CERC Relaxes Rules to Address Impending Power Shortages

The Central Electricity Regulatory Commission (CERC) has relaxed the rules governing the sale of electricity by generating companies to increase power availability. The new rules allow generating companies to sell un-requisitioned power in the day-ahead market without the beneficiaries’ consent. It is a departure from the previous rules, which required the beneficiaries’ consent before the generating company could sell the power.

The CERC has taken this step in response to the recent power shortage in India. Several factors, including rising demand, lower-than-expected coal production, and unplanned outages at power plants have caused the shortage. The new rules are intended to help address the shortage by increasing the availability of electricity.

Under the new rules, generating companies must inform the beneficiaries of their intention to sell un-requisitioned power in the day-ahead market. However, the beneficiaries will not be able to prevent the sale. The beneficiaries can still schedule the power if it is still available after the sale.

The CERC has also directed the State Load Dispatch Centres (SLDCs) to provide drawl schedules to the Regional Load Dispatch Centres (RLDCs) by 10 am on the day ahead basis. It is earlier than the previous deadline of 3 pm. The earlier deadline was not being met by many SLDCs, which contributed to the power shortage.

CERC further divulged that the power sold in the day ahead market by the generating company should not be allowed to be scheduled by the original beneficiary(ies). However, any power remaining unsold in a generating station after the day ahead market results may be requisitioned by the beneficiary(ies).

The sharing of gains from the sale of un-requisitioned power by the generating station shall be governed by the LPS Rules.

The CERC said that the new directions are necessary to ensure maximum generation capacity availability and prevent load shedding. The commission also directed Grid-India to give wide circulation to the order, including posting it on its website for information and necessary action of stakeholders.