UPEX 2026

Chhattisgarh Unveils 2024 Draft Regulations For Intra-State Deviation Settlement Mechanism, Aiming To Strengthen State Electricity Grid Stability

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Representational image. Credit: Canva

The Chhattisgarh State Electricity Regulatory Commission has introduced new draft regulations aimed at ensuring the stability and security of the state’s electricity grid. These regulations, effective from July 1, 2024, focus on the Intra-State Deviation Settlement Mechanism and Related Matters.

The primary objective of these regulations is to prevent deviations from scheduled electricity drawl and injection, thereby maintaining grid stability. They apply to all entities connected with the State Transmission Utility (STU) in Chhattisgarh.

Under the new regulations, the tariff structure under the Availability Based Tariff (ABT) regime consists of three components: fixed/capacity charges, energy/variable charges, and deviation charges. Fixed charges are based on the capacity allocated to generators, linked to the availability of generating stations. Energy charges are payable based on scheduled energy, regardless of actual drawl. Deviation charges are incurred when there’s a variation between actual and scheduled generation or drawl.

Various types of generating companies fall under the purview of these regulations, including conventional fuel-based plants, biomass, hydel, wind, solar, and wind-solar hybrid plants. Additionally, distribution licensees, open-access consumers, and captive users within the state are subject to these regulations.

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To ensure adherence to schedules and prevent deviations, every grid-connected entity must comply with the Grid Code and relevant regulations/orders issued by the Commission. Deviations from schedules are accounted for and charged accordingly.

Generators injecting power without scheduling are considered to be providing unscheduled power, which is procured by the Chhattisgarh State Power Distribution Company Limited (CSPDCL) at a predetermined rate. Deviation charges apply in cases where the frequency deviates beyond a certain threshold.

In cases of open access transactions, deviation charges are applied based on the extent of over or under-injection. Consumers drawing power through open access must adhere to their schedules, with deviations incurring charges.

For small-scale consumers (SSCs) procuring power from renewable sources, surplus energy is either sold to the distribution licensee or set off against consumption. Any excess energy consumed is treated as a deviation and subject to charges.

The Commission has the authority to relax regulations under certain circumstances and has repealed previous regulations on Intra-State Availability Based Tariff and Deviation Settlement Mechanism. In case of any difficulties in implementing these regulations, the Commission may issue orders to address the situation. These regulations mark a significant step towards ensuring the stability and efficiency of Chhattisgarh’s electricity grid, ultimately benefiting consumers and stakeholders across the state.

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Please view the document here for more details.


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