In a significant development, the Central Electricity Regulatory Commission (CERC) has imposed with immediate effect, a congestion charge of Rs 5.45 per unit for all regions. CERC hopes the charge would serve as a deterrent against overdrawal of power by the regional entities at a frequency below 50 Hz through a congested transmission corridor.
The move has been initiated also to incentivise the utilisation of all generation on liquid fuel in the over-drawing region and state, if any, thus relieving congestion.
CERC chairman Pramod Deo told Business Standard, “Congestion charge regulations have been notified to empower the system operator to impose congestion charge in real time on the grid constituents who are causing this congestion. This will improve real time grid operations.” The national load despatch centre (NLDC) and regional load despatch centres (RLDC) have been directed to ensure compliance of the CERC order.
CERC in its order notifying the congestion charge regulations said the rate of congestion charge has been fixed at a rate higher than the difference between maximum unscheduled interchange (UI ) charge and UI charge at 50 Hz. The maximum UI charge is Rs 7.35 and UI charge at 50 Hz is Rs 1.92 per unit and the difference works out to Rs 5.43 per unit. “Accordingly, we direct that congestion charge be fixed at Rs 5.45 per unit, which will be applicable to all regions. The levy of congestion charge shall come into force with immediate effect and shall remain in force till further order of the Commission,” the central power regulator added.
The rate of congestion charge is based on overdrawal and under-drawal on real-time basis.