The Haryana Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2019

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Haryana Government Gazette

EXTRAORDINARY

Published by Authority

© Govt. of Haryana

No. 72-2019/Ext.] CHANDIGARH, MONDAY, APRIL 29, 2019 (VAISAKHA 9, 1941 SAKA)

HARYANA ELECTRICITY REGULATORY COMMISSION

Notification

The 29th April, 2019

(DEVIATION, SETTLEMENT MECHANISM AND RELATED MATTERS) REGULATIONS, 2019 Regulation No.43/2019/HERC.— In exercise of the powers conferred under sub-section (3) of Section 32, sub-section (4) of Section 33,Clauses (b) and (h) of sub-section (1) of Section 86, and Clauses (g) and (zp) of Section 181of the Electricity Act, 2003 (36 of 2003), and all other powers hereunto enabling, the Haryana Electricity Regulatory Commission hereby makes the following regulations, namely:

1. Short title and commencement

1 These regulations may be called the Haryana Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2019.

2 These regulations except commercial arrangements, deviation charges and penalty shall come into force on the date of notification in these Regulations the official Gazette [________,2019].

Provided that the commercial arrangements specified under clause 9 and 10 these Regulations, and the related provisions regarding Deviation Charges, Additional Charge for Deviation and penal actions if any, shall come into force six months thereafter.

2. Definitions and Interpretation

1 In these regulations, unless the context otherwise requires -

a. 'Act' means the Electricity Act, 2003 (36 of 2003);

b. 'Actual drawl' in a time-block means electricity drawn by a buyer, as the case may be, measured by the interface meters;

c. 'Actual injection' in a time-block means electricity generated or supplied by the seller, as the case may be, measured by the Interface meters;

d. 'Buyer' means a person, including distribution licensee or open access consumer, purchasing electricity through a transaction scheduled in accordance with the regulations applicable for short-term open access, medium-term open access and long-term open access;

e. 'Connectivity Regulations' means the Haryana Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012 as amended from time to time and shall include any subsequent amendment thereof.

(1578)HARYANA GOVT. GAZ. (EXTRA.), APR. 29, 2019 (VYSK. 9, 1941 SAKA) 1579 f. 'Commission' means the HaryanaElectricity Regulatory Commission referred to in sub-section (1) of section 82 of the Act;

g. 'Deviation' in a time-block for a Seller means its total actual injection minus its total scheduled generation and for a Buyer means its total actual drawl minus its total scheduled drawl, and shall form part of the State Energy Accounts to be prepared by SLDC.

h. 'Deviation Settlement Mechanism' shall mean and include the framework for energy accounting, Deviation Accounting, Rules for pricing of Deviation(s) payable and receivable by State Entities and other design parameters as specified under Regulation 6 of these Regulations.

i. 'Full Open Access Consumer' shall mean Open Access Consumer connected to transmission system or distribution system but not having any contract demand with the distribution licensee within the state;

j. 'Gaming' in relation to these regulations, shall mean an intentional mis-declaration of declared capacity by any seller in order to make an undue commercial gain through Charge for Deviations;

k. 'Grid Code' means the Grid Code specified by the Commission under clause (h) of sub-section (1) of Section 86 of the Act.

l. 'Indian Electricity Grid Code' (or 'IEGC') means the Grid Code specified by the Central Electricity Regulatory Commission under Section 79(1)(h) of the Act;

m. 'Interface meters' means interface meters as defined by the Central Electricity Authority under the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, as amended from time to time.

n. 'Load Despatch Centre' means National Load Despatch Centre, Regional Load Despatch Centre or State Load Despatch Centre, as the case may be, responsible for coordinating scheduling of the Buyers and the Sellers in accordance with the provisions of Grid Code; o. 'Open Access Regulations' means the Haryana Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012 as amended from time to time and shall include any subsequent amendment thereof.

p. 'Partial Open Access Consumer'shall mean Open Access Consumer connected to transmission system or distribution system and having part of his contract demand with the distribution licensee within the state;

q. 'Scheduled Generation' at any time or for a time block or any period means schedule of generation in MW or MWh ex-bus given by the concerned Load Despatch Centre;

r. 'Scheduled Drawl' at any time or for a time block or any period time block means schedule of despatch in MW or MWh ex-bus given by the concerned Load Despatch Centre;

s. 'Seller' means a person, including a generating station, supplying electricity through a transaction scheduled in accordance with the regulations applicable for short-term open access, medium-term open access and long-term open access;

t. 'State Deviation Pool Account' meansthe State Account for receipts and payments on account of deviations by Buyers and Sellers.

u. 'State Entity' means such person (beneficiary) who is in the SLDC control area and whose metering and energy accounting is done at the state level

v. 'Time-Block' means a time block of 15 minutes or any such shorter duration as may be notified by Central Commission and State Commission, for which specified electrical parameters and quantities are recorded by special energy meter, with first time block starting at 00.00 hrs;

2 Save as aforesaid and unless repugnant to the context or the subject-matter otherwise requires, words and expressions used in these regulations and not defined, but defined in the Act, or the Grid Code or any other regulations of this Commission shall have the meaning assigned to them respectively in the Act or the Grid Code or any other regulation as the case may be.

3. Objective

The objective of these regulations is to maintain grid discipline and grid security as envisaged under the Grid Code through the commercial mechanism for Deviation Settlement for controlling drawl and injection of electricity by the users of the grid as per their schedules and dispatches within State of Haryana.

4. Applicability

These regulations shall apply to the transactions of conveyance of electricity through short- term open access or medium-term open access or long-term open access using intra-State transmission system or distribution system of electricity (including inter-state wheeling of power), subject to following conditions: -

(A) Deviation Settlement Mechanism under these Regulations shall be applicable for all Seller(s), including Open Access Generators, Captive Generators re-generators with capacity 10 MW and above (excluding In-Situ Captive Generators) connected to Intra-State Transmission systembut excluding Wind and Solar Generating Station(s).

Provided that, Forecasting, Scheduling and Deviation Settlement related matters in respect of Wind and Solar generation shall be governed as per the provisions of "Haryana Electricity Regulatory Commission (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) Regulations, 2018" as and when notified and its further amendments thereof.

(B) Deviation Settlement Mechanism under these Regulations shall be applicable for all Buyer(s) including Distribution Licensee(s), Deemed Distribution Licensee(s) located in the State and Full Open Access Consumers connected to Intra-State Transmission system.

Provided that, Deviation Settlement of Partial Open Access Consumers connected to Intra-State Transmission system and all Open Access Consumers connected to Distribution Network shall be in accordance with the provisions of Haryana Electricity Regulatory Commission (Terms and conditions for grant of connectivity and open access for intra-State transmission and distribution system) Regulations, 2012 and its amendment thereof.

5. Duties of State Load Despatch Centre and State entities

These Regulations aim to govern the functioning of the various State Entities in a way that discipline is maintained with regards to the injection and drawl of energy by such State Entities and the reliability and integrity of power system is maintained.

In order to meet these objectives, necessary preconditions and covenants for participation by State Entities shall be as under:

(1) The State Entities shall inform the SLDCs of all contracts they have entered into for exchange of energy.

(2) State Entities shall operate their generating plants and loads in a manner that is consistent with the provisions of the Indian Electricity Grid Code and the Haryana State Electricity Grid Code. (3) State Entities shall enter into Connection Agreement/Open Access Agreement with the concerned transmission licensee, which shall specify the physical and operational requirements for a reliable operation and gain physical access and connection to the intra-State transmission system (InSTS) or enter into ConnectionAgreement/Open Access Agreement with concerned Distribution Licensee for use of distribution system, as the case may be in accordance with Haryana Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012, and its amendment thereof. State Entities shall make necessary arrangements for putting up suitable meters, capable of recording energy flows at 15-minute intervals or any other time interval as specified by the Commission or the CEA Metering Regulations, at the points of injection and drawl. The time synchronisation of metering system shall be through Global Positioning System with counter check from the State Energy Accounting Centre which is the SLDC.

(4) SLDC shall take all decisions with regard to the despatching of stations after evaluating all possible network parameters, constraints, congestions in the transmission network and in the eventuality of any such network aberration, the instructions by the SLDC with regard to despatch and drawl shall be binding on all State Entities.

SLDC shall publish all such information as required for all other State Entities to be aware of the energy exchanges taking place within the State pool as well as exigency conditions, if any with regard to despatch of power.

6. Principles for operationalising Deviation Settlement Mechanism

The framework for Deviation Settlement Mechanism shall cover the following key design parameters, viz. (a) Scheduling period (b) Guiding principles for scheduling and despatch (c) Operating range of frequency (d) Deviation (e) Settlement period (f) Measurement unit for State Deviation Pool Account(g) Deviation Pool Price Vector (h) Deviation Volume Limit (i) Premise for allocation of losses.

(A) Scheduling Period: The scheduling period shall comprise of 96 time blocks, each of 15-minute duration starting from 00:00 hours (IST) ending with 24:00 hours (IST). The first time block of scheduling period shall commence from 00:00 hours (IST) to 00:15 hours (IST), second time block of scheduling period shall commence from 00:15 hours (IST) to 00:30 hours (IST) and so on or such other period as the Commission may stipulate.

Based on the availability schedule forecasted by Sellers and load requirement forecasted by Buyers, the SLDC shall draw up the least cost despatch schedule on Day Ahead basis for the Distribution Licensees in accordance with the merit order principles approved by State Commission from time to time;

Provided that wheeling transactions of captive users and open access consumers shall be despatched as contracted subject only to transmission constraints and system emergency conditions.

(B) Guiding principles for scheduling and despatch: All the Sellers and Buyers under these Regulations shall be guided by the scheduling and Despatch procedure to be formulated by SLDC in accordance with provisions of Haryana State Grid Code.

(C) Operating Range for Frequency: The normal operating range for average grid frequency for time block shall be in line with range stipulated under IEGC and HaryanaState Grid Code from time to time. No Deviation shall be allowed beyond the specified operating range of frequency band specified by the Commission time to time.

(D) Deviation: For the purposes of Deviation settlement amongst State Entities, the SLDC shall work out the Deviation for 'State Deviation Pool Account' comprising over-drawl/under-drawl and over-injection and under-injection for each State Entity corresponding to each Scheduling period. Charges for deviation shall be in accordance to regulation 9 and 10 of these regulations.

(E) Settlement Period:Preparation and settlement of 'State Deviation Pool Account' shall be undertaken on weekly basis coinciding with mechanism followed for regional energy accounts.

(F) Measurement Unit for State Deviation Pool Account: Themeasurement unit for State Deviation Pool Account Volume preparation shall be kilowatt hours (kWh). Measurement unit for State Deviation Pool Account Value (Payable and Receivable) preparation shall be Indian Rupees (INR). The decimal component of the energy unit (kWh) and amount (INR) shall be rounded off to nearest integer value.

(G) Deviation Pool Price Vector: The Pricing of Deviation of Buyers/Sellers shall be in accordance with the Deviation Price Vector as specified in the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014 and its amendments thereof.

Provided that Deviation of Wind/Solar Generators, shall be treated as per the provisions of "Haryana Electricity Regulatory Commission (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) Regulations, 2018".

Further, additional condition for a change in sign of the deviation shall be met once every 12 time blocks by Buyer/Seller, failing which additional charges @10% of the deviation charges applicable shall be levied for the duration of continuance of violation.

(H) Deviation Volume Limit: In order to ensure grid discipline and grid security, conditions for Deviation Volume Limit and consequences for exceeding such Deviation Volume Limit by way of levy of Additional Deviation Charges as specified under Regulation 10 shall be applicable.

(I) Premise for Allocation of Losses: For the purpose of State Deviation Pool accounting, intra-state transmission system losses as approved by the Commission shall be allocated amongst the State Entities in proportion to the actual drawl by each State Entity.

Provided that State Load Despatch Centre shall maintain account of actual intra-state transmission system loss for each time block and publish reconciliation statement of 52 weekly average loss vis-à-vis approved loss by the Commission on its website.

7. Declaration of Capacity and Scheduling

(1) The provisions of the Haryana Electricity Grid Code and HaryanaElectricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012 as amended from time to time, shall be applicable for declaration of capacityand scheduling.

(2) The generating station, as far as possible, shall generate electricity as per the day-ahead generation schedule finalized by the State Load Despatch Centre in accordance with the Haryana Electricity Grid Code.

Provided that the revision in generation schedule on the day of operation shall be permitted, in accordance with the procedure specified under the Haryana Electricity Grid Code and Haryana Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012 as amended from time to time, as the case may be.

8. Treatment for Gaming

(1) The Commission, either suo-moto or on a petition made by SLDC, or any affected party, may initiate proceedings against any generating company or seller on charges of gaming and if required, may order an enquiry to be made by such officer of the Commission on such other party as the Commission may deem fit. The enquiry officer so appointed shall submit his findings within such time as may be fixed by the Commission and such investigating officer or authority shall exercise all powers as envisaged under section 128 of the Act.

(2) If in the proceeding initiated by the Commission or in the enquiry made in this regard under clause (1) above, it is proved that any generating company or seller has indulged in gaming, the Commission may without prejudice to any other action under the Act or Regulation made thereunder, disallow any charges for deviation to such seller or generating company during the period of such gaming.

9. Charges for deviations

(A) Deviation Charges for Sellers and Buyers:

(1) The charges for the Deviations for all the time-blocks shall be payable for over-drawl by the Buyer and under-injection by the Seller and receivable for under-drawl by the Buyer and over- injection by the Seller, which are State Entities, and shall be worked out on the average frequency of a time-blockby considering the Price Vector for Deviation Charges as specified in the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters)Regulations, 2014 and its amendments thereof considering the methodology specified in the Annexure-1 of these Regulations and subject to conditions stipulated under clause (2) to (8) of this regulation:

Provided that, a change in sign of the deviation shall be made once every 12 time blocks, failing which additional charges @10% of the deviation charges applicable shall be levied for the duration of continuance of violation.

The charges for the Deviation for the generating stations regulated by the Commission using coal or lignite or gas supplied under Administered Price Mechanism (APM) as fuel, when actual injection is higher or lower than the scheduled generation, shall not exceed the ¹Cap Rate to be determined by Central Commission from time to time ²[303.04 ]Paise/kWh.

No cap rate shall be applicable with effect from [the date of revision of price of APM gas by the Government of India] on the charges for the Deviation for the generating stations regulated by the Central Commission using gas supplied under Administered Price Mechanism (APM) as the fuel.

(3) The charges for the deviation for the over-injection by the seller in a time block in excess of 12% of the schedule or [10] MW, whichever is less, shall be zero, except in caseof injection of infirm power, which shall be governed by clause (8) of this regulation;

(4) The charge for deviation shall be zero at grid frequency of 50.05 Hz and above.

(5) The Charges for Deviation may be reviewed by the State Commission from time to time and as and when Deviation Price Vector is revised by Central Commission and shall be re-notified accordingly.

(6) The infirm power injected into the grid by a generating unit of a generating station during the testing, prior to COD of the unit shall be paid at Charges for Deviation for infirm power injected into the grid, consequent to testing, for a period not exceeding 3 months or the extended time allowed by the Commission in the Haryana Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012, as amended from time to time, subject to ceiling of Cap Rates corresponding to the ³[main fuel] as determined by the Central Commission used for such injection. as specified below:

10. Limits on Deviation volume and consequences of crossing limits

(A) The over-drawl or under drawl of electricity by any Buyer during a time block shall not exceed 12% of its scheduled drawl or [X] MW, the limit arrived as per clause (B) of this regulation, whichever is lower, when grid frequency is between range of '49.70 Hz and above to below 50.05 Hz.' (B) The Volume Limit of [X] MW for distribution licensee(s) and Buyers shall be determined as under:

i. Minimum of (12% of schedule, (Peak Demand of Distribution Licensee or Buyer / ∑NCPD) x State Volume Limit)

NCPD (Non-Coincident Peak Demand) represents the sum of Peak Demand of Distribution Licensee(s) and Buyer(s) subject to condition stipulated under following sub-clause (iii). ii. State Volume Limit shall be linked to Volume Limit (⁴L) applicable to the State as per CERC (Deviation Settlement Mechanism and related matters) Regulations, 2014 and its amendments thereof;

iii. Peak Demand of the Distribution Licensee shall be recorded Peak Demand in the previous Financial Year or Projected Peak Demand of Buyer in ensuing Financial Year, whichever is higher;

Provided that no over drawl of electricity by any Buyer shall be permissible when grid frequency is "below 49.70 Hz" and no under drawl of electricity by any Buyer shall be permissible when grid frequency is "50.05 Hz and above".

(C) The under-injection or over-injection of electricity by Seller shall not exceed following when grid frequency is "49.70 Hz or above and below 50.05 Hz";

i. 12% of the scheduled injection or [10] MW, whichever is lower for a Seller

Provided that in case schedule of a Seller, in a time block, is less than or equal to [40] MW, under-injection / over-injection in a time-block shall not exceed [5] MW, when grid frequency is "49.70 Hz or above and below 50.05 Hz".

(D) In addition to Charges for Deviation as stipulated under Regulation 9 of these Regulations, Additional Charge for Deviation shall be applicable for over-drawl as well as under-injection of electricity for each time block in excess of the volume limit specified in Clause (B) and (C) of this regulation when average grid frequency of the time block is "49.70 Hz and above" at the rates specified in the Table I of Annexure-II in accordance with the methodology specified in clause (H) of this regulation:

(E) Additional Charge for Deviation for under-injection of electricity, during a time-block in excess of the volume limit specified in clause (C) of this regulation when grid frequency is "49.70 Hz and above", by the generating stations regulated by the Commission using coal or lignite or gas supplied under Administered Price Mechanism (APM) as the fuel shall be at the rates specified in Table II of Annexure-II in accordance with the methodology specified in clause (J) of this regulation;

(F) In addition to Charges for Deviation as stipulated under Regulation 9of these Regulations, Additional Charge for Deviation shall be applicable for over-injection/under drawl of electricity for each time block by a Seller or Buyer, as the case may be; when grid frequency is "50.05 Hz and above" at the rates equivalent to charges of deviation corresponding to the grid frequency of "below 50.01 Hz but not below 50.0 Hz".

(G) In addition to Charges for Deviation as stipulated under Regulation 9of these Regulations, Additional Charge for Deviation shall be applicable for over-drawl or under-injection of electricity when grid frequency is "below 49.70 Hz" in accordance with the methodology specified in clause (I) of these Regulations".

Provided that Additional Charge for Deviation for under-injection of electricity by a Seller, during the time-block when grid frequency is "below 49.70 Hz", by the generating stations regulated by the Commission using coal or lignite or gas supplied under Administered Price Mechanism (APM) as the fuel in accordance with the methodology specified in clause (J) of this Regulation shall be equivalent to 100% of the Cap Rate of Main Fuel (Imported Coal) as determined by the Central Electricity Regulatory Commission for Deviations.⁵[303.04] Paise/kWh.

(H) The Additional Charge for Deviation for over-drawl and under-injection of electricity for each time block in excess of the volume limit specified in clause (B) and (C) of this regulation when grid frequency is "49.70 Hz and above" shall bespecified by the Commission as a percentage of the charges for the Deviation corresponding to average grid frequency of the time block with due consideration to the behaviour of the Buyers and Sellers towards grid discipline:

Provided that the Commission may specify different rates for additional Charges for Deviation for over drawls and under injections depending upon different % deviation from the schedule in excess of the volume limit specified in clause (B) and (C) of this Regulation.

(I) The additional Charge for Deviation for over-drawls and under-injection of electricity for each time block when grid frequency is "below 49.70 Hz" shall be as specified by the Commission as a percentage of the charges for the Deviation corresponding to average grid frequency of the time block with due consideration to the behaviour of the Buyers and Sellers towards grid discipline:

Provided that the Commission may specify different rates for Additional Charges for Deviation for over drawls and under injections and for different ranges of frequencies "below 49.70 Hz".

(J) The Additional Charge for Deviation for under-injection of electricity during the time-block in excess of the volume limit specified in Clause (C) of this regulation when grid frequency is '49.70 Hz and above", by the generating stations regulated by the Commission using coal/ lignite or gas supplied under Administered Price Mechanism (APM) as the fuel shall be as specified by the Commission as a percentage of the Cap Rate or the Charges for Deviation corresponding to the grid frequency of the time block, or both with due consideration to the behaviour of the generating stations regulated by the Commission towards grid discipline:

(K) In the event of sustained deviation from schedule in one direction (positive or negative) by any state entity, such State Entity (Buyer or Seller) shall have to make sign of their deviation from schedule changed, at least once, after every 12 time blocks.

To illustrate, if a state entity has positive deviation from schedule from 07.30 hrs to 10.30 hrs, sign of its deviation from schedule shall be changed in the 13th time block i.e. 10.30 to 10.45 hrs from positive to negative or negative to positive; as the case may be.

11. Treatment of Infirm power and Start Up power prior to COD

(1) No under injection of electricity by a seller shall be permissible when grid frequency is "below 49.70 Hz" and no over injection of electricity by a seller shall be permissible when grid frequency is "50.05 Hz and above".

(2) Any infirm injection of power by a generating station prior to COD of a unit during testing and commissioning activities shall be exempted from the volume limit as and when specified by the Commission for a period not exceeding 3 months or the extended time allowed by the Commission in accordance with Haryana Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access Regulations), 2012 as amended from time to time.

(3) Any drawl of power by a generating station prior to COD of a unit for the start-up activities shall be exempted from the volume limit as and when specified by the Commission when grid frequency is "49.70 Hz and above".

(4) Any drawl of power by a generating station prior to COD of a unit for the start-up activities shall be exempted from the levy of additional Charges of Deviation.

12. Framework for operationalisation and monitoring of Deviation Settlement Mechanism

(1) State Load Despatch Centre shall develop and publish on its website Procedures and Methodologies for the computation of Charges for Deviation and Additional Charges for deviation for each State Entity for crossing the volume limits specified for the under-drawl /over-injection and for over-drawl and under- injection.

(2) Payment of Charges for Deviation under Regulation 9 and the Additional Charges for Deviation under Clauses (G), (H), and (I) of Regulation 10, shall be levied without prejudice to any action that may be considered appropriate by the Commission under Section 142 of the Act for contravention of the limits of over-drawl/ under drawl or under-injection /over-injection, for each time block or violation of provision of clause (K) of Regulation 10.

(3) The charges for over-drawl/ under-injection and under-drawl/over-injection of electricity shall be computed by the State Load Despatch Centre in accordance with the methodology used for preparation of "State Energy Accounts."

(4) The State Load Despatch Centre shall, on weekly basis, prepare and publish on its website the records of the Deviation Accounts, specifying the quantum of over-drawl/ under-injection and corresponding amount of Charges for Deviation payable/receivable for each Buyer and Seller for all the time-blocks when grid frequency was "49.70Hz and above" and "below 49.70" Hz separately.

13. State Energy Account

(1) The State Load Despatch Centre shall prepare the statement ofState Energy Account for each time block for sellers and buyers on monthly basis. Data required for billing of open access consumers shall be passed on to the billing centre of the distribution licensee by the SLDC. The billing centre of the distribution licensee shall be responsible for energy accounting, raising and settlement of bills with open access consumers. Payments of capacity and energy charges by the buyers to the sellers shall be as per the provisions in the respective power purchase agreements or agreement(s) with respect to transactions through power exchange and through Short Term Open Access, as the case may be.

(2) Energy Account Statement for Deviation Settlement of Partial Open Access Consumers connected to Intra-State Transmission system and all Open Access Consumers connected to Distribution Network shall be in accordance with the provisions of Haryana Electricity Regulatory Commission (Terms and conditions for grant of connectivity and open access for intra-State transmission and distribution system) Regulations, 2012 and its amendment thereof.

(3) The State Load Despatch Centre shall be responsible for preparation of weekly deviation charges statement to all State Entitiesand billing and collection of deviation charges from the State Entities in accordance with regulation 12 of these Regulations.

(4) A detailed energy accounting procedure shall be prepared by SLDC and submitted to the Commission for approval.

Provided that, SLDC shall undertake stakeholder consultation by uploading the draft procedure on SLDC's website before submission of procedure to the Commission for approval.

14. Compliance with instructions of Load Despatch Centre

Notwithstanding anything specified in these Regulations, the Sellers and the Buyers shall strictly follow the instructions of the State Load Despatch Centre on injection and drawl in the interest of grid security and grid discipline.

15. Accounting of Charges for Deviation

(A) A statement of Charges for Deviations including Additional Charges for Deviation levied under these Regulations shall be prepared by SLDC on weekly basis based on the data provided by SLDC by the Thursday of the week and shall be issued to all constituents by next Tuesday, for seven-day period ending on the penultimate Sunday mid-night.

(B) All payments on account of Charges for Deviation including Additional Charges for Deviation levied under these Regulations and interest, if any, received for late payment shall be credited to the funds called the "State Deviation Pool Account", which shall be maintained and operated by the State Load Despatch Centre in accordance with provisions of these regulations.

Provided that –

i. the Commission may by order direct any other entity to operate and maintain the respective "State Deviation Pool Account":

ii. separate books of accounts shall be maintained for the principal component and interest component of Charges for Deviation and Additional Charges for Deviation by SLDC.

iii. The State Entities shall comply with statutory requirements of paymentof applicable statutory levies,including but not limited to Goods and Service Tax (GST), Tax deduction at source (TDS)

iv. The State Entities shall facilitate SLDC in meeting with reporting requirements of Statutory Authorities, as necessary.

(C) All payments received in the "State Deviation Pool Account" shall be appropriated in the following sequence:

i. First towards any cost or expense or other charges incurred on recovery of Charges for deviation.

ii. Next towards over dues or penal interest, if applicable.

iii. Next towards normal interest.

iv. Next dues towards Regional Deviation Pool Account

v. Lastly, towards charges for deviation and additional charges for deviation.

16. Schedule of Payment of Charges for Deviation

(A) The payment of charges for Deviation shall have a high priority and the concerned State Entity shall pay the indicated amounts within 10 (ten) days of the issue of statement of Charges for Deviation including Additional Charges for Deviation by SLDC into the "State Deviation Pool Account".

(B) If payments against the Charges for Deviation including Additional Charges for Deviation are delayed by more than two days, i.e., beyond twelve (12) days from the date of issue of the statement by the SLDC, the defaulting State Entity shall have to pay simple interest @ 0.04% for each day of delay.

(C) All payments to the entities entitled to receive any amount on account of charges for Deviation shall be made within 2 working days of receipt of the payments in the "State Deviation Pool Account".

Provided that –

i. In case of delay in the Payment of charges for Deviations into the State Deviation Pool Account and interest there on if any, beyond 12 days from the date of issue of the Statement of Charges for Deviations, the State Entities who have to receive payment for Deviation or interest thereon shall be paid from the balance available in the State Deviation Pool Account. In case the balance available is not sufficient to meet the payment to the State Entities, the payment from the State Deviation Pool Accounts shall be made on pro rata basis from the balance available in the State Deviation Pool Account.

ii. The liability to pay interest for the delay in payments to the "State Deviation Pool Account" shall remain till interest is not paid; irrespective of the fact that constituents who have to receive payments, have been paid from the "State Deviation Pool Account" in part or full.

(D) All State Entities which had at any time during the previous financial year failed to make payment of Charges for Deviation including Additional Charges for Deviation within the time specified in these Regulations shall be required to open a Letter of Credit (LC) equal to 110% of its average payable weekly liability for Deviations in the previous financial year, in favour of the SLDC within a fortnight from the date these Regulations come into force.

Provided that –

i. If any State entity fails to make payment of Charges for Deviation including Additional Charges for Deviation by the time specified in these Regulations during the current financial year, it shall be required to open a Letter of Credit equal to 110% of weekly outstanding liability in favour of State Load Despatch Centre within a fortnight from the due date of payment.

ii. LC amount shall be increased to 110% of the payable weekly liability for Deviation in any week during the year, if it exceeds the previous LC amount by more than 50%.

Illustration

If the average payable weekly liability for Deviation of a State entity during [2016-17] is `2.0 crore, the State entity shall open LC for 2.2 crore in [2017-18]. If the weekly payable liability during any week in [2017-18] is `3.5 crore which is more than 50% of the previous financial year's average payable weekly liability of Rs 3.0 Crore, the concerned state entity shall increase the LC amount to `3.85 Crore (1.1*3.50) by adding 1.65 Crore.

(E) In case of failure to pay into the "State Deviation Pool Account" within the specified time of 12 days from the date of issue of statement of charges for Deviations, the SLDC shall be entitled to encash the LC of the concerned constituent to the extent of the default and the concerned constituent shall recoup the LC amount within 3 days.

17. Governance Structure and constitution of State Power Committee

(A) Within three months from date of notification of these Regulations, the State Load Despatch Centre shall formulate Operating Procedures and Business Rules for constitution of State Power Committee, which shall be approved by the State Commission.

(B) The State Power Committee shall:

i. Co-ordinate and facilitate the intra-state energy exchange for ensuring optimal utilisation of resources.

ii. Monitor compliance of these Regulations by State Entities.

iii. Guide the SLDC for modification of Procedure(s) in order to address the implementation difficulties, if any.

iv. Provide necessary support and advice to the Commission for suitable modifications/issuance of Operating Procedures, Practice Directions, and amendment to provisions of this regulations, as may be necessary upon due regulatory process.

18. Power to amend

The Commission may, at any time, vary, alter, modify or amend any provisions of these Regulations.

19. Power to remove difficulties

If any difficulty arises in giving effect to the provisions of these Regulations, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions of the Act, as may appear to be necessary for removing the difficulty.

20. Power to relax

The Commission may by general or special order, for reasons to be recorded in writing, and after giving an opportunity of hearing to the parties likely to be affected by grant of relaxation, may relax any of the provisions of these Regulations on its own motion or on an application made before it by an interested person.

21. Power to issue directions

If any difficulty arises in giving effect to these Regulations, the Commission may on its own motion or on an application filed by any affected party, issue such directions as may be considered necessary in furtherance of the objective and purpose of these Regulations.

By the Order of the Commission Date: 11.04.2019 Place: Panchkula

(Sd.)…, Secretary HERC, Panchkula.

Annexure-1 1. Deviation charges for sellers, buyers, and other conditions:

(1) As specified in the Regulation 9 (A) of these Regulations, the charges for the Deviations for all the time-blocks shall be payable for over-drawl by the Buyer and under-injection by the Seller and receivable for under-drawl by the Buyer and over-injection by the Seller, which are State Entities, and shall be worked out on the average frequency of a time-block by considering the Price Vector for Deviation Charges as specified in the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014 and its amendments as stipulated in the following table:

(Charges for deviation for each 0.01 Hz step is equivalent to 35.60 Paise/kwh in the frequency range of 50.05 to 50.00 Hz, and 20.84 Paise/kWh in frequency range 'below 50 Hz to 'below 49.70 Hz').

2. Deviation Charges applicable for Inter-State open access transactions of State Entities:

The charges for deviation including additional charges for deviation for inter-state Open Access transactions of State Entities shall be levied by considering 95% of the rates as specified in the table above when these charges are receivable to the State Entities, as per regulation 9 & 10 and the charges for deviation shall be levied by considering 105% of the rates as specified in the table above, when these charges are payable by the State Entities.

Annexure-II: Additional Deviation Charges

TABLE – I: Additional Deviation Charge (for Seller/Buyer)

TABLE – II: Additional Deviation Charge for Under-injection by Generating Stations regulated by the Commission using coal or lignite or gas supplied under Administered Price Mechanism (APM)

57044—C.S.—H.G.P.,Chd.