The Rajasthan Electricity Regulatory Commission (RERC) has approved an aggregate revenue requirement (ARR) of ₹356.6 million (~$3.9 million) for the State Load Despatch Centre (SLDC) for the financial year (FY) 2026–27. This amount is lower than the ₹477.7 million (~$5.2 million) requested in the petition.

The approved charges are ₹1.4426/kW/month for state distribution companies and long- and medium-term open access customers. The charge for short-term open access transactions is ₹0.0474/kW/day.

The tariff will be applicable from April 1, 2026, to March 31, 2027, and will continue provisionally thereafter until the Commission issues the next order. For short-term open access transactions, no retrospective adjustment of SLDC charges will apply.

The Commission also completed the true-up of accounts for FY 2024–25 based on audited financial data. It approved an ARR of ₹289.6 million (~$3.2 million) against revenue of ₹305.4 million (~$3.3 million), resulting in a surplus of ₹15.8 million (~$172,000).

In a separate order on the investment plan for FY 2026–27, the Commission approved capital investment of ₹6.3 million (~$68,500) against the ₹100 million (~$1.1 million) proposed by the petitioner.

The regulator declined to rule on return on equity at this stage because government approval was not submitted. The order states that return on equity may be considered at the time of true-up if the required approval is produced.

Background

The Rajasthan State Load Despatch Centre filed a petition on December 4, 2025, seeking approval of the true-up for FY 2024–25, as well as the annual revenue requirement and SLDC charges for FY 2026–27. The petition was filed under the Electricity Act 2003 and the applicable RERC Tariff Regulations.

The Commission communicated several data gaps and deficiencies to the petitioner, and additional information was subsequently submitted. Hearings were conducted on January 22, 2026, and February 18, 2026, after which the order was reserved.

The petitioner proposed a total ARR of ₹477.7 million (~$5.2 million) for FY 2026–27. The filing included claims for operation and maintenance expenses, RLDC fees, interest on working capital, depreciation, interest on term loans, and return on equity.

The petitioner also projected a peak demand of 22,212 MW for FY 2026–27 to determine SLDC charges.

Stakeholders raised several issues during the consultation process. These included concerns regarding the recovery of return on equity without government approval, questions about whether certain expenditures should be treated as capital expenditure or operation and maintenance expenses, and observations regarding the utilisation of previously approved investment programs. Concerns were also raised regarding SLDC’s institutional independence from the state transmission utility.

In a separate petition, the SLDC sought approval for a ₹100 million (~$1.1 million) capital investment plan for FY 2026–27. The proposal included the establishment of a Security Operation Centre and Network Operation Centre, installation of automatic power factor correction panels at the Heerapura facility, and certain infrastructure augmentation works.

Commission’s Analysis

While determining the ARR for FY 2026–27, the Commission examined each component of the revenue requirement claimed by the petitioner. After prudence checks the Commission approved operation and maintenance expenses of ₹246.4 million (~$2.7 million), RLDC fees of ₹86.9 million (~$945,000), interest on working capital of ₹11.9 million (~$129,000), depreciation of ₹14.4 million (~$157,000), and interest on term loans and finance charges of ₹5.4 million (~$58,700). The Commission also considered the non-tariff income of ₹8.4 million (~$91,400) while determining the revenue requirement.

The Commission did not allow the claim for return on equity because government approval was not submitted in this case. It stated that the matter could be considered during the true-up if the required approval is obtained.

In determining SLDC charges, the Commission examined the demand projections submitted by the petitioner. The petitioner projected a peak demand of 22,212 MW for FY2026–27. The Commission noted that the actual peak demand achieved to date of filing in FY2025–26 was 19,617 MW. After applying a 5% escalation, it considered 20,598 MW as the contracted capacity for tariff calculation.

The Commission also carried out the true-up of accounts for FY 2024–25 in accordance with the applicable tariff regulations using audited financial data. Based on this analysis, it approved an ARR of ₹289.6 million (~$3.2 million) against revenue of ₹305.4 million (~$3.3 million), resulting in a revenue surplus of ₹15.8 million (~$172,000).

In the separate investment approval proceeding, the Commission examined the proposed capital investment programs for FY 2026–27. The petitioner had proposed an investment plan of ₹100 million (~$1.1 million) that included ₹88.2 million (~$960,000) for establishing a Security Operation Centre and Network Operation Centre, ₹1.8 million (~$19,600) for automatic power factor correction panels at the SLDC facility, and ₹10 million (~$108,800) for infrastructure augmentation works.

The Commission approved ₹6.3 million (~$68,500) of the proposed investments. This includes ₹1.8 million (~$19,600) for the installation of automatic power factor correction panels and ₹4.5

The Commission directed that if actual investment under any approved program exceeds the approved amount, the SLDC must justify it. It also granted in-principle approval for the hypothecation of assets created under the approved programs to secure loans, and directed the SLDC to submit copies of the hypothecation agreements within one month of execution.

The Commission recently issued the draft Framework for Resource Adequacy Regulations, 2026, proposing a structured mechanism for resource adequacy planning to support future power security in the state.

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