7094 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3

KARNATAKA ELECTRICITY REGULATORY COMMISSION

No. 16, C-1, Millers Tank Bund Road, Yellappa Garden, Bed Area, Vasanth Nagar,
Bengaluru, Karnataka 560052

NOTIFICATION
No: KERC/S/2024/ 693 Date:24.09.2024

Draft Karnataka Electricity Regulatory Commission (Intra-State Deviation

Settlement Mechanism and Related Matters) Regulations, 2024.

Preamble:

1. In order to maintain the balance between power generation and

consumption within a State's power grid and to minimize deviations
from scheduled generation and consumption patterns, thereby
ensuring stability and reliability in the supply of electricity, there is a
need to formulate the Regulations and monitoring compliance.

2. The stakeholders involved in the matter include power generators,

distribution utilities, transmission companies, and open access
consumers. Each participant has specific roles and responsibilities in
adhering to Regulations and settling deviations effectively.

3. The Karnataka Electricity Regulatory Commission has decided to issue

the draft Karnataka Electricity Regulatory Commission (Intra-State
Deviation Settlement Mechanism and Related Matters) Regulations,
2024, in exercise of the powers conferred by Section 181 read with
clause (c) of sub-section (1) of section 86 of the Electricity Act 2003.

4. As required under sub section (3) of section 181 (zi) & (zp) of the Act,
and the Electricity (Procedure for Previous Publication) Rules, 2005, the
Commission hereby notifies the Draft Regulations, for information of the
persons and all the stakeholders likely to be affected.
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5. Notice is hereby given that the Draft Regulations will be finalized after
30 days from the date of their publication in the Official Gazette, after
considering the comments/suggestions/objections on the draft
Regulations submitted by the stakeholders. Hence, the stakeholders
are requested to submit their objections/suggestions/views on the
proposed draft within 30 (Thirty) days from the date of publication of
these draft Regulations in the Official Gazette of Karnataka, to the
Secretary of the Commission at the following address:

The Secretary,
Karnataka Electricity Regulatory Commission,
No 16, C-1, Miller Tank Bed Area,
Vasanthanagar,
Bengaluru-560052.
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CHAPTER-1
PRELIMINARY

1. SHORT TITLE, EXTENT OF APPLICATION AND COMMENCEMENT

1.1. These Regulations may be called the Karnataka Electricity Regulatory

Commission (Intra-State Deviation Settlement Mechanism and Related
Matters) Regulations, 2024.

1.2. These Regulations shall apply within the geographical area of the State
of Karnataka and shall apply to all Inter / Intra-State Entities
connected with STU in Karnataka in a manner as specified in these
Regulations.

1.3. These Regulations shall be effective from the date of their publication in the
official gazette of the State of Karnataka.

CHAPTER-2
OBJECTIVE

2. OBJECTIVE
These regulations seek to ensure, through a commercial mechanism, that
grid users do not deviate from and adhere to their schedule of drawal and
injection of electricity in the interest of security and stability of the grid.
CHAPTER-3
DEFINITIONS

3. DEFINITIONS
In these Regulations, unless the context otherwise requires:

3.1. “Act” means the Electricity Act, 2003 (36 of 2003) or any amendments
made to the same or any succeeding enactment thereof;

3.2. “Actual Drawal” in a time-block means electricity drawn by a Buyer,

measured by the interface meters;
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3.3. “Actual Injection” in a time-block means electricity injected, measured

by the interface meters;

3.4. “Ancillary Services” means the Ancillary Services as defined in the

Ancillary Services Regulations;

3.5. “Ancillary Services Regulations” means the Central Electricity

Regulatory Commission (Ancillary Services) Regulations, 2022, as
amended from time to time and shall include any re-enactment
thereof;

3.6. “Area Clearing Price” or ‘ACP’ means the price of electricity contract
for a time- block transacted on a Power Exchange after considering all
valid buy and sale bids in particular area(s) after market-splitting;

3.7. “Buyer” means a licensee or consumer or captive user or company

located within the State, receiving power by using the State-grid
including such system when it is used in conjunction with inter-State
transmission system and whose scheduling and/or metering and
energy accounting is coordinated by the SLDC in accordance with the
State Grid Code;

3.8. “Central Commission” or “CERC” means the Central Electricity

Regulatory Commission referred to in sub-section (1) of section 76 of
the Act;

3.9. “Commission” means the Karnataka Electricity Regulatory Commission

referred to in sub-section (1) of section 82 of the Act;

3.10. “Contract Rate’ means the tariff for sale or purchase of power, as
determined under Section 62 or adopted under Section 63 or
approved under Section 86(1)(b) of the Act by the Appropriate
Commission, which shall be sum of Fixed Charges and Energy Charges,
as the case may be;

3.11. “Day” means a continuous period starting at 00.00 hours and ending
at 24.00 hours;
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3.12. "Day Ahead Contract" means a contract wherein Collective

Transactions occur on day (T) and delivery of electricity is on the next
day (T+1);

3.13. “Declared Capacity” in relation to any period or time block, means

the capability of the Seller to deliver MW as declared by the Seller at
interface point with the State Grid in accordance with the State Grid
Code;

3.14. “Despatch Schedule” means the ex-Power Plant net Mega Watt or
Mega Watt Hour scheduled for injection by a Generating Station
in a time block;

3.15. “Deviation” in a time block for a Seller of electricity means its total
actual injection minus its total scheduled generation; and for a
Buyer of electricity means its total actual drawal minus its total
scheduled drawal, and shall be computed in accordance with
these Regulations;

3.16. “Deviation Charges" means the charges computed in accordance

with these Regulations;
“CERC DSM Regulations, 2024” means the Central Electricity Regulatory Commission
(Deviation Settlement Mechanism and related matters) Regulations, 2024 including
any subsequent amendments/ re-enactments thereof;

3.17. “Distribution Licensee” means a License authorized to operate and

maintain a distribution system for supplying electricity to the
consumers in his area of supply;

3.18. “Drawal Point” means connection point(s) at which electricity is

drawn from the State-Grid by the State-Grid user;

3.19. “Ex-Power Plant” means net Mega Watt / Mega Watt hour output
of a generating station, after deducting Auxiliary consumption and
Transformation losses;
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3.20. “General Seller” means a Seller in case of a generating station

based on other than Hydro Seller and WS (Wind Solar) Seller;

3.21. “Grid” means the high voltage backbone system of inter-

connected Transmission lines, Sub-Stations and Generating plants;

3.22. “Grid Code” means the Indian Electricity Grid Code specified by the
Central Commission under Clause (h) of Sub-section(1) of Section
79 of the Act;

3.23. “Hydro Seller” means a hydro generating station;

3.24. “Intra State Entity”- means a person whose scheduling and energy
accounting is coordinated by State Load Despatch Centre or any
other authorized State agency;

3.25. “Interface Point” for Buyer/Seller means the location where

Interface Meter is installed for the purpose of Deviation Settlement;

3.26. “Interface meters” means energy meters installed at interface points

as defined under the Central Electricity Authority (Installation and
Operation of Meters) Regulations, 2006 as amended from time to
time and any re-enactment thereof;

3.27. “Losses” means the energy losses in percentage for the intra-State
transmission system or distribution system as specified by the
Commission from time to time;

3.28. “Month” means a calendar month as per the British Calendar;

3.29. “Multiple Supply Consumer or MSC” means a consumer who has a

supply agreement with the distribution licensee in whose area of
supply the consumer is located and also has a supply agreement
with the person other than the distribution licensee under the Open
Access Regulations and includes a consumer of a distribution
licensee who also avails of wheeling facility for carrying the
electricity from his captive generating plant to the destination of
his own use;
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3.30. “Normal Rate of Charge for Deviation” (NR) means the charges for
deviation (in Paise/kWh) as referred to i n these Regulations;

3.31. “Net Drawal Schedule” means the drawal schedule of the

Distribution licensees or a Buyer after deducting the apportioned
Transmission Losses and/or Distribution Losses as applicable;

3.32. “Open Access Customer” means a consumer permitted to receive

supply of electricity from one or more person(s) other than the
distribution licensee of his area of supply, or a generating company
(including captive generating plant) or a licensee or a captive user
who has availed of or intends to avail of long- term open access or
medium term open access or short-term open access, as the case may
be;

3.33. “Open Access Regulations” means the Karnataka Electricity

Regulatory Commission (Terms and Conditions for Open Access)
Regulations, 2004 as amended from time to time;
3.34. “Reference Charge Rate or RR” means (i) in respect of a general seller
whose tariff is determined or adopted or approved under Section 62
or Section 63 or Section 86(1)(b) of the Act , Rs/ kWh energy charge as
determined or adopted or approved by the Appropriate Commission,
or (ii) in respect of a general seller whose tariff is not determined or
adopted or approved under Section 62 or Section 63 or Section 86(1)
(b) of the Act, and selling power through power exchange(s), the price
as discovered in the power exchange for the respective transaction;
or (iii) in case of captive consumption of a captive generating plant
based on resources other than renewable energy sources, the
weighted average ACP of the Integrated-Day Ahead Market
segments of all the Power Exchanges for the respective time block; or
(iv) in case of multiple contracts or transactions including captive
consumption, the weighted average of the reference rates of all such
contracts or transactions.
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3.35. “Run-of-River Generating Station’ or ‘RoR generating station” means a

hydro generating station which does not have upstream pondage;
3.36. ‘Scheduled Drawal’ for a time block or any period means the
schedule of drawal in MW or MWh ex-bus given by the State Load
Despatch Centre;

3.37. “Scheduled generation” or “Scheduled injection” for a time block or

any period means the schedule of generation or injection in MW or MWh
ex-bus, including the schedule for Ancillary Services given by the State
Load Despatch Centre;

3.38. ‘Single Supply Consumer’ or ‘SSC’ means a consumer including

captive user not having a supply agreement with the distribution
licensee in whose area of supply the consumer is located, but availing
or intending to avail supply of energy under the Open Access
Regulations from a person other than that distribution licensee of the
area;

3.39. “Seller” means a generating station including captive generating plant

(selling directly or through trader) or licensee or a company located
within the State, injecting power into the State-grid including such
system when it is used in conjunction with inter-State transmission system
and whose scheduling and/ or, metering and energy accounting is
coordinated by SLDC, in accordance with Grid Code/State Grid
Code as the case may be;

3.40. “State Deviation Pool Account” means the Account to be maintained

and operated by State owned distribution licensee as per these
Regulations;

3.41. “State Load Despatch Centre (SLDC)” means Karnataka State Load
Despatch Centre established under Sub-Section (1) of Section 31
of the Act;
3.42. “State” means the State of Karnataka;
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3.43. “State Deviation Settlement Mechanism Account (SDSMA)” means

weekly/monthly State Deviation Settlement Mechanism Account
prepared by State Load Despatch Centre for the billing and
settlement of Deviation charges;

3.44. “State Grid” means the Intra-State transmission network owned by

the State Transmission utility, transmission licensee and/or the network of
any other person who has been granted licence by the Commission to
establish or operate distribution system within the State;

3.45. “State Grid Code” means the Karnataka Electricity Grid Code notified
by the State Commission under Section 86(1)(h) read with Section 181(ZP)
of the Electricity Act, 2003 (No. 36 of 2003);

3.46. “State Grid User” means Buyer and/or Seller;

3.47. “State Transmission Utility (STU)” means Karnataka Power Transmission

Company Limited;

3.48. “Time Block” means Block of 15-minute or as defined in Grid Code for
which special energy meters record specified electrical parameters
and quantities, with first Time Block starting at 00.00 hours;

3.49. “Unscheduled Power Generation (UPG)” means Unscheduled Power

Generation by a Generator injecting power without schedule.

3.50. “Week” means a period of consecutive seven days commencing from

00.00 hours on the Monday and ending at 24.00 hours on following
Sunday as per the British Calendar;

The words and expressions used in these Regulations and not defined herein
but defined in the Act shall have the meaning assigned to them under the Act
and other Regulations notified by the Commission, provided that when a word
or phrase is used by the Commission in a specific context, the meaning
applicable in that specific context, shall prevail and the generic definition
given above may not be applicable.
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CHAPTER-4
AVAILABILITY BASED TARIFF (ABT) AND DEVIATION SETTLEMENT MECHANISM

4. The tariff under the ABT regime will have three components namely the
fixed/capacity charge, the energy/variable charge and the Deviation
charge.
(a) Fixed charges/capacity charges: Capacity charges of the
generators are payable on the capacity allocated and are linked
to ‘Availability’ of the generating stations declared on daily basis in
MW.

(b) Energy charges/variable charges: Energy charges or variable

charges are payable on the scheduled energy irrespective of
actual drawal.
Computation of capacity charges and energy charges shall be
governed by the tariff orders of the Commission issued from time to
time.

(c) Deviation Charges: Variation between actual generation and

scheduled generation or actual drawal and scheduled drawal
shall be accounted for through Deviation Charges and shall be
computed as per these Regulations;
CHAPTER-5
APPLICABILITY OF INTRA-STATE ABT

5. These Regulations shall be applicable to all grid connected entities

engaged in Intra State purchase and sale of electricity as detailed
below:

5.1 Generating Company/Captive generating plant

(a) State Generating Stations: To all generating stations owned by

Karnataka Power Corporation Ltd (KPCL).
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(b) Conventional fuel based Generating Plants: All conventional fuel

based power generating companies including Captive
Generating Plants (CGP) located in the State and who have
contracted to supply long-term or medium-term power to
distribution licensees in the State at a tariff determined under
Sections 62 and 63 of the Act.

(c) Renewable energy based generating plant: All renewable energy

based power generating stations (excluding Wind, Solar and
WS hybrid) covered under the relevant Regulations, of installed
capacity more than 5 MW located in the State and who have
contracted to supply long-term and medium-term power to
distribution licensees in the State at a tariff determined under Section
62 or Section 63 of the Act.

(d) All the conventional generating stations including, CGP (Selling

directly or through electricity traders or through exchanges) who
intend to supply power to the distribution licensee of the State
under short-term contracts.

(e) All the generating stations including renewable energy based

power plants (excluding Wind, Solar and WS hybrid)/CGP (Selling
directly or through electricity traders or through exchanges) who
intend to supply power outside the State under long-term, medium-
term or short-term contracts.

(f) All the generating stations including renewable energy based

power plants (excluding Wind, Solar and WS hybrid)/CGP (Selling
directly or through electricity traders or through exchanges) who
intend to supply power to intrastate consumers under long-term,
medium-term or short-term contracts.

5.2 Distribution Licensees: The distribution licensee shall be covered under Intra-
State ABT if it draws power by using the State-grid.
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5.3 Open Access Consumers/captive users (Other than Solar, Wind and WS
Hybrid): All open access consumers /captive users located within the State
and who intend to purchase /receive power through State grid shall be
governed by Intra- State ABT only in respect of electricity supplied to them by
the generating station/ licensee governed by inter-State/ intra-State ABT.

5.4 Applicability of Deviation Charge Component of the Intra-State ABT

(a) All SSC, procuring power through open access within the State
shall be governed by Intra-State ABT only in respect of
applicable deviation charges.

(b) All generators including CGP (selling directly or through electricity

trader) who have contracted to supply power only to SSC and/or
MSC shall be governed by intra-State ABT only in respect of
applicable deviation charges.

(c) All generators including CGP (selling directly or through electricity

trader) who have contracted to supply power only to licensees
or consumers located outside the State shall be governed by
intra-State ABT only in respect of applicable deviation charges.
CHAPTER-6
DEVIATION CHARGES

6. COMPUTATION OF DEVIATION

6.1. Adherence to Schedule and Deviation

(1) For a secure and stable operation of the grid, every grid connected
State entity shall adhere to its schedule as per the Grid Code and
shall not deviate from its schedule and/or as per the appropriate
Regulations/Orders/Directives issued by the Commission from time to
time.

(2) Any deviation shall be managed by the State Load Despatch

Centre as per the State appropriate Regulations as notified by the
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Commission and the computation charges and related matters in

respect of such deviation shall be dealt with as per the provisions of
these Regulations.

6.2. Computation of Deviation

(1) Deviation in a time block for General Sellers shall be computed as follows:
Deviation-general Seller (DGS) (in MWh) = [(Actual injection in MWh) – (Scheduled generation in MWh)].
Deviation-general Seller (DGS) (in %) = 100 x [(Actual injection in MWh) – (Scheduled generation in
MWh)] / [(Scheduled generation in MWh)].

(2) Deviation in a time block for RE Seller other than WS/WSH Seller shall
be computed as follows:
Deviation- RE Seller (in MWh) = [(Actual injection in MWh) – (Scheduled generation in MWh)].
Deviation- RE Seller (in %) = 100 x [(Actual injection in MWh) – (Scheduled generation in MWh)] /
[(Scheduled generation in MWh)].

(3) Deviation in a time block for Buyers shall be computed as follows:

Deviation- Buyer (DBUY) (in MWh) = [(Actual drawal in MWh) – (Scheduled drawal in MWh)].
Deviation- Buyer (DBUY) (in %) = 100 x [(Actual drawal in MWh) – (Total Scheduled drawal in MWh)] /
[(Total Scheduled drawal in MWh)].

6.3. Normal Rate of Charges for Deviation

(1) The Normal Rate (NR) of charges for deviation for a particular time
block shall be the highest of (A), (B) or (C), where (A), (B) and (C)
are as follows:
(A) the weighted average ACP (in Paise /kWh) of the Integrated-
Day Ahead Market segments of all the Power Exchanges;
(B) the weighted average ACP (in Paise /kWh) of the Real Time
Market segments of all the Power Exchanges;
(C) the sum of:
(a) 1/3 [ Weighted average ACP (in paise/kWh) of the Integrated-
Day Ahead Market segments of all the Power Exchanges];
(b) 1/3 [ Weighted average ACP (in paise/kWh) of the Real-Time
Market segments of all the Power Exchanges]; and
(c) 1/3 [Ancillary Service Charge (in paise/kWh) computed based
on the total quantum of Ancillary Services (SRAS UP and TRAS
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UP) deployed and the net charges payable to the Ancillary

Service Providers for all the Regions]:
Provided that in case of non- availability of ACP for any time block
on a given day, ACP for the corresponding time block of the last
available day shall be considered.
(2) The normal rate of charges for deviation shall be rounded off to the
nearest two decimal places.

6.4. Charges for Deviation

(1) Generators injecting power without scheduling shall be considered
as unscheduled power. Distribution Licensee may procure such
unscheduled power, if required, by executing an agreement with
such generators and such power shall be paid at the ACP rate of the
Day Ahead Market of IEX in each time block subject to a maximum
cap rate of Rs1.50 per unit. Such generators shall be paid back zero
when frequency is greater than 50.05 Hz. The cost incurred for
purchase of such power shall be considered as power purchase cost
of a distribution licensee.

(2) Inter-State open access transactions: The deviation charges

applicable for over injection /under drawal shall be prepared by
considering 95% of the applicable rates specified for Charges of
Deviation, when these charges are receivable to the Seller/Buyer
and the deviation charges applicable for under injection /over
drawal shall be prepared by considering 105% of the applicable
rates specified for Charges of Deviation, when these charges are
payable by the Seller/Buyer.

(3) Intra-State open access transactions: The deviation charges

applicable for over injection /under drawal and for under
injection/over drawal shall be receivable and payable to the
Seller/Buyer respectively and shall be prepared by considering the
applicable rates specified for Charges of Deviation in these
Regulations.
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(4) Inter-State as well as Intra-State open access transactions: The

deviation charges applicable for over injection /under drawal shall
be prepared by considering 95% of the applicable rates specified
for Charges of Deviation, when these charges are receivable to the
Seller/Buyer and the deviation charges applicable for under
injection /over drawal shall be prepared by considering 105% of the
applicable rates specified for Charges of Deviation, when these
charges are payable by the Seller/Buyer.

6.5. Charges for Deviation, in respect of a general seller (other than RoR
generating station and a generating station based on municipal solid
waste) shall be as under:
Deviation by way of over injection Deviation by way of under injection (Payable

(Receivable by the Seller) by the Seller)

(I) For Deviation up to [10% DGS or 100 MW, whichever is less] and f within f band

(i) @ RR when [49.97 Hz ≤ f ≤50.03 Hz] (iv) @ RR when [49.97 Hz ≤ f ≤50.03 Hz]

(ii) When [50.03 Hz < f ≤50.05 Hz], for every (v) When [50.03 Hz < f ≤50.05 Hz], for every increase

increase in f by 0.01 Hz, charges for in f by 0.01 Hz, charges for deviation for such

deviation for such seller shall be reduced seller shall be reduced by 7.5% of RR so that

by 25% of RR so that charges for deviation charges for deviation become 85% of RR when

become 50% of RR when f = 50.05Hz f = 50.05Hz

(iii) When [49.97 Hz > f ≥ 49.90 Hz], for every (vi) When [49.97 Hz > f ≥ 49.90 Hz], for every decrease

decrease in f by 0.01 Hz, charges for in f by 0.01 Hz, charges for deviation for such

deviation for such seller shall be increased seller shall be increased by 7.15% of RR so that

by 2.15% of RR so that charges for charges for deviation becomes 150% of RR

deviation become 115% of RR when when f = 49.90Hz

f = 49.90Hz

(II) For Deviation up to [10% DGS or 100 MW, whichever is less] and f outside f band

(i) @ zero when [ 50.05 Hz < f < 50.10 Hz]: Provided (iii) @ 85 % of RR when [f > 50.05 Hz]

that such seller shall pay @ 10% of RR when

[ f ≥ 50.10 Hz]

(ii) @ 115 % of RR when [f < 49.90 Hz] (iv) @ 150 % of RR when [f < 49.90 Hz]

(III) For Deviation beyond [10% DGS or 100 MW, whichever is less] and f within and outside f band
¨sÁUÀ 3 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 7109

(i) @ zero when (f < 50.10 Hz): Provided that such (ii) @ RR when [f ≥ 50.00 Hz]; (iii) @ 150% of RR when

seller shall pay @ 10% of RR when [f ≥ 50.10 Hz] [49.90Hz ≤ f < 50.00 Hz]; and (iv) @ 200% of RR
when [f < 49.90 Hz]

Note: System frequency = f and f band = [49.90Hz ≤ f ≤50.05 Hz]

6.6. Charges for Deviation, in respect of a general seller being an RoR

generating station, shall be without any linkage to grid frequency, as
under:
Deviation by way of over injection Deviation by way of under injection
(Receivable by the Seller) (Payable by the Seller)

(i) @ RR for deviation up to [15% DGS or 150 (iii) @ RR for deviation up to [15% DGS or 150 MW,
whichever is less];
MW, whichever is less]; (ii) @ Zero for
(iv) @ 105% of RR for deviation beyond [15% DGS or 150
deviation beyond [15% DGS or 150 MW, MW, whichever is less] and up to [20% DGS or 200 MW,
whichever is less] whichever is less];
(v) @ 110% of RR for deviation beyond [20% D GS or 200
MW, whichever is less].

6.7. Charges for Deviation, in respect of a general seller being a

generating station based on municipal solid waste, shall be without
any linkage to grid frequency, as under:
Deviation by way of over injection Deviation by way of under injection
(Receivable by the Seller) (Payable by the Seller)

(i) @ contract rate for deviation up to (iii) @ contract rate for deviation up to [20% DGS];
[20% DGS];
(iv) @ 110% of contract rate for deviation beyond
(ii) @ Zero for deviation beyond [20% DGS]; [20% DGS ].

6.8. Charges for Deviation, in respect of a Buyer, shall be receivable or payable

as under:
Deviation by way of under drawal (Receivable by the Deviation by way of over drawal (Payable by the Buyer)
Buyer)
(V) For VLB (1) and f within f band

i) @ 90% of NR when f =50.00 Hz; iv) @ NR when f =50.00 Hz;

ii) When 50.00 Hz < f ≤50.05 Hz , for every increase in f by v) When 50.00 < f ≤ 50.05 Hz , for every increase in f by
0.01 Hz, charges for deviation for such buyer shall be
0.01 Hz, charges for deviation for such buyer shall be
decreased by 5% of NR so that charges for deviation
decreased by 8% of NR so that charges for deviation become
become 75% of NR when f = 50.05Hz;
50% of NR when f = 50.05Hz;

iii) When [50.00 Hz > f ≥ 49.90 Hz], for every decrease in f vi) When [50.00 Hz > f ≥ 49.90 Hz], for every decrease in f

by 0.01 Hz, charges for deviation for such buyer shall be by 0.01 Hz, charges for deviation for such buyer shall be
7110 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3
increased by 1 % of NR so that charges for deviation increased by 5% of NR so that charges for deviation
become 100% of NR when f = 49.90Hz; become 150% of NR when f = 49.90Hz.

(VI)For VLB (1) and f outside f band

(i) @ zero when [ 50.05 Hz < f < 50.10 Hz]: (iii) @ 50% of NR when [ 50.05 Hz < f < 50.10 Hz]:

Provided that such buyer shall pay @ 10% (iii) @ zero when [f ≥ 50.10 Hz];

of NR when [ f ≥ 50.10 Hz]; (v) @ 150 % of NR when [f < 49.90 Hz].

(ii) @ NR when [f < 49.90 Hz];

(VII) For VLB (2) and f within and outside f band

(i) @ 80% of NR when f ≤ 50.00 Hz; (iv) @ 150% of NR when f < 50.00 Hz;

(ii) @ 50% NR when [50.00 Hz < f ≤ 50.05 Hz]; (v) @ NR when [50.00 Hz ≤ f ≤ 50.05 Hz];

(iii) @ zero when [50.05 Hz < f < 50.10 Hz]: (vi) @ 75% NR when [ 50.05 Hz < f < 50.10 Hz];
Provided that such buyer shall pay @ 10% (vii) @ zero when [ f ≥ 50.10 Hz].
of NR when [ f ≥ 50.10 Hz];

(VIII) For VLB (3) and f within and outside f band

(i) @ zero when f < 50.10 Hz: (ii) @ 200% of NR when f < 50.10 Hz]
Provided such buyer shall pay @ 10% of NR (iv) @ NR when [50.00 Hz ≤ f < 50.10 Hz]
when [ f ≥ 50.10 Hz]; (v) @ 50% of NR when [ f ≥ 50.10 Hz]

Note: Volume Limits for Buyer:

Buyer Volume Limit

Buyer other than (the buyer with a VLB(1) = Deviation up to [10% DBUY or 100 MW,
whichever is less]
schedule less than 400 MW and the VLB(2) = Deviation [ beyond 10% DBUY or 100
RE-rich State) MW, whichever is less] and up to [15%
DBUY or 200 MW, whichever is less]
VLB(3) = Deviation beyond [15% DBUY or 200
MW, whichever is less]

Buyer (with a schedule up to 400 MW) VLB(1) = Deviation [20% DBUY or 40 MW,
whichever is less]
VLB(2) = Deviation beyond [20% DBUY or 40 MW,
whichever is less]

Buyer (being an RE Rich State) VLB (1) = Deviation up to 200 MW

VLB(2) = Deviation beyond 200 MW and up to
300 MW
VLB(3) = Deviation beyond 300 MW

Buyer (being Super RE Rich State) VLB (1) = Deviation up to 250 MW

VLB(2) = Deviation beyond 250 MW and up to
350 MW
VLB(3)= Deviation beyond 350 MW
¨sÁUÀ 3 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 7111

6.9. The charges for deviation by way of injection of infirm power shall be
zero:

Provided that if infirm power is scheduled after trial run as specified

in the Grid Code, the charges for deviation over the scheduled infirm
power shall be as applicable for a general seller.

6.10. The charges for deviation for drawal of start-up power before the
COD of a generating unit or for drawal of power to run the auxiliaries
during the shut-down of a generating station shall be payable at the
reference charge rate or contract rate or in the absence of
reference charge rate or contract rate, the weighted average ACP
of the Day Ahead Market segments of all Power Exchanges for the
respective time block, as the case may be.

6.11. Notwithstanding anything contained in Clauses (1) to (6) of this

Regulation, in case of forced outage or partial outage of a seller, the
charges for deviation shall be @ the reference charge rate for a
maximum duration of eight (8) time blocks or until the revision of its
schedule, whichever is earlier.

6.12. The consumers who have reduced their contract demand to zero and
drawing power from grid shall be settled as per provisions specified in
tariff order for the relevant period by the Commission.

6.13. In case of multiple contracts, the contract rate or the reference rate
referred to in Regulation 6 of these Regulations, shall be the weighted
average of the contract rates/ reference rate of all such contracts. The
Sellers/Buyers shall furnish the PPA rates on affidavit for the purpose of
Deviation charge account preparation to SLDC supported by a copy of
the Order of the Commission.
7112 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3

CHAPTER-7
7. SCHEDULING AND DESPATCH

7.1. Sellers/Buyers shall have to bear energy loss (transmission loss /or the
distribution losses) for their injection /drawal schedules at the interface
point with the State Grid or as applicable as per terms and conditions
of prevailing power purchase agreement.

7.2. For long-term access customers and medium-term open access

customers, the provisions of the State Grid Code and the relevant KERC
Regulations/amendments, as amended from time to time, shall be
applicable for declaration of capacity and scheduling. The Seller shall
submit daily declared capacity and accordingly the Buyers including
beneficiary shall submit their requirement to SLDC in 15 minutes’ time
block and by considering these the SLDC, shall finalize the
injection/drawal schedule.
7.3. The Seller supplying power on short-term shall submit monthly declared
capacity and accordingly the Buyers including InSGS shall submit their
requirement to SLDC in 15 minutes’ time block and by considering these
the SLDC shall finalize the injection/drawal schedule. If the Sellers/Buyers
fail to submit the declared capacity/drawal requirement for the
scheduling of power, then the same shall be considered as zero for all
purposes. However, maximum of two revisions of schedule per month
under advance intimation to SLDC and distribution licensee shall be
allowed with effect from 00.00 hours of next day.

7.4. If the Seller supplies short-term power to distribution licensee and/or

MSC/SSC and if such Seller is also a long-term open access
customer/medium-term open access customer, then such Seller shall
give monthly schedule as per these Regulations for short-term open
access so also daily schedule as long-term open access
customer/medium-term open access customer as per these
Regulations.
¨sÁUÀ 3 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 7113

7.5. Based on declared capacity given by the Seller and requirement of

drawal given by the Buyer, the SLDC shall allocate power and finalize
the injection /drawal schedule of the Sellers/Buyers considering the
applicable losses as specified by the Commission in its Tariff order from
time to time.

7.6. In case of day ahead transactions, the declared capacity/schedules

shall be conveyed by the Seller to SLDC; in one day advance up to 08.00
Hrs of the day. The Buyer including beneficiary shall confirm the time-
block wise requirement to SLDC in one day advance up to 09.00 Hrs of
the day. If no confirmation from Buyer including beneficiary is received
within the above time limit, the SLDC shall consider zero requirement.
Accordingly, SLDC shall issue the drawal and injection schedules by
18.00 Hrs of the day for the next day. Thereafter, normally no changes
shall be registered in the schedule on the day ahead basis.

7.7. To discourage frivolous revisions, SLDC may, at its sole discretion, refuse
to accept schedule/capability changes of less than two (2) percent of
previous schedule/capability or 0.5 MW whichever is more.

7.8. If, at any point of time, the SLDC observes that there is a need for revision
of the schedules in the interest of better system operation, it may do so
on its own, and in such cases, the revised schedules shall become
effective from the 4th time block, counting the time block in which the
revised schedule is issued by the SLDC to be the first one.

7.9. It shall be incumbent upon the State-grid-users to declare their schedule

/plant capabilities faithfully, i.e, according to their best assessment. In
case, it is suspected that they have deliberately over/under declared
the schedule/ plant capability contemplating to deviate from the
schedules given on the basis of their capability declarations (and thus
make money either as undue capacity charge or as the charge for
deviations from schedule), the SLDC may ask the State-grid-user to
explain the situation with necessary backup data.
7114 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3

7.10. If the scheduling of the State-grid-users has been stopped/

discontinued/ cancelled by SLDC or got cancelled by SLDC on its
request to RLDC/NLDC/PX, on “grid – disciplinary” measures, the
balance and the subsequent approved transactions and application
of the State-grid-user shall be forfeited / cancelled.

7.11. In case of any grid disturbance, scheduled injection of the Sellers and
scheduled drawal of the Buyers shall be deemed to have been revised
in proportion to their actual generation/drawal for all the time blocks
affected by the grid disturbance. Certification of grid disturbance and
its duration shall be published by the SLDC/Distribution licensee in
website within a week of its occurrence by the concerned licensee.

7.12. When for the reason of transmission constraints e.g. congestion or in the
interest of grid security, it becomes necessary to curtail power flow on
a transmission corridor, the transactions already scheduled may be
curtailed by the SLDC. The short-term customer shall be curtailed first
followed by the medium-term customers, which shall be followed by the
long-term customers and amongst the customers of a particular
category, curtailment shall be carried out on pro rata basis.

7.13. In the event of tripping of evacuating Substation path, the last injection/
schedule shall be considered with forecast and schedule of similar day
forecast figure and considered as deemed injection/ schedule for the
affected time blocks. For this the affected User/ Entity has to represent
the event with due authorization/ certifications of the connected
Substation Agency/ Authority on SLDC website.
7.14. In case it is observed that a “Seller” has scheduled excess power than
the approved quantum of open access in any time block; then no
deviation charge shall be receivable by him for excess injection, done
on that day and he will have to pay the transmission /wheeling charges
as applicable for the excess scheduled quantum, for the whole day, at
the rate of two (2) times of the transmission charges as applicable. In
the case of implemented schedules indicated by the SRLDC/Power
¨sÁUÀ 3 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 7115

Exchanges/NLDC/SLDC for open access transactions, the rounding off

of 0.01MWh whether on plus side or minus side shall be ignored and
such a case shall not be considered either as excess scheduling or
under injection.

CHAPTER-8

ENERGY ACCOUNTING AND SETTLEMENT

8. a. Settlement of energy at drawal point in respect of a SSC

8.1. The scheduled drawal (MWh) at drawal point shall be computed for
each time block from the scheduled drawal (in MW) for such consumer
through open access at the drawal point considering the energy losses
of the State grid (Intra-State transmission system and/ or distribution
system, as applicable) and the deviation from schedule shall be dealt
with as per Regulation.
8.2. The excess energy consumed, if any, at the drawal point for any time
block with reference to scheduled drawal shall be deemed to have
been consumed by the consumer from the State grid and shall be
treated as deviation and shall be paid by the consumer at the
applicable DSM charge and shall be calculated as per Regulation.
8.3. In case, where such a consumer underdraws with reference to the
scheduled drawal, the DSM charge shall be calculated as per
Regulation.
b. Settlement of energy at drawal point in respect of MSC

8.4. Such a consumer shall have supply agreement with the licensee
(either for standby support or for meeting part requirement of his
total requirement as may be chosen by the consumer) as also with
the “Sellers” for availing power through open access.
8.5. The total scheduled drawal at drawal point shall be computed for
each time block considering contract demand (in MVA) with
licensee (considering power factor 0.90) and drawal schedule for
the consumer through Open-Access at the drawal point by
7116 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3

considering the losses of the State-grid (intra-State transmission

system and / or distribution system, as applicable).
8.6. In case of levy of demand charges by distribution licensee; the
actual drawal shall be first set off with actual demand scheduled
through Open Access for the respective time block and the
remaining shall be considered as drawal against the contract
demand with the distribution licensee and shall be charged as per
applicable tariff order issued by the Commission.

8.7. Energy charges in case of MSC consumer receiving power other

than solar power shall be levied by the distribution licensee as per
the respective tariff based on the actual energy consumed in the
billing month after deducting the energy scheduled towards open
access.

CHAPTER-9
DSM ACCOUNT
9. STATE DSM ACCOUNT (SDSMA)
9.1. The State Load Despatch Centre shall prepare and issue (to all
Sellers/Buyers) SDSMA charges to all Sellers/ Buyers as per the modalities
and timelines as under:

a) Billing Cycle: The SDSMA billing cycle for all Sellers/ Buyers
shall be weekly (i.e. Monday to Sunday) and SDSMA billing
cycle for KPCL, RE Seller (other than WS seller) or the category as
specified by the Commission shall be monthly (calendar month
wise).

b) Meter Reading: Meter Reading shall be automatically read and

communicated to SLDC.
c) Implemented Schedule: For preparation of SDSMA Statement, the
SLDC shall consider implemented schedule as available in the
SRLDC and SLDC websites and implemented schedule received
from Power Exchanges through E-Mail. SLDC shall be responsible for
timely (as per Grid Code) updation and uploading of the
¨sÁUÀ 3 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 7117

implemented schedule in respect of all Sellers/ Buyers in the SLDC

website.

d) Frequency: For preparation of SDSMA Statement, SLDC shall

consider frequency as considered by SRPC in the DSM Statement
issued to Distribution licensee, as available in SRPC or as declared
by SRLDC in its website.

e) Confirmation of Meter-reading and Schedule: Since meter reading

and implemented schedule data are received in encrypted
softcopy, so to minimize the possibility of error, before processing of
the SDSMA bill, SLDC shall again verify data of schedule and energy
injection/drawal from the concerned Sellers/ Buyers and concerned
metering Division of KPCL, STU and Distribution licensee. The Sellers/
Buyers and the concerned metering Division of KPCL, STU and
Distribution licensee shall verify and confirm the required
information within 2 (two) working days from the date of receipt of
such data from SLDC through email.
f) Processing of SDSMA Bill: SLDC shall prepare SDSMA bill within five
(5) working days after the receipt of all related data from all
concerned as above. Further, SLDC shall issue the SDSMA bill to all
concerned through hardcopy and softcopy. The softcopy of the
SDSMA bill shall be made available by publishing it on the SLDC
website from the date of issue of SDSMA bill. The soft copy of the
SDSMA shall broadly contain the following information:

(i) Details of Deviation Settlement Method Tariff Structure currently

in force;

(ii) Details of Day-wise and total Deviation transactions for each

Entity (details shall include Scheduled Energy, actual Energy,
Charges for Deviation along with net amount
payable/receivable by them);

(iii) Details of transmission constraints and Grid disturbances;

7118 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3

(iv) Any other details which State Load Despatch Centre feels
necessary to complete the Deviation Settlement Method
Account.
9.2. Settlement of Deviation Charges shall be done through “State
Deviation Pool Account” to be maintained and operated by the
Distribution licensee. The Distribution licensee shall open a separate
Bank Account in a Nationalized/Scheduled Commercial Bank in the
name of “State Deviation Pool Account”.

Provided that Distribution licensee shall maintain the account and

submit the same to the Commission along with the tariff filing exercise.

Provided that the Commission may by order direct any other entity to
operate and maintain the Deviation Pool Account.

9.3. Payment of Deviation charges shall have a high priority and the
concerned Entity shall pay the indicated amount, within Seven (7) days
from the date of issue of State Deviation Settlement Mechanism
Account, into a “State Deviation Pool Account" operated by
Distribution licensee. However, for the State Owned Generating
Stations, the due date for payment of deviation charges shall be
governed as per LPS as determined by KERC in Regulations/Orders
issued from time to time.

9.4. The State Grid User which has to receive the money on account of
Deviation charges would then be paid out from the State Deviation
Pool Account within next two working days of receipt of payments in
the “State Deviation Pool Account”.

9.5. Separate books of accounts shall be maintained for the principal

component and interest component of charges for deviation.

9.6. If payments against the charges for deviation are delayed beyond as
specified in this regulation from date of issue of State DSM Account,
the defaulting State Grid Users shall have to pay simple interest @ 0.04%
for each day of delay.
9.7. All Sellers/Buyers which had at any time during the previous quarter of
¨sÁUÀ 3 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 7119

the year failed to make payment of 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/monthly
liability for Deviations in the previous quarter of the year, in favour of
the pool account maintained by Distribution licensee with a
nationalized/ scheduled commercial bank.

Provided that –

(a) If any State Grid user fails to make payment of Charges for
Deviation by the time specified in these regulations during the
current quarter of the year, it shall be required to open a Letter
of Credit equal to 110% of weekly/monthly outstanding liability in
favour of “State Deviation Pool Account”

(b) Letter of Credit amount shall be increased to 110% of the

payable weekly/monthly liability for Deviation in any
week/month during the quarter, if it exceeds the previous Letter
of Credit amount by more than 50%.
Illustration: If the average payable weekly liability for Deviation of
a State Grid user during Last Quarter of FY 2021-22 is Rs. 20 crore,
the State Grid User shall open Letter of Credit for Rs. 22 crore in
First Quarter of FY 2022-23. If the weekly payable liability during
any week in First Quarter of FY 2022-23 is Rs. 35 crore which is more
than 50% of the previous quarter of the year average payable
weekly liability of Rs. 30 Crore, the concerned State Grid User shall
increase the LC amount to Rs. 38.5 Crore (1.1*35.0) by adding Rs.
16.5 Crore.

(c) In case of failure to pay into the “State Deviation Pool Account”
within the specified time in there Regulations from the date of
issue of Statement of charges for Deviations, the Distribution
licensee shall be entitled to encash the Letter of Credit of the
concerned entity to the extent of the default and the concerned
7120 ಕ ಾ ಟಕ ಾಜ ಪತ , 25 2024 ¨sÁUÀ 3

entity shall recoup the Letter of Credit amount within 3 (three)

working days.

(d) If necessary, the Distribution licensee shall initiate suitable action

against defaulting entities under section 56 of the Act 2003 and
other action as per relevant provisions of the Act as applicable
from time to time. The responsibility of ensuring collection of
outstanding dues from the Sellers/ Buyers shall be of the
Distribution licensees.
CHAPTER-10

10. POWER TO RELAX/ SAVINGS AND REPEAL/ POWER TO REMOVE DIFFICULTIES

10.1 The Commission, for reasons to be recorded in writing, may relax any of
the provisions of these Regulations on its own motion or on an
application made before it by an interested person.
10.2 Save as otherwise provided in these regulations, the Commissions
Order dated 20.06.2006 with respect to implementation of Intra-state
ABT shall stand repealed from the date of commencement of these
Regulations.
10.3 If any difficulty arises in giving effect to any of the provisions of these
regulations, the Commission may, of its own motion or otherwise by
an order and after giving a reasonable opportunity to those likely to
be affected by such order, make such provisions, not inconsistent
with these regulations or the Act, as may appear to be necessary for
removing those difficulties.
10.4 Issue of Suo-Moto orders and practice directions: The Commission
may, from time to time, issue orders and practice directions in regard
to the effective implementation of these regulations and matters
incidental or ancillary thereto as the Commission may consider
appropriate.
By the Orders of the Commission
Secretary
PD-127