CERC Extends DAS Pool Deficit Recovery Norms Deadline To October 2026 Amid Implementation Challenges

The Central Electricity Regulatory Commission (CERC) has issued a new order to address challenges in implementing the settlement of deficits in the Deviation and Ancillary Service (DAS) Pool Account. The order, registered as Petition No. 02/SM/2026, was passed on March 30, 2026, under the leadership of Chairperson Jishnu Barua, along with other members of the Commission.

The issue relates to Regulation 9(7) of the CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024, which were notified in August 2024. This regulation explains how financial shortfalls in a region’s DAS Pool Account should be managed. According to the rules, if surplus funds from other regions are not enough to cover a deficit, the remaining amount is recovered from Designated ISTS Consumers (DICs).

Under the current system, this recovery is calculated using a 50:50 formula. Half of the deficit is shared based on the electricity drawal of consumers at the ISTS periphery, and the other half is based on their General Network Access (GNA). This method has been in use since the regulations were introduced.

As per the earlier plan, a new system was scheduled to start from April 1, 2026. In this system, the recovery of deficits would be linked to the “shortfall of reserves” allocated by the National Load Despatch Centre (NLDC). The aim of this change was to make the settlement process more aligned with real-time grid requirements and reserve management.

However, Grid India and the NLDC informed the Commission that they are facing practical difficulties in implementing the new system. They pointed out that there is a need to develop a clear and strong framework for defining and measuring reserves, tracking actual reserve availability, and handling dispatch and settlement processes efficiently.

After reviewing these concerns, the Commission agreed that more time is needed to put the required systems and procedures in place. Using its “Power to Remove Difficulty” under Regulation 12, the CERC has decided to extend the current methodology.

With this decision, the existing 50:50 recovery mechanism based on drawal and GNA will continue until October 4, 2026. The new reserve-based system will now come into effect from October 5, 2026.

The extension is expected to give the NLDC and other stakeholders enough time to finalize detailed procedures and ensure a smooth and effective transition to the new framework.