CSERC Directs Chhattisgarh Utilities To Continue Existing Practice For Surplus Power Management

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has directed state-owned power utilities to continue their existing practice for managing and selling un-requisitioned surplus (URS) power, stating that the arrangement is financially prudent and in the larger public interest.

The decision was issued under Suo Motu Petition No. 45 of 2026 following a guidance request from Chhattisgarh State Power Generation Company Limited (CSPGCL) regarding its power supply arrangements with Chhattisgarh State Power Distribution Company Limited (CSPDCL).

The regulatory issue involved the interpretation of the Electricity (Late Payment Surcharge and Related Matters) Amendment Rules, 2024 and procedures followed by the National Load Despatch Centre (NLDC). Under the rules, a distribution licensee is required to intimate its power schedule at least two hours before the closure of the Day-Ahead Market (DAM) bidding window. Any power that remains un-requisitioned is required to be offered on power exchanges by the generating company to retain its entitlement to fixed charges.

CSPGCL argued that requiring it to independently sell surplus power on exchanges would increase costs and could ultimately burden consumers. The company pointed out that CSPDCL already has exchange registrations, trading arrangements and a dedicated market operations cell to manage electricity transactions.

According to CSPGCL, direct sale by the generating company would involve additional costs, including short-term open access charges of 35.4 paise per unit and intra-state transmission charges of 5.1 paise per unit for 2025–26, along with exchange fees and other incidental expenses. These additional costs could make CSPGCL’s power at least 43 paise per unit more expensive than CSPDCL’s offering. This could reduce the chances of bids being cleared and potentially increase costs for consumers.

CSPGCL also highlighted its statutory obligation under the CSERC Multi-Year Tariff regulations to supply its full available capacity to CSPDCL.

CSPDCL explained that it follows a daily demand forecasting and economic optimization process based on Merit Order Dispatch principles. It initially requisitions 100 percent of CSPGCL’s declared capacity. Any surplus identified before the market deadline is traded through markets such as DAM or the Real-Time Market (RTM). Where market conditions are unfavorable, the utility may surrender or back down the surplus after informing the State Load Despatch Centre.

After reviewing the submissions and Regulation 45(i) of the Indian Electricity Grid Code, 2023, CSERC observed that CSPDCL consistently requisitions the full declared capacity of CSPGCL without reducing its requirement before the DAM deadline.

The Commission therefore concluded that no power is classified as URS before the prescribed market timelines under the existing arrangement. The two-member bench comprising Member (Law) Vivek Ganodwale and Member (Technical) Ajay Kumar Singh directed CSPGCL and CSPDCL to continue their existing practice for managing surplus power.