On September 13, 2024, the Delhi Electricity Regulatory Commission (DERC) issued a significant order that aligns local electricity deviation settlement mechanisms with the recently updated Central Electricity Regulatory Commission (CERC) regulations. This development is crucial for the stakeholders in Delhi’s electricity sector, including distribution licensees, generating units, and Waste to Energy (WTE) plants
The new regulations are known as the CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024. These regulations introduce several changes aimed at streamlining how deviations in electricity consumption and generation are managed and settled. The DERC has now provided detailed guidelines for implementing these regulations at the intra-state level in Delhi.
Background and Consultation
The journey towards these new regulations began with a request from the Delhi State Load Dispatch Center (SLDC) on August 30, 2024. Delhi SLDC, responsible for grid control and electricity dispatch within Delhi as per Section 32 of the Electricity Act, 2003, sought DERC’s direction for implementing the updated CERC regulations.
In response, DERC organized a meeting on September 5, 2024, with all relevant stakeholders, including Pool participants and SLDC. The meeting aimed to discuss the key features of the new regulations and gather feedback. Following the meeting, the Commission reviewed the comments and suggestions from various parties before finalizing their directives.
Key Directions from DERC
The DERC’s order includes several critical directives:
- Charges for Intra-State Deviation Settlement Mechanism:
- Delhi SLDC is instructed to adopt the rates specified in the CERC regulations for settling deviations at the intra-state level. This ensures consistency with the national framework.
- Over-drawl and Under-drawl Limits:
- TPDDL: The limit is set at 29 MW.
- BRPL: The limit is 41 MW.
- BYPL: The limit is 21 MW.
- NDMC: The limit is either 10% of the scheduled amount or 5 MW, whichever is lower.
- MES: The limit is either 10% of the scheduled amount or 3 MW, whichever is lower.
- Northern Railway: The limit is either 10% of the scheduled amount or 1 MW, whichever is lower. These limits define how much each entity can deviate from their scheduled electricity consumption or generation before facing financial consequences.
- Settlement of Auxiliary Power:
- Specific provisions for start-up power, power drawn during shut-downs, and infirm power (temporary power needs during initial operations or unexpected failures) must be implemented according to the CERC regulations. This ensures that the generating units are fairly compensated for auxiliary power needs.
- Applicability to Waste to Energy Plants:
- For Waste to Energy (WTE) plants commissioned after December 26, 2022, the CERC regulations’ provisions will apply. The Contract Rate, as defined in the regulations, will be used for deviation settlements for these plants. This directive helps integrate newer WTE facilities into the existing regulatory framework.
Implications for Stakeholders
For distribution licensees, such as TPDDL, BRPL, BYPL, NDMC, MES, and Northern Railway, the new limits will require careful management of their electricity schedules to avoid financial penalties due to deviations.
Generating units must adapt to the new provisions regarding auxiliary power to ensure they are adequately compensated during start-ups, shut-downs, or for infirm power.
Waste to Energy Plants commissioned after the specified date will need to align with the new regulations to ensure proper deviation settlement.
The DERC’s latest order marks a significant shift towards harmonizing Delhi’s intra-state deviation settlement practices with national standards set by CERC. This move aims to enhance transparency, fairness, and efficiency in managing deviations in the electricity sector.
Implementation and Repeal
The order is effective from September 16, 2024. It also repeals the previous order dated December 26, 2022, but only to the extent covered by this new order. The new guidelines will remain in force until further modifications or reviews are deemed necessary.
