CERC (Deviation Settlement Mechanism and related matters) Regulations,2014

Effective from 17.02.2014

2/10/2014

ERPC, KOLKATA

Replacement of existing UI Regulations which is effective since 17.09.12

Objective: Discourage deviation from Schedule Operate within the freq band Ensure grid security Operation of network elements within acceptable limits Important Changes vis--vis Existing UI regulation: Buyer/Seller Rate vector:

2/10/2014

ERPC, KOLKATA

SL No 1 2 3 4 5

EXISTING UI RATE f>=50.20Hz, RUI=0 50.20>f>=50.00, RUI increases by 16.5 p/u for each 0.02Hz step 50.00>f>=49.8,RUI increases by 28.50 p/u for each 0.02Hz step 49.8>f>=49.50, RUI increases by 28.12 p/u for each 0.02Hz step f<49.5, RUI= 900 p/u

Existing UI Rate (paise/unit)

1000 900 800 700 600 500 400 300 200 100 0
2/10/2014 ERPC, KOLKATA

Maximum UI Rate = 900 p/u 871.88 p/u at 49.5 Hz

450 p/u at 49.8 Hz

Existing UI Rate (paise/unit)

165 p/u at 50Hz

SL No 1 2 3 4

NEW RATE FOR DEVIATION CHARGE f>=50.05Hz, RDC=0 50.05>f>=50.00, RDC increases by 35.6 p/u for each 0.01Hz step 50.00>f>=49.7, RDC increases by 20.84 p/u for each 0.01Hz step f<49.7,RDC=824.04p/u

Rate for Deviation Charge ( paise/unit )

900 800 700 600 500 400 300 200 100 0
2/10/2014

Maximum Deviation Rate = 824.04 paise/unit 803.2 paise/unit at 49.7 Hz

Rate for Deviation Charge ( paise/unit )

178 paise/unit at 50 Hz

50.2 50.16 50.12 50.08 50.04 50 49.96 49.92 49.88 49.84 49.8 49.76 49.72 49.68 49.64 49.6 49.56 49.52
ERPC, KOLKATA

 BUYERs/SELLERs
1.

Overinjection/Underdrawal: Charges for Deviation receivable for overinjection/underdrawal in a time block within the volume capping of 12% of Schedule or 150MW whichever is less in normal Deviation Charge depending on freq. For any overinjection/underdrawal beyond the volume capping limit in a time block, the charges receivable is zero. Additional Charges for Deviation for overinjection/underdrawal in any time block when f>=50.10Hz at 178 p/u
ERPC, KOLKATA 5

2/10/2014

2. Overdrawal/Underinjection:
A. Charges for Deviation payable for overdrawal/underinjection in a time block in normal Deviation Charge depending on freq. B. Additional charges for Deviation levied for overdrawal/underinjection beyond the volume capping limit as follows:

Freq ---- 49.7 Hz and above

12-15% 15-20% Above 20%

a. 12% of Sch in a time block < = 150 MW

Overdrawal/ Underinjection Additional Charges for Deviation

2/10/2014

20 % of Normal Deviation Charge depending on average freq of that block

ERPC, KOLKATA

40 % of Normal Deviation Charge depending on average freq of that block

100 % of Normal Deviation Charge depending on average freq of that block

6

b) 12% of Sch in a time block > 150 MW

Overdrawal/ Underinjection Additional Charges for Deviation 150-200MW 20 % of Normal Deviation Charge depending on average freq of that block 200-250MW 40 % of Normal Deviation Charge depending on average freq of that block Above 250MW 100 % of Normal Deviation Charge depending on average freq of that block

This is a new provision added to this regulation.

Freq ---- Below 49.7 Hz

Additonal Charges levied = 2*824.04 p/u = 1648.08 p/u

2/10/2014 ERPC, KOLKATA 7

ILLUSTRATION:
Buyer/Seller : Underdrawal/Overinjection:
Sch Act Dev Freq Dev Rate Min (12% of Col2,15 0) 150 150 144 150 14.4 150 150 138
ERPC, KOLKATA

Dev Charge Receivable

Quantum of Deviation for Addl Dev Charge 0 0 0 50 0 0 0 0 60

Additional Dev Charge Payable 0 0 0 50*178 0 0 0 0 60*178

8

1 2 3 4 5 6 7 8 9

1450 1450 1200 1300 -120 -1300 -1300 -1150

2/10/2014

1480 1680 1380 1350 -100 -1210 -1140 -1010 -240

30 230 180 50 20 90 160 140 60

49.9 50 49.96 50.12 49.9 50 49.96 49.84 50.18

407.24 178 261.36 0 407.24 178 261.36 511.44 0

30*407.24 150*178 144*261.36 0 14.4*407.24 90*178 150*261.36 138*511.44 0

-300

36

Buyer/Seller: Overdrawal/Underinjection:
Sch Act Dev Freq Dev Rate Min (12% of Col2, 150) 1 2 3 1450 1450 1180 1420 1190 940 -30 -260 -240 49.9 49.8 49.75 407.24 594.8 678.16 150 150 141.6 30*303.04 260*594.8 240*678.16 0 110 98.4 0 50*0.2*594.8+50*0.4 *594.8+10*594.8 35.4*0.2*678.16+59* 0.4*678.16+4*678.16 30*824.04 0 12*0.2*469.76+20*0. 4*469.76+5*469.76 50*0.2*365.56+50+0. 4*365.56+15+365.56 32*824.04
9

Dev Charge Payable

Quantum of Deviation for Addl Dev Charge

Additional Dev Charge Payable

4 5 6 7 8

1180 -400 -400 -1400 -250

2/10/2014

1150 -435 -485 -1665 -282

-30 -35 -85 -265 -32

49.68 50.01 49.86 49.91 49.61

824.04 142.40 469.76 365.56 824.04

141.6 48 48 150 30

30*824.04 35*142.4 85*469.76 265*365.56 32*824.04

30 0 37 115 32

ERPC, KOLKATA

In a time block: Sch injection = 1450MW Act injection= 1190MW Deviation =1190-1450 = -260MW Freq = 49.8 Hz, Dev Rate = 594.80 paisa/unit Min ( 12% of Sch=174MW, 150MW) = 150MW Total underinj allowed without levy of Addl Charge for Deviation = 150MW Quantum of Underinjection on which Addl Charges for Deviation to be levied = 260-150 = 110 MW

2/10/2014

ERPC, KOLKATA

Above 250MW

150-200MW

200-250MW

(200-150)*20% of Dev Rate of that time block= 50*0.2*594.8 paisa/unit

(250-200)*40% of Dev Rate of that time block= 50*0.4*594.8 paisa/unit

(110-5050)*100% of Dev Rate of that time block= 10*1*594.8 paisa/unit

10

In a time block: Sch Drawal = -400MW Act Drawal= -485MW Deviation = -485-(-400)= -85MW Freq = 49.86 Hz, Dev Rate = 469.76 paisa/unit Min ( 12% of Sch=48MW, 150MW) = 48MW Total overdrawal allowed without levy of Addl Charge for Deviation = 48MW Quantum of Overdrawal on which Addl Charges for Deviation to be levied = 85-48 = 37 MW

2/10/2014

ERPC, KOLKATA

Above 20 %

3% of Sch*20% of Dev Rate of that time block= 12*0.2*469.76 paisa/unit

5% of Sch*40% of Dev Rate of that time block= 20*0.4*469.76 paisa/unit

(37-8% of Sch)*100% of Dev Rate of that time block= 5*1*469.76 paisa/unit

12-15%

15-20%

11

 Thermal Stations regulated by CERC and using coal under APM as fuel):
Existing UI Rate (paise/unit)
450 400 350 300 250 200 150 100 50 0
2/10/2014

Maximum UI Rate = 421.5 p/u

165 p/u at 50Hz

Existing UI Rate (paise/unit)

50.3 50.26 50.22 50.18 50.14 50.1 50.06 50.02 49.98 49.94 49.9 49.86 49.82 49.78 49.74 49.7 49.66 49.62 49.58 49.54 49.5
ERPC, KOLKATA

12

 Thermal Stations regulated by CERC and using coal under APM as fuel:
Rate for Deviation Charge ( paise/unit )
350 300 250 200 150 100 50 0 50.15 50.05 49.95 49.85 49.75 49.65
2/10/2014 ERPC, KOLKATA

Maximum Deviation Rate = 303.04 paise/unit

178 paise/unit at 50 Hz

Rate for Deviation Charge ( paise/unit )

49.55

50.2

50.1

50

49.9

49.8

49.7

49.6

13

 Thermal Stations regulated by CERC and using coal under APM as fuel:
1. 105% time block capping and 101% day capping w.r.t DC of ISGS has been done away with 2. Overinjection: Charges for Deviation receivable for overinjection in a time block within the volume capping of 12% of Schedule or 150MW whichever is less in normal Deviation Charge subject to a capping of 303.04p/u depending on freq. For any overinjection beyond the volume capping limit in a time block, the charges receivable is zero. Additional Charges for Deviation for overinjection in any time block when f>=50.10Hz at 178 p/u

2/10/2014

ERPC, KOLKATA

14

3. Underinjection: A. Charges for Deviation payable for underinjection in a time block in normal Deviation Charge subject to a capping of 303.04p/u depending on freq. B. Additional charges for Deviation levied for underinjection beyond the volume capping limit as follows: Freq ---- 49.7 Hz and above a. 12% of Sch in a time block < = 150 MW
Underinjection Additional Charges for Deviation 12-15% 20 % of MIN(303.04p/u , Normal Deviation Charge) 15-20% 40 % of MIN(303.04p/u , Normal Deviation Charge) Above 20% 100 % of MIN(303.04p/u , Normal Deviation Charge)
15

2/10/2014

ERPC, KOLKATA

b) 12% of Sch in a time block > 150 MW

Underinjection Additional Charges for Deviation 150-200MW 20 % of MIN(303.04p/u , Normal Deviation Charge) 200-250MW 40 % of MIN(303.04p/u , Normal Deviation Charge) Above 250MW 100 % of MIN(303.04p/u , Normal Deviation Charge)

This is a new provision added to this regulation.

Freq ---- Below 49.7 Hz

Additonal Charges levied = 2*303.04 p/u = 606.08 p/u

2/10/2014 ERPC, KOLKATA 16

ILLUSTRATION:

1) Overinjection
Sch Act Dev Freq Dev Rate Dev Rate Applic -able Min (12% of Col2,150) Dev Charge Additio Receivable nal Dev Charge Payable 30*303.04 150*178 0 0

1 1450 1480 30 2 1450 1680 230 3 1200 1380 180 4 1300 1350 50

49.9 50 49.96 50.12

407.24 178 261.36 0

303.04 150 178 150

261.36 144 178

144*261.36 0 0 50*178

2/10/2014

ERPC, KOLKATA

17

UNDERINJECTION
Sch Act Dev Freq Dev Rate Dev Rate Applicable 303.04 178 261.36 303.04 303.04 219.68 303.04 Min (12% of Col2,15 0) 150 150 150 150 141.6 141.6 141.6 Dev Charge Payable Additional Dev Charge Payable

1 2 3 4 5 6 7

1450 1450 1450 1450 1180 1180 1180

1420 1280 1240 1190 1150 1000 940

-30 -170 -210 -260 -30 -180 -240

49.9 50 49.96 49.8 49.75 49.98 49.88

407.24 178 261.36 594.8 678.16 219.68 428.08

30*303.04 170*178 210*261.36 260*303.04 30*303.04 180*219.68 240*303.04

0 20*.2*178 50*0.2*261.36+10*0.4 *261.36 50*0.2*303.04+50*0.4 *303.04+10*303.04 0 35.4*0.2*219.68+3*0.4 *219.68 35.4*0.2*303.04+59*0. 4*303.04+4*303.04 0 105*303.04
18

8 9

1180 1180
2/10/2014

1075 1075

-105 -105

49.70 49.69

803.2 803.2

303.04 303.04
ERPC, KOLKATA

141.6 141.6

105*303.04 105*303.04

In a time block: Sch injection = 1450MW Act injection= 1190MW Deviation =1190-1450 = -260MW Freq = 49.8 Hz, Dev Rate = 594.80 paise/unit Dev Rate applicable = MIN( Normal Dev Rate, 303.04)=303.04 paise/unit Min ( 12% of Sch=174MW, 150MW) = 150MW Total underinj allowed without levy of Addl Charge for Deviation = 150MW Quantum of Underinjection on which Addl Charges for Deviation to be levied = 260-150 = 110 MW

2/10/2014

ERPC, KOLKATA

Above 250MW

(200-150)*20% of MIN(Normal Dev Rate of that time block,303.04)= 50*0.2*303.04pa isa/unit

(250-200)*40% of MIN(Normal Dev Rate of that time block,303.04)= 50*0.4*303.04pa isa/unit

(110-5050)*100% of MIN(Normal Dev Rate of that time block,303.04)= 10*1*303.04p aisa/unit

19

150-200MW

200-250MW

In a time block: Sch injection = 1180MW Act injection= 940MW Deviation = 940-1180 = -240MW Freq = 49.88 Hz, Dev Rate = 428.08 paisa/unit Dev Rate applicable = MIN( Normal Dev Rate, 303.04)=303.04 paise/unit Min ( 12% of Sch=141.6MW, 150MW) = 141.6MW Total underinj allowed without levy of Addl Charge for Deviation = 141.6MW Quantum of Underinjection on which Addl Charges for Deviation to be levied = 240-141.6 = 98.4 MW

2/10/2014

ERPC, KOLKATA

Above 20 %

3% of Sch*20% MIN(Normal Dev Rate of that time block,303.04)= 35.4*0.2*303.04 paisa/unit

5% of Sch*40% MIN(Normal Dev Rate of that time block,303.04)= 59*0.4*303.04 paisa/unit

(98.4-8%of Sch)*100% MIN(Normal Dev Rate of that time block,303.04)= 4*1*303.04 paisa/unit

12-15%

15-20%

20

 Infirm power:
1. Injection: Period of 6 months allowed Domestic coal/lignite/hydro: 178p/u against 165 p/u Imported coal: 303p/u against 330p/u Exemption from volume limit

2. Drawal: Exemption from volume limit for f>=49.7Hz No levy of Additional charges for deviation at f<49.7Hz. (As per present UI regulation Addl. UI Charges applicable)

2/10/2014

ERPC, KOLKATA

21

Accounting of Charges for Deviation:

RLDCs to furnish data by every Thursday RPCs to prepare and issue statement of Deviation including Additional Charges for Deviation by every Tuesday for 7 day period ending on penultimate Sunday. All payments including interest , if any, to be credited to Regional Deviation Pool Account Fund Fund to be operated and maintained by RLDCs
2/10/2014 ERPC, KOLKATA 22

Other Important Clauses:

Any Additional Charge for Deviation collected from a regional entity shall be retained in the Regional Deviation Pool Account Fund of the concerned region where the regional entity is located In the event of sustained deviation from schedule in one direction (positive or negative) by any regional entity, such regional entity (buyer or seller) shall have to make sign of their deviation from schedule changed, at least once, after every 12 time blocks. To illustrate, if a regional entity has positive deviation from schedule from 07.30 hrs to 10.30 hrs, sign of its deviation from schedule shall be changed in the 13th time block i.e. 10.30 to 10.45 hrs from positive to negative or negative to positive as the case may be.
2/10/2014 ERPC, KOLKATA 23

Other Important Clauses: (contd.)

RLDCs shall, on monthly basis, prepare and publish on its website the records of the Deviation Accounts, specifying the quantum of over-drawl/ under-injection and corresponding amount of Charges for Deviation payable/receivable for each buyer and seller for all the time-blocks when grid frequency was "49.90Hz and above" and "below 49.90" Hz separately. Any surplus amount in the Deviation Pool Account Fund on the last day of the month shall be transferred to PSDF in first week of the next month On commencement of these regulations: a) CERC (UI & related matters) regulation shall stand repealed b) Regional UI Pool Account Fund shall continue to operate till the UI Accounts settlement is completed
2/10/2014 ERPC, KOLKATA 24

Schedule of Payments:
Payment to be made within 10 days of issue of statement by RPC For delay of more than 2 days i.e beyond 12 days of issue of statement by RPC, simple interest @ 0.04% to be levied for each day of delay Payments to receivable entities to be made within 2 working days of receipt of payments in the fund In the event of delay of payment by Payable entities, the receivable entities shall be paid from the balance in the fund. If sufficient fund not there, payment to be made on pro rata basis Utilities defaulting at any time in previous FY shall open an LC equal to 110% of its average payable weekly liability in favour of the concerned RLDC within a fortnight of date these regulations come into force Utilities defaulting at any time in current FY shall open an LC equal to 110% of its weekly outstanding liability in favour of the concerned RLDC within a fortnight from the due date of payment LC to be increased to 110% of the payable weekly liability for Deviation in any week during the year, if it exceeds the previous LC amount by more than 50% For payments not received within 12 days, RLDC entitled to encash the LC to the extent of default which has be recouped within 3 days
2/10/2014 ERPC, KOLKATA 25

Relevant Clauses from IEGC , 2nd Amendment Regulations effective from 17.02.2014
Clause 3(7)(g):RLDCs shall devise standard instantaneous message formats in order to give directions in case of contingencies and/or threat to the system security to reduce deviation from schedule by the bulk consumer, SLDC/StateUtility/ISGS/Regional Entity/Injeecting Utility at different overdrawal/underdrawal/over-injection/underinjection conditions depending upon the severity. The concerned SLDC/other regional entity shall ensure immediate compliance with these directions of RLDC and send a compliance report to the concerned RLDC Clause 4(1): ..The regional entities shall regulate their generation and/or consumers load so as to maintain their actual drawl from the regional grid close to the above schedule. Maximum inadvertent deviation allowed during a time block shall not exceed the limits specified in the Deviation Settlement Mechanism Regulations. Such deviations should not cause system parameters to deteriorate beyond permissible limits and should not lead to unacceptable line loadings. Inadvertent deviations, if any, from net drawl schedule shall be priced through the Deviation Settlement mechanism as specified by the Central Commission from time to time. Every regional entity shall ensure reversal of sign of deviation from schedule at least once after every twelve time blocks
2/10/2014 ERPC, KOLKATA 26

Relevant Clauses from IEGC , 2nd Amendment Regulations effective from 17.02.2014 (contd)
Clause 4(2)(7): The SLDC, SEB / distribution licensee shall always restrict the net drawl of the state from the grid within the drawl schedule keeping the deviations from the schedule within the limits specified in the Deviation Settlement Mechanism Regulations. The concerned SEB/distribution licensee/User, SLDC shall ensure that their automatic demand management scheme mentioned in clause 5.4.2 acts to ensure that there is no over-drawl. If the automatic demand management scheme has not yet been commissioned, then action shall be taken as per manual demand management scheme to restrict the net drawal from grid to within schedules and all actions for early commissioning of Automatic Demand Management Scheme (ADMS) shall be initiated Clause 4(3)(10): The ISGS is normally expected to generate power according to the daily schedules advised to them barring any inadvertent deviations. Maximum deviation allowed during a time block shall not exceed the limits specified in the Deviation Settlement Mechanism Regulations. Such deviations should not cause system parameters to deteriorate beyond permissible limits and should not lead to unacceptable line loadings. Inadvertent deviations, if any, from the ex-power plant generation schedules shall be appropriately priced in accordance with Deviation Settlement Mechanism Regulations. In addition, deviations from schedules causing congestion, shall also be priced in accordance with the Central Electricity Regulatory Commission (Measure to relieve congestion in real time operation) Regulations, 2009
ERPC, KOLKATA 27

2/10/2014

Relevant Clauses from IEGC , 2nd Amendment Regulations effective from 17.02.2014 (contd)
Clause 4(5)(12): .. the RLDC may direct the SLDCs/ISGS/ other regional entities to increase/decrease their drawal/generation in case of contingencies e.g. overloading of lines/transformers, abnormal voltages,threat to system security. Such directions shall immediately be acted upon. Incase the situation does not call for very urgent action, and RLDC has some time for analysis, it shall be checked whether the situation has arisen due to deviations from schedules. Clause 4(7)(24): "Hydro generating stations are expected to respond to grid frequency changes and inflow fluctuations. Maximum deviation allowed during a time block shall be as per the CERC Deviation Settlement Mechanism Regulations."
2/10/2014 ERPC, KOLKATA 28

2/10/2014

ERPC, KOLKATA

29