The Central Electricity Regulatory Commission (CERC) has notified new regulations on unscheduled interchange (UI) for electricity grid operations and also the amendments to Indian Electricity Grid Code (IEGC). Both these regulations will come into force from 01 April 2009.

The main objective of restructuring of the UI regime is to impose grid discipline and to rationalise the UI rates for entities who abide by the specified grid operation parameters. At the same time, CERC has also narrowed down operational frequency range for the Indian Electricity Grid with the objective of improving the quality of supply. The entities overdrawing from the grid below the permissible frequency of 49.2 Hz will be required to pay additional UI charge. This step should force the distribution utilities to go for planned procurement of electricity and thereby creating environment for investors to set up new power plants. Presently, many utilities postpone setting of power projects and rely on over drawl from the grid for meeting consumers' demand.

The other features of the new regulations are:

a) Even for the operations within the permissible frequency range, over drawl beyond the permissible limits would make the entities and the officer in-charge such as CEO or MD liable for penal action under sections 142 and 149 of the Electricity Act, 2003.

b) The UI rates for the generators where tariff is regulated by the Commission have been made symmetrical for over generation and under generation.

c) CERC would review the UI charges and the additional UI surcharge rate every six months or earlier, if required, keeping in view the prevailing fuel prices and the requirements of maintaining grid discipline.

d) Any surplus amount left in UI pool is to be used for supporting the transmission schemes of strategic importance or for providing ancillary services by the grid operators.

Also See:

CERC mulls cut in the power cost (23-Mar-09)