Section 33 in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
33. Power Exchange Congestion Amount management.
- (i) The Power Exchange may be vested with Congestion Amounts arising from the difference in market prices of different regions as a consequence of market splitting.The Congestion Amount shall be maintained in a separate account by the Power Exchange to be transferred on the next working day to a regulatory fund as may be directed by the Commission.Provided that until the time the aforesaid fund is created congestion amount shall be transferred to National Load Despatch Centre account and once such a fund is created the NLDC shall transfer the congestion amount in favour of such fund.(ii)Congestion Amount Fund shall be utilised in accordance with the directions of the Commission. The Commission may consider utilisation of the fund for the following purposes:-(a)Installation of VAR compensators, series compensators and other reactive energy generators(b)Additional transmission capacity creation for relieving congestion(c)To undertake technical study of the grid for congestion reduction(d)The Congestion Amount Fund may be parked with a financial institution for grant of loans at concessional rates to projects specific to congestion reduction in the grid.(e)To undertake capacity building measures and training of participants of Power Exchanges(f)To develop information dissemination mechanism for the participants of Power Exchanges(iii)The Central Transmission Utility, National Load Despatch Centre or Power Exchanges can approach the Commission with specific proposals in line with the above mentioned purposes for utilisation from the Congestion Amount Fund.
