The Central Electricity Regulatory Commission (CERC) has issued suo-moto directions in the interest of grid security, in pursuance of the provisions of the Electricity Act, 2003 and the provisions of the CERC (Deviation Settlement Mechanism (DSM) and Related Matters) Regulations, 2022.
Based on the operational feedback received for the first two weeks of implementation of the DSM regulations 2022, it is observed that while the number of frequency excursions has decreased, the frequency fluctuations reflected in terms of percentage of time the system frequency remaining outside the operative band have increased by almost 20 per cent. Though prime facie, the grid connected entities are trying to adhere to their schedule, there may be a tendency to overschedule so as to avoid payment of deviation charge for over-drawal or under-injection. The combined effect of this tendency has resulted in the system frequency remaining high for a significant amount of time.
The commission has decided that the normal rate of charges for deviations for a time block as specified in Regulation 7 of the DSM Regulations, 2022 will be subject to the cap of Rs 12 per kWh, until further orders.
In cases where the system frequency is at 50.05 hz or above in a time-block, the general seller other than an run-of-river (ROR) generating station or a generating station based on municipal solid waste will be paid at zero, for deviation by way of over injection in such time-block. In addition, the general seller other than an ROR generating station or a generating station based on municipal solid waste will pay back for the shortfall in energy against its schedule in any time block due to under injection at 50 per cent of the reference charge rate. Further, the buyer will be paid back at zero, for deviation by way of under-drawal in such time-block.
In case where the system frequency is at 49.90 hz or below in a time-block, the general seller other than an ROR generating station or a generating station based on municipal solid waste will be paid back at 150 per cent of reference charge rate for deviation by way over injection in such time block.