Section 34(6) in The Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010
6.6Reactive Power and Voltage Control. - 1. Reactive power compensation should ideally be provided locally, by generating reactive power as close to the reactive power consumption as possible. The Regional Entities except Generating Stations are therefore expected to provide local VAr compensation/generation such that they do not draw VArs from the EEIV grid, particularly under low-voltage condition. To discourage VAr drawals by Regional Entities except Generating Stations, VAr exchanges with ISTS shall be priced as follows:- The Regional Entity except Generating Stations pays for VAr drawal when voltage at the metering point is below 97%- The Regional Entity except Generating Stations gets paid for VAr return when voltage is below 97%- The Regional Entity except Generating Stations gets paid for VAr drawal when voltage is above!03%- The Regional Entity except Generating Stations pays for VAr return when voltage is above 103%Provided that there shall be no charge/payment for VAr drawal/return by a Regional Entity except Generating Stations on its own line emanating directly from an ISGS.
