The Assam Electricity Regulatory Commission (AERC) has released the draft of the Assam Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024.

The regulations, which will take effect on April 1, 2025, aim to streamline the deviation settlement process, enhance grid reliability, and more effectively integrate renewable energy sources into Assam’s power system.

The AERC has invited feedback from individuals and corporate bodies by November 12, 2024.

These regulations apply to the conveyance of electricity transactions through short-term, medium-term, or long-term open access using the intra-state transmission or distribution systems, including inter-state power wheeling, under the following conditions:

• The Deviation Settlement Mechanism (DSM) outlined in these regulations will apply to all sellers, including generators, captive generators, Renewable Energy Generators (REGS), and Run-of-River Hydroelectric Generators (RHGS), connected to the intra-state transmission system.
• The DSM will also apply to all buyers within the state, including distribution licensees and deemed distribution licensees.

To ensure the safe and stable operation of the grid, all regional entities connected to the grid must follow their designated schedules as outlined in the Indian Electricity Grid Code (IEGC) 2023 (including any amendments) until the AEGC 2024 is implemented. These entities should also aim to minimize deviations from their schedules.

State entities must notify the State Load Despatch Center (SLDC) of all energy exchange contracts they have entered into. State entities must also operate their equipment and loads under the provisions of the IEGC, 2023 (and its amendments) until the AEGC, 2024, comes into effect.

State entities must sign a Connection Agreement or Open Access Agreement with the relevant transmission licensee, specifying the physical and operational requirements for reliable operations and gaining access to the intra-state transmission system (InSTS) or with the distribution licensee for distribution system use as per the Open Access Regulations.

They must also install interface meters that record energy flows at 15-minute intervals at the points of injection and withdrawal.

Metering systems should be synchronized using a Global Positioning System with a cross-check from the SLDC.

The SLDC will make all decisions regarding MW dispatch from generating stations, considering network parameters, constraints, and congestion within the transmission network. In case of network anomalies, SLDC’s instructions regarding dispatch and drawal will be binding on all state entities.

It will also publish relevant information to inform all state entities about energy exchanges and any urgent conditions related to power dispatch.

Deviation charges for the injection of infirm power will  be set at zero. However, if the infirm power is scheduled after a trial run as per the IEGC, 2023 (or AEGC, 2024, once it takes effect), the applicable deviation charges will follow the rules for either a general seller or WS seller, depending on the case.

Deviation charges for drawing start-up power prior to a generating unit’s commercial operation date for power used to operate auxiliaries during a station’s shutdown will be paid at the reference charge rate, contract rate, or, if neither is available, the weighted area clearing price (ACP) from the Day Ahead Market (DAM) segments of power exchanges for the specific time block.

In case of forced or partial outages for sellers, deviation charges will be based on the reference charge rate for a maximum of eight-time blocks or until the schedule is revised, whichever comes first.

For sellers whose bids are cleared in the HP-DAM, the reference charge rate for deviations due to under-injection will be equivalent to the weighted average ACP of the HP-DAM Market segments from all power exchanges for that time block.

If a state has net injection at the regional periphery, deviation charges will be applied as if the state were a buyer.

Accounting of Deviation and Ancillary Service Charges

• Inter-state entities will not have transaction-wise DSM accounting at the state level.
• QCAs for REGS/RHGS will follow the roles outlined in the IEGC, 2023 until the AEGC, 2024 is in force.

• The Commission may designate another entity to operate the account.
• SLDC will maintain separate accounts for principal and interest components of deviation charges.
• State entities must comply with applicable tax and levy requirements (e.g., GST, TDS) and support SLDC in meeting reporting obligations.

Schedule of Payment of Deviation Charges

• Deviation charges must be paid into the Pool Account within ten days of SLDC issuing the statement.
• If payment is delayed beyond ten days, the defaulting entity must pay simple interest at a rate of 0.04% per day of delay.
• Entities failing to pay deviation charges within the previous year’s deadline must open a Letter of Credit equal to 110% of their average weekly liability from the previous financial year.

Within three months of notification, SLDC will draft Operating Procedures and Business Rules for the state power committee. The committee will coordinate intra-state energy exchange, monitor regulation compliance, and guide SLDC in modifying procedures as needed.

In September, AERC released draft guidelines for implementing group net metering and virtual net metering frameworks for renewable energy systems. These guidelines, which will become effective upon issuance, aim to promote the adoption of renewable energy and provide more flexible options for consumers.

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