CERC Finalises 5th Amendment For Deviation Settlement Mechanism

The commission has accepted all the proposals put forward in the draft fifth amendment of the deviation settlement mechanism regulations.

The Central Electricity Regulatory Commission (CERC) has finalised the fifth amendment to its deviation settlement mechanism regulations. The CERC (Deviation Settlement Mechanism and related matters) (Fifth Amendment) Regulations, 2019, will come into effect from June 3, 2019.

The commission has accepted all the proposals put forward in the draft fifth amendment regulations. In the fifth draft amendment to the deviation settlement mechanism regulations, the commission included two new clauses, (1) Daily Base DSM and (2) Time Block DSM.

“Daily Base DSM Charge” means the sum of charges for deviations for all time blocks in a day payable or receivable excluding the additional charges. And the “Time block DSM Charge” indicates the charge for deviation for the specific time block in a day payable or receivable excluding the additional charges.

Another key amendment made by the commission to the principal regulations was that, in addition to charges for deviation as stipulated under these regulations, Additional charge for deviation shall be applicable for over-injection/under-drawal of electricity for each time block by a buyer/seller as the case may be when grid frequency is ’50.10 Hz and above’ at the rates equivalent to charges of deviation corresponding to the grid frequency of ‘below 50.01 Hz but not below 50.0 Hz’, or cap rate for deviation of 303.04 Paise/kWh whichever is lower.

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Recently, the commission had issued draft regulations for the Power System Development Fund. The proposed regulations deal with the creation of a power system development fund and its implementation, with the objective of tackling the issue of the country’s power sector grappling with transmission related issues.

Earlier, the commission announced that it had found the Average Power Purchase Cost (APPC) at the national level to be Rs 3.60/kWh for the financial year 2019/20. The commission calculated the national APPC by computing the average of APPC of all States and Union Territories, weighted by volume of conventional power purchased by the respective State/UT.