Section 5(2) in Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2014
(2)[The Charge for Deviation, except for wind and solar generators which are regional entities, shall be determined in accordance with the following methodology] [Substituted 'The Charge for Deviation shall be determined in accordance with the following methodology' by Notification No. 1/14/2015-Reg. Aff. (FSDS) (ii)CERC, dated 7.8.2015 (w.e.f. 6.1.2014).]:(a)The Charge for Deviation shall be zero at grid frequency of 50.05 Hz and above.(b)[ The Charge for Deviation corresponding to grid frequency interval of 'below 50.01 Hz and not below 50.0 Hz' shall be daily average Area Clearing Price discovered in the Day-Ahead Market (DAM) segment of Power Exchange. The daily simple average ACP of the Power Exchange having a market share of 80% or more in energy terms on a daily basis shall be used for linking to the DSM price. If no single Power Exchange is having a market share of 80% or more, the weighted average daily simple average ACP shall be considered] [Substituted by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).](c)The Deviation Price Vectors shall accordingly, be in steps for a frequency interval of 0.01 Hz between grid frequency of (i) 50.05 Hz and 'below 50.01 Hz and not below 50.0 Hz' and (ii) 'below 50.01 Hz and not below 50.0 Hz' and '[below 49.85 Hz] [Substituted 'below 49.70 Hz' by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).].(d)[ The Charge for Deviation at grid frequency 'below 49.85 Hz' shall be 800 Paise/KWh.] [Substituted by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).](e)[ The charges for inter-regional deviation and for deviation in respect of cross-border transactions shall be computed on the basis of the unconstrained market clearing price in Day Ahead Market. [Inserted by Notification No. L-1/132/2013-CERC, dated 28.5.2019.](f)The charges for deviation in respect of an entity falling in different bid areas, shall be computed on the basis of the daily average ACP of the bid area in which such entity has largest proportion of its demand.]
