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Section 5: Principles for operationalising deviation settlement mechanism

The Himachal Pradesh Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2018State Regulations of Himachal Pradesh · 2003

The framework for Deviation Settlement Mechanism shall cover the following key design parameters:—

(a) Scheduling period;

(b) Premise for least cost despatch;

(c) Operating range of frequency;

(d) Consolidated scheduling of all the State Entities at the State periphery;

(e) Deviation;

(f) Settlement period;

(g) Measurement unit for State Deviation Pool;

(h) Deviation Pool Price Vector;

(i) Deviation Volume Limit;

(j) Premise for allocation of losses;

(k) Submission of data by the generating station not considered as the State Entities;

(l) Procurement of URS in the interest of the State Grid;

(m) Congestion Charges; and

(n) Downloading/recording of SEMs and timely communication of data to the SLDC:— (A) Scheduling Period.—The scheduling period shall comprise of 96 time blocks, each of 15-minute duration starting from 00:00 hours (IST) ending with 24:00 hours (IST).

The first time block of scheduling period shall commence from 00:00 hours (IST) to 00:15 hours (IST), second time block of scheduling period shall commence from 00:15 hours (IST) to 00:30 hours (IST) and so on:

6 Compendium of HPERC Regulations, March 2021

Provided that from the date to be notified by it, the Commission may revise the scheduling period to 288 time blocks, each of 5-minute duration starting from 00:00 hours (IST) ending with 24:00 hours (IST). Accordingly, the Interface Metering, Energy Accounting and Deviation Settlement should be capable to undertake transactions with 5- minute duration. All future resource planning, IT and communication system requirement and infrastructure development shall be undertaken to cater to this requirement.

(B) Premise for least cost dispatch.—Based on the availability schedule forecasted by generating stations (Sellers) and load requirement forecasted by Buyers, the SLDC shall draw up the least cost despatch schedule on Day Ahead basis for the State Entities in accordance with the merit order principles as applicable, or approved by State Commission, from time to time:

Provided that wheeling transactions of captive users and open access consumers shall be despatched as contracted subject only to transmission and Distribution system constraints and system emergency conditions.

(C) Operating Range of frequency.— (i) The normal operating range for average grid frequency for time block shall be in line with range stipulated under Grid Code from time to time (viz. 49.90 Hz to 50.05 Hz). While normal operating range of average frequency as per Grid Code has been stipulated as 49.90 Hz to 50.05 Hz, the deviation price vector has been specified under Regulation 7 and 9 for frequency range of 1 [49.85 Hz] to 50.05 Hz;

(ii) no over-drawal or under-injection shall be allowed when grid frequency is below 1[49.85 Hz] and no under-drawal or over-injection shall be allowed when grid frequency is above 50.05 Hz; and

(iii) during the time blocks when frequency is 1 [49.85 Hz] and above but below

50.05 Hz, the variation to the extent of +/- 12 % shall be permissible for the purpose of additional deviation charges, subject to payment of deviation charges:

2 [xxxxxxxxxxxxxxxxxxxxx] (D) Consolidated scheduling of all the State Entities at the State periphery.—The injection/drawal schedules of the State Entities, other than the distribution licensee, shall be prepared with reference to their respective injection/drawal points in the State and shall, for 1 Sub. in regulation 5 in sub-regualtion (C) in clauses (i), (ii) & (iii) for words and figures “49.70 Hz” for vide not. No. HPERC/428 dated 29th June, 2019, published in R.H.P. dated 3rd July, 2019 at p. 3131-

3137.

2 Ommitted “proviso alongwith Explanation” for vide not. No. HPERC/428 dated 29th June, 2019, published in R.H.P. dated 3rd July, 2019 at p. 3131-3137before its the omission read as under:

“Provided that in case of,—

(a) over drawal/under injection by a State Entity during 12 such time blocks, immediately preceding any given time, in which the frequency remained less than 49.9 Hz; or

(b) under drawal/over injection by a State Entity during 12 such time blocks, immediately preceding any given time, in which the frequency was more than 49.9 Hz;

such State Entity shall take immediate steps, to reverse the sign of deviation and in case of repeated failures by any State Entity to reverse the sign of deviation, the SLDC may also issue appropriate directions to such State Entities, apart from taking suitable remedial measures to avoid such situations.

Explanation.—The period of 12 time blocks shall be counted after ignoring the time blocks in which the frequency is beyond the limits stipulated in item (i) or (ii), as the case may be.” Compendium of HPERC Regulations, March 2021 7 the purposes like preparation of consolidated schedule for the State as a whole, accounting, computation and recovery of various charges under these regulations etc., be projected to the State periphery by loading applicable transmission and distributed losses of the STU and distribution licensee, as applicable:

Provided that in cases involving sale of energy by the generating stations directly connected to the distribution system of the distribution licensee to the retail consumers of distribution licensee procuring power from such generating stations through intra-State open access without involving STU system under the normal scheme of flows, the transmission losses of the STU shall not be loaded to their respective injection/drawal schedules for projecting the same to the State periphery:

Provided further that the distribution licensee shall give its net schedule w.r.t. the STU periphery which shall be projected to the State periphery by loading the transmission losses of the STU:

Provided further that all the charges specified in these regulations shall be levied based on the data at State periphery.

(E) Deviation.— For the purposes of Deviation settlement amongst State Entities, the SLDC shall work out the 'Deviation Pool Accounts' comprising over- drawal/under-drawal and over-injection/under-injection for each State Entity corresponding to each Scheduling period in accordance with the principle that the deviation in a time-block for a Seller means its total actual injection minus its total scheduled generation and for a Buyer means its total actual drawal minus its total scheduled drawal.

(F) Settlement Period.—Preparation and settlement of 'Deviation Pool Accounts' shall be undertaken on weekly basis coinciding with mechanism followed for regional energy accounts. The SLDC shall also prepare and issue detailed statements as per Regulation 12 alongwith such accounts.

(G) Measurement Unit for Deviation Pool Account.—The measurement unit for Deviation Pool Volume (Over-drawal/under-drawal and Over-injection/under-injection) preparation shall be kiloWatt hours (kWh). Measurement unit for Deviation Pool Value (Payable and Receivable) preparation shall be Indian Rupees (INR). The decimal component of the energy unit (kWh) and amount (INR) shall be rounded off to nearest integer value.

(H) Deviation Pool Price Vector.—The charges for Deviation shall be in accordance with the Deviation Price Vector specified in regulation 7 or as may be subsequently notified by the Commission from time to time.

(I) Deviation Volume Limit.—In order to ensure grid discipline and grid security, conditions for Deviation Volume Limit and consequences for exceeding such Deviation Volume Limit by way of levy of Additional Deviation Charges, as specified under Regulations 8 and 9, shall be applicable. Similarly, additional charges for deviation as specified in sub-regulations (2) and (3) of regulation 9 shall also be applicable.

8 Compendium of HPERC Regulations, March 2021 1 [(IA) Additional Charges For Sustained Deviation: In addition to the charges/ additional charges as per regulations 7, 8 and 9, the State Entity shall also be liable to pay the additional charges, in case of violation of the requirements in relation to sustained deviations, as specified in regulation 9A ;]

(J) Premise for allocation of losses.—For the purpose of Deviation Pool accounting, intra-State transmission system losses and distribution losses, as approved by the Commission, shall be applicable to the State Entities using State network on their actual drawal/injection:

Provided that the State Load Despatch Centre shall maintain account of actual intra- State transmission system loss for each time block and publish reconciliation statement of 52 weekly average loss vis-à-vis approved loss by the Commission on its website.

(K) Submission of data by generating stations.—Such generating stations as are selling entire saleable energy to the distribution licensee and are not considered as separate State Entities in view of explanation under regulation 4, shall submit their projections/estimates and other online and offline data as may be required by the ALDC so as to enable the ALDC to prepare consolidated schedule of the distribution licensee and also to keep SLDC updated on the information relating to the distribution licensee, including such generating stations.

(L) Procurement of URS in the interest of the State Grid.—In the event of sudden fall in availability of one or more State Entities by more than 20 MW for any individual State Entity, if the concerned the State Entity generator has not already initiated any steps, or is not entitled, to revise his schedule, the SLDC may, in the interest of grid security, procure, under intimation to such State Entity(ies), URS from the concerned generating stations for such time blocks as it may feel appropriate duly keeping in view the main objectives that no energy cuts should be imposed in the State, as far as possible, and also that the grid parameters must be maintained within the permissible limits:

Provided that the SLDC shall, within 90 days of notification of these regulations, develop an uniform procedure, keeping in view the various possible situations under which URS are to be arranged and also incorporating the broad principles which shall be followed by it while procuring URS for any State Entity(ies):

Provided further that in the uniform procedure to be developed by the SLDC, it may also spell out the broad situations under which it may procure URS even for the individual State Entities whose cases fall in availability does not exceed 20 MW:

Provided further that till such time such uniform procedure is evolved, the SLDC shall procure URS only after,— 1 Ins. sub-regualtion (IA) for vide not. No. HPERC/428 dated 29 th June, 2019, published in R.H.P.

dated 3 rd July, 2019 at p. 3131-3137.

Compendium of HPERC Regulations, March 2021 9

(i) prior consultation with the concerned State Entity in cases where the rate of URS at State periphery is equal to or less than 1 [800 Paise/kWh]; and

(i) obtaining the consent of concerned State Entity in cases where the rate of URS at State periphery exceeds 1 [800 Paise/kWh]:

Provided further that while procuring URS on behalf of more than one State Entity, the SLDC shall duly indicate the share (quantum and rate) of each such State Entity at the time of such procurement and shall also subsequently reflect the same in the weekly/ monthly accounts statement showing the share of each State Entity in the quantum of URS procured by it:

Provided further that the SLDC shall also, apportion, within 5 days from the date of issue of monthly accounts, whether provisional or final or revised, by NRPC for any month, the total energy booked for the State amongst concerned State Entities on the aforesaid lines:

Provided further that the distribution licensee, or any other State Entity, may also, of its own, procure URS under intimation to the SLDC and in that event the SLDC shall duly apportion such URS to that State Entity.

(M) Congestion Charges.—If any, congestion charges are payable/receivable by the Himachal Pradesh depending upon the real time behaviour of the State in line with the Central Electricity Regulatory Commission (Measures to relieve congestion in real time operation) Regulations, 2009, the SLDC shall reflect the amount of congestion charges in the weekly accounts statement showing the share of each State Entity on the basis of deviation by each user calculated for each time block:

Provided that the SLDC shall apportion congestion charges within three days from the date of issuance of Congestion Charges Account from NRPC and each State Entity shall pay the amount indicated in the account within 7 (seven) days of issuance of such account by the SLDC. Any delays in payment shall be dealt as per regulation 14.

(N) Downloading/recording of SEMs and timely communication of data to the SLDC.—Meter data downloading/reading of the interface Special Energy Meters (SEMs), or any other meters as appropriate, as required by the SLDC, shall be taken by the authorized officers of the transmission licensee or the distribution licensee, as the case may be, on weekly basis (on every Monday for preceding week (00:00 Hrs of Monday to 24.00 Hrs of Sunday) and shall supply the same to the SLDC by Tuesday. Any change in multiplication factor or CT/PT ratio setting shall also be recorded. The downloaded data in the electronic form and hardcopy printout alongwith a statement of consumption as recorded by the Main, Check SEMs and, in case of the consumers of the distribution licensee, the ToD meter also, duly authenticated by the concerned Sr. Executive Engineer of the concerned licensees, shall be sent to the SLDC for preparation of Intra State Deviation Settlement account of the State Entities:

Provided that in cases where the State Entity, other than the transmission licensee/the distribution licensee, expresses its intention to associate itself in the process of downloading/reading of SEMs, the authorised representative of such State Entity shall also be associated in the process:

1 Sub. for sub-regualtion (L) in clauses (i) & (ii) for words and figures “824.04 paise/kwH” for vide not. No. HPERC/428 dated 29th June, 2019, published in R.H.P. dated 3rd July, 2019 at p. 3131-3137.

10 Compendium of HPERC Regulations, March 2021

Provided further that if the representative of the concerned State Entity does not turn up at the scheduled time of downloading/taking such readings of SEMs, the authorised officer of the transmission licensee/the distribution licensee, as the case may be, shall download/take the readings and submit the same to the SLDC under intimation to the concerned State Entity:

Provided further that the SLDC may issue, on the need based, detailed instructions in this regard to all the State Entities.

Where this provision sits

ActThe Himachal Pradesh Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2018
Section5
Marginal notePrinciples for operationalising deviation settlement mechanism
JurisdictionState of Himachal Pradesh
StatusIn force as published by the source

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