A recent draft regulation was released known as Karnataka Electricity Regulatory Commission (Intra-State Deviation Settlement Mechanism and Related Matters) Regulations, 2024 which focuses on ensuring the stability and reliability of electricity supply by maintaining a balance between power generation and consumption within Karnataka’s state grid. The aim is to ensure that the participants—such as power generators, distribution utilities, and consumers—adhere to their scheduled electricity generation and consumption. This effort will help prevent deviations that could affect the overall functioning of the grid.
Various stakeholders, including power generators, distributors, and consumers using open access, play important roles. These participants are expected to follow specific guidelines to help in settling deviations effectively. The Commission is looking for feedback on these draft regulations from stakeholders within 30 days. Feedback can be submitted to the Secretary of the Karnataka Electricity Regulatory Commission.
The draft outlines a mechanism that emphasizes grid stability through a commercial approach, where grid users will adhere to their electricity schedules. This ensures the security of the grid by balancing electricity drawal and injection.
Several terms are defined for clarity. These include “actual drawal,” which refers to the amount of electricity consumed, and “actual injection,” which is the amount of electricity produced. The draft also covers aspects such as energy contracts, pricing mechanisms, and responsibilities of buyers and sellers.
In the settlement mechanism, deviation charges will be applied if grid users exceed their scheduled electricity use or production. The draft provides specific guidelines on how these charges will be calculated, with variations based on whether the user is a buyer or a seller and whether they are generating or consuming electricity.
Grid-connected entities involved in electricity transactions within the state will be subject to this mechanism. These include state-owned generating stations, captive generating plants, and renewable energy-based plants. The draft regulation outlines how deviation charges are to be calculated and paid. Deviation charges are set according to specific parameters and are payable based on the schedule adhered to by both the generator and the consumer.
To ensure transparency, schedules for electricity generation and consumption must be declared in advance to the State Load Despatch Centre. This information helps in the proper allocation of electricity across the grid, making sure there are no imbalances that could disrupt the grid’s operations. Additionally, consumers and generators will bear the losses resulting from transmission inefficiencies, and the draft specifies how energy losses are to be accounted for.
The regulation aims to promote a more disciplined approach to electricity use in Karnataka, especially for entities that engage in intra-state electricity trade. The draft encourages users to stick to their electricity schedules as closely as possible, with penalties for those who deviate significantly. These measures are essential for the smooth functioning of the grid and ensuring uninterrupted power supply throughout the state.
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