CSERC Clarifies Wheeling, Distribution Losses, And DSM Charges For Open Access Consumers In Chhattisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has recently issued a clarification order in Petition No. 51 of 2025 to address key ambiguities in the application of wheeling charges, distribution losses, and Deviation Settlement Mechanism (DSM) charges for open access consumers. The proceedings were presided over by Commission Members Vivek Ganodwale and Ajay Kumar Singh, following a request from the State Load Despatch Centre (SLDC) to interpret existing regulations. The order focused on three critical issues affecting open access transactions and billing practices.

The first issue examined by the Commission was whether wheeling charges and distribution losses apply when both the injecting and drawing entities are connected to the distribution network, but the electricity must flow through the State transmission system. The case of M/s Gravity was considered for reference. CSERC referred to Table 5 of the CSERC Open Access Regulations and clarified that in situations where the State transmission network is involved in power flow between entities, both wheeling charges and distribution losses are applicable. In addition to these, standard transmission charges and transmission losses must also be applied. This ruling provides clear guidance for consumers and utilities on the correct calculation of charges in such scenarios, ensuring consistency in billing and regulatory compliance.

The second issue addressed concerned a solar power generator, M/s Vaswani Industries Ltd., which achieved commercial operation after December 2023 and was availing inter-State open access. The Commission clarified that in inter-State transactions, scheduling at the regional periphery must be carried out after deducting both distribution and transmission losses, as specified in the relevant Tariff Orders. CSERC also affirmed that both transmission and wheeling charges are applicable for such inter-State open access transactions. This clarification helps in standardizing the treatment of solar and other renewable energy generators operating under inter-State open access agreements, ensuring that charges and losses are correctly accounted for in accordance with existing regulatory provisions.

The most complex clarification involved the calculation of DSM charges and billing for Multi-Supply Consumers (MSC) who receive power both from a distribution licensee and through open access. The SLDC had highlighted that M/s Gravity Ferrous was receiving significant DSM payments due to continuous under-drawal compared to its scheduled energy. The Commission emphasized that the DSM framework is based on the difference between actual and scheduled energy. Energy charges for MSCs must be billed based on the “scheduled energy” rather than actual consumption. The distribution licensee is required to bill the consumer for energy charges based on the contracted load at a 100% load factor, representing the maximum scheduled energy for the retail supply component. Demand charges are to be billed strictly on the sanctioned or contracted load.

To clarify this, CSERC provided examples comparing a consumer’s actual drawal with the sum of their contracted load and open access schedule. If a consumer draws less than the total scheduled energy, they receive deviation charges capped at the licensee’s average power purchase cost. Conversely, if a consumer draws more than the scheduled energy, deviation charges must be applied according to the prevailing grid frequency. The Commission emphasized that fixed and energy charges should not be mixed with deviation penalties, ensuring a clear and consistent regulatory framework for billing and DSM calculations.

This order by CSERC provides much-needed clarity for open access consumers, distribution licensees, and generators, covering aspects of wheeling, distribution losses, inter-State transactions, and DSM billing. It ensures transparency in billing practices, supports fair application of regulatory charges, and strengthens the framework for efficient grid operation and energy management in Chhattisgarh.