CERC Extends Fifth Amendment Regulations Till 1st December 2020

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The Central Electricity Regulatory Commission passed an order in regards to Removal of difficulties for giving effect to certain provisions of the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) (Fifth Amendment) Regulations, 2014 .The Commission passed and order  that the date of implementation of provisions and applicability of Regulation 7(10)(b) as amended vide DSM Fifth Amendment Regulations, shall be rescheduled from 1.6.2020 to 1.12.2020.

The DSM Fifth Amendment Regulations amended inter alia Regulation 7(10) of the DSM Regulations states that “In the event of sustained deviation from schedule in one direction (positive or negative) by any regional entity (buyer or seller), such entity shall correct its position in the manner as specified under clauses (a) and (b) of this Regulation. (a) For the period up to 31.03.2020: If the sustained deviation from schedule continues in one direction (positive or negative) for 12 time blocks, the regional entity (buyer or seller), shall correct its position by making the sign of its deviation from schedule changed or by remaining in the range of +/- 20 MW with reference to its schedule, at least once, latest by 13th time block, such range being a subset of volume limit as specified under Regulations 7(1) & 7(2) of these Regulations. 

The order states that “Provided that each violation of the requirement under this clause shall attract an additional charge of 10% of the time block DSM charge payable or receivable as the case may be. (b) For the period from 01.04.2020: If the sustained deviation from schedule continues in one direction (positive or negative) for 6 time blocks, the regional entity (buyer or seller), shall correct its position, by making the sign of its deviation from schedule changed or by remaining in the range of +/- 20 MW with reference to its schedule, at least once, latest by 7th time block such range being a subset of volume limit as specified under Regulations 7(1) & 7(2) of these Regulations. “

The commission added that “Payment of additional charge for failure to adhere to sign change requirements as specified under clauses (a) & (b) of this regulation shall not be applicable to: a. renewable energy generators which are regional entities b. run of river projects without pondage c. any infirm injection of power by a generating station prior to CoD of a unit during testing and commissioning activities, in accordance with the Connectivity Regulations. d. any drawal of power by a generating station for the start-up activities of a unit. e. any inter-regional deviations. f. forced outage of a generating station in case of collective transactions on Power Exchanges. 

The Commission has also received representations from various stakeholders expressing difficulties in implementation of the provisions of Regulation 7(10)(b) as amended vide DSM Fifth Amendment Regulations, which are to come into effect from 01.06.2020. 

The Commission has carefully considered all the representations of the stakeholders in the context of the DSM Fifth Amendment. The Commission notes that the various factors mentioned by the stakeholders in support of their claim to either defer or withdraw implementation of the provisions of Regulation 7(10)(b) of DSM regulations, have already been addressed by the Commission in detail in the Statement of Reasons to the DSM Fifth Amendment.

The Commission has also been emphasizing on the need for taking steps by the stakeholders to channel their short term energy requirement through organized markets and refraining from leaning onto the grid, besides developing their own reserve pool to meet contingencies.

 However, the Commission has taken note of the fact that the country continues to face unprecedented difficulties due to the COVID-19 pandemic. There has also been an impact on grid operation due to low demand. The Commission also notes that the Real Time Market(RTM) is being implemented with effect from 01.06.2020 with the objective of providing options to stakeholders to correct their position in terms of surplus or deficit of demand/generation closer to real time, though some time may be needed for the distribution companies to adjust to this new environment. 

The Commission is of the view that it would be prudent to grant some more time to the stakeholders to put in place the required measures for ensuring adherence to sign change provisions, including by way of correcting their position in the real time market. Accordingly, the Commission considers it necessary to exercise its powers under Regulation 13 of the DSM Regulations to issue directions to remove difficulties in implementation of provisions of the Regulations.

The said Regulation reads as under: “ Power to issue directions If any difficulty arises in giving effect to these regulations, the Commission may on its own motion or on an application file by any affected party issue such directions as may be considered necessary in furtherance of the objective and purpose of these regulations.”

Therefore, the Commission hereby directed that the date of implementation of provisions and applicability of Regulation 7(10)(b) as amended vide DSM Fifth Amendment Regulations, shall be rescheduled from 1.6.2020 to 1.12.2020. The Commission also directs that applicability of provisions of Regulation 7(10)(a) as amended vide DSM Fifth Amendment Regulations, shall be extended up to 30.11.2020.

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