CERC (Deviation Settlement

Mechanism and related matters)

Regulations,2014
Effective from 17.02.2014
S.KEJRIWAL ( Executive Engineer, Commercial), ERPC , Kolkata
Mob: 09831919509
E-mail : sshyam1079@rediffmail.com

2/11/2014

ERPC, KOLKATA

Replacement of existing UI Regulations which is

effective since 17.09.12
Objective:
Discourage deviation from Schedule
Operate within the freq band
Ensure grid security
Operation of network elements within acceptable limits
Important Changes vis--vis Existing UI regulation:
Buyer/Seller
Rate vector:

2/11/2014

ERPC, KOLKATA

SL No

EXISTING UI RATE

f>=50.20Hz, RUI=0

50.20>f>=50.00, RUI increases by 16.5 p/u for each 0.02Hz step

50.00>f>=49.8,RUI increases by 28.50 p/u for each 0.02Hz step

49.8>f>=49.50, RUI increases by 28.12 p/u for each 0.02Hz step

f<49.5, RUI= 900 p/u

Existing UI Rate (paise/unit)

1000
900
800
700
600
500
400
300
200
100
0
2/11/2014

Maximum UI Rate
= 900 p/u
871.88 p/u at 49.5 Hz

450 p/u at 49.8 Hz

Existing UI Rate (paise/unit)

165 p/u at 50Hz

ERPC, KOLKATA

SL No

NEW RATE FOR DEVIATION CHARGE

f>=50.05Hz, RDC=0

50.05>f>=50.00, RDC increases by 35.6 p/u for each 0.01Hz step

50.00>f>=49.7, RDC increases by 20.84 p/u for each 0.01Hz step

f<49.7,RDC=824.04p/u

Rate for Deviation Charge ( paise/unit )

900

Maximum Deviation Rate

= 824.04 paise/unit

800
700

803.2 paise/unit at 49.7 Hz

600
500
400

Rate for Deviation

Charge ( paise/unit )

300
200

178 paise/unit at 50 Hz

100
50.2
50.16
50.12
50.08
50.04
50
49.96
49.92
49.88
49.84
49.8
49.76
49.72
49.68
49.64
49.6
49.56
49.52

0
2/11/2014

ERPC, KOLKATA

 BUYERs/SELLERs
1.

Overinjection/Underdrawal:

Charges
for
Deviation
receivable
for
overinjection/underdrawal in a time block within
the volume capping of 12% of Schedule or 150MW
whichever is less in normal Deviation Charge
depending on freq.
For any overinjection/underdrawal beyond the
volume capping limit in a time block, the charges
receivable is zero.
Additional
Charges
for
Deviation
for
overinjection/underdrawal in any time block when
f>=50.10Hz at 178 p/u

2/11/2014

ERPC, KOLKATA

2. Overdrawal/Underinjection:
A. Charges
for
Deviation
payable
for
overdrawal/underinjection in a time block in normal
Deviation Charge depending on freq.
B. Additional charges for Deviation levied for
overdrawal/underinjection beyond the volume capping
limit as follows:

Freq ---- 49.7 Hz and above

a. 12% of Sch in a time block < = 150 MW

Overdrawal/
Underinjection

12-15%

15-20%

Above 20%

Additional Charges for

Deviation

20 % of Normal
Deviation Charge
depending on
average freq of that
block

40 % of Normal
Deviation Charge
depending on
average freq of that
block

100 % of Normal
Deviation Charge
depending on
average freq of that
block

2/11/2014

ERPC, KOLKATA

b) 12% of Sch in a time block > 150 MW

Overdrawal/
Underinjection

150-200MW

Additional Charges
for Deviation

20 % of Normal
Deviation Charge
depending on
average freq of
that block

200-250MW
40 % of Normal
Deviation Charge
depending on
average freq of
that block

Above 250MW
100 % of Normal
Deviation Charge
depending on
average freq of that
block

This is a new provision added to this regulation.

Freq ---- Below 49.7 Hz

Additonal Charges levied = 824.04 p/u

Total Charges
= 1648.08 p/u
2/11/2014

ERPC, KOLKATA

ILLUSTRATION:
Buyer/Seller : Underdrawal/Overinjection:
Sch

Act

Dev

Freq

Dev Rate

Min
(12% of
Col2,15
0)

Dev Charge
Receivable

Quantum of
Deviation for
Addl Dev
Charge

Additional
Dev
Charge
Payable

1450

1480

30

49.9

407.24

150

30*407.24

1450

1680

230

50

178

150

150*178

1200

1380

180

49.96

261.36

144

144*261.36

1300

1350

50

50.12

150

50

50*178

-120

-100

20

49.9

407.24

14.4

14.4*407.24

-1300

-1210

90

50

178

150

90*178

-1300

-1140

160

49.96

261.36

150

150*261.36

-1150

-1010

140

49.84

511.44

138

138*511.44

-300

-240

60

50.18

36

60

60*178

2/11/2014

ERPC, KOLKATA

Buyer/Seller: Overdrawal/Underinjection:
Sch

Act

Dev

Freq

Dev Rate

Min
(12%
of
Col2,

Dev Charge
Payable

Quantum of
Deviation for
Addl Dev
Charge

Additional Dev
Charge Payable

150)
1

1450

1420

-30

49.9

407.24

150

30*407.24

1450

1190

-260

49.8

594.8

150

260*594.8

110

50*0.2*594.8+50*0.4
*594.8+10*594.8

1180

940

-240

49.75

678.16

141.6

240*678.16

98.4

35.4*0.2*678.16+59*
0.4*678.16+4*678.16

1180

1150

-30

49.68

824.04

141.6

30*824.04

30

30*824.04

-400

-435

-35

50.01

142.40

48

35*142.4

-400

-485

-85

49.86

469.76

48

85*469.76

37

12*0.2*469.76+20*0.
4*469.76+5*469.76

-1400

-1665

-265

49.91

365.56

150

265*365.56

115

50*0.2*365.56+50+0.
4*365.56+15+365.56

-250

-282

-32

49.61

824.04

30

32*824.04

32

32*824.04

2/11/2014

ERPC, KOLKATA

2/11/2014

(250-200)*40% of
Dev Rate of that
time block=
50*0.4*594.8
paisa/unit

ERPC, KOLKATA

Above 250MW

(200-150)*20% of
Dev Rate of that
time block=
50*0.2*594.8
paisa/unit

200-250MW

150-200MW

In a time block: Sch injection = 1450MW Act injection= 1190MW

Deviation =1190-1450 = -260MW
Freq = 49.8 Hz, Dev Rate = 594.80 paisa/unit
Min ( 12% of Sch=174MW, 150MW) = 150MW
Total underinj allowed without levy of Addl Charge for Deviation = 150MW
Quantum of Underinjection on which Addl Charges for Deviation to be
levied = 260-150 = 110 MW

(110-5050)*100% of
Dev Rate of
that time
block=
10*1*594.8
paisa/unit

10

2/11/2014

5% of Sch*40%
of Dev Rate of
that time block=
20*0.4*469.76
paisa/unit

ERPC, KOLKATA

Above 20 %

3% of Sch*20%
of Dev Rate of
that time block=
12*0.2*469.76
paisa/unit

15-20%

12-15%

In a time block: Sch Drawal = -400MW Act Drawal= -485MW

Deviation = -485-(-400)= -85MW
Freq = 49.86 Hz, Dev Rate = 469.76 paisa/unit
Min ( 12% of Sch=48MW, 150MW) = 48MW
Total overdrawal allowed without levy of Addl Charge for Deviation = 48MW
Quantum of Overdrawal on which Addl Charges for Deviation to be levied =
85-48 = 37 MW

(37-8% of
Sch)*100% of
Dev Rate of that
time block=
5*1*469.76
paisa/unit

11

 Thermal Stations regulated by CERC and using coal

under APM as fuel):
Existing UI Rate (paise/unit)
450
Maximum UI Rate
= 421.5 p/u

400
350
300
250
200
165 p/u at 50Hz

150

Existing UI Rate
(paise/unit)

100
50
50.3
50.26
50.22
50.18
50.14
50.1
50.06
50.02
49.98
49.94
49.9
49.86
49.82
49.78
49.74
49.7
49.66
49.62
49.58
49.54
49.5

0
2/11/2014

ERPC, KOLKATA

12

 Thermal Stations regulated by CERC and using coal

under APM as fuel:
Rate for Deviation Charge ( paise/unit )
350

Maximum Deviation Rate

= 303.04 paise/unit

300
250
200
178 paise/unit at 50 Hz

150

Rate for Deviation

Charge ( paise/unit )

100
50

49.55

ERPC, KOLKATA

49.6

49.65

49.7

49.75

49.8

49.85

49.9

49.95

50

50.05

2/11/2014

50.1

50.15

50.2

0
13

 Thermal Stations regulated by CERC and using coal

under APM as fuel:
1. 105% time block capping and 101% day capping w.r.t DC of
ISGS has been done away with
2.

Overinjection:

Charges for Deviation receivable for overinjection in a time

block within the volume capping of 12% of Schedule or
150MW whichever is less in normal Deviation Charge subject
to a capping of 303.04p/u depending on freq.
For any overinjection beyond the volume capping limit in a
time block, the charges receivable is zero.
Additional Charges for Deviation for overinjection in any
time block when f>=50.10Hz at 178 p/u

2/11/2014

ERPC, KOLKATA

14

3.
Underinjection:
A. Charges for Deviation payable for underinjection
in a time block in normal Deviation Charge
subject to a capping of 303.04p/u depending on
freq.
B. Additional charges for Deviation levied for
underinjection beyond the volume capping limit
as follows:
Freq ---- 49.7 Hz and above
a. 12% of Sch in a time block < = 150 MW
Underinjection

12-15%

15-20%

Above 20%

Additional Charges
for Deviation

20 % of
MIN(303.04p/u ,
Normal Deviation
Charge)

40 % of
MIN(303.04p/u ,
Normal Deviation
Charge)

100 % of
MIN(303.04p/u ,
Normal Deviation
Charge)

2/11/2014

ERPC, KOLKATA

15

b) 12% of Sch in a time block > 150 MW

Underinjection

150-200MW

200-250MW

Above 250MW

Additional Charges
for Deviation

20 % of
MIN(303.04p/u ,
Normal Deviation
Charge)

40 % of
MIN(303.04p/u ,
Normal Deviation
Charge)

100 % of
MIN(303.04p/u ,
Normal Deviation
Charge)

This is a new provision added to this regulation.

Freq ---- Below 49.7 Hz

Additonal Charges levied = 303.04 p/u

Total Charges
= 606.08 p/u
2/11/2014

ERPC, KOLKATA

16

ILLUSTRATION:

1) Overinjection
Sch

Freq

Dev Rate

Dev
Rate
Applic
-able

1 1450 1480 30

49.9

407.24

303.04 150

30*303.04

2 1450 1680 230

50

178

178

150*178

3 1200 1380 180

49.96

261.36

261.36 144

144*261.36 0

4 1300 1350 50

50.12

178

2/11/2014

Act

Dev

ERPC, KOLKATA

Min (12% of
Col2,150)

150

Dev Charge Additio

Receivable nal Dev
Charge
Payable

50*178

17

UNDERINJECTION
Sch

Act

Dev

Freq

Dev Rate

Dev
Rate
Applicable

Min
(12% of
Col2,15
0)

Dev Charge
Payable

Additional Dev Charge

Payable

1450

1420

-30

49.9

407.24

303.04

150

30*303.04

1450

1280

-170

50

178

178

150

170*178

20*.2*178

1450

1240

-210

49.96

261.36

261.36

150

210*261.36

50*0.2*261.36+10*0.4
*261.36

1450

1190

-260

49.8

594.8

303.04

150

260*303.04

50*0.2*303.04+50*0.4
*303.04+10*303.04

1180

1150

-30

49.75

678.16

303.04

141.6

30*303.04

1180

1000

-180

49.98

219.68

219.68

141.6

180*219.68

35.4*0.2*219.68+3*0.4
*219.68

1180

940

-240

49.88

428.08

303.04

141.6

240*303.04

35.4*0.2*303.04+59*0.
4*303.04+4*303.04

1180

1075

-105

49.70

803.2

303.04

141.6

105*303.04

1180

1075

-105

49.69

824.04

303.04

141.6

105*303.04

105*303.04

2/11/2014

ERPC, KOLKATA

18

2/11/2014

(250-200)*40% of
MIN(Normal Dev
Rate of that time
block,303.04)=
50*0.4*303.04pa
isa/unit
ERPC, KOLKATA

Above 250MW

(200-150)*20% of
MIN(Normal Dev
Rate of that time
block,303.04)=
50*0.2*303.04pa
isa/unit

200-250MW

150-200MW

In a time block: Sch injection = 1450MW Act injection= 1190MW

Deviation =1190-1450 = -260MW
Freq = 49.8 Hz, Dev Rate = 594.80 paise/unit
Dev Rate applicable = MIN( Normal Dev Rate, 303.04)=303.04 paise/unit
Min ( 12% of Sch=174MW, 150MW) = 150MW
Total underinj allowed without levy of Addl Charge for Deviation = 150MW
Quantum of Underinjection on which Addl Charges for Deviation to be
levied = 260-150 = 110 MW

(110-5050)*100% of
MIN(Normal
Dev Rate of
that time
block,303.04)=
10*1*303.04p
aisa/unit
19

2/11/2014

5% of Sch*40%
MIN(Normal Dev
Rate of that time
block,303.04)=
59*0.4*303.04
paisa/unit

ERPC, KOLKATA

Above 20 %

3% of Sch*20%
MIN(Normal Dev
Rate of that time
block,303.04)=
35.4*0.2*303.04
paisa/unit

15-20%

12-15%

In a time block: Sch injection = 1180MW Act injection= 940MW

Deviation = 940-1180 = -240MW
Freq = 49.88 Hz, Dev Rate = 428.08 paisa/unit
Dev Rate applicable = MIN( Normal Dev Rate, 303.04)=303.04 paise/unit
Min ( 12% of Sch=141.6MW, 150MW) = 141.6MW
Total underinj allowed without levy of Addl Charge for Deviation = 141.6MW
Quantum of Underinjection on which Addl Charges for Deviation to be
levied = 240-141.6 = 98.4 MW
(98.4-8%of
Sch)*100%
MIN(Normal Dev
Rate of that time
block,303.04)=
4*1*303.04
paisa/unit

20

 Infirm power:
1. Injection:

Period of 6 months allowed

Domestic coal/lignite/hydro: 178p/u against 165 p/u
Imported coal: 303p/u against 330p/u
Exemption from volume limit

2. Drawal:

Exemption from volume limit for f>=49.7Hz

No levy of Additional charges for deviation at f<49.7Hz.
(As per present UI regulation Addl. UI Charges applicable)

2/11/2014

ERPC, KOLKATA

21

Accounting of Charges for Deviation:

RLDCs to furnish data by every Thursday
RPCs to prepare and issue statement of
Deviation including Additional Charges for
Deviation by every Tuesday for 7 day period
ending on penultimate Sunday.
All payments including interest , if any, to be
credited to Regional Deviation Pool Account
Fund
Fund to be operated and maintained by RLDCs
2/11/2014

ERPC, KOLKATA

22

Other Important Clauses:

Any Additional Charge for Deviation collected from a
regional entity shall be retained in the Regional
Deviation Pool Account Fund of the concerned region
where the regional entity is located
In the event of sustained deviation from schedule in
one direction (positive or negative) by any regional
entity, such regional entity (buyer or seller) shall have
to make sign of their deviation from schedule changed,
at least once, after every 12 time blocks. To illustrate, if
a regional entity has positive deviation from schedule
from 07.30 hrs to 10.30 hrs, sign of its deviation from
schedule shall be changed in the 13th time block i.e.
10.30 to 10.45 hrs from positive to negative or negative
to positive as the case may be.
2/11/2014

ERPC, KOLKATA

23

Other Important Clauses: (contd.)

RLDCs shall, on monthly basis, prepare and publish on
its website the records of the Deviation
Accounts, specifying the quantum of over-drawl/
under-injection and corresponding amount of Charges
for Deviation payable/receivable for each buyer and
seller for all the time-blocks when grid frequency was
"49.90Hz and above" and "below 49.90" Hz separately.
Any surplus amount in the Deviation Pool Account Fund
on the last day of the month shall be transferred to
PSDF in first week of the next month
On commencement of these regulations:
a) CERC (UI & related matters) regulation shall stand
repealed
b) Regional UI Pool Account Fund shall continue to
operate till the UI Accounts settlement is completed
2/11/2014

ERPC, KOLKATA

24

Schedule of Payments:
Payment to be made within 10 days of issue of statement by RPC
For delay of more than 2 days i.e beyond 12 days of issue of statement by
RPC, simple interest @ 0.04% to be levied for each day of delay
Payments to receivable entities to be made within 2 working days of
receipt of payments in the fund
In the event of delay of payment by Payable entities, the receivable entities
shall be paid from the balance in the fund. If sufficient fund not
there, payment to be made on pro rata basis
Utilities defaulting at any time in previous FY shall open an LC equal to
110% of its average payable weekly liability in favour of the concerned
RLDC within a fortnight of date these regulations come into force
Utilities defaulting at any time in current FY shall open an LC equal to 110%
of its weekly outstanding liability in favour of the concerned RLDC within a
fortnight from the due date of payment
LC to be increased to 110% of the payable weekly liability for Deviation in
any week during the year, if it exceeds the previous LC amount by more
than 50%
For payments not received within 12 days, RLDC entitled to encash the LC
to the extent of default which has be recouped within 3 days
2/11/2014

ERPC, KOLKATA

25

Relevant Clauses from IEGC , 2nd Amendment

Regulations effective from 17.02.2014
Clause 3(7)(g):RLDCs shall devise standard instantaneous message formats
in order to give directions in case of contingencies and/or threat to the
system security to reduce deviation from schedule by the bulk
consumer, SLDC/StateUtility/ISGS/Regional Entity/Injeecting Utility at
different overdrawal/underdrawal/over-injection/underinjection conditions
depending upon the severity. The concerned SLDC/other regional entity
shall ensure immediate compliance with these directions of RLDC and send
a compliance report to the concerned RLDC
Clause 4(1): ..The regional entities shall regulate their generation
and/or consumers load so as to maintain their actual drawl from the
regional grid close to the above schedule. Maximum inadvertent deviation
allowed during a time block shall not exceed the limits specified in the
Deviation Settlement Mechanism Regulations. Such deviations should not
cause system parameters to deteriorate beyond permissible limits and
should not lead to unacceptable line loadings. Inadvertent deviations, if
any, from net drawl schedule shall be priced through the Deviation
Settlement mechanism as specified by the Central Commission from time to
time. Every regional entity shall ensure reversal of sign of deviation from
schedule at least once after every twelve time blocks
2/11/2014

ERPC, KOLKATA

26

Relevant Clauses from IEGC , 2nd Amendment

Regulations effective from 17.02.2014 (contd)

Clause 4(2)(7): The SLDC, SEB / distribution licensee shall always restrict the net
drawl of the state from the grid within the drawl schedule keeping the deviations
from the schedule within the limits specified in the Deviation Settlement
Mechanism Regulations. The concerned SEB/distribution licensee/User, SLDC shall
ensure that their automatic demand management scheme mentioned in clause
5.4.2 acts to ensure that there is no over-drawl. If the automatic demand
management scheme has not yet been commissioned, then action shall be taken as
per manual demand management scheme to restrict the net drawal from grid to
within schedules and all actions for early commissioning of Automatic Demand
Management Scheme (ADMS) shall be initiated

Clause 4(3)(10): The ISGS is normally expected to generate power according to the
daily schedules advised to them barring any inadvertent deviations. Maximum
deviation allowed during a time block shall not exceed the limits specified in the
Deviation Settlement Mechanism Regulations. Such deviations should not cause
system parameters to deteriorate beyond permissible limits and should not lead to
unacceptable line loadings. Inadvertent deviations, if any, from the ex-power plant
generation schedules shall be appropriately priced in accordance with Deviation
Settlement Mechanism Regulations. In addition, deviations from schedules causing
congestion, shall also be priced in accordance with the Central Electricity Regulatory
Commission (Measure to relieve congestion in real time operation)
Regulations, 2009

2/11/2014

ERPC, KOLKATA

27

Relevant Clauses from IEGC , 2nd Amendment

Regulations effective from 17.02.2014 (contd)
Clause 4(5)(12): .. the RLDC may direct the SLDCs/ISGS/
other regional entities to increase/decrease their
drawal/generation in case of contingencies e.g. overloading of
lines/transformers, abnormal voltages,threat to system
security. Such directions shall immediately be acted upon.
Incase the situation does not call for very urgent action, and
RLDC has some time for analysis, it shall be checked whether
the situation has arisen due to deviations from schedules.
Clause 4(7)(24): "Hydro generating stations are expected to
respond to grid frequency changes and inflow fluctuations.
Maximum deviation allowed during a time block shall be as per
the CERC Deviation Settlement Mechanism Regulations."
2/11/2014

ERPC, KOLKATA

28

2/11/2014

ERPC, KOLKATA

29