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Union of India - Section

Section 5 in Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2014

5. Charges for Deviations.

(1)The charges for the Deviations for all the time-blocks shall be payable for over drawal by the buyer and under-injection by the seller and receivable for under-drawal by the buyer [and over-injection by the seller, except for wind and solar generators which are regional entities, and shall be worked out on the average frequency of a time-block at the rates specified in the table below as per the methodology specified in clause (2) of this regulation] [Substituted 'and over-injection by the seller and shall be worked out on the average frequency of a time-block at the rates specified in the table below as per the methodology specified in clause (2) of this regulation' by Notification No. 1/14/2015-Reg. Aff. (FSDS) (ii)CERC, dated 7.8.2015 (w.e.f. 6.1.2014).]:
[Average Frequency of the time block(Hz) [Substituted by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).] Charges for Deviation (Paise/k Wh)
Below Not Below
  50.05 0.0
50.05 50.04 Slope determined by joining the price at NotBelow 50.05 Hz and identified price at 50.00 Hz, and as detailedin the note below this Regulation
50.04 50.03
50.03 50.02
50.02 50.01
50.01 50.00 Daily (simple) average Area Clearing Pricediscovered in the Day Ahead Market segment of power exchange
50.00 49.99 Slope determined by joining the priceidentified at 50.00 Hz and price at below 49.85 Hz, and asdetailed in the note below this Regulation
49.99 49.98
49.98 49.97
49.97 49.96
49.96 49.95
49.95 49.94
49.94 49.93
49.93 49.92
49.92 49.91
49.91 49.90
49.90 49.89
49.89 49.88
49.88 49.87
49.87 49.86
49.86 49.85
49.85   800.00
Note. - i. The Deviation Settlement Mechanism (DSM) rate vector will have a dynamic slope determined by joining the identified price points at 50 Hz. (daily simple average ACP), frequency of 49.85 Hz (Rs. 8 per unit) and 50.05 Hz (zero) on a daily basis.ii. The maximum ceiling limit applicable for average Daily ACP discovered in the DAM segment of Power Exchange at 50.00 Hz shall be 800 Paise/kWh.iii. Charges for deviation for each 0.01 Hz step shall be equivalent to the Slope determined by joining the price at 'Not below 50.05 Hz' and 'identified price at 50.00 Hz' in the frequency range of 50.05-50.00 Hz, and to the Slope determined by joining the 'price identified at 50.00 Hz' and price at 'below 49.85 Hz' in frequency range 'below 50 Hz' to 'below 49.85 Hz'.iv. 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 taken into consideration for linking to the DSM price vector. If no single Power Exchange is having a market share of 80% or more, the weighted average day-ahead price shall be used for linking to the DSM price.v. Daily simple average Area Clearing Prices (ACP) in the day-ahead market (exclusive of any transmission charges and transmission losses) shall be used as the basis for market linked DSM price at 50 Hz.Provided that based on a review of the above mechanism within one year or in such time period as may be decided by the Commission, if the Commission is satisfied that the market conditions permit, the basis for market linked DSM price shall be substituted, by the time-block-wise ACP in the day ahead market or as and when the real time market is introduced, by the hourly ACP or the ACP of such periodicity as may be considered appropriate by the Commission.vi. In case of non-availability of daily simple average ACP due to no-trade on a given day, daily simple average ACP of the last available day shall be considered for determining the DSM charge.vii. Deviation price shall be rounded off to nearest two decimal places.viii. An illustration to the DSM price vector specified in table above, is provided as Annexure-Iix. The National Load Despatch Centre (NLDC) shall act as the Nodal Agency to declare the daily DSM rates and shall display all relevant information on its website.](Charges for deviation for each 0.01 Hz step is equivalent to 35.60 Paise/kWh in the frequency range of 50.05-50.00 Hz, and 20.84 Paise/kWh in frequency range 'below 50 Hz' to 'below 49.70 Hz')Provided that -
(i)[ the charges for the deviation for the generating stations whose tariff is determined by the Commission, when actual injection is higher or lower than the scheduled generation, shall not exceed the Cap Rate as per the methodology specified in clause (3) of Regulation 5 of the Principal Regulations.] [Substituted by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).]
(ii)[ the charges for the deviation for the generating stations other than those covered under proviso (i) of this Regulation, irrespective of the fuel source, when actual injection is higher or lower than the scheduled generation, shall not exceed the Cap Rate of 303.04 Paise/kWh.] [Substituted by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).]
(iii)[The charges for the deviation for under-drawals by the buyer (except Renewable Rich State) in a time block in excess of 12% of the schedule or 150 MW, whichever is less, shall be zero. [Substituted by Notification No. L-1/(3)/2009-CERC, dated 6.5.2016 (w.e.f. 6.1.2014).]
Provided that in case schedule of a buyer (except Renewable Rich State) in a time block is less than or equal to 400 MW, the charges for the deviation for the under-drawal in excess of 48 MW shall be zero:Provided further that Deviation for the under-drawal by the Renewable Rich State in excess of the limits specified in Annexure-III shall be zero.]
(iv)[The charges for the deviation for the over-injection by the seller (except Renewable Rich State) in a time block in excess of 12% of the schedule or 150 MW, whichever is less, shall be zero, except in case of injection of infirm power, which shall be governed by clause (5) of this regulation: [Substituted by Notification No. L-1/(3)/2009-CERC, dated 6.5.2016 (w.e.f. 6.1.2014).]
Provided that in case schedule of a seller (except Renewable Rich State) in a time block is less than or equal to 400 MW, the charges for the deviation for the over-injection in excess of 48 MW shall be zero:Provided further that charges for deviation for over-injection by a Renewable Rich State in a time block in excess of limits as specified in Annexure-III shall be zero.Provided also that charges for deviation for wind and solar generators which are regional entities, shall be governed by sub-clauses (v) to (vii) of this regulation.]
(v)[ The wind or solar generators which are regional entities shall be paid as per schedule. In the event of actual generation being less than the scheduled generation, the deviation charges for shortfall in generation shall be payable by such wind or solar generator to the Regional DSM Pool as given in Table – 1 below: [Added by Notification No. 1/14/2015-Reg. Aff. (FSDS) (ii)CERC, dated 7.8.2015 (w.e.f. 6.1.2014).]
Table – I: Deviation Charges in case of under injection
Sr. No. Absolute Error in the 15-minute time block Deviation Charges payable to Regional DSM Pool
1 < = 15% At the Fixed Rate for the shortfall energy forabsolute error upto 15%
2 >15% but <= 25% At the Fixed Rate for the shortfall energy forabsolute error upto 15% + 110% of the Fixed Rate for balanceenergy beyond 15% and upto 25%
3 >25% but <=35% At the Fixed Rate for the shortfall energy forabsolute error upto 15% + 110% of the Fixed Rate for balanceenergy beyond 15% and upto 25%+ 120% of the Fixed Rate forbalance energy beyond 25% and upto 35%
4 > 35% At the Fixed Rate for the shortfall energy forabsolute error upto 15%+ 110% of the Fixed Rate for balanceenergy beyond 15% and upto 25%+ 120% of the Fixed Rate forbalance energy beyond 25% and upto 35%+ 130% of the Fixed Ratefor balance energy beyond 35%
Where the Fixed Rate is the PPA rate as determined by the Commission under section 62 of the Act or adopted by the Commission under section 63 of the Act.In case of multiple PPAs, the weighted average of the PPA rates shall be taken as the Fixed Rate. The wind and solar generators shall furnish the PPA rates on affidavit for the purpose of Deviation charge account preparation to respective RPC supported by copy of the PPA.Fixed Rate for Open Access participants selling power which is not accounted for RPO compliance of the buyer, and the captive wind or solar plants shall be the Average Power Purchase Cost (APPC) rate at the National level,as may be determined by the Commission from time to time through a separate order. A copy of the order shall be endorsed to all RPCs.
(vi)The wind or solar generators which are regional entities shall be paid as per schedule. In the event of the actual generation being more than the scheduled generation, the Deviation Charges for excess generation shall be payable to the wind or solar generators which are regional entities from the Regional DSM Pool as given in Table – II below:
Table – II: Deviation Charges in case of over injection
Sr. No. Absolute Error in the 15-minute time block Deviation Charges payable
1 < = 15% At the Fixed Rate for excess energy upto 15%
2 >15% but <= 25% At the Fixed Rate for excess energy upto 15%+90% of the Fixed Rate for excess energy beyond 15% and upto 25%
3 >25% but <=35% At the Fixed Rate for excess energy upto 15%+90% of the Fixed Rate for excess energy beyond 15% and upto 25%+80% of the Fixed Rate for excess energy beyond 25% and upto 35%
4 > 35% At the Fixed Rate for excess energy upto 15%+90% of the Fixed Rate for excess energy beyond 15% and upto 25%+80% of the Fixed Rate for excess energy beyond 25% and upto 35%+70% of the Fixed Rate for excess energy beyond 35%
Where the Fixed Rate is the PPA rate as determined by the Commission under section 62 of the Act or adopted by the Commission under section 63 of the Act.In case of multiple PPAs, the weighted average of the PPA rates shall be taken as the Fixed Rate. The wind and solar generators shall furnish the PPA rates on affidavit for the purpose of Deviation charge account preparation to respective RPC supported by copy of the PPA.Fixed Rate for Open access participants selling power which is not accounted for RPO compliance of the buyer, and the captive wind or solar plants shall be the Average Power Purchase Cost (APPC) rate at the National level, as may be determined by the Commission from time to time through a separate order.A copy of the order shall be endorsed to all RPCs.
(vii)In reference to clauses (v) and (vi) of this Regulation, for balancing of deemed renewable purchase obligation (RPO) compliance of buyers with respect to schedule, deviations by all wind and solar generators which are regional entities shall first be netted off for the entire pool on a monthly basis and any remaining shortfall in renewable energy generation must be balanced through purchase of equivalent solar and non-solar Renewable Energy Certificates (RECs), as the case may be, by NLDC by utilising funds from the Pool Account.For positive balance of renewable energy generation, equivalent notional RECs shall be credited to the DSM Pool and carried forward for settlement in future.]
(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.]
(3)[ The Cap rate for the charges for deviation for the generating stations, irrespective of the fuel type and whether the tariff of such generating station is regulated by the Commission or not, shall not exceed 303.04 Paise/kWh.] [Substituted by Notification No. L-1/132/2013-CERC, dated 28.5.2019.]
(4)[ The linkage of deviation charges to frequency may be reviewed by the Commission, keeping in view the changing power market conditions.] [Substituted by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).]
(5)The infirm power injected into the grid by a generating unit of a generating station during the testing, prior to COD of the unit shall be paid at Charges for Deviation for infirm power injected into the grid, consequent to testing, for a period not exceeding 6 months or the extended time allowed by the Commission in the Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access and related matters) Regulations, 2009, as amended from time to time, subject to ceiling of Cap rates corresponding to the main fuel used for such injection as specified below:
Domestic coal/ Lignite/Hydro L1.78 / kWh sent out
APM gas as fuel L2.82/ kWh sent outup to 31.3.2014 and thereafter,L5.64/ kWh sent out
Imported Coal L3.03 / kWh sent out
[RLNG [Substituted 'RLNG Rs 8.24 / kWh sent out' by Notification No. L-1/132/2013-CERC, dated 20.11.2018 (w.e.f. 6.1.2014).] L8.00 / kWh sent out]
(6)Charges for Deviation of Inter-regional Exchange between the two asynchronously inter-connected Regions shall be computed by the respective Regional Power Committee, based on Charges for Deviation as per the frequency of the respective Region. The amount to be settled for the inter-regional exchanges shall be average of the Charges for Deviation computed for the two regions by way of such inter-change.