The Uttarakhand Electricity Regulatory Commission (UERC) has rejected a review petition filed by UJVN Ltd., upholding its earlier decision on trading margins for renewable energy projects and Battery Energy Storage Systems (BESS). The order was issued by a bench comprising Chairman M.L. Prasad, Member (Law) Anurag Sharma, and Member (Technical) Prabhat Kishor Dimri.
The dispute arose from UERC’s Second Amendment to the Renewable Energy Regulations, notified in November 2025. Under the amended regulations, the commission fixed a trading margin of 4% of the lowest discovered bid tariff for solar power projects and Rs. 0.05 per unit for standalone BESS projects.
UJVN Ltd. had argued that these margins were insufficient to meet the costs involved in acting as an intermediary and implementing agency. It said its responsibilities extended beyond power trading and included identifying land, preparing Detailed Project Reports, securing statutory approvals, coordinating project development, and monitoring projects over their operational periods. These responsibilities could continue for 25 years for solar projects and 12 years for BESS projects.
The utility also referred to Ministry of Power guidelines, which provide for a higher trading margin of 7 paise per unit or 0.5% of capacity charges. UJVN stated that, in a representative 150 MWh BESS project, the existing 5 paise per unit margin would generate less than Rs. 0.60 crore annually, while its operational expenses could exceed Rs. 1 crore.
UERC had earlier issued an order on January 6, 2026, accepting the conversion of capacity charges for determining the ceiling tariff for BESS projects but declining to change the prescribed trading margins. UJVN subsequently sought a review of that decision.
Uttarakhand Power Corporation Ltd. (UPCL), the respondent, opposed the review petition. It argued that UJVN was attempting to reopen issues already decided by the commission. According to UPCL, review proceedings are limited to correcting errors apparent on the record or considering newly discovered evidence and cannot be used as an appeal.
UERC first condoned a 33-day delay in filing the review petition, citing UJVN’s internal administrative procedures as sufficient cause. However, the commission rejected the petition on its merits.
The commission noted that the trading margins were established through formal regulatory provisions and were not independently determined in the January 2026 order. Therefore, a review petition could not be used to modify the regulations. Any change to the prescribed margins would require a formal regulatory amendment process, including stakeholder consultation.
UERC also observed that the Ministry of Power guidelines had already been considered while framing the 2025 regulations. Finding no apparent error, new material, or other grounds for review, the commission dismissed UJVN Ltd.’s petition as non-maintainable and without merit. The decision leaves the existing trading margins for solar and standalone BESS projects unchanged in Uttarakhand.
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