The Central Electricity Regulatory Commission has received a petition from the National Load Despatch Centre seeking approval for Performance Linked Incentives for the financial year 2023-24. The petition, filed on December 6, 2025, covers incentives for NLDC and all five Regional Load Despatch Centres for their operational performance and service delivery throughout the year. This approval is required before the incentive amount can be recovered from system users across the national power grid.
The petition lists a wide range of users, including distribution companies, generating companies, transmission licensees, and large institutional buyers who benefit from grid operation services. In the Northern Region, users include Delhi Metro Rail Corporation, Uttar Pradesh Power Corporation, and renewable energy generators like Adani Hybrid Energy Jaisalmer and Tata Power Green Energy. Similar users are listed in other regions, such as Maharashtra State Electricity Distribution Company, Gujarat Urja Vikas Nigam, and Madhya Pradesh Power Management Company under the Western Regional Load Despatch Centre. Entities such as Power Grid Corporation also play a role as interstate transmission licensees.
To justify the incentive claim, NLDC and RLDCs submitted detailed assessments of their achievements against approved performance indicators. One highlight came from the Stakeholder Satisfaction category, where all RLDCs scored exceptionally well, securing more than 392 marks out of 400. NLDC itself scored 389.132 marks, reflecting strong engagement and service responsiveness. Performance in the MoU Rating category, assessed by the Department of Public Enterprises, also stood out with all centres achieving 36.600 marks out of 40, indicating consistent service compliance.
In system operation, which is central to maintaining grid stability, NLDC reported perfect performance in processing shutdown requests within the designated timelines. It also achieved full marks in maintaining voltage levels, reporting 99.34% compliance. These achievements underscore the critical role of system operators in ensuring reliable power supply and managing complex grid conditions, especially with increasing renewable energy penetration.
However, the petition also highlights areas that require improvement. The performance for maintaining power system frequency within the designated range was below target, with NLDC achieving 73.83% against a goal of 90%, resulting in a reduced score of 16.766 out of 20. RLDCs recorded mixed results across related metrics but continued to show strength in processing power market bilateral transactions, where most achieved 100% compliance and full marks.
The most challenging performance area was financial prudence, specifically the variance in capital expenditure spending. The KPI aimed for a maximum variance of 15%, but the NLDC reported an extremely high variance of 2405%, leading to a zero score. The Western and North Eastern RLDCs also received zero marks. In contrast, the Eastern RLDC demonstrated comparatively better control over expenditure, securing 51.603 marks with a variance of 50.50%.
To confirm accuracy, the petition includes formal undertakings from the heads of all load despatch centres certifying that calculations and performance data are correct and verified. The Commission will now evaluate the petition and is expected to issue a final order on whether the proposed Performance Linked Incentives can be passed on to users.
The petition reflects both strong technical achievements and financial management challenges within India’s grid operations framework. The final decision from the Commission will determine the financial reward mechanism for operational excellence and may set a precedent for performance accountability in future years.
