The Central Electricity Regulatory Commission (CERC) has issued a suo moto order on the rate of congestion charge in real-time operation in the inter-state transmission of electricity.
The draft has proposed to replace the long-standing fixed congestion charge with a dynamic framework under which the charge would be computed as 1.5 times the applicable deviation settlement mechanism-based rate for the relevant time block, subject to a floor of Rs 3 per kWh and a ceiling of Rs 10 per kWh. The proposal has been brought in against the backdrop of changes in the power market, including the shift from the unscheduled interchange regime to the deviation settlement mechanism framework, growth in renewable energy capacity and the expansion of market-based scheduling and dispatch mechanisms. The draft also retained the principle that congestion charges will continue to apply in addition to deviation charges for entities responsible for congestion in real-time inter-state transmission operations, while cases arising from forced outages in transmission corridors after schedules have been finalised will remain exempt.