Chhattisgarh Drafts 2025 Regulations To Align Intra-State Deviation Settlement With National Framework

The National Electricity Policy has long advocated the implementation of the Availability Based Tariff (ABT) at the State level to ensure a credible system for settling intra-day power transfers among different entities operating within the same state. In line with this, the Chhattisgarh State Electricity Regulatory Commission (CSERC) had previously introduced the Intra-State Availability Based Tariff and Deviation Settlement Regulations back in 2016. These regulations were designed to follow the Central Electricity Regulatory Commission (CERC)’s Deviation Settlement Mechanism (DSM) and related guidelines that had been notified in 2014.

However, since then, the CERC has issued updated regulations titled the CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024, and followed up with a first amendment to the same regulations also in 2024. These new regulations revised the commercial treatment of deviations by both power sellers and buyers, taking into account significant developments and evolving market conditions. As a result, there is a pressing need to realign Chhattisgarh’s existing deviation settlement framework with the central framework to ensure effective and accurate financial recovery from participants operating within the state’s electricity market.

With this goal, CSERC has now drafted and introduced the CSERC (Intra-State Deviation Settlement Mechanism and Related Matters) Regulations, 2025. These new draft regulations are intended to be applicable to all intra-state deviations made by buyers and sellers in Chhattisgarh. The intent is to bring the state regulations in harmony with the latest standards and methodologies adopted by the central commission for inter-state deviation settlement.

In addition, it was highlighted that the CERC has also released a second amendment draft to its Deviation Settlement Mechanism regulations dated 10 May 2025. This draft amendment has been published for stakeholder consultation, and a copy has also been uploaded on the CSERC’s official website to invite comments and suggestions from all concerned stakeholders. The provisions outlined in the new central draft will also be reviewed and considered by CSERC once public feedback has been gathered and analyzed.

The initiative taken by CSERC to revise and draft new regulations for 2025 reflects its commitment to keeping state-level electricity market mechanisms aligned with national-level reforms and practices. Through these regulatory updates, the commission aims to ensure that the commercial consequences of deviations are accurately and fairly addressed, leading to a more disciplined and efficient power trading environment within the state.