Unveiling the Draft Regulations: A Comprehensive Overview

In accordance with relevant provisions of the Electricity Act, 2003, the Central Electricity Regulatory Commission (CERC) has initiated the drafting of the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024. These regulations aim to address various aspects pertaining to deviation settlement within the electricity sector. This notification was published on 30/04/2024.

The CERC has opened the floor for stakeholders and interested parties to provide their feedback, comments, suggestions, or objections on the draft regulations. This feedback is crucial for ensuring that the final regulations are comprehensive and effective. Stakeholders and interested individuals are encouraged to submit their feedback to the Secretary of the Central Electricity Regulatory Commission by the specified deadline. Feedback can be submitted via email or through the designated SAUDAMINI portal. It’s important to note that any feedback received after the deadline may not be considered during the finalization of the regulations. Therefore, stakeholders are urged to adhere to the submission deadline to ensure their voices are heard in the regulatory process.


These regulations appear to be quite comprehensive and detailed, focusing on ensuring grid stability and adherence to schedules in the electricity sector. Here’s a breakdown of some key points:

  1. Objective: The regulations aim to ensure grid users stick to their scheduled electricity drawal and injection to maintain grid security and stability.
  2. Definitions and Interpretation: Detailed definitions are provided for various terms used in the regulations, ensuring clarity and uniform interpretation.
  3. Scope: The regulations are applicable to all entities involved in the interstate purchase and sale of electricity, emphasizing inclusivity across the grid.
  4. Adherence to Schedule and Deviation: Entities are required to adhere to their schedules as per the Grid Code and minimize deviations, with the management of deviations primarily through Ancillary Services.
  5. Computation of Deviation: Specific formulas are provided for computing deviation for different types of sellers and buyers, ensuring consistency in calculation methods.
  6. Charges for Deviation: Detailed provisions are laid out for determining charges for deviation, considering factors such as the type of seller or buyer, frequency deviation, and type of power generation.
  7. Accounting of Charges for Deviation and Ancillary Service Pool Account: Mechanisms for accounting and settlement of charges related to deviation are outlined, along with the operation of the Deviation and Ancillary Service Pool Account.

These regulations seem to provide a robust framework for managing deviations and ensuring grid stability in the electricity sector. They cover various scenarios and aspects, aiming to create a fair and transparent system for all stakeholders involved.