The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued the Draft Chhattisgarh State Electricity Regulatory Commission (Intra-State Deviation Settlement Mechanism and Related Matters) Regulations, 2025.

The regulations apply to all entities connected to the state transmission utility, inter-state or intra-state within Chhattisgarh.

These regulations will take effect from April 1, 2025.

The regulations aim to establish a commercial mechanism to ensure grid users’ adherence to scheduled electricity drawal and injection, maintaining grid security and stability.

Availability-Based Tariff (ABT) and Deviation Settlement Mechanism

Under the ABT regime, the tariff comprises three components:

Fixed/Capacity Charges: These charges are payable to generators based on the allocated capacity and are tied to the daily declared availability of the generating stations, measured in MW.

Energy/Variable Charges: These charges are payable based on the scheduled energy, regardless of the actual drawal. The computation of both capacity and energy charges will follow Regulations 41 and 42 of the CSERC (Terms and Conditions for Determination of Tariff under Multi-Year Tariff Principles and Methodology for Determining Expected Revenue from Tariff and Charges) Regulations, 2021, including any subsequent amendments or enactments.

Deviation Charges: These charges account for actual and scheduled power injection or drawal variations. Deviation charges will be calculated as per Regulations 6 and 7.

Applicability of Intra-State ABT

The intra-state ABT will govern the following:

• Wind, solar, and wind-solar (WS) hybrid generating stations with installed capacities exceeding 5 MW, supplying power under long-term, medium-term, or short-term contracts to state distribution licensees at tariffs determined under Section 62 or 63 of the Electricity Act.
• All conventional fuel-based generators, including captive generating projects (CGPs), selling power directly through electricity traders or exchanges, intending to supply power to state distribution licensees under short-term contracts.
• All generating stations, including renewable energy (RE) projects and CGPs, selling power outside Chhattisgarh under long, medium, or short-term contracts.
• Generating stations, including RE projects and CGPs, selling power to intra-state consumers under long, medium, or short-term contracts.
• Distribution licensees drawing power from the state grid.
• All open-access consumers and captive users within Chhattisgarh who procure or receive power through the state grid will be governed by the intra-state ABT for electricity supplied by generating stations or licensees under inter-state or intra-state ABT.

Applicability of Deviation Charge Component under the Intra-State ABT

The following entities will be governed by the intra-state ABT only concerning applicable deviation charges:

• All small-scale consumers (SSCs) procuring power through open access within Chhattisgarh.
• All generators, including CGPs, selling power directly or through electricity traders, contracted to supply power exclusively to SSCs and/or medium-scale consumers (MSCs).
• All generators, including CGPs, selling power directly or through electricity traders, contracted to supply power exclusively to licensees or consumers located outside Chhattisgarh.
• Wind, solar, and WS hybrid generating projects that achieved their commercial operation date between October 4, 2019 (post-notification of CSERC DRE Regulations, 2019) and December 27, 2023, will be exempt from deviation charges.

Normal Rate of Deviation charges

The normal rate of deviation charges for a time block will be equal to the normal rate deviation charges as considered by the Western Regional Power Committee (WRPC) in the deviation settlement mechanism (DSM) statement issued to the Chhattisgarh State Power Distribution Company (CSPDCL).

Deviation charges

Generators injecting power without scheduling will be considered unscheduled power. CSPDCL will procure such power by executing an agreement with such generators. The power will be paid at the rate of ₹0.5 (~$0.0058)/kWh.

The cost incurred for purchasing such power will be considered the power purchase cost of CSPDCL, provided that the generator will not be paid if the frequency is greater than 50.03 Hz for the respective time block.

Inter-state and intra-state open access transactions: The deviation charges applicable for over-injection/under-drawal will be prepared by considering 95% of the applicable rates specified for charges of deviation.

The deviation charges in a time block by a seller will be:

Seller-Specific Charges:

(a) General Seller: Deviation charges for sellers other than hydro generating stations and stations based on municipal solid waste or biomass will be as specified under this regulation.

(b) Hydro Seller: Deviation charges will not be linked to grid frequency for hydro generating stations.

(c) Municipal Solid Waste Seller: Deviation charges will also be independent of grid frequency for generating stations based on municipal solid waste.

(d) Biomass Seller: For generating stations based on biomass, deviation charges will not depend on grid frequency and will be as prescribed under this regulation.

(e) Wind Solar (WS) Seller: For WS sellers, including those aggregated at a pooling station through a QCA, deviation charges will be independent of grid frequency and will be determined as per this regulation.

(f) Standalone Energy Storage System (ESS):

• Deviation charges for standalone ESS will match those for general sellers (excluding hydro generating stations and those based on municipal solid waste or biomass) under sub-clause (a).
• In charging mode, over-drawal by ESS will be treated as under-injection and under-drawal as over-injection, with deviation charges settled accordingly.
• For standalone ESS using pumped hydro storage, deviation charges, and their computation formula will align with those for WS sellers (solar-based generating stations) from the regulation’s effective date until March 31, 2026.

(g) WS Seller with ESS:

• When a WS seller with ESS is connected at the same interconnection point:
• Deviation charges will follow the rules applicable to the respective WS seller category during power injection by a solar, wind, or hybrid generating station.
• During power injection by the ESS alone, charges will align with those specified for a standalone ESS under sub-clause (f).
• Charges will also follow sub-clause (f) provisions for a standalone ESS during drawal by the ESS as per its drawal schedule from the grid.

The deviation charges in a time block by a buyer will be payable by them as under:

Scheduling and Despatch

Energy Losses
Sellers and buyers will bear energy losses (transmission or distribution losses) for their injection or drawal schedules at the interface point with the state grid or as stipulated in the prevailing power purchase agreement.

Scheduling for Long-Term and Medium-Term Open Access
For long and medium-term open access customers, scheduling and capacity declaration will comply with the CERC IEGC 2023, State Grid Code 2011, and the CSERC (Connectivity and Intra-State Open Access) Regulations 2011.

Daily Scheduling for “D” Day and STOA

For daily scheduling on “D” day, sellers must declare their capacity by 07:00 hours, and buyers must submit their 15-minute block-wise requirements to the state load despatch centre (SLDC) by 07:30 hours on “D-1” day. SLDC will issue finalized schedules by 09:30 hours on the same day. For short-term open access (STOA), approvals for power starting on “D” day must be obtained by “D-7”.

Failure to Submit Declared Capacity or Requirements
If sellers or buyers fail to submit their declared capacity or requirements by 07:00 hours (seller) or 07:30 hours (buyer) on “D-1” day, the schedule will be treated as zero for all purposes.

Revisions to Schedules

• A maximum of monthly schedule revisions is allowed for sellers with advance intimation to SLDC, CSPDCL, and buyers.
• Short-term open access quantum cancellations or downward revisions will be managed per Regulation 40(2) of CSERC (Connectivity and Intra-State Open Access) Regulations 2011.

Responsibilities of Long-Term and Medium-Term Open Access Customers

Sellers supplying short-term power to distribution licensees and/or MSC/SSC must provide a monthly schedule for short-term open access under Clause 8.3 and a daily schedule under Clause 8.2.

Allocation of Power by SLDC
Considering applicable losses, SLDC will allocate power and finalize schedules based on declared capacity and drawal requirements.

Day-Ahead Transactions

• Sellers must submit declared capacity for day-ahead short-term open access transactions by 07:00 hours, and Buyers must confirm requirements by 07:30 hours on “D-1” day.
• SLDC will finalize schedules and issue them by 09:30 hours on “D-1” day.

Revisions of Declared Capacity (DC)

• Generators ESS can revise DC up to four times daily (60 per month), except lignite, gas-based, and hydro stations, which are allowed six revisions daily (120 per month).
• Exceptions are permitted for project emergencies or multiple unit tripping with proper justification.
• Day-ahead DC revisions are allowed until 11:15 PM on “D-1” day, while SLDC-initiated schedule revisions take effect from the fourth time block after issuance.

Revisions for RE Generators

• RE generators are allowed one revision per 1.5-hour slot, up 16 daily revisions.
• Revisions must be submitted by 21:30 hours on “D-1” day.

Evacuating Substation Path Tripping
In such cases, the last injection schedule will be used as the deemed schedule, supported by authorized certifications on SLDC’s website.

Excess Scheduling by Sellers
If a seller schedules power over the approved open access quantum, they will not receive deviation charges for the excess. They must pay double the applicable transmission/wheeling charges for the entire day’s excess.

Energy Accounting and Settlement

The scheduled drawal (MW) at the drawal point for each time block will be calculated based on the consumer’s scheduled open access drawal, adjusted for state grid losses.

A buyer’s schedule under open access will only be considered if it exceeds zero, with deviations calculated accordingly.

Any excess energy consumed at the drawal point beyond the scheduled amount will be treated as energy drawn from the state grid and charged under the DSM. For consumers not using the banking mechanism under the DRE Regulations 2019, surplus energy after offsetting the SSC’s consumption within the same 15-minute block will be sold to the distribution licensee at ₹1.50 per unit, settled monthly.

In August 2024, the Central Electricity Regulatory Commission issued its Deviation Settlement Mechanism and Related Matters Regulations, 2024.

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