Background
UERC (Terms and Conditions of Intra-State Open Access) Regulations, 2015 establish the framework for providing and regulating open access to the intra-State transmission and distribution systems in Uttarakhand, in accordance with Sections 39 and 42(2) of the Electricity Act, 2003. The Regulations govern the complete open access lifecycle, including connectivity, application and approval, scheduling, metering, applicable charges, billing, payment, deviation settlement and relinquishment. They provide for Long-Term, Medium-Term and Short-Term Open Access, with separate procedures and charge structures. Transactions involving inter-State transmission are additionally governed by the applicable CERC regulations.
Applicability
Regulations apply to generating companies, captive generating plants, licensees and eligible open access consumers using the intra-State transmission or distribution network. Generators and captive plants are required to obtain connectivity and access approvals, execute the prescribed agreements, comply with applicable CEA/Grid Code, metering and scheduling requirements, and pay transmission, SLDC and deviation-related charges. Eligible open access consumers, including consumers with contracted load of 100 kVA or above connected at 11 kV or higher, must obtain the requisite approval, maintain drawal schedules, bear applicable transmission/distribution losses and pay wheeling, cross-subsidy surcharge, additional surcharge and other applicable charges. Distribution licensees are required to provide non-discriminatory connectivity and open access, process applications within prescribed timelines and ensure compliant metering and reporting.
Compliance Requirement Under the act in Accordance with the Rules & Regulations:
Open access consumers must pay the cross-subsidy surcharge as determined by the Commission, in addition to transmission and wheeling charges. The surcharge is calculated on a per-unit basis using the formula: S = T – C, where S is the surcharge, T is the applicable retail tariff for the consumer category, and C is the average cost of supply of the distribution licensee. Consumers availing open access through dedicated lines without using the licensee’s transmission or distribution system, or exclusively through the inter-State transmission system, must also pay the applicable cross-subsidy surcharge. No surcharge applies to energy drawn during power cuts imposed by the distribution licensee, or to captive generating plants supplying electricity for their own use. The surcharge is payable monthly to the distribution licensee based on actual energy drawn through open access.
Consumers receiving electricity from a source other than the area distribution licensee must pay an additional surcharge to the distribution licensee — along with wheeling and cross-subsidy charges — to compensate the licensee for fixed costs incurred in meeting its statutory obligation to supply under Section 42(4) of the Electricity Act, 2003. The additional surcharge applies only where the licensee’s power purchase commitments remain stranded or the licensee is unavoidably required to bear fixed costs under such contracts. Fixed costs relating to network assets are recovered through wheeling charges and not the additional surcharge. The surcharge is determined on a per-unit basis and is payable monthly based on actual energy drawn through open access. No additional surcharge is levied where distribution access is granted to a person operating a captive generating plant for transmitting electricity for their own use.
The distribution licensee must submit to the Commission, on a six-monthly basis, a detailed calculation statement of the fixed costs it is incurring towards its obligation to supply. The Commission scrutinises the statement, invites objections if any, and determines the applicable additional surcharge. Any additional surcharge so determined applies prospectively to all open access consumers.
Where a generator supplying power under open access is unavailable, the distribution licensee shall provide stand-by supply to an open access customer who is not its consumer, subject to applicable load shedding, and may recover charges at the prevailing temporary tariff for the relevant consumer category. Where the open access customer is also a consumer of the distribution licensee, the licensee may charge at the applicable rate schedule for that category. If a generator connected to the distribution system requires start-up power, the rate shall be as applicable to infirm power. An open access customer has the option to arrange stand-by power from any other source.
All open access customers must pay congestion charges and any other charges as and when imposed by the Central Commission and/or the State Commission. These charges apply to all categories of open access customers — long-term, medium-term, and short-term — and must be paid as specified in the respective Commission orders.
All open access customers must abide by the Indian Electricity Grid Code (IEGC) and the State Grid Code as applicable from time to time, and must follow instructions given by the State Transmission Utility and the State Load Despatch Centre. They must also comply with the requirements of the CEA (Technical Standards for Connectivity to the Grid) Regulations, 2007 as amended from time to time.
Embedded open access consumers must schedule for each time block such that the sum of their total schedule and actual drawal from all sources — including through open access and from the distribution licensee — does not exceed their contracted load. Long-term open access may be allowed above the contracted load up to the sanctioned open access capacity. Short-term and medium-term open access may also be allowed above the contracted load up to the sanctioned capacity, subject to the condition that it does not require any change in the voltage system, metering system, or other infrastructure at the interconnection point, and that the resultant power flow can be accommodated in the existing or expected transmission or distribution network.
Embedded open access consumers shall be levied fixed charges or demand charges based on the maximum demand recorded in the ABT meter, as per the tariff applicable from time to time. Where open access is sanctioned above the contracted load under Regulation 26(5), the maximum demand for the purpose of fixed or demand charges shall be computed only in respect of energy supplied by the distribution licensee, i.e., up to contracted capacity, calculated as: Total Maximum Demand Recorded × (Energy Recorded as Supplied by the Distribution Licensee / Total Energy Recorded).
Every open access customer and embedded open access consumer must provide their injection or drawal schedule — as applicable — to the SLDC and the distribution licensee before 10:00 AM every day in respect of the following day’s injection or drawal. This daily scheduling obligation applies for every day during the open access period.
Maintenance and forced outages must be handled in accordance with the State Grid Code. Where a forced outage occurs, the open access customer must inform the SLDC and the distribution licensee within thirty minutes of the outage with details of the outage and the estimated time for rectification. Restoration of the unit or facility must be intimated to the SLDC at least thirty minutes before synchronisation.
All open access customers — both existing and new — including generating stations irrespective of their capacity, must be provided with ABT-compatible Special Energy Meters by the distribution licensee. The cost of such meters is borne by the open access customer.
The distribution licensee must provide a Check Meter of the same specifications as the Main Meter at its own cost. The distribution licensee must install both the Main Meter and the Check Meter within one month from the date on which a complete open access application was submitted by the open access customer to the Nodal Agency with a copy to the distribution licensee.
Special Energy Meters must be capable of time-differentiated measurements for time-block-wise active energy and voltage-differentiated measurement of reactive energy in accordance with the State Grid Code. All Special Energy Meters must be maintained in good condition at all times. Special Energy Meters must be open for inspection by any person authorised by the STU, distribution licensee, or the SLDC.
All open access customers must abide by the metering standards of the Central Electricity Authority (CEA) in respect of all meters installed at their premises for the purpose of open access transactions.
Revision of contract demand for embedded open access consumers availing long-term, medium-term, or short-term open access shall be governed by the UERC (Release of New HT and EHT Connections, Enhancement and Reduction of Loads) Regulations, 2008 and orders issued thereunder. A consumer availing short-term open access shall not be eligible to revise contract demand with the distribution licensee during the tenure of the short-term open access, but may apply for revision at the time of applying for open access. The overall drawal by an embedded open access consumer during the open access period shall not be less than 80% of the overall drawal by such consumer during non-open-access periods for each day.
All open access customers must bear transmission and distribution losses in kind. For inter-State transmission, long-term and medium-term customers bear apportioned energy losses in accordance with Central Commission regulations; for short-term open access, both buyers and sellers bear apportioned losses as specified by the Central Commission. For intra-State transmission, losses as determined by the Commission in its tariff orders for the relevant year are payable in kind by open access customers. System distribution losses, as determined by the Commission in its tariff orders for the relevant year, are also payable in kind by open access customers.
Scheduling of all transactions under long-term access, medium-term open access, or short-term open access must be carried out on a day-ahead basis, in accordance with the relevant provisions of the Indian Electricity Grid Code (IEGC) for inter-State transactions and the State Grid Code for intra-State transactions.
Actual Recorded Energy and Scheduled Energy must be recorded and accounted for in each fifteen-minute time block. Where the open access consumer is not a consumer of the distribution licensee: in case of over-drawal, deviation charges payable by such consumer to the distribution licensee shall be at the average billing rate of HT industry consumers as approved in the Commission’s Tariff Order for the relevant year; in case of under-drawal due to non-availability of the distribution or transmission system, deviation charges payable by the distribution licensee to such consumer shall equal the average power purchase cost of the distribution licensee as projected in the Tariff Order for the relevant year.
Where the open access consumer is also a consumer of the distribution licensee: in case of over-drawal within the contracted load (subject to maximum demand), deviation charges are payable at the applicable tariff rates approved by the Commission in the relevant Tariff Order; in case of over-drawal exceeding the contracted load, deviation charges are payable at the applicable tariff rates along with excess demand charges; in case of under-drawal due to non-availability of the distribution or intra-State transmission system, the consumer shall be compensated by the distribution licensee at its average power purchase cost projected in the relevant Tariff Order.
Where a generator under-injects due to reasons attributable to the generator, deviation charges payable by the generator to the distribution licensee shall be at the average power purchase cost of the distribution licensee as projected in the applicable Tariff Order. Where under-injection is due to non-availability of the distribution or transmission system, the distribution licensee shall pay imbalance charges to the generator at its average power purchase cost. For over-injection by a generator, the distribution licensee shall pay deviation charges at the same average power purchase cost. Where the distribution or transmission system is unavailable due to a force majeure event, the distribution licensee is not liable for imbalance charges. This deviation charge mechanism is an interim arrangement applicable until the intra-State ABT mechanism becomes operational, after which deviations shall be settled through the SLDC’s Deviation Settlement Account in accordance with the Commission’s Deviation Settlement Regulations.
Payment of imbalance charges is of high priority. All concerned constituents — including licensees and open access customers — must pay the indicated amounts into the State Pool Account operated and maintained by the SLDC within ten days of the issue of the statement. If payment is delayed by more than two days beyond the ten-day period (i.e., beyond twelve days from the date of issue of the statement), the defaulting party must pay simple interest at 0.04% per day for each day of delay. Interest collected is paid to the person entitled to receive the delayed payment. Persistent payment defaults must be reported by the SLDC to the Commission for remedial action.
Open access customers — other than embedded open access consumers — must pay reactive energy charges in accordance with the provisions of the Indian Electricity Grid Code (IEGC) and the State Grid Code. After the intra-State ABT mechanism becomes operational, reactive energy charges shall be settled based on the State Reactive Energy Account prepared by the SLDC in accordance with the State Grid Code and Commission orders issued from time to time.
Short-term open access customers connected to the distribution system must pay wheeling charges to the distribution licensee within three days from the grant of short-term open access by the Nodal Agency. For transactions involving the transmission system, short-term open access customers must deposit transmission charges and operating charges with the SLDC within three working days of the grant of short-term open access. Additionally, where such customers are connected to the distribution system, they must also pay wheeling charges to the distribution licensee — through the SLDC — within three days of the grant of open access.
For inter-State long-term and medium-term transactions, bills for charges payable to the STU and SLDC must be raised directly to the open access customer connected to the STU by the 3rd working day of the succeeding calendar month. Such customers must pay bills to the STU and SLDC within five working days of receipt. Where the open access customer is connected to the distribution system, the STU and SLDC raise bills to the distribution licensee by the 3rd working day of the succeeding month; the distribution licensee raises the bill to the open access customer within three days of receipt; and the open access customer must pay within five days of receipt of the bill from the distribution licensee.
For intra-State long-term and medium-term transactions, the SLDC, transmission licensee, and distribution licensee must provide billing details to the STU by the 3rd of the succeeding calendar month. The STU shall raise a consolidated bill to the open access customer by the 5th of that month, and the customer must pay the applicable charges within seven days of receipt of the bill.
Applicants for long-term access or medium-term open access must furnish an unconditional, revolving, and irrevocable Letter of Credit equivalent to the estimated amount of applicable open access charges for a period of two months, in favour of the designated charge-collecting agency. The Letter of Credit must be opened through a scheduled bank at Dehradun.
A long-term access customer may fully or partly relinquish access rights before expiry by paying compensation for stranded transmission or distribution capacity. Customers who have availed long-term access for at least twelve years may relinquish without compensation charges by giving at least one year’s prior notice to the Nodal Agency; if less than one year’s notice is given, they must pay 66% of the estimated net present value (NPV) of open access charges for the period falling short of the one-year notice. Customers who have not yet completed twelve years of access must pay 66% of the estimated NPV of open access charges for the stranded capacity corresponding to the period falling short of twelve years, and must also give at least one year’s notice. If such customers give less than one year’s notice, they must additionally pay 66% of the estimated NPV for the shortfall in the notice period.
A medium-term open access customer may relinquish access rights — fully or partly — by giving at least thirty days’ prior notice to the Nodal Agency. The customer relinquishing their rights must pay applicable open access charges for the period of relinquishment or thirty days, whichever is lesser.
Short-term open access schedules may be cancelled or revised downward on the customer’s request, with effect only after a minimum notice period of two days, excluding the date of notice and the implementation date. The customer must pay applicable transmission and wheeling charges (excluding open access charges) for the first two days of the cancellation or revision period based on the originally approved schedule, and thereafter as per the revised schedule. In case of downward revision — including revision to zero schedule — scheduling and system operation charges are payable for the days power was scheduled. In case of cancellation, operating charges are also payable for two days or the actual cancellation period, whichever is less.
Penalty & Consequences
The following penalty provisions and financial consequences apply across the compliance obligations covered in this blog.
Section 142 of the Electricity Act, 2003 (as amended by the Jan Vishwas (Amendment of Provisions) Act, 2026, with effect from 1st June 2026) — Penalty for Contravention of the Act, Rules, Regulations, or Directions
Any contravention of any provision of the Electricity Act, 2003, or any rule, regulation, direction, or order issued thereunder — including contraventions of the UERC (Terms and Conditions of Intra State Open Access) Regulations, 2015 — may attract: (a) a penalty of not less than ₹10,000 but which may extend to ₹5,00,000 for each contravention; and (b) in the case of a continuing failure, an additional penalty of not less than ₹1,000 but which may extend to ₹10,000 per day during the period of such continuing non-compliance.
Section 146 of the Electricity Act, 2003 — Penalty for Failure to Comply with Orders or Directions
Whoever fails to comply with any order or direction given under the Electricity Act, 2003 within the time specified therein, or contravenes, attempts, or abets the contravention of any provision of the Act or any rule or regulation made thereunder, shall be punishable with a fine of not less than ₹10,000 but which may extend to ₹10,00,000 in respect of each offence. In the case of a continuing failure, an additional fine of not less than ₹1,000 but which may extend to ₹50,000 for every day during which the failure continues after conviction of the first offence shall also be imposed.
Regulation 33 — Late Payment Surcharge
Where payment of any bill for charges payable under these Regulations is delayed by an open access customer beyond the due date, a late payment surcharge at the rate of 1.25% per month shall be levied on the outstanding amount, without prejudice to any other action available under the Electricity Act, 2003 or any regulation thereunder.
Regulation 34 — Consequences of Default in Payment
Non-payment of any charge or sum of money payable by the open access customer under these Regulations shall constitute non-compliance of these Regulations. The STU and/or distribution licensee may discontinue open access after giving the customer fifteen days’ advance notice, without prejudice to its right to recover such charges by suit. In the case of default in payment of charges due to the RLDC and/or SLDC, the concerned Load Despatch Centre may refuse to schedule power for the defaulting open access customer and may direct the concerned licensee to disconnect such customer from the grid.
Regulation 30(5) — Interest on Delayed Payment of Imbalance Charges
If payment of imbalance charges is delayed by more than two days beyond the ten-day payment window (i.e., beyond twelve days from the date of issue of the statement), the defaulting party must pay simple interest at the rate of 0.04% per day for each day of delay. The interest collected is paid to the person entitled to receive the delayed payment. Persistent payment defaults must be reported by the SLDC to the Commission for remedial action.
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