Himachal Pradesh (HPERC) Implements Comprehensive Grid Management Regulations (2024)

Posted On - 5 July, 2024 • By - King Stubb & Kasiva

Introduction:

In a significant move to enhance grid stability and reliability, the Himachal Pradesh Electricity Regulatory Commission (HPERC) has introduced the Himachal Pradesh Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024.[1] These regulations, effective from July 1st, 2024, aim to promote grid discipline and security through a commercial mechanism for settling deviations between scheduled and actual electricity drawals/injections.

Explanation (Key Points):

  • Definitions: The regulations provide clear definitions of key terms such as “Actual Drawal,” “Actual Injection,” “Deviation,” and “State Entity,” ensuring clarity and consistency in implementation.
  • Objectives and Scope: The primary objective is to maintain grid discipline and security. The regulations apply to buyers and sellers connected to the state grid, including state distribution licensees, state-sector generating stations, open access customers, and relevant agencies.
  • Scheduling and Deviation: The regulations outline the scheduling period, the premise for least-cost dispatch, and the consolidated scheduling of state entities. Deviations, calculated as the difference between actual and scheduled values, are subject to charges.
  • Deviation Charges: The regulations detail the charges for deviations, distinguishing between different types of sellers (general, wind/solar/hybrid) and buyers. The charges aim to incentivize adherence to schedules and discourage actions that could jeopardize grid stability.
  • Accounting and Billing: The State Load Despatch Centre (SLDC) is responsible for preparing deviation accounts, statements of charges, and bills. The “State Deviation Pool Account” manages the collection and disbursement of deviation charges.
  • Special Provisions: Special provisions apply to open access customers who are also retail consumers of the distribution licensee, addressing issues like contract demand, demand charges, and energy accounting.
  • Compliance and Enforcement: The regulations emphasize the importance of complying with SLDC instructions and adhering to schedules. Non-compliance can lead to actions under the Electricity Act and curtailment of schedules.
  • Power to Relax, Amend, and Issue Directions: The HPERC retains the authority to relax provisions, amend regulations, and issue directions to address implementation challenges and ensure the regulations’ effectiveness.

Conclusion:

The Himachal Pradesh Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024, mark a significant step towards a more robust and disciplined power grid in Himachal Pradesh. By introducing a comprehensive framework for scheduling, deviation management, and financial incentives, these regulations are expected to enhance grid security, promote fair play among stakeholders, and contribute to the overall stability of the state’s power system.

[1] https://hperc.org/new1/File1/fdsm2024.pdf