UPEX 2026

Implementation Of Intra-State Deviation Settlement Mechanism In Delhi As Per CERC Regulations 2024

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Representational image. Credit: Canva

The Central Electricity Regulatory Commission (CERC) has issued the Deviation Settlement Mechanism (DSM) and Related Matters Regulations, 2024, which will be effective from September 16, 2024. Following this, the Delhi State Load Despatch Centre (SLDC) requested guidance from the Delhi Electricity Regulatory Commission (DERC) for implementing these regulations at the intra-state level. In response, DERC held a meeting with SLDC and all pool participants on September 5, 2024, to discuss the regulations’ key features.

After considering the inputs from the participants, DERC provided several directives for implementing the intra-state DSM. The first directive instructs Delhi SLDC to use the rates specified in the CERC’s DSM regulations. For over-drawal and under-drawal limits at the intra-state level, specific limits have been set for various distribution licensees. For example, Tata Power Delhi Distribution Limited (TPDDL) has a limit of 29 MW, BSES Rajdhani Power Limited (BRPL) 41 MW, and BSES Yamuna Power Limited (BYPL) 21 MW. Other entities such as the New Delhi Municipal Council (NDMC), Military Engineer Services (MES), and Northern Railway have limits based on their schedule or a specified MW, whichever is lower.

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Additionally, DERC has instructed SLDC to follow CERC’s provisions regarding auxiliary power drawn by generators, especially during shutdowns, startup, or for infirm power. The order also mandates the application of DSM regulations to Waste to Energy (WTE) plants commissioned after December 26, 2022, following specific provisions outlined in the CERC regulations.

This new order takes effect from September 16, 2024, and repeals the previous order dated December 26, 2022, to the extent mentioned. This order will remain in force until further review or modification.

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