above stipulation shall be inclusive of any impact of change in applicable taxes or duties.

For the purpose of ARR, WPI inflation is the average of Wholesale Price Index (WPI) for immediately preceding three Financial Years as per the Office of Economic Advisor of Government of India.

For the purpose of True-Up, WPI inflation is the actual point to point inflation for the concerned Financial Year.

(8) Administrative and General Expenses

(a) The normative A&G Expenses shall be derived on the basis of the average of the values in the Audited Accounts for the last five (5) financial years ending March 31,2025 subject to prudence check by the Commission. However, if Audited Accounts are not available for FY 2024-25, Audited Accounts available for the last five (5) financial years of previous Control Period (01.04.2020 to 31.03.2025) will be considered and subsequently when the same are available the base year value (i.e. FY 2024-25) will be recomputed.

(b) The average of such A&G Expenses shall be considered as A&G Expenses for the middle year and shall be escalated year on year with the escalation factor considering WPI of respective years, for subsequent years up to FY 2024-25.

(c) A&G expense shall be computed as per the following formula escalated by wholesale price index (WPI) and adjusted by provisions for confirmed initiatives (IT etc. initiatives as proposed by the Transmission Licensee and validated by the Commission) or other UPERC (MYT for Transmission) Regulations, 2025 33 expected one-time expenses:

After arriving the figure of FY 2024-25, the normative A&G expenses shall be computed as per formula below:

A&Gn= A&G n-1 (1+ WPI inflation) + Provision Where:

A&Gn: A&G expense for the nth year;

A&Gn-1: A&G expense for the (n-1)th year;

For the purpose of ARR, WPI inflation is the average of Wholesale Price Index (WPI) for immediately preceding three Financial Years as per the Office of Economic Advisor of Government of India:

For the purpose of True-Up, WPI inflation is the actual point to point inflation for the concerned Financial Year.

Provision: Cost for initiatives which entail conversion of Capex projects into Totex or Opex mode or are undertaken to ensure compliance of any directives of the Commission or any other Expense as may be allowed by the Commission on the proposal of Transmission Licensee.

14. Debt-Equity

(1) Closing balance of Equity as on 31.03.2025 approved by the Commission shall be taken as the opening Equity for Financial Year 2025-26.

(2) For a capital investment scheme declared under commercial operation on or after April 1, 2025, debt-equity ratio as on the date of commercial operation shall be 70:30 of the amount of capital cost approved by the Commission under clause 11 of these Regulations after making appropriate adjustment of Assets funded by Consumer Contribution/ Deposit Works/ Capital Subsidies/ Grant, subject to prudence check for determination of Tariff:

Provided that if the equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall be treated as normative loan for the Transmission Licensee for determination of Tariff:

UPERC (MYT for Transmission) Regulations, 2025 34

Provided further that the Transmission Licensee shall submit documentary evidence for the actual deployment of equity and explain the source of funds for the equity:

Provided also that where equity actually deployed is less than 30% of the capital cost of the capitalised asset, the actual equity shall be considered for determination of Tariff:

Provided also that the equity invested in foreign currency shall be designated in Indian Rupees on the date of each investment:

Provided that in case of retirement or replacement or de-capitalisation or deletion/adjustment of the assets, the equity capital approved as mentioned above, shall be reduced to the extent of 30% (or actual equity component based on documentary evidence, if it is lower than 30%) of the original cost of such assets:

Provided further that in case of retirement or replacement or deletion/ adjustment or de-capitalisation of the assets, the debt capital approved as mentioned above, shall be reduced to the extent of the outstanding debt component based on documentary evidence, or the normative loan component, as the case may be, of the original cost of such assets.

15. Depreciation

(1) The Transmission Licensee, shall be permitted to recover Depreciation on the value of fixed assets used in their respective businesses, computed in the following manner:

(a) The approved original cost of the fixed assets shall be the value base for the calculation of Depreciation:

Provided that the Depreciation shall be allowed on the entire capitalised amount of the new assets after reducing the approved original cost of the retired or replaced or de-capitalised assets.

(b) Depreciation shall be allowed annually based on the Straight- Line Method at the rates stipulated in the Annexure- A for existing Assets (capitalised on or before 31.03.2025) and at the rates stipulated in Annexure- B for Assets capitalised during the Control Period:

UPERC (MYT for Transmission) Regulations, 2025 35

Provided that the Licensee shall ensure that once individual asset is depreciated to the extent of seventy percent, the remaining depreciable value as on 31st March of the year closing shall be spread over the balance Useful Life of the assets including the Extended Life, as per submission of the Licensee and approval by the Commission.

(c) The salvage value of the asset shall be considered at 10% of the allowable capital cost and Depreciation shall be allowed up to a maximum of 90% of the allowable capital cost of the asset:

Provided that land owned shall not be treated as a Depreciable asset and shall be excluded from the capital cost while computing Depreciation:

Provided further that Depreciation shall be chargeable from the first year of commercial operation:

Provided that the salvage value of the IT equipment, software and underground cable shall be considered as nil and value of such assets shall be considered 100% depreciable.

(d) Depreciation shall not be allowed on assets funded by Consumer Contributions or Subsidies/ Grants/ Deposit works.

(2) In case of existing assets, for the purpose of computation of depreciation, the opening value of GFA shall be taken as the closing value as on March 31, 2025 as approved by the Commission in its Tariff Order.

(3) In case of projected commercial operation of the assets for part of the year, depreciation shall be computed based on the average of opening and closing value of assets:

Provided that the depreciation shall be re-computed for assets capitalised at the time of Truing-Up, based on Accounting Statements and documentary evidence of assets capitalised by the Petitioner, subject to prudence check of the Commission.

16. Return on Equity Return on equity shall be computed in ₹ terms on equity base at the rate of 14.5% post-tax per annum (hereinafter referred to as ‘Base Rate’) for UPERC (MYT for Transmission) Regulations, 2025 36 the Transmission Licensee as determined in accordance with clause 14 of these Regulations:

Provided that assets funded by Consumer Contribution / Deposit works, Capital Subsidies / Grants and corresponding Depreciation shall not form part of the Capital Cost.

17. Interest on Long- Term Loan

(1) The long- term loans arrived at in the manner indicated in these Regulations on the assets put to use shall be considered as gross normative loan for calculation of interest on loan:

Provided that in case of retirement or replacement or de-capitalisation or deletion/adjustment of the assets in the balance sheet, the loan capital approved as mentioned above shall be reduced to the extent of outstanding loan component of the original cost of such assets based on documentary evidence.

(2) The closing normative long- term loan outstanding as on March 31, 2025, shall be taken as the opening normative long term loan outstanding for the financial year 2025-26.

(3) The repayment of long-term loans for each year shall be deemed to be equal to the depreciation allowed for that year.

(4) Notwithstanding any moratorium period availed, the repayment of loan shall be considered from the first year of commercial operation of the asset.

(5) The rate of interest for ensuing year shall be the weighted average rate of interest computed on the basis of the actual long- term loan portfolio of previous year:

Provided that if there is no actual long- term loan for a particular year but the normative loan is still outstanding, then the rate of interest for the purpose of allowing the interest on the normative long- term loan shall be the weighted average of SBI MCLR (1 year) prevailing during the previous year plus 100 basis points.

(6) At the time of Truing-Up, the weighted average rate of interest of the actual long- term loan portfolio during the concerned year shall be considered as the rate of interest:

UPERC (MYT for Transmission) Regulations, 2025 37

Provided that if there is no actual long-term loan for a particular year but the normative loan is still outstanding, then the rate of interest for the purpose of allowing the interest on the normative long-term loan shall be the weighted average of SBI MCLR (1 year) prevailing during the concerned year plus 100 basis points.

(7) The interest on long- term loan shall be computed on the normative average long- term loan of the year by applying the weighted average rate of interest:

Provided that at the time of Truing-Up, the normative average loan of the concerned year shall be considered on the basis of the actual asset capitalisation approved by the Commission for the year.

18. Banking and Finance Charges The Banking & Finance charges shall be allowed as per actuals in Truing- Up, subject to prudence check by the Commission:

Provided that the Banking and Finance charges shall be allowed in ARR as per the approval given by the Commission for the latest True-Up year.

19. Interest During Construction (IDC)/Incidental Expenditure During Construction (IEDC)

(1) Interest during construction (IDC) shall be computed considering the actual loan and normative loan after taking into account the prudent phasing of funds up to actual COD:

Provided also that IDC on a normative loan corresponding to excess equity over 30% of funds deployed shall be allowed only in cases where the actual infusion of equity on a pari-passu basis is more than 30% of total funds deployed and shall be computed on a quarterly basis:

Provided further that in case IDC on normative loan is to be allowed prior to infusion of actual loan, rate of interest for computing such IDC shall be equal to 1-year SBI MCLR as prevailing on 1st April of the respective year:

Provided further that IDC on normative loan, post infusion of actual loan shall be computed based on weighted average rate of interest (WAROI) for that respective quarter:

UPERC (MYT for Transmission) Regulations, 2025 38

Provided further that the IDC on normative loan shall be allowed only when it can be demonstrated by the Licensee that the capital cost arrived after IDC on normative loan is to the benefit of consumers.

(2) Incidental expenditure during construction (IEDC) shall be computed from the zero date, taking into account pre-operative expenses up to actual COD:

Provided that any revenue earned during the construction period up to actual COD on account of interest on deposits or advances or any other receipts shall be taken into account for reduction in incidental expenditure during construction.

(3) In case of additional costs on account of IDC and IEDC due to delay in achieving the COD, the Transmission Licensee shall be required to furnish detailed justifications with supporting documents for such delay, including prudent phasing of funds in the case of IDC and details of IEDC during the period of delay and liquidated damages recovered or recoverable corresponding to the delay.

(4) If the delay in achieving the COD is not attributable to the Transmission Licensee, such additional IDC and IEDC may be allowed after prudence check, and the liquidated damages, if any, recovered from the contractor or supplier or agency shall be adjusted to the capital cost of the transmission system.

(5) If the delay in achieving the COD is attributable either in entirety or in part to the Transmission Licensee or its contractor or supplier or agency, in such cases, IDC and IEDC due to such delay may be disallowed after prudence check, either in entirety or on a pro-rata basis corresponding to the period of delay not condoned vis-à-vis total implementation period, and the liquidated damages, if any, recovered from the contractor or supplier or agency shall be retained by the Transmission Licensee, in the proportion of delay not condoned vis-à-vis total implementation period.

Provided that in cases where delay in achieving COD is beyond six months from SCOD on account of delay in obtaining approval of any of the following activities namely, i) forest clearance, ii) NHAI clearance, or iii) Railways UPERC (MYT for Transmission) Regulations, 2025 39 permission, a time overrun maximum up to 95% shall be allowed after prudence check.

(6) For the purpose of sub-clauses (4) and (5) of clause 19 of these Regulations, IDC on actual loan and normative loan shall be considered in accordance with the normative debt-equity ratio specified under subclause (2) of clause 14 of these Regulations.

20. Hedging Cost of Foreign Exchange Rate Variation (FERV)

(1) The Transmission Licensee may hedge foreign exchange exposure in respect of the interest on foreign currency loan and repayment of foreign loan acquired, in part or in full, at the discretion of the Transmission Licensee.

(2) The Transmission Licensee shall recover the cost of hedging and foreign exchange rate variation on a year-to-year basis as income or expense in the period in which it arises. However, the same shall be allowed subject to prudence check by the Commission at the time of True-Up.

21. Interest on Working Capital

(1) The working capital requirement of the Transmission Licensee shall cover:

(a) Operation and Maintenance expenses for one month;

(b) Maintenance spares at 40% of the R&M expenses for two months; and

minus

(d) Amount held as security deposits, if any, from Transmission System Users;

Provided that if the working capital, determined based on the above formula, is positive, it shall be reduced by the amount of revenue surplus (if any) as of 31st March of the previous year so approved by the Commission:

Provided further that for the purpose of Truing- Up for any year, the working capital requirement shall be re-computed on the basis of the values UPERC (MYT for Transmission) Regulations, 2025 40 of components of working capital approved by the Commission in the Truing- Up.

(2) Rate of interest on working capital for ensuing year shall be simple interest and shall be equal to the SBI MCLR (1-year) as on date on which Petition for determination of Tariff is filed plus 200 basis points:

Provided that for the purpose of Truing- Up for any year, simple interest on working capital shall be allowed at a rate equal to the weighted average SBI MCLR (1-year) prevailing during the concerned year plus 200 basis points.

22. Tax on Return on Equity

(1) The rate of return on equity as allowed by the Commission under clause 16 of these Regulations shall be grossed up with the effective tax rate (hereinafter referred to as ‘t’) of the respective financial year. The effective tax rate shall be calculated at the beginning of every financial year based on the estimated profit and tax to be paid estimated in line with the provisions of the relevant Finance Act applicable for that financial year to the concerned Transmission Licensee by excluding the income of other business and the corresponding tax thereon:

Provided that tax on any income other than that through its Licensed Business shall not be pass through and it shall be payable by the Licensee itself:

Provided that in case a Transmission Licensee is paying Minimum Alternate Tax (MAT) under Section 115JB of the Income Tax Act, 1961, the effective tax rate shall be the MAT rate, including surcharge and cess:

Provided further that in case a Transmission Licensee has opted for Section 115BAA, the effective tax rate shall be the tax rate including surcharge and cess as specified under Section 115BAA of the Income Tax Act, 1961.

(2) The rate of return on equity shall be rounded off to three decimal places and shall be computed as per the formula given below.

Rate of pre-tax return on equity = Base rate / (1-t)

(3) The Transmission Licensee shall true up the effective tax rate for every Financial Year based on the actual tax paid together with any additional tax UPERC (MYT for Transmission) Regulations, 2025 41 demand, including interest thereon, duly adjusted for any refund of tax including interest received from the income tax authorities pertaining to the Tariff period covered under these Regulations on actual gross income of any Financial Year. Further, any penalty arising on account of delay in deposit or short deposit of tax amount shall not be considered while computing the actual tax paid by the Transmission Licensee:

Provided that in case a Transmission Licensee is paying Minimum Alternate Tax (MAT) under Section 115JB, the Transmission Licensee shall true up the grossed up rate of return on equity at the end of every Financial Year with the applicable MAT rate including surcharge and cess:

Provided that in case a Transmission Licensee is paying tax under Section 115BAA, the Transmission Licensee shall true up the grossed up rate of return on equity at the end of every Financial Year with the tax rate including surcharge and cess as specified under Section 115BAA:

Provided that any under-recovery or over recovery of grossed up rate on return on equity after truing-up, shall be recovered or refunded, on a year to year basis.

23. Non-Tariff Income

(1) The amount of Non-Tariff income relating to the Transmission Business as approved by the Commission shall be deducted from the ARR in determining the Annual Transmission Charges of the Transmission Licensee:

Provided that the Transmission Licensee shall submit full details of its forecast of Non-Tariff income to the Commission in such form as may be stipulated by the Commission.

(2) The Non-Tariff Income shall include:

a) Income from rent of land or buildings;

b) Income from sale of scrap;

c) Income from investments;

Provided that income arising from investment of shareholder’s funds, if any, shall not be included in Non-Tariff Income subject to prudence check of requisite detailed information submitted by the Transmission Licensee before the Commission.

UPERC (MYT for Transmission) Regulations, 2025 42 d) Interest income on advances to suppliers/contractors;

e) Interest income on loans / advances to employees;

f) Income from rental from staff quarters;

g) Income from rental from contractors;

h) Income from hire charges from contactors and others;

i) Income from Supervision Charge j) Income from advertisements;

k) Income from sale of tender documents;

l) Excess found on physical verification;

m) Income from Insurance Claim;

n) Prior Period Income;

o) Miscellaneous receipts; and p) Any other Non-Tariff Incomes:

(3) The Non-Tariff income under item (j) above (income from advertisements) shall be shared between the Transmission Licensee and the consumers in the ratio of 30% and 70% respectively:

Provided that the Transmission Licensee shall undertake asset monetisation study within six months from the date of notification of these Regulations.

24. Income from Other Business

(1) Where the Transmission Licensee has engaged in any Other Business under Section 41 of the Act for optimum utilisation of its assets, the income from such business will be deducted from the ARR in calculating the revenue requirement of the Transmission Licensee in the manner and in proportion as may be stipulated by the Commission. The proportion of revenue from Other Business that shall be utilized in the Transmission business shall be as stipulated in UPERC (Treatment of Income of Other Business of Transmission Licensees and Distribution Licensees) Regulations, 2004 or any subsequent amendment thereof:

Provided that the Transmission Licensee shall follow a reasonable basis for allocation of all joint and common costs between the Transmission Business and the Other Business and shall submit the Allocation Statement, duly certified by the Board of Directors, to the Commission along with its Petition for determination of ARR:

UPERC (MYT for Transmission) Regulations, 2025 43

Provided further that where the sum total of the direct and indirect costs of such Other Business exceeds the revenues from such Other Business, income from such other business shall be taken as zero.

25. Rebate, Incentive, Penalties and Miscellaneous

(1) All rebates or incentives earned by the Transmission Licensee shall be considered under its Non-Tariff Income, while all rebates or incentives given by the Transmission Licensee, as approved by the Commission, shall be allowed as an expense for the Transmission Licensee.

(2) The timeline and percentage rebate for payment of bills of transmission charges and late payment surcharge shall be as per the Tariff Order issued by the Commission from time to time.

(3) Penalties paid by the Transmission Licensee shall not be allowed as an expense for the Transmission Licensee:

Provided that penalties / compensation levied on the Transmission Licensee due to the reasons beyond its reasonable control, as corroborated by it with appropriate justification and supporting documents to satisfy the Commission, shall be allowed subject to prudence check.

(4) Carrying cost for the ARR gap of the Transmission Licensee will be provided by the Commission after prudence check at the interest rates as provided for working capital in these Regulations.

(5) The revenue surplus of the Transmission Licensee shall be first adjusted towards working capital requirement for the year and balance revenue surplus amount, if any, shall be eligible for carrying cost as per weighted average of bank rate published by RBI net of applicable tax rate for the relevant year:

Provided that the Transmission Licensee shall invest the revenue surplus amount in risk-free securities such as RBI bonds, Government Securities or fixed deposit receipts of scheduled banks only.

UPERC (MYT for Transmission) Regulations, 2025 44

CHAPTER 4 OPERATIONAL PRINCIPLES

26. Components of Tariff

(1) The Transmission Charges for access to and use of the Intra- State Transmission System shall comprise any of the following components or a combination of the following components:

(a) Transmission System access charges;

(b) Annual Transmission charges;

(d) Reactive energy charges:

Provided that the Reactive energy charges would be determined as per Uttar Pradesh Electricity Regulatory Commission Grid Code 2007 as amended from time to time or any Order issued by the Commission.

(2) Any person who is eligible to apply for access to the Intra- State Transmission System shall be entitled to obtain such access in accordance with the Regulations and Orders of the Commission governing Transmission Open Access and shall be liable to pay the charges for obtaining such access as stipulated in these Regulations and Orders.

(3) Where the access of the intending Transmission System User to the Intra- State Transmission System entails works of transmission lines or other transmission assets dedicated to such user, the Transmission Licensee shall be entitled to recover, through transmission system access charges, all expenses reasonably incurred on such works for providing access to such intending Transmission System User.

(4) Where the access of the intending Transmission System User entails other works, not covered under clause 26(3) of these Regulations relating to the Intra-State Transmission System, the Transmission Licensee shall recover the expenses relating to such works through annual transmission charges, in accordance with clause 26(10) under these Regulations.

(5) Where any works for obtaining access have been carried out by the intending Transmission System User, the Transmission Licensee shall be entitled to recover supervision charges at the rate of 15% of the cost of labour employed, cost of material, material handling and storage/inventory UPERC (MYT for Transmission) Regulations, 2025 45 but excluding the establishment costs, for carrying out such works and shall not be entitled to recover any other expenses with regard to such works:

Provided that such supervision charges shall form part of the Non-Tariff Income of the respective Transmission Licensee and shall also be treated as O&M expense incurred by the intending Transmission System users, which shall be capitalised in the respective year of asset capitalisation.

(6) The works for providing access to the Intra-State Transmission System shall be maintained by the Transmission Licensee for the duration of the Bulk Power Transmission Agreement between the Transmission Licensee and the Transmission System User.

(7) Where the Transmission System User has paid for the works carried out to provide it access to the Intra-State Transmission System, the Transmission System User shall be entitled to the depreciated value (as per Companies Act 2013 and its amendments) of such works paid for by it upon termination of the Bulk Power Transmission Agreement:

Provided that where the Transmission System User has carried out the works to provide it access to the Intra-State Transmission System of the Transmission Licensee, the Transmission System User may be entitled to retain such works upon termination of the Bulk Power Transmission Agreement.

(8) The Transmission System access charges may be recovered by any one of the following methods, in accordance with the terms of the Bulk Power Transmission Agreement:

(a) As a one-time payment by the Transmission System User at the time of obtaining access; or

(b) As a series of payments over the duration of the Bulk Power Transmission Agreement; or

(9) Any dispute between the Transmission Licensee and the intending Transmission System User with regard to the works to be carried out to give access to the intending Transmission System User or with regard to the Transmission System access charges shall be referred to the UPERC (MYT for Transmission) Regulations, 2025 46 Commission for adjudication or to such other forum as may be stipulated by the Commission.

(10) The ARR of the Transmission Licensee, shall comprise the following components:

(a) Operation and maintenance expenses;

(b) Depreciation;

(d) Interest on Working Capital;

(e) Banking & Finance charges;

(f) Return on Equity;

(g) Tax on Return on Equity;

Minus:

(h) Non-Tariff Income;

(i) Income from other Business

Provided that Depreciation, Interest on Loan Capital, Interest on Working Capital, Return on Equity, and Income Tax for Transmission Licensees shall be allowed in accordance with the provisions stipulated in Chapter 3 of these Regulations:

Provided further that the components of the ARR, corresponding to the transmission lines owned by the Transmission Licensee but conveying electricity to other States, being recovered in accordance with the Regulations and Orders of the Central Electricity Regulatory Commission, shall not be recovered from the Tariff determined under these Regulations:

Provided also that in case any such components have already been recovered through the Intra-State Transmission Tariff, then such excess recovery shall be deducted from the ARR of the Transmission Licensee for the future years, along with associated carrying cost, as applicable:

Provided also that prior period income/expenses shall be allowed by the Commission at the time of Truing- Up based on audited accounts, on a case to case basis, if the income/expenses in that prior period have been allowed on actual basis, subject to prudence check:

UPERC (MYT for Transmission) Regulations, 2025 47

Provided also that all penalties and compensation payable by the Transmission Licensee to any party for failure to meet any Standards of Performance or for damages, as a consequence of the Orders of the Commission-or Competent Courts, Authorities etc., shall not be allowed to be recovered through the ARR:

Provided also that the Transmission Licensee shall maintain separate details of such penalties and compensation paid or payable by the Transmission Licensee, if any, and shall submit them to the Commission along with its Petition.

(11) The Annual Transmission Charges along with Intra State Transmission Tariff shall be determined by the Commission on the basis of a Petition for determination of Tariff as stipulated in these Regulations.

27. Capital Investment Plan

(1) The Transmission Licensee shall submit a detailed projected capital expenditure schemes being part of STU Transmission Plan, financing plan and physical targets for the ensuing year for strengthening and augmentation of the Intra-State Transmission System of the Transmission Licensee, meeting the requirement of load growth, improvement in quality of supply, reliability, metering, reduction in congestion, etc., along with the Tariff Petition before the Commission.

(2) The Capital Investment Plan shall be a least cost plan for undertaking investments:

Provided that all capital expenditure projects of capital expenditure of value exceeding ₹ Twenty Crore must have prior approval of the Commission and shall be subject to prudence check:

Provided that the Capital Investment Schemes/Projects proposed by the Transmission licensee shall be for Intra- State transmission network including if any associated upstream/downstream works, and the Schemes/ Projects shall not be submitted in parts:

Provided further that any capital expenditure scheme/project based on the specific requirement of a Distribution Licensee shall be substantiated with necessary documentary evidence in the form of request for the same.

UPERC (MYT for Transmission) Regulations, 2025 48

(3) The Transmission Licensee is required to undertake approval of all transmission schemes/projects with a capital expenditure of ₹ 20 Cr. and above. The Transmission Licensee is required to submit all such schemes qualifying the criteria through a separate petition on a quarterly basis for the prior approval of the Commission.

(4) The Capital Expenditure Scheme(s)/Project(s) submitted for prior approval of the Commission shall be accompanied by such information, particulars and documents as may be required including but not limited to the information such as number of bays, name, configuration and location of grid substations, substation capacity (MVA), transmission line length (circuit kilometres) showing the need for the proposed investments, alternatives considered, cost/benefit analysis and other aspects that may have a bearing on the transmission charges.

(5) The Transmission Licensee shall submit the list of capital expenditure schemes/Projects after the asset is put to use along with actual capital expenditure incurred, capitalisation and details of time overrun and cost overrun on a quarterly basis:

Provided that the Transmission Licensee shall submit the details of the scheme/project-wise asset capitalisation along with receipt of the Electrical Inspector certificate and other documents as may be prescribed by the Commission from time to time, at the end of each quarter.

(6) The Commission shall review actual capital expenditure incurred and capitalisation vis-à-vis the approved capital expenditure and capitalisation after the completion of scheme. The quarterly capitalization approved by the Commission shall form the basis for truing-up at the end of each year.

(7) The Transmission Licensee shall submit, along with the Petition for determination of ARR or along with the Petition for Annual Performance Review, as the case may be, details showing the progress of capital expenditure projects, together with such other information, particulars or documents as the Commission may require to assess such progress.

UPERC (MYT for Transmission) Regulations, 2025 49

CHAPTER 5 NORMS OF OPERATION

28. Norms of Operation

(1) Target availability

(a) Normative Annual Transmission System Availability factor (NATSAF) shall be as under:

i. AC System : 98.00% ii. HVDC bi-pole links and back-to-back Stations: 95.00%

(2) Auxiliary Energy Consumption in the Sub-station:

(a) AC System The charges for auxiliary energy consumption in the AC Sub-station for the purpose of air-conditioning, lightning and consumption in other equipment shall be borne by the Transmission Licensee and are included in the normative operation and maintenance expenses.

(b) HVDC Sub-station For auxiliary energy consumption in HVDC Sub-stations, the Central Government / State Government may allocate an appropriate share from one or more ISGS generating station. The charges for such power shall be borne by the Transmission Licensee and are included in the normative operation and maintenance expenses.

(3) The transmission charge payable for a calendar month for a Transmission System shall be:

ARR x (NDM/NDY) x (TAFM/NATSAF) Where, ARR = Aggregate Revenue Requirement specified for the year;

NATSAF = Normative annual transmission availability factor, in per cent stipulated in these Regulations;

NDM = Number of days in the month;

NDY = Number of days in the Year; and TAFM = Transmission System Availability Factor for the month, in per cent, computed in accordance with Annexure- C to these Regulations:

UPERC (MYT for Transmission) Regulations, 2025 50

Provided that the Transmission Licensee shall raise the bill for the transmission charge for a month based on its estimate of TAFM.

Adjustments, if any, shall be made on the basis of the TAFM to be certified by the SLDC within 30 days from the last day of the relevant month.

UPERC (MYT for Transmission) Regulations, 2025 51

CHAPTER 6 INTRA-STATE TRANSMISSION TARIFF AND SHARING OF TTSC

29. Determination of Intra-State Transmission Tariff

(1) The aggregate of the yearly revenue requirement for all Transmission Licensees shall form the “Total Transmission System Cost" (TTSC) of the Intra-State transmission system, to be recovered from the Transmission System Users (TSUs) for the respective year of the Control Period, in accordance with the following Formula:

TTSC = ∑ 𝑛 𝑖=1 ARRi + ∑ m j=1 ATSCj + Adjustment for ATSC Where, TTSC = Pooled Total Transmission System Cost of year of the Control Period;

n = Number of Transmission Licensee(s) with projects under Section 62 of the Act;

m = Number of Transmission Licensee(s) with projects under Section 63 of the Act;

ARRi = Yearly revenue requirement approved by the Commission for ith Transmission Licensee for the year of the Control Period as determined by the Commission under Section 62 of the Act;

ATSCj = Annual Transmission Service Charges (ATSC) of TBCB Projects adopted by the Commission under Section 63 of the Act;

Adjustment for ATSC (during True-Up) = (Actual ATSC paid by LTTC - ATSC as adopted by the Commission) or nil whichever is lower.

(2) The Commission shall approve yearly ‘Base Transmission Capacity Rights’ as average of “Yearly average of daily max InSTS drawal” and “Yearly max InSTS drawal” for Distribution Licensee(s) and Indian Railways as projected for the respective year of the Control Period, representing the 'Capacity Utilisation’ of Intra-State transmission system and accordingly determine ‘Intra State Transmission Tariff, in accordance with the following formula:

Base Transmission Capacity Rights (Base TCR) for the respective year = ∑ n 𝑢=1 ([X + Y]/2) Where, UPERC (MYT for Transmission) Regulations, 2025 52 X = Yearly average of daily max InSTS drawal of respective year for each Distribution Licensee orIndian Railways (u) as the case may be;

Y = Yearly max InSTS drawal of respective year for each Distribution Licensee or Indian Railways (u) as the case may be;

Note: The X & Y shall reflect drawal of Distribution Licensee(s) (including drawal of power from Distribution Licensee by part Open Access Consumer) or Indian Railways, as the case may be, and same shall be exclusive of drawal of power by Open Access consumers.

(3) The Annual Transmission Charge payable by Distribution Licensees and Indian Railways shall be computed in accordance with the following formula:

ATC(u) = TTSC X ([Base TCR(u)] / ∑ 𝑛 𝑢=1 [Base TCR(u)]) Where, ATC(u) = Annual Transmission Charges to be shared by Distribution Licensees and Indian Railways (u) for the year;

Provided that the Base Transmission Capacity Rights for Distribution Licensees and Indian Railways for ensuing year shall be determined based on the projections of ‘X’ and ‘Y’ after taking into account available data of past years:

Provided further that projections of Base TCR for the ensuing year, shall be submitted by the Distribution Licensees and Indian Railways to the STU latest by last week of August of current year:

Provided that Open Access Customer other than the Distribution Licensee and Indian Railways shall be billed at ₹/kWh as provided in clause 29(4) of this Regulation:

Provided further that in case of a Distribution Licensee(s) and Indian Railways whose monthly ‘X’ and ‘Y’ data is not available for prior 12 months at the time of determination of Base TCR, the monthly ‘X’ and ‘Y’ data if available for at least 4 months, or the quantum of Open Access applied by the Distribution Licensee and Indian Railways for the available period, shall be considered in lieu of the average monthly ‘X’ and ‘Y’ for calculating the Base Transmission Capacity Rights:

UPERC (MYT for Transmission) Regulations, 2025 53

Provided further for True-up of respective year of the Control Period of these Regulations, the Base Transmission Capacity Rights shall be determined based on the actual data of ‘X’ and ‘Y’ of the Distribution Licensees and Indian Railways as per the data received by Distribution Licensee(s)/Indian Railways from SLDC. The said data, after deduction of drawal of Open Access consumer(s), shall be forwarded by the Distribution Licensee(s) and Indian Railways to the State Transmission Utility (STU).

(4) The Open Access Customers other than Distribution Licensees and Indian Railways shall pay Intra State Transmission Tariff (in INR/kWh) in terms of actual energy consumed which will reduce the TTSC of the Intra-State transmission system:

Provided that the intra-State transmission tariff for Open Access Customers other than the Distribution Licensee(s) and Indian Railways during a particular year of Control Period shall not increase by more than 15% of the applicable transmission tariff determined by the Commission for the preceding year.

(5) Intra State Transmission Tariff for each Year shall be determined as ratio of approved TTSC for Intra-State transmission system and approved ‘Base Transmission Capacity Rights’ and shall be denominated in terms of “INR/MW/Year” (for Distribution Licensees) or in terms of “INR/kWh” (for Open Access Customers other than the Distribution Licensees and Indian Railways) in accordance with the following formula:

Intra State Transmission Tariff for Distribution Licensees and Indian Railways:

Intra State Transmission Tariff for Distribution Licensees and Indian Railways in INR/MW/Year = TTSC / Base TCR Intra State Transmission Tariff for Open Access Customers other than Distribution Licensees and Indian Railways:

Intra State Transmission Tariff for Open Access Customers other than Distribution Licensee and Indian Railways in INR/kWh = TTSC / E (Total Energy input at State Periphery for the year) Where, TTSC = Pooled cost (in INR per Year) for InSTS for year of the Control Period;

UPERC (MYT for Transmission) Regulations, 2025 54

Provided that the energy units transmitted within the State shall be based on the energy input requirement at State Periphery, as projected by each Distribution Licensee as part of its MYT Petition and as approved by the Commission for the ensuing year. Whereas for True- Up period, the energy units transmitted within the State shall be based on the actual energy handled at State Periphery:

(6) The State Transmission Utility shall file the Petition for determination of Intra-State Transmission Tariff along with True-Up and APR on the basis of Base Transmission Capacity Rights of Distribution Licensees and Indian Railways and the summation of the TTSC projected or actual as the case may be, by the Transmission Licensees/LTTCs in accordance with these Regulations.

(7) The Distribution Licensees and Indian Railways shall make monthly payment of Intra State Transmission Tariff as per Base Transmission Capacity Rights approved by the Commission from time to time.

(8) The charges for Intra State Transmission usage of excess/shortfall drawal of power shall be treated during true-up in the following manner:

(a) In case of excess drawal of power from the Base Transmission Capacity Rights approved by the Commission, the charges for excess power drawal shall be payable by Distribution Licensees and Indian Railways along with carrying cost at 1-year SBI MCLR, which shall be adjusted in Total Transmission System Cost of the year:

Provided that in case of drawal of power lower than the Base TCR, the transmission charges corresponding the projected Base TCR as approved by the Commission shall be considered.

(9) In case of any variation in projected & Trued-Up TTSC, such excess/shortfall shall be adjusted in the TTSC of subsequent year along with carrying cost at weighted average bank rate for the respective year.

UPERC (MYT for Transmission) Regulations, 2025 55

CHAPTER 7 RECOVERY OF INTRA-STATE TRANSMISSION CHARGES

30. Billing and Payment of the InSTS Charges

(1) The STU shall be responsible for monthly billing and collection of Intra State Transmission Charges from the Transmission System Users as per the Tariff Order issued by the Commission from time to time.

(2) The amount so collected by the STU on account Intra State Transmission Charges shall be kept in a separate account maintained and operated by the STU.

(3) The amount collected on account of Intra State Transmission Charges by the STU shall be exclusively allocated for the disbursement or adjustment of the Total Transmission System Cost (TTSC) and any remaining amount shall be considered by the Commission during the True-Up.

(4) The Monthly transmission charges of TBCB projects implemented under Section 63 of the Act, shall be adjusted/ credited by the STU to Distribution Licensee after taking into account the monthly invoice issued by TBCB Transmission Licensee to LTTCs and corresponding payment made by LTTCs within five working days from the date of furnishing such information by LTTCs.

(5) The Monthly transmission charges/cost of TBCB projects under Section 63 of the Act, shall be settled by LTTCs as per the terms and conditions of Transmission Se

UPERC (MYT for Transmission) Regulations 2025

The enactment

Full text

Find the provision, not just read it