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671 672 (10) Raipur, the l st September 20 16 Chhattisgarh State Electricity Regulatory Commission (Demand Side Management) Regulations, 2016 No. 66/CSERC/2016. - The Chhattisgarh State Electricity Regulatory Commission, in exercise of powers conferred on it by Section 61, Section 86 and 181 of the Electricity Act, 2003 (Act 36 of 2003) and all other powers enabling it in this behal f, proposes to frame the following regulations:- Chapter - I General I. Short title, commencement, extent of application and definitions -
1. 1. These Regulations may be called the Chhattisgarh State Electricity Regulatory Commission (Demand Side Management) Regulations, 20 16.
1.2. These Regulations shal l come into force on the date of their publication in the Chhattisgarh Gazette ( extraordinary).
1.3. These Regulations shall extend to and applicable to the all the distribution licensees in their respective areas of supply in the Chhattisgarh State.
2. Definitions. -
2.1. in these Regulations, unless the context otherwise requires:
(a) "Act" means the Electricity Act, 2003 (36 of2003);
(b) "Baseline data" means the initial base level consumption and/or demand for Electricity before a DSM programme begins to provide a reference point for Comparison for assessing programme impact;
(c) "Bureau" means the Bureau of Energy Efficiency estab lished under subsection ( 1) of Section 2 of The Energy Conservation Act, 200 I;
(d) "Commission" means the Chhattisgarh State Electricity Regulatory Comm ission;
(e) "Cost Effectiveness Index" shall have the same mean ing as defined in Regu lation 19.3 of these Regulations;
(t) "Demand Side Management or DSM" means the actions ofa Distribution Licensee, beyond the consumer's meter, with the objective of improving the end-use efficiency of electricity - whether it is to increase demand, decrease it, shift it between high and low peak periods, or manage it when there are intermittent load demands in the overa ll interests of reduci ng Distribution Licensee costs;
(g) "DSM Cell" means a cell set up by the Distribution Licensee to facilitate the Distribution Licensee to develop and design DSM programmes for submission to the Commission as provided under regulations 7 of these Regulations;
(h) "DSM Measure" means individual energy efficiency and / or energy conservation instal led in the residence or fac i I ity of the consumer;
(i) "DSM Resource Acqu isition" means a mechanism to implement DSM programmes through customers, Energy Service Companies, Non-Government Organizations, manufacturers/ suppliers, or other private sector organizations, with payment made to them by the Distribution Licensee normally out of the actual / expected savings from the resultant energy and load reductions except the programmes under 14 (5) of these Regulations for which the resources may be provided through the ARR or other sources;
(j) "Energy Services Company or ESCO" means a company which is in the business of providing energy efficient and load management equipment, processes and/or services to end use customers and is approved by Bureau;
(k) "G ross Saving" means the changes in energy .consumption or demand resul ting from consumers participation in the DSM project;
0rn1{Pt~ {r;;rcr-1, ~ 2 ~ 2016 672 (11) (I) "Evaluation, Measurement and Verification" means act1v1t1es undertaken to evaluate, monitor, measure and verify the progress, performance or other aspects of DSM/energy effici ency programmes or their market environment;
(m) "Monitoring and Report ing" means activities undertaken to monitor and evaluate the progress of DSM/energy effic iency programmes of the Distribution Licensee.
All other expressions used herein and not specifically defined in these Regulations but defined in the Act shall have the meaning ass igned lo them in the Act.
672 (12) 0rr11-t1,1¢~. ~ 2~2016 Chaptcr-2 DSM Objectives, Potential Assessment, Targets & Guidelines
3. DSM Objectives. -
3.1 The DSM objectives, for advancement and implementation of cost effective DSM initiatives in the State are sought to be achieved through , but not limited, to the following:-
(a) To make DSM an integral part of the day to day operations of the Distribution Licensee with the objective of improving end use efficiency of electricity, environmental conservation and cost reduction.
(b) To promote and implement Load Shifting, Power Shortage Mitigation, seasonal peak reduction, cost effective energy savings, lowering the cost of electrici ty, reduction in emissions of greenhouse gases and pricing initiative i.e. Time of Use / Seasonal etc.
(c) To complement supply side strategies in order to avoid, reduce or postpone investments in generation, transmission and distribution infrastructure.
(d) To reduce transmission and distribution losses through implementation of end use energy efficiency programmes in areas reporting high AT &C losses.
3.2 While formulating the DSM objectives, the Commission shall take into consideration the National DSM objectives/ Plans formu lated by BEE, State Action Plan on Climate Change, if any.
3.3 The DSM objectives shall be consistent, as far feas ible, with the DSM objectives set out by Bureau as a part of Energy Conservation Plan for the country.
3.4 The Commission shall ensure that the DSM targets, programmes / plans approved under these regulations are consistent with the State Government policies framed under the Energy Conservation Act, 200 I from time to time.
4. Assessment of technical potential for DSM. -
4.1. The distribution licensee in Chhattisgarh State shall carry out assessment of potential for DSM in the State within twelve months of the notification of these Regulations.
4.2. Distribution licensee shall be guided by the methodology developed by Bureau while assessing of technical potential for DSM.
5. DSM Ta rgets. -
5. 1. The Comm ission may prescribe for each distribution licensee in Chhattisgarh State DSM targets including percentage reductions in peak load in different seasons, reduction in overa ll load and reduction in energy consumption and improvement in power factor for every MYT Control Period.
5.2. While setting DSM targets for the distribution licensee, the Commission shall consider technical potential in the State as assessed by the Distribution Licensee(s)/State Govt./Bureau or its authorized agency in the State.
5.3. While setting DSM targets for the Distribution Licensee(s), the Commission shall give due consideration to factors such as consumer mix, load profile, load factor / demand factor etc.
6. G uidelines on DSM process. -
6. 1 The Commission may issue guidelines from time to time to the distribution licensee in execution of the following activities:
(i) Load and market research;
(ii) Implementation of DSM programmes;
(iii) Cost Effectiveness Assessment of DSM programmes;
(iv) Monitoring and Reporting of DSM Plans and programmes;
(v) Eligibility criteria for DSM programmes;
(vi) Methodology for setting DSM targets and fund ing levels;
(vii) Database development framework.
6.2 Issuance of such guidelines shall not be a pre-requisite for preparation and submission of the DSM pian by the Distribution Licensee.
gffilflll~ (~ , ~ 2 ~ 2016 Chapter-3 DSM Cell
7. Constitution of DSM Cell, its Roles & Responsibilities.
672 (13)
7. I Every distribution licensee shall constitute DSM Cell and submit the compliance repo11 to the Commission within two month from the date of notification of these Regulations. The DSM ce ll shall be the nodal agency to ass ist the Distribution Licensee to drive the DSM implementation under these Regulations and wil l be responsible for communication with the Commission.
7.2 DSM Cell comprise the staff as under a. One officer not below the rank of Superintending Engineer b. Two Officers not below the rank of Executive Engineer c. Three Officers not below the rank of Assistant Engineer d. Five officers not below the rank of Jun ior Engineer.
e. Five Nos. of clerica l staff
7.3 DSM cell will have reporting to the Managing Director/head of the distribution licensee.
7.4 The DSM Cell so constituted shall be provided with necessary authority by the distriblll ion licensee so as to enable it to execute the functions assigned to it under these regulations.
7.5 The officers / officials posted in the DSM Ce ll shall not be assigned any other duties by the Licensee to ensure their dedication to DSM. They shall have a minimum tenure of three years. Any change before the officer / official completes three years shall require prior approval of the Commission.
7.6 The DSM Cell shal l be responsible for:-
(a) Load research, market research and development of baseline data, to seek information on end use technologies, usage pattern, wi llingness to bear the consumer's share of cost, sensitivity analysis relating to the response of benefits to incremental costs;
(b) Formulation of DSM Plan;
(c) Design and development of DSM projects including cost benefit analysis, plans for implementation. monitoring & reporting and for measurement & verification:
(d) Development of database and centralized information systems of new DSM technologies, innovations and new energy savings products being introduced in the market and updating the same at regular interval;
(e) Seeking necessary approvals to DSM plan and individual programmes from the Commission;
(f) Monitor and facilitate Implementation of DSM programmes;
(g) Development of tra ining and capacity building programmes and sharing of experience with respect to the entire DSM implementation within the Distribution Licensee;
(i) Any other additional function as di rected by the Commission from time to time;
672 ( 14) Chapter-4 DSM Process
8. Load and Ma rket Resea rch Design and development of baseline data.-
8. l Distribution licensee shall undertake load research to identify the target consumer segment(s) and end uses for DSM programme to build the necessary baseline data.
8.2 Distribution licensee shall undertake market research to estimate market potential for specific energy efficiency technologies and applications, establish key performance indicators, and determine existing baseline market conditions.
8.3 On the basis of the results of load and market research, the distribution licensee shall develop baseline data for its area of supply.
8.4 Distribution licensee shall design, develop and implement the initial few DSM programme on the basis of ava ilable data and studies completed by BEE till the complete baseline data is avai lable for its area of supply. Establishment of base line data shall not be a pre-requisite for design of such initifll DSM programme by the distribution licensee.
672(15) Chapter-5 DSM Plan and Programmes
9. Formulation of DSM Plan. -
9.1 Distribution licensee shall form ulate and submit to the Commission a perspective DSM Plan covering period of the MYT control period, within one year of not ificat ion of these regulations.
The Plan shall include:-
(i) An overall goal for DSM Plan;
(ii) Description of DSM programmes to form a pa11 of DSM Plan;
(iii) Implementation process and schedule of each programme in the plan as a whole;
(iv) Plan for Monitoring and Reporting;
(v) Indicative cost effectiveness assessment of programmes.
Notwithstanding the above, the first DSM Plan shall be prepared within one year of the date of these Regulations and shall be for the period till the encl ofongoing MYT Control Period.
9.2 The distribution licensee shall include all relevant DSM programmes (including multi-state programmes) developed by Bureau in its perspective plan as and when such programmes are announced by Bureau.
9.3 The Distribution Licensee shall submit on rolling basis, an annual plan, not inconsistent with the perspective plan, for upcoming year, along with the Annual Tariff Petitions.
9.4 Selection and prioritization of various DSM programmes in the DSM Plan shall be guided by the following factors:-
(i) The Cost effectiveness after discussion with the Commission;
(ii) DSM Objectives identified in regulation 3. 1 above;
(iii) Whether the proposed programmes supplement National level efforts adopted by the Bureau;
(iv) High visib il ity of programmes and therefore potential for creation of awareness within consumers.
9.5 Distribution licensee may engage consultants for design, development and execution of DSM Plan and DSM programmes. Services of such consultants may be taken from the Government of India approved consultancy firms engaged in providing energy efficiency services.
I 0. Review and Approval of DSM plan by the Commission.- I 0. 1 Distribution Licensee sha ll submit the DSM Plan to the Commission for approval within 6 months of technical potential avai lable for the first time, and afterwards alongwith the fi ling of MYT Petition.
I 0.2 The Distribution Licensee shall submit the DSM Plan both in hardcopy and softcopy.
10.3 The Comm ission shall scrutinize the DSM Plan submitted by the Distribution Licensee. Any specifi c observations and suggested revisions shall be conveyed to the Distribution Licensee. Distribution Licensee after addressing all the comments shall re-submit the revised DSM Plan to the Commission within stipulated timeframe. The Commission shall evaluate revised DSM Plan submitted by the Distribution Licensee and convey the same to the Distribution Licensee with such modifications as may be considered necessary.
10.4 The Commission may seek clarifications from the Distribution Licensee and accord approval to the DSM Plan after taking into consideration clarifications / additional information provided by the distribution licensee.
I 0.5 The Commission may adopt procedures as specified in the Chhattisgarh State Electricity Regu latory Commission (Conduct of Business) Regulations. 2004 as amended from time to time for according approval to the DSM Plan.
11. Preparation of DSM Programme Document. -
11. 1 For each DSM programme included in the DSM Plan, a detailed description shall be provided in a separate programme document. The description shall include general information including objectives and rational, technology, schedule for deployment, budget, cost effectiveness assessment, detai led implementation plan including consumers segment and estimated level of participation as well as implementation mechanism i.e. Energy Service Companies, DSM Bidding, DSM Resource Acquisition, estimation of baseline and savings, mechanism for recovery of cost and performance incentive, monitoring and evaluation plan.
11.2 For each DSM programme cost benefit analysis shall be carried out as per guidelines issued by the Commission on cost effectiveness from time to time.
12. Approval of DSM Programme Document. -
12. 1 Prior to implementing any DSM programme, distribution licensee shall obtain approval of the Commission.
12.2 Each programme document shall include the following:-
(i) Description of the programme;
(ii) Objectives and rationale for the programme;
(iii) Consumer segments and estimated level of participation;
(v) Estimate of baseline;
(vi) Assessment of programme in line with Cost Effectiveness Guidelines issued by the Comm ission;
(vii) Mechanism for recovery of cost and performance incentives;
(vii i) Marketing, delivery strategy and Implementation schedule;
(ix) Implementation mechanism e.g. Energy Service Companies, DSM Bidding, DSM Resource Acquisition, etc;
(x) Monitoring and evaluation plan;
(xi) Plan for Training/Sem inars/Workshops to increase consumer awareness.
12.3 The Commission shall approve a DSM programme if it is in line with the objectives set out under Regulations 3 of these Regulations. The Commission may direct modifications to proposed or on-going programme to ensure consistency with the DSM Objectives. However, the Commission shall allow distribution licensee adequate time to notify consumers of programme modification.
13. Implementation of DSM programme. - 13 . 1 Distribution licensee shall unde,take implementation of DSM programme in line with the guidelines issued by the Commission from time to time.
13.2 The implementation of the programme shall be undertaken in the manner as approved by the Comm ission.
13.3 Distribution licensee shall undertake implementation of quick gain DSM programmes also.
13.4 Distribution licensee shall carry out implementation of activities assigned to it either by itself or through engagement of appropriate independent entity. While doing so, the distribution licensee shall ensure that continuity and consistency is maintained and interest of the consumers is not compromised.
14. Mechanism for Cost Recovery I Funding. -
14. I Distribution licensee shall identify the net incremental costs, if any, associated with planning, design and implementation of programmes. Such costs should include the rebates / incentives that may be offered to the consumers as well as administration costs for implementing the programme.
14.2 Distribution licensee may propose methodology for recovery of incremental costs through ARR /tariff or any other mechanism. Normally 0.5% of the ARR may be allowed by the Commission as DSM 672 (1 7) budget every year. which may be reviewed by the Commission upward or downward. Provided that the accounting of the same sha ll be clone separately.
14.3 In order to qual ify for cost recovery, each programme must be:-
(i) Got approved from the Commission prior to implementation;
(i i) lmplementecl in accordance with the approved programme plan and (ii i) fmplementecl cost effectively.
14.4 Distribution licensee shall provide all necessary assistance to the Commission, or third pai1y ass igned by the Commission in undertaking Evaluation Measurement and Verification of DSM programme implemented by it.
14.5 The Commission may direct the Distribution licensee to undertake such DSM programmes a lso that may not be cost effective in terms of economic cost and benefit but are highly beneficial to the society in terms of social and environmental benefits. The Comm ission will make ava ilable resources for such project.
15. Monitoring and reporting of DSM programme: - Distribution licensee shall prepare plan and uncle11ake monitoring and reporting of DSM programmes as per Guidel ines on Monitoring and reporting issued by the Commission from time to time or as approved by the Commission while approving the DSM programme.
16. Evaluation, Measurement and Verification of DSM Programme:- ! 6 .1 Distribution licensee shall prepare plan for evaluation, measurement and verification of savings from DSM programmes as per Guidelines on Evaluation, Measurement and Verification issued by the Commission from time to time.
16.2 Third party Evaluat ion Measurement and Verification of DSM programmes may be undertaken by the Commission or th rough third pai1y assigned by Commission. While engaging the agency, the Comm ission shall ensure that the Agency is not unde11aking any other engagement which could confl ict with the interests of the consumers in the State.
16.3 Distribution Licensee shal l make avai lable necessary in formation / data to the Commission or third party ass igned by the Comm ission to measure and verify the savings from DSM programmes.
17. DSM Plan and Programme Completion Report:
17.1 Periodica l reports on progress of DSM plan and expenses incurred on implementation of DSM plan shall be submitted by the distribution licensee every six months.
17.2 The distribution licensee shall prepare and submit a detailed programme completion repo11 and submit the same to the Commission within one month of completion of such programme.
17 .3 The Comp letion repo11 shal I cover the plan / programme expenses, ach ievements. outcomes and outputs, constraints and difficulties faced conclusions, recommendations, lessons learned and way forward.
18. Incentive:
I 8.1 The Commission may provide incentives to distribution licensee for achieving or exceeding DSM objectives as identified under regulation 3.
19. Criteria for Assessment & Approval of DSM programme:
19.1 For each DSM programme included in the DSM Plan, Distribution Licensee shall prepare a detailed programme Document.
19.2 Programme Document shall also include Cosl Effectiveness Assessment of each DSM programme from Distribution Licensee perspective and participating Consumers investing in the DSM programme perspective.
19.3 "Cost Effectiveness Index (CEl)" shall be used to assess the viabi lity of the DSM programme from the perspective of Distribution Licensee. CEI sha ll be based on financial evaluation techn ique 'Benefit/Cost ratio ' (B/C ratio), which is sum of the present value of the benefits of DSM programme 672 (1 8) divided by the sum of the present value of the costs associated with the DSM programme. The CEJ greater than one means that the ful I cost of an investment will be recovered through the benefits.
19.4 "Cost of Conserved Energy (CCE)"shall be used to assess the cost effectiveness of DSM programme from the point of view of the Pa,ticipating Consumers investing in the progra111111e. CCE shal l be the annualized incremental cost of investment in efficient option divided by annual energy saved due to adoption of efficient option. If Average Tariff of the target consu111er category is greater than CCE, DSM programme is viable fro111 the point of the paiticipating consu111ers who are also investing in the progra111me. Average Tariff shall be the average cost of supply of the target consumer category in the year of implementation of the DSM programme.
19.5 The Commission shal l issue detailed Cost Effectiveness Assessment Guidelines defin ing the criteria for assessment of DSM progra111111e.
•;.fafi-t·PI~ ~ . ~ 2 ~ 2016 C ha pter-6 M iscellaneous
20. Power to amend: The Commission may, at any time add, vary, alter, modify or amend any provisions of these regu lations after following clue regulatory process.
21. Remova l of difficult ies: 1 f any difficulty arises in giving effect to the provisions of these Regulations, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions o f the Act, as may appear to be necessary for removing the difficulty.
22. Powers to g ive directions: The Commission may. from time to time, issue orders and directions in regard to the implementation of the regulations and procedures to be followed.
23. Powers to relax: The Commission may, from time to time, issue orders and directions as considered appropriate to ensure implementation of the regulations and procedures to be followed.
24. Dispute resolution: All disputes aris ing under these regulations shall be decided by the Commission based on an application made by the person aggrieved in accordance with the Chhattisgarh State Electricity Regulatory Commission (Conduct of Business) Regulations, 2004 as amended from time to time.
By order of the Commission, Sd/ (P.N. SINGH) Secretary.
~ .~om msr-i mmfl, ~am~~.~~~ om WlimRI - 20 16.
672 (19) 66_CSERC_2016_Hindi 66_CSERC_2016_English