Draft Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024

May 03, 2024 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Central Electricity Regulatory Commission (CERC) on April 30, 2024, notified the Draft Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024.

The following has been stated namely: -

• It aims to ensure, through a commercial mechanism, that grid users do not deviate from and adhere to their schedule of drawal and injection of electricity in the interest of security and stability of the grid.

• It shall apply to all grid connected regional entities and other entities engaged in inter-State purchase and sale of electricity.

• It specifies the charges for deviation, in respect of 

o a general seller other than an RoR generating station or a generating station based on municipal solid waste or WS seller,

o a general seller being an RoR generating station, without any linkage to grid frequency,

o a general seller being a generating station based on municipal solid waste, without any linkage to grid frequency,

o a WS Seller being a generating station based on wind or solar or hybrid of wind-solar resources, including such generating stations aggregated at a pooling station through QCA,

• It states that by every Thursday, Regional Load Despatch Centres shall maintain  and operate the Deviation and Ancillary Service Pool Account for the respective region, as per regulatory guidelines.

• It states that the concerned regional entity shall prioritize payment of deviation charges, settling due amounts within 7 days of the statement's issuance by the Regional Power Committee; otherwise, a late payment surcharge of 0.04% per day applies for delays.

The Objections or suggestions, if any, with respect to these draft regulations shall be taken into consideration on or before May 24, 2024, and may be sent to the “Secretary, Central Electricity Regulatory Commission, 3rd & 4th Floor, Chanderlok Building, 36, Janpath, New Delhi -110001” or Email at [email protected] and [email protected]

[Notification no . - L-1/260/2021/CERC]


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