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UPERC Amends Open Access Regulations to Streamline Power Transactions

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has introduced the First Amendment to the Terms and Conditions for Open Access Regulations, 2024, bringing key modifications aimed at improving efficiency, transparency, and accessibility in power transactions across the state.

Key Amendments and Their Impact

1. Simplified Open Access Approval Process
   • The amendment introduces a streamlined approval mechanism for short-term, medium-term, and long-term open access consumers.
   • This will reduce procedural delays, making it easier for industries and commercial consumers to procure power from independent sources.
2. Changes in Wheeling and Transmission Charges
   • The amendment proposes revised wheeling and transmission charges to ensure fair cost recovery while promoting competition in the open access market.
   • New tariff structures are expected to benefit large consumers by offering cost-effective power procurement options.
3. Renewable Energy Integration
   • Open access consumers opting for renewable energy sources may receive additional incentives or exemptions under the revised framework.
   • This aligns with India’s Renewable Purchase Obligations (RPOs) and supports Uttar Pradesh’s clean energy transition.
4. Revised Scheduling and Banking Mechanisms
   • The amendment modifies the scheduling process for open access consumers, ensuring better grid stability.
   • It also introduces updated banking provisions, allowing consumers to store surplus renewable power and use it when needed.
5. Stricter Compliance and Penalties
   • The regulatory framework now includes stricter compliance requirements for DISCOMs and consumers to ensure smooth implementation.
   • Non-compliance with open access norms could attract penalties, promoting accountability in the power sector.

The amendment is expected to boost industrial competitiveness by allowing large consumers to procure cheaper and more reliable power. Additionally, renewable energy developers will benefit from clearer guidelines, potentially increasing investments in solar, wind, and hybrid energy projects within Uttar Pradesh.