Cerc Deviation Settlement Mechanism ( DSM ) 4th ammendment Summary wef 01/01/2019
- 1. AG CERC (Deviation settlement Mechanism and related matters) 4th Amendment Regulations,2018: Highlights with necessary changes required in ABT software for monitoring of DSM. Notification date:20.11.2018 Effective from: 01.01.2019
- 2. Comparison of DSM 4th amendment Regulation with existing DSM Regulation AG Sr. No. Description New Regulation Old Regulation 1 Effective from 01/01/2019 17/02/2014 2 Operational Frequency Band 49.85 to 50.05 49.70 to 50.10 DSM Rate 3 Max. DSM rate 8.00 INR/KWH below 49.85 Hz 8.2404 INR/KWH below 49.70 Hz 4 Min. DSM Rate 0 at 50.05 Hz & above 0 at 50.05 Hz & above 5 DSM price vector DSM rate vector will have a dynamic slope determined by joining the identified price points at 50 Hz (daily simple average ACP), frequency of 49.85 Hz (Rs. 8 per unit) and 50.05 Hz (zero) on a daily basis. Max ACP capped at Rs 8. After review within one year , CERC may substituted daily average ACP, by the time-block-wise ACP in the DAM or hourly ACP when the real time market is introduced. • In case of no-trade on a given day, daily simple average ACP of the last available day shall be considered for determining the DSM charge. Fixed slope with joining the identified points at 50Hz (178p), 49.7Hz(824.04p) and 50.05Hz(zero p).
- 3. Sr. No. Description New Regulation Old Regulation 6 Cap Rate for Generating station using coal/lignite/APM gas as the fuel Linked to variable charge (ECR) of previous month billed of the station. No Capping for GAS /Hydro stations/Buyers 303.04 paisa per unit (Linked to UI rate at freq 49.95 Hz.) No Capping for GAS /Hydro stations/Buyers DSM Volume Limit 7 For under/over drawal /injection by buyer/seller in a time block Not to exceed 12% of its drawl schedule or 150 MW whichever is lower in a time block Not to exceed 12% of its drawl schedule or 150 MW whichever is lower in a time block 8 Limits on day Deviation *To be implemented after one (01) year. Total deviation from schedule in either direction, in energy terms during a day shall not be in excess of 3% of the total schedule for the drawee entities and 1% for the generators* NO Such Provision earlier 9 *Additional charge for Violating Day Deviation Limits: *To be implemented after one (01) year. 20% of the daily base DSM payable / receivable NO Such Provision earlier Additional DSM Charge 10 Additional DSM charge Applicable for over drawl or under injection for each time block when freq. >49.85 Hz & < 50.05 Hz Applicable for over drawl or under injection for each time block when fr. >49.7 Hz & < 50.05 HzAG
- 4. Sr. No. Description New Regulation Old Regulation 11 Additional DSM beyond operating range 100% of DSM cap rate i.e station variable charge(ECR) for under injection below 49.85 Hz 100% of DSM cap rate(303.04p/kWh) for under injection below 49.7Hz 12 Over injection beyond 50.05 Hz will attract Add Dev charge for each unit @ DSM rate of 50Hz(ACP) or Cap rate of station whichever is lower. Over injection beyond 50.10Hz will attract Add Dev Charge for each unit @ DSM rate of 50Hz(178p/kWh) Sign Change 13 Sign Change Counter In the event of sustained deviation from SG in one direction (positive or negative) by any regional entity (buyer or seller), such regional entity shall have to change sign of their deviation from schedule, at least once, after every 6 time blocks. In the event of sustained deviation from SG in one direction (positive or negative) by any regional entity (buyer or seller), such regional entity shall have to change sign of their deviation from schedule, at least once, after every 12 time blocks. 14 Add Charge for violating the regulation: Violation of the requirement under this clause shall attract an additional charge of 20% on the daily base DSM payable / receivable. The additional charge for violation of sign change stipulation shall be levied for each such violation during a day. No Additional Charge for such Violations AG
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- 8. Operational Challenges from the Amendment Regulation: Strictly adhere to the given Schedule as over injection will result in no gain due to capping with variable charge of the station. Under injection above break even frequency is the only scenario of gain upto 12% in a block but with compliance of “Sign Change of deviation”. Strictly follow the sign change of deviations after every 6 blocks ,there should be an early alert from 5th time block in case of sustained deviation in one direction. There should be a asking rate to run the station for rest of the blocks for a day to avoid add deviation charge due to violation of +/-1% volume limit of deviation. (clause.—applicable after one year.) Block wise deviation Volume Limits and add deviation for violating them will remain same. DSM price vector will change daily based on ACP of DAM in IEX so ABT software at each station has to be modified accordingly. Preferably software should crawl ACP data from NLDC website and automatically create DSM price vector for the next day. AG