Power distribution companies (discoms) would now have to bear a heavier penalty for breaching grid discipline. This comes in the wake of two national grid failiures recently, brought about by state power utilities guilty of this.
With effect from midnight, the unscheduled interchange (UI) rates have been revised (from the schedule set in April 2010). The required frequency band has been compressed to 49.7-50.2 Hz from the existing 49.5-50.2 Hz. There was a UI charge till now of Rs 8.33 a unit for overdrawals sending a Rs 9 per unit UI charge, an additional 20 per cent for grid frequency from 49.5 Hz to 49.7 Hz, and, if the frequency goes below 49.2 Hz, the overdrawing utilities need to pay Rs 18 per unit.
This implementation of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) (First Amendment) Regulations 2012 and CERC (Unscheduled Interchange Charges and related matters) (Second Amendment) Regulations 2012 was possible following the dismissal by the Madras high court of a petition filed by the Tamil Nadu Generation and Distribution Corporation against it. As reported earlier, CERC had issued these draft regulations in March, seeking objections and suggestions.
The UI mechanism was introduced for the first time in July 2002 in the western region. It is a penalty structure introduced to bring discipline for defaulting state utilities for under-drawal and over-drawal of power against the stipulated schedule, thereby endangering grid security.
Pramod Deo, chairman, CERC, told Business Standard: “Implementation of the amended UI regulations will pave way for greater grid discipline.”
The penalty for digressing from the frequency range has been increased, sending an appropriate commercial signal to the distribution utilities.”
D Radhakrishna, power analyst said the UI amendments would help in controlling grid frequency. “CERC now needs to also cap the market prices so that no one should take advantage of the situation, particularly when there is a power crisis,” he said.
