Section 9 in Madhya Pradesh Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement Mechanism and related matters of Wind and Solar generating stations) Regulations, 2018
9. Schedule of Payment of Charges for Deviation.
(1)The payment of charges for Deviation shall have a high priority and the concerned constituent shall pay the indicated amounts within ten days of the issue of statement of Charges for Deviation by SLDC or by the Secretariat of the State Power Committee, as the case may be into the "State Deviation Pool Account".(2)If payments against the Charges for Deviation are delayed by more than two days, i.e., beyond twelve (12) days from the date of issue of the statement by the SLDC (or the Secretariat of the State Power Committee, as the case may be), the defaulting constituent shall have to pay simple interest @ 0.04% for each day of delay.(3)All payments to the entities entitled to receive any amount on account of charges for Deviation shall be made within 2 working days of receipt of the payments in the "State Deviation Pool Account".Provided that -(a)in case of delay in the Payment of charges for Deviations into the [State] Deviation Pool Account and interest there on if any, beyond 12 days from the date of issue of the Statement of Charges for Deviations, the State Entities who have to receive payment for Deviation or interest thereon shall be paid from the balance available in the [State] Deviation Pool Account. In case the balance available is not sufficient to meet the payment to the State Entities, the payment from the State Deviation Pool Accounts shall be made on pro rata basis from the balance available in the Deviation Pool Account.(b)the liability to pay interest for the delay in payments to the "State Deviation Pool Account" shall remain till interest is not paid; irrespective of the fact that constituents who have to receive payments, have been paid from the "State Deviation Pool Account" in part or full.(4)All State Entities which had at any time during the previous financial year failed to make payment of Charges for Deviation within the time specified in these Regulations shall be required to open a Letter of Credit (LC) equal to 110% of its average payable weekly liability for Deviations in the previous financial year, in favour of the SLDC within a fortnight from the date these Regulations come into force.Provided that -(a)if any State entity fails to make payment of Charges for Deviation by the time specified in these Regulations during the current financial year, it shall be required to open a Letter of Credit equal to 110% of weekly outstanding liability in favour of State Load Dispatch Centre within a fortnight from the due date of payment.(b)LC amount shall be increased to 110% of the payable weekly liability for Deviation in any week during the year, if it exceeds the previous LC amount by more than 50%.Illustration. - If the average payable weekly liability for Deviation of a State entity during [2016-17] is Rs. 2.0 crore, the State entity shall open LC for Rs. 2.2 crore in [2017-18]. If the weekly payable liability during any week in [2017-18] is Rs. 3.5 crore which is more than 150% of the previous financial year's average payable weekly liability of Rs 2.0 Crore, the concerned state entity shall increase the LC amount to Rs. 3.85 Crore (1.1*3.50) by adding Rs. 1.65 Crore (3.85 - 2.2).(5)In case of failure to pay into the "State Deviation Pool Account" within the specified time of 12 days from the date of issue of statement of charges for Deviations, the SLDC shall be entitled to encash the LC of the concerned constituent to the extent of the default and the concerned constituent shall recoup the LC amount within 3 days.
