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State of Gujarat - Act

Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012

GUJARAT
India

Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012

Act 1 of 2012

Published on 8 May 2012
Commenced on 8 May 2012
[This is the version of this document from 8 May 2012.]
[Note: The original publication document is not available and this content could not be verified.]

Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012Published vide Notification No. 1 of 2012, dated 8.5.2012Last Updated 11th June, 2019Notification No. 1 of 2012. - Gujarat Electricity Regulatory Commission, in exercise of the powers conferred by clause (zp) of sub-section (2) of section 181 of the Electricity Act, 2003 (36 of 2003), hereby makes the following regulations, namely, the Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012.

Chapter 1
General

1. Short Title, extent and Commencement.

- 1.1. These Regulations may be called the "Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012".

1.2These Regulations shall be applicable to the Distribution Licensees in the State of Gujarat in their respective areas of supply.

1.3These Regulations shall come into force from the date of its notification in the Official Gazette.

2. Definitions.

- 2.1. In these Regulations, unless the context otherwise requires:i. "Act" means the Electricity Act, 2003 (36 of 2003);ii. "Baseline data" means the initial base level consumption and/or demand for electricity before a Demand Side Management (DSM) programme begins to provide a starting point for comparison for assessing programme impact;iii. "Bureau" means the Bureau of Energy Efficiency established under sub-section (1) of Section 2 of The Energy Conservation Act, 2001iv. "Commission" means the Gujarat Electricity Regulatory Commission constituted under sub-section (1) of Section 82 of the Act;v. "Cost Effectiveness Index" means an indicator of the attractiveness of any investment in DSM programme or when compared to the costs of energy produced and delivered in the absence of such an investment.vi. "Demand Side Management" means the actions of a Distribution Licensee, beyond the point of supply, with the objective of altering the end-use of electricity - whether it is to increase demand, decrease it, shift it between high and low peak periods, or manage it when there are intermittent load demands - in the overall interests of reducing Distribution Licensee costs.vii. "DSM Resource Acquisition" means a mechanism to implement DSM projects through customers, Energy Service Companies, Non-Government Organisations, manufacturers / suppliers, or other private sector organizations, with payment or any other support made to them by the Distribution Licensee for the resultant energy and load reductionsviii. "Energy Services Company" means a company which is in the business of providing energy efficient and load management equipment and/or services to end-use customers and is approved by Bureauix. "Evaluation, Measurement and Verification" means activities which evaluate, measure and verify performance or other aspects of DSM/energy efficiency programs or their market environmentx. "Monitoring and Reporting" means activities which monitor and evaluate the progress of DSM/energy efficiency programs of the Distribution Licensee xi. Unless otherwise agreed to, the "Point of Supply" shall be the incoming terminal of the cut-out installed by the consumer, i.e.

(a)Meters/switches installed at the Consumer's Premises in case of LT Consumers;

(b)Control switch-gears that may be installed in the Consumer's Premises as provided subject to provision of this code in case of HT and EHT Consumers.

Chapter 2
DSM Objectives, Targets and Guidelines

3. DSM Objectives.

- 3.1. The Commission shall formulate DSM objectives that shall be considered in the advancement and implementation of cost effective DSM initiatives in the State. The objectives may include power shortage mitigation, seasonal peak reduction, cost effective energy savings, lowering the cost of electricity, reduction in emissions of greenhouse gases etc.

3.2While formulating the DSM Objectives, the Commission may take into consideration the National DSM Objectives / Plans formulated by Bureau, if any.

3.3The DSM objectives may be consistent with the DSM objectives set out by Bureau as a part of Energy Conservation Plan for the country.

4. Assessment of technical potential for DSM.

- 4.1. The Distribution Licensees in the State shall carry out assessment of potential for DSM in their license area one year before the start of every MYT Control Period. Notwithstanding the above provision, the first assessment of technical potential for DSM shall be carried out within twelve months of the notification of these Regulations.

4.2The Distribution Licensee shall be guided by methodology developed by Bureau while assessing of technical potential for DSM.

5. DSM Targets.

- 5.1. The Commission shall establish DSM targets for each Distribution Licensee in the State.

5.2While setting DSM target for the Distribution Licensee, the Commission will give due consideration to factors such as consumer mix, load profile, etc.

5.3Examples of DSM targets may include the following:• Percentage reductions in load growth;• Savings in kW, kWh;• Savings as a percent of total resources to meet load;

5.4While establishing the targets, the Commission shall consider the technical potential in the State as assessed

6. Guidelines on DSM process.

- 6.1. The Commission shall issue guidelines to guide the Distribution Licensee in execution of the following activitiesi. Load and Market Researchii. Implementation of DSM programmesiii. Cost Effectiveness Assessment of DSM programmesiv. Monitoring and Reporting of DSM Plans and programmesv. Eligibility criteria for DSM programmesvi. Methodology for setting DSM targets and funding levelsvii. Database development framework

6.2The Commission shall issue guidelines on these matters from time to time

6.3Issuance of such guidelines shall not be a pre-requisite for preparation and submission of the first DSM plan by the Distribution Licensee

Chapter 3
DSM Cell

7. Constitution of DSM Cell, its roles & responsibilities.

- 7.1. Every Distribution Licensee shall constitute a DSM Cell within one month of notification of these regulations.The DSM Cell shall comprise the Staff as under;• One officer not below the rank of Superintending Engineer• Two Officers not below the rank of Deputy Engineer• Five officers not below the rank of Junior Engineer.• Three members of clerical staff.Provided that the composition and size of the cell may vary with approval of the Commission.

7.2The DSM Cell so constituted shall be provided with necessary authority and resources so as to execute the functions assigned to it under these Regulations

7.3The DSM Cell shall be responsible for:i. Load Research and development of baseline dataii. Formulation of DSM Planiii. Design and development of DSM projects including cost benefit analysis, plans for implementation, monitoring and reporting and for measurement and verificationiv. Seeking necessary approvals to DSM Plan and individual programmesv. Implementation of DSM programmesvi. Any other additional function that may be assigned by the Commission from time to time

Chapter 4
DSM Process

8. Load and market research and development of baseline data.

- 8.1. Distribution Licensee shall undertake load research to identify the target consumer segment/s and end uses for DSM programmes to build the necessary database

8.2Distribution Licensee shall undertake market research to estimate market potential for specific energy efficiency technologies and applications, establish key performance indicators, and determine existing baseline market conditions

8.3On the basis of the results of load and market research, the Distribution Licensee shall develop baseline data for its area of supply

8.4Distribution Licensee shall design, develop and implement the initial DSM programmes on the basis of available data and studies completed by Bureau till the complete baseline data is available for its area of supply and establishment of base line data shall not be a pre-requisite for design of such initial DSM programmes by the Distribution Licensees.

9. Formulation of DSM Plan.

- 9.1. Distribution Licensee shall formulate and submit to the Commission a perspective DSM Plan covering period of the control period, within one year of notification of these regulations. The Plan shall includei. An overall goal for DSM Planii. Description of DSM programmes to form a part of DSM Planiii. Implementation process and schedule of each programme in the plan as a wholeiv. Plan for Monitoring and Reportingv. Indicative cost effectiveness assessment of programmesNotwithstanding the above, the first DSM Plan shall be prepared within one year of the date of these Regulations and shall be for the period till the end of on-going MYT Control Period.

9.2The Distribution Licensee shall include all relevant DSM programmes (including multi-state programmes) developed by Bureau in its perspective plan as and when such programmes are announced by Bureau.

9.3The Distribution Licensee shall submit on rolling basis, an annual plan, not inconsistent with the perspective plan, for upcoming year, along with the Annual Tariff Petitions.

9.4Selection and prioritisation of various DSM programmes in the DSM Plan shall be guided by the following factors:i. The Cost effectiveness guidelines issued by the Commissionii. DSM Objectives identified in Regulation 3iii. Whether the proposed programmes supplement National level efforts adopted by the Bureauiv. Programmes with high visibility and therefore potential for creation of awareness within consumers

10. Review and approval of DSM plan by the Commission.

- 10.1. Distribution Licensee shall submit the DSM Plan to the Commission for approval within 6 months of technical potential available for the first time, and afterwards before 6 months of the filing of MYT Petition

10.2The Commission may adopt procedures as specified in the Conduct of Business Regulations for according approval to the DSM Plan

11. Preparation of DSM Programme Document.

- 11.1. For each DSM programme included in the DSM Plan, a detailed description shall be provided in a separate Programme Document. The description shall include general information, technology, schedule for deployment, budget, cost effectiveness assessment, detailed implementation plan, estimation of savings, etc.

11.2For each DSM programme cost benefit analysis shall be carried out as per the guidelines (guidelines to be checked) issued by the Commission on Cost effectiveness from time to time.

12. Approval of DSM Programme Document.

- 12.1. Prior to implementing any DSM programme, the Distribution Licensee must obtain approval of the Commission.

12.2Each Programme Document shall include the following:i. Description of the programme;ii. Objectives and rationale for the programme;iii. Consumer segments and estimated level of participation;iv. Estimate of baseline;v. Assessment of programme in line with Cost Effectiveness Guidelines issued by the Commissionvi. Mechanism for recovery of cost and performance incentives;vii. Marketing, delivery strategy and Implementation schedule;viii. Implementation mechanism e.g. Energy Service Companies, Bidding for DSM Projects, DSM Resource Acquisition, etcix. Monitoring and evaluation plan;x. Plan for Training/Seminars/Workshops to increase consumer awareness

12.3The Commission shall approve a DSM program if it is in line with the Objectives set out in Section 3 of the Regulations. The Commission may direct modifications to proposed or on-going programmes to ensure consistency with the DSM Objectives. However, the Commission shall allow Distribution Licensee adequate time to notify consumers of program modification.

13. Implementation of DSM programmes.

- 13.1. Distribution Licensee shall undertake implementation of DSM programmes in line with the guidelines issued by the Commission from time to time

13.2The implementation of the programme shall be undertaken in the manner as approved by the Commission

13.3Distribution Licensee shall undertake implementation of quick gain DSM programmes

13.4Distribution Licensee shall carry out implementation of activities assigned to it either by itself or through appropriate independent entity While doing so, the Distribution Licensee shall ensure that continuity and consistency are maintained and interest of the consumers is not compromised

14. Mechanism for Cost Recovery.

- 14.1. Distribution Licensee shall identify the net incremental costs, if any, associated with planning, design and implementation of programmes

14.2Distribution Licensee may propose methodology for recovery of net incremental costs through tariff or any other mechanism

14.3In order to qualify for cost recovery, each program must bei. Approved prior to implementationii. Implemented in accordance with the approved program plan andiii. Implemented cost effectively

14.4Distribution Licensee shall provide all necessary assistance to the Commission, or third party assigned by the Commission in undertaking Evaluation Measurement and Verification of DSM programmes implemented by it.

14.5The Commission may direct the Distribution Licensee to undertake DSM programmes that may not be cost effective but is highly beneficial to the society. The Commission will make available resources for such project.

15. Monitoring and reporting of DSM Programmes.

- 15.1. Distribution Licensee shall prepare plan and undertake monitoring and reporting of DSM programmes as per Guidelines on Monitoring and Reporting issued by Commission from time to time or as approved by the Commission while approving the DSM programme.

16. Evaluation, Measurement and Verification (EMV) of DSM Programme.

- 16.1. Distribution Licensee shall prepare plan for evaluation, measurement and verification of savings from DSM programmes as per Guidelines on Evaluation, Measurement and Verification issued by the Commission from time to time.

16.2Third party Evaluation, Measurement and Verification of DSM programmes may be undertaken by the Commission or a third party assigned by the Commission. While engaging the agency, the Commission shall ensure that the Agency is not undertaking any other engagement that could conflict with the interests of the consumers in the State.

16.3Distribution Licensee shall make available necessary information/data to the Commission or a third party assigned by the Commission to measure and verify the savings from DSM programmes.

Chapter 5
DSM Plan and Programme Completion Report

17.

Reports on progress of DSM Plan and expenses incurred on implementation of DSM Plan shall be submitted by the Distribution Licensee every six months.

18.

The Distribution Licensee will prepare and submit a detailed Program Completion Report and submit the same to the Commission within three month of completion of such programme.

19.

The Report shall cover the programme expenses, achievements, outcomes and outputs, constraints and difficulties faced, conclusions, recommendations, lessons learned and way forward.

Chapter 6
Incentives

20.

The Commission may provide incentives to Distribution Utilities for achieving or exceeding DSM Objectives as identified in Section 3 of the Regulations.

Chapter 7
Miscellaneous

21.

The Commission may, at any time, add, vary, alter, modify or amend any provisions of these regulations.

22.

If any difficulty arises in giving effect to the provisions of these Regulations, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions of the Act, as may appear to be necessary for removing the difficulty.

23.

The Commission may, from time to time, issue orders and directives in regard to the implementation of the regulations and procedures to be followed.

24.

All disputes arising under these regulations shall be decided by the Commission based on an application made by the person aggrieved.

25. Saving of inherent power of the Commission.

- 25.1 Nothing in these Regulations shall be deemed to limit or otherwise affect the inherent power of the Commission to make such orders as may be necessary for ends of justice or to prevent the abuse of the process of the Commission.

25.2Nothing in these Regulations shall bar the Commission from adopting in conformity with the provisions of the Acts, a procedure, which is at variance with any of the provisions of these Regulations, if the Commission, in view of the special circumstances of a matter or class of matters and for reasons to be recorded in writing, deems it necessary or expedient for dealing with such a matter or class of matters.

25.3Nothing in these Regulations shall, expressly or impliedly, bar the Commission to deal with any matter or exercise any power under the Acts for which no Regulations have been framed, and the Commission may deal with such matters, powers and functions in a manner it thinks fit.

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