CERC Directs Timely Power Allocation and Sales Amidst High Demand Period

In response to a critical power shortage situation, the Central Electricity Regulatory Commission (CERC) has issued a directive under special circumstances to ensure optimal power supply. Grid India, in a recent communication, highlighted a significant surge in power demand and reported load shedding of approximately 6-7 GW on August 11, 2023. Interestingly, despite having a surplus generation capacity of 3 GW under reserve shutdown, this available power was not made available for sale in the market during the load shedding.

The Ministry of Power had previously introduced the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, mandating distribution licensees to notify their power requisition schedule from generating companies at least two hours prior to the day-ahead market. However, in light of the pressing circumstances, CERC has now directed State Load Dispatch Centers (SLDCs) to promptly advise drawl schedules to the respective Regional Load Dispatch Centers (RLDCs) by 10 AM on the day before the power is needed. This change aims to expedite the process and make un-requisitioned power available for sale in the day-ahead market.

Furthermore, the directive allows Independent Power Generating Stations (ISGS) to sell power that hasn’t been requisitioned by beneficiaries after the drawl schedules are received from SLDCs. Notably, the power sold through this process cannot be rescheduled by the original beneficiaries. The gains resulting from the sale of such un-requisitioned power will be governed by the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022.

The CERC emphasized that these measures are being undertaken to address the ongoing power shortage and to ensure the maximum utilization of available generation capacity. The directive will remain in effect until the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023, come into force. Grid-India has been directed to widely disseminate this directive, including posting it on its website, for the awareness and action of all stakeholders.