On September 28, 2024, the Karnataka Electricity Regulatory Commission (KERC) took a significant step toward enhancing the efficiency and stability of the state’s electricity grid by issuing the Draft Karnataka Electricity Regulatory Commission (Intra-State Deviation Settlement Mechanism and Related Matters) Regulations, 2024. This new regulation aims to address the challenges of electricity drawal and injection by grid users in Karnataka, promoting a more reliable and sustainable power supply.
Key Highlights of the Draft Regulations
1. Scope and Applicability
The draft regulations are designed to apply to the entire state of Karnataka and encompass all inter-state and intra-state entities connected with the State Transmission Utility (STU) in Karnataka. This broad application ensures that all relevant stakeholders are included in the regulatory framework, setting a uniform standard for electricity management across the state.
2. Objective: Ensuring Grid Stability
These regulations seek to ensure, through a commercial mechanism, that grid users do not deviate from and adhere to their schedule of drawal and injection of electricity in the interest of security and stability of the grid.
3. Availability Based Tariff (ABT)
The Availability Based Tariff (ABT) framework is designed to incentivize power generation and ensure grid stability by incorporating three main components:
- Fixed/Capacity Charges:
These charges are based on the capacity allocated to the generators and are linked to the availability of generating stations. Generators declare their availability in megawatts (MW) on a daily basis, and payments are made based on this declared capacity.
- Energy/Variable Charges:
Energy charges are linked to the scheduled energy generation rather than actual energy drawn. This means that generators are paid based on the amount of energy they are scheduled to produce, regardless of whether that amount is actually generated.
- Deviation Charges:
These charges are intended to address discrepancies between scheduled and actual performance. If there is a difference between the actual generation and the scheduled generation, or between actual drawal and scheduled drawal, deviation charges will be applied. The computation of these charges is guided by specific regulations to ensure fairness and encourage adherence to scheduled commitments.
4. Computation of Deviation Charges
Chapter 6 of the draft regulations delves into the specifics of how deviation charges will be calculated. This section is vital for stakeholders as it provides clarity on the financial implications of failing to adhere to scheduled energy drawal or injection. The methodology for computing these charges is designed to be transparent and fair, ensuring that all parties understand the consequences of their actions.
Public Consultation:
The KERC is keen on fostering a collaborative approach to these new regulations. Stakeholders—including electricity consumers, generators, and other related entities—are invited to share their objections, suggestions, and views on the proposed draft.
The deadline for submissions is October 24, 2024. All feedback should be directed to:
The Secretary
Karnataka Electricity Regulatory Commission
No 16, C-1, Miller Tank Bed Area
Vasanthanagar, Bengaluru-560052
