Himachal Pradesh Issues Draft Amendment Regulations For Deviation Settlement

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued draft amendments for its regulations on deviation settlement mechanism.

Himachal Pradesh Deviation Settlement

In its notification, the commission noted that the proposed amendments have been introduced to align the state’s regulations with the Central Electricity Regulatory Commission’s (CERC) latest and fifth draft amendments to the principal deviation settlement mechanism regulation which were issued on April 18, 2019.

The state commission has now invited comments and suggestions from stakeholders on the implementation of the draft regulations. Providing a period of 30 days after which the draft will be finalised.

The commission has introduced the following amendments:

  1. Area Clearing Price (ACP): the price of a time block electricity contract established on the Power Exchange after considering all valid purchase and sale bids in particular area(s) aftermarket splitting, i.e. dividing the market across constrained transmission corridor(s).
  2. Daily Base DSM: the sum of charges for deviations for all time blocks in a day payable or receivable as the case may be.
  3. Day Ahead Market (DAM): a market where physical delivery of electricity occurs on the next day (T+1) of the date of transaction (T) and is governed by the Central Electricity Regulatory Commission (Power Market) Regulations, 2010.
  4. Additional Charges For Sustained Deviation: In addition to the charges/additional charges as per the previous regulation that was issued in October 2018, the State Entity will now also be liable to pay the additional charges, in case of violation of the requirements in relation to sustained deviations.

Now, in addition to the charges, the state entity will also be liable to pay the additional charges in case of violation of the requirements in relation to sustained deviations. The commission has proposed a 0.2 MW deviation limit in any direction (positive or negative) for a time block of up to 10 MW, for time block of up to 25 MW, the maximum permissible deviation is 0.5 MW. For deviation of the time block up to 100 MW, the deviation of 1 MW is allowed and for time block of more than 100 MW, the permissible deviation is 5 MW. Each violation will attract an additional charge of 10% on the time block deviation settlement mechanism.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.