Draft Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) (Fifth Amendment) Regulations, 2019

Apr 22, 2019 | by Avantis RegTech Legal Research Team


The Central Electricity Regulatory Commission (CERC) on April 18, 2019, has published Draft Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) (Fifth Amendment) Regulations, 2019, in order to further amend Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014. These Regulations will come into force with effect from the date of notification in the official gazette.

 The following amendments are:

•In Regulation 2(1), a new sub-clause (gb) and (qa) has been added :

Regulation 2(1)(gb):  “Daily Base DSM” means the sum of charges for deviations for all time blocks in a day payable or receivable as the case may be, excluding the additional charges under Regulation 7.

Regulation 2(1)(qa):  “Time Block DSM” means the charge for deviation for the specific time block in a day payable or receivable as the case may be, excluding the additional charges under Regulation 7.

•In Regulation 5(2) which specifies ‘Charges for Deviations’, a new sub-clauses (e) and (f) have been added.

(e) The charges for inter-regional deviation and for deviation in respect of cross-border transactions shall be computed on the basis of the unconstrained market clearing price in Day Ahead Market. 

(f) The charges for deviation in respect of an entity falling in different bid areas, shall be computed on the basis of the daily average ACP of the bid area in which such entity has largest proportion of its demand.

•Regulation 5(3) has been substituted with:

The Cap rate for the charges for deviation for the generating stations, irrespective of the fuel type and whether the tariff of such generating station is regulated by the Commission or not, shall not exceed 303.04 Paise/kWh.

•In Regulation 7 which specifies ‘Limits on Deviation volume and consequences of crossing limits’, amendments has been made.

•In Annexure-I which specifies ‘Methodologies for the computation of Charges of Deviation for each regional entity for crossing the volume limits specified for the over-drawal / under-injection by Buyer / Seller [except Renewable Rich State]’, amendments has been made.

[Draft Notification No. L-1/132/2013-CERC]

Click here to download the draft Notification.


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