CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 were notified on 14th March, 2022 which came into force with effect from 5th December 2022. It was observed that while the number of frequency excursions decreased, frequency fluctuations outside the operative band (49.9-50.1 Hz) increased. This resulted into various directions issued by CERC, which included re-linking deviation charges back to frequency in certain cases.
Furthermore, Commission formed a high-level committee of experts tasked with conducting a thorough analysis of the performance of grid-connected buyers and sellers to ensure smooth and secure grid operation. Based on the recommendation of the committee, the Commission has come out with a draft regulation. The regulation has re-linked the deviation charges to frequency for all entities, except RE.
Some of the important issues we highlight in our comments include
- Further analysis (including appropriate weightages) needed for definition of normal rate.
- Need for changing the error formula with Scheduled Generation as the denominator.
- A strong case for having standardized data formats across RPCs with pre-defined timelines.
The detailed comments can be found in attached file.