Section 9(4) in Madhya Pradesh Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement Mechanism and related matters of Wind and Solar generating stations) Regulations, 2018
(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).
