CERC amends regulations, notifies new grid code.
States resorting to overdrawal of power from the grid under the shelter of unscheduled interchange (UI) mechanism will henceforth have to think twice. The Central Electricity Regulatory Commission (CERC) has amended the UI regulations to push more electricity to organised electricity markets.
Under these amendments, the underdrawals and over-injections beyond the permissible quantities will be disincentivised and priced at lower rates. CERC expects this to increase liquidity in organised electricity markets.
Additional UI charge of 40 per cent on the normal UI rate (Rs 8.73 per unit) will now become applicable at grid frequency below 49.5 Hz instead of 49.2 Hz earlier.
In view of this amendment, overdrawing states like Maharashtra, Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Bihar will have to shell out about Rs 16 per unit, which comprises normal UI rate of Rs 8.73, Rs 6 towards congestion charges and an additional Rs 2.
To put more deterrent on overdrawal, the additional UI rate will be 100 per cent on overdrawals when grid frequency is below 49.2 Hz.
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Further, to ensure timely payment of UI charges, any utility which defaults in payment even once has been mandated to open Letter of Credit in favour of system operator. Amount deposited in the UI account will now be first adjusted towards the interest amount due.
Methodology for computing various UI rates at different frequencies has been mentioned explicitly in the regulations to bring in greater transparency.
Power analyst D Radhakrishna, however, said the amendments to the UI regulations would put additional financial burden on states. “These amendments will increase power prices in the open market. As in the past, whenever the UI rates are increased, open market rates have shot up. However, surplus states like Chhattisgarh, Orissa and the north-east states will make good fortunes due to amendments to the regulations.”
Meanwhile, CERC has also notified the new Indian Electricity Grid Code. Under the new code, all users of the inter-state grid, including distribution utilities, will now be directly responsible for grid discipline and load management, in addition to the State Load Despatch Centres. Utilities have been mandated to prepare and implement automatic load management schemes from next year.
In order to facilitate implementation of the National Action Plan on Climate Change, the financial burden of all fluctuations from schedule in case of new solar energy plants, and fluctuations within ±30 per cent of the schedule in case of new wind energy plants, will be borne by all users of the inter-state grid. This means the developers of such projects and the host states will not be at a disadvantage from such fluctuations. New wind energy generators will also be able to fine-tune their schedules (based on the forecast) as close as three hours before the actual generation.
The operational frequency band has been further tightened from 50.3 Hz-49.2 Hz to 50.2 Hz-49.5 Hz. This is aimed at ensuring better performance of generating stations and user appliances such as railway traction motors and agricultural pump sets.