MPERC Issues Standard Operating Procedure For Banking Of Power In The State Of Madhya Pradesh

The Madhya Pradesh Electricity Regulatory Commission (“MPERC”) vide its Order dated 17.08.2026¹ has issued the Standard Operating Procedure (“SOP”) for Banking of Power for Green Energy Open Access Consumers (“GEOA Consumers”) in the State of Madhya Pradesh. The SOP has been introduced to establish a standardised and transparent framework for the banking of surplus renewable energy by GEOA consumers in Madhya Pradesh.

The key highlights of the SOP are as follows:

1. Applicability: The SOP applies to all GEOA Consumers as defined under the MPERC (Methodology for Determination of Open Access Charges and Banking Charges for Green Energy Open Access Consumers) Regulations, 2023 who are connected to the intra-State transmission and/or distribution system in Madhya Pradesh and intend to avail the banking facility.
2. Application for Banking:
   1. Long-Term Open Access and Medium-Term Open Access Consumers: An application for banking is required to be submitted to the concerned distribution licensee at least 15 days prior to the proposed commencement of banking. The application is required to be accompanied by the relevant authorisation, connectivity agreement, PP&WA and Power Purchase Agreement/ Power Sale Agreement, meter testing/ calibration reports for the 0.2S class ABT meters, no objection certificates from the concerned generator, where applicable, and a no-dues certificate issued by the concerned distribution licensee.
   2. Short-Term Open Access Consumers: The banking application is required to be submitted concurrently with the short-term open access application. The applicant must also have obtained the requisite connectivity approvals and open access permission from the designated nodal agency.
3. Banking Cycle and Carry Forward: The SOP provides that the eligible GEOA Consumers may bank surplus energy with the distribution licensee on a monthly basis throughout the year. Energy banked in a month may be utilised during the immediately succeeding 2 months. Each banking cycle shall automatically expire upon completion of the 3 month period and any surplus banked energy remaining unutilised at the end of the banking cycle shall ordinarily lapse and shall not be carried forward to a subsequent banking cycle. However, the GEOA Consumer may once in a financial year, request an extension of any single banking cycle, subject to technical feasibility approval and the other conditions prescribed under the SOP.
4. Determination of Banked Energy: The distribution licensee shall determine the quantum of banked energy on a monthly basis at the end of each calendar/billing month. The calculation shall be undertaken on a 15-minute time-block basis by comparing the actual energy injected into the grid by the renewable energy generator, after factoring in applicable transmission and distribution losses, with the actual energy consumed by the GEOA Consumer as recorded by the ABT meter installed at the consumer end.
5. 30% Cap on Banked Energy: The SOP stipulates that the quantum of energy that may be banked by a GEOA Consumer in any banking month shall be limited to 30% of the consumer’s total monthly electricity consumption recorded from the concerned distribution licensee, subject to technical feasibility. Where the surplus energy exceeds the 30% limit, the banked energy shall be proportionately reduced across the relevant time blocks, including peak and off-peak periods.
6. Utilisation and Drawl of Banked Energy: The SOP provides that within the first 3 working days of the month immediately following the banking month, the distribution licensee is required to furnish the GEOA Consumer with a detailed statement of the surplus energy banked during the preceding month. The statement must contain 15-minute time block data and separately identify peak and off peak banked energy in accordance with the prevailing time of day structure.
7. Treatment of Peak and Off-Peak Energy: The SOP stipulated that energy banked during peak periods may be utilised during both peak and off-peak periods, whereas off-peak banked energy may be utilised only during off-peak periods.
8. Banking Charges: The SOP prescribes an 8% in kind banking charge, or such other charge as may be determined by MPERC from time to time. The banking charge is an energy-unit deduction and is not a monetary charge. The applicable percentage shall be deducted from the surplus energy calculated in each 15-minute time block, and only the balance shall be credited as banked energy. Separately, additional monetary charges may be levied for the cost of arranging power for return of banked energy, subject to the mechanism prescribed under the SOP.
9. Events of Default: The SOP identifies the following, inter alia, as events of default by a GEOA Consumer:
   1. The occurrence of any material breach, failure, omission or refusal to comply with the obligations under the SOP, non-payment or delayed payment of applicable charges or statutory dues, submission of forged, fabricated, falsified or misleading documents or declarations, or any unauthorised interference with or tampering of metering and telemetry systems shall constitute an event of default.
   2. Further, the commencement of any insolvency, bankruptcy, winding-up or liquidation proceedings against the GEOA Consumer shall also constitute an event of default under the SOP.
10. Termination of Banking Arrangement: The SOP prescribes that on the occurrence of an event of default; the concerned distribution licensee may issue a written notice specifying the nature of the default. The GEOA Consumer shall be provided a 7 (seven) day cure period from receipt of the notice to remedy the default. If the default is not cured within the prescribed period, the banking arrangement may be terminated with immediate effect.
11. Removal of Difficulties: That where the difficulties arise in implementation of the SOP, the Distribution License/ MPPMCL may approach MPERC for review or revision of the procedure with the requisite data.

Footnote

^{1 Standard Operating Procedure for Banking of Power}

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