PRESENTATION

ON DEVIATION SETTLEMENT MECHANISM AND

RELATED MATTERS,2024
DEVIATION SETTLEMENT MECHANISM AND RELATED MATTERS, 2023
 DSM 2022 CHRONOLOGY
• Frequency Delinked, DSM 2014 repealed, Gazette notification on 14.03.2022.
Effective from 05.12.2022.

• CERC order dated 26.12.2022. Frequency linked above 50.05 Hz or below 49.9 Hz.
Maximum rate capped at Rs. 12/- unit. Effective from 28.12.2022.

• CERC order dated 06.02.2023. Frequency linked above 50.03 or below 49.95 Hz.
Maximum rate capped at Rs. 12/- unit. No separate rate for Cross Border or Inter
regional transfer. Ancillary service charge not considered for DSM. Effective from
08.02.2023.

• CERC order dated 31.03.2023 capped price to Rs.10/unit from DAM delivery date
(DD) 05.04.2023. RTM DD 04.04.2023. HP Dam price capped at Rs. 20/unit
2
©DGPC
2024
 Highlights & Important Terminology

Reference Charge Rate (RCR); Regulation no. 3 (1) (u)

• In respect of a general seller whose tariff is determined under Section 62 or Section

63 of the Act, Rs/ kWh energy charge as determined by the Appropriate
Commission. Or

• In respect of a general seller whose tariff is not determined under Section 62 or

Section 63 of the Act, the daily weighted average ACP of the Day Ahead Market
segments of all the Power Exchanges.

3
©DGPC
2024
 Highlights & Important Terminology

Normal Rate of Charge for Deviation (NROCFD); Regulation no. 7

• For a period of 1 year from commencement, NROCFD will be equal to the highest of:
- Weighted average ACP of the DAM segments of all the Power Exchanges
- Weighted average ACP of the RTM segments of all the Power Exchanges subject to a
____ceiling of Rs.12/unit

Contract Rate; Regulation 3 (1) (j)

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 or
the price as discovered in the Power Exchange, as the case may be.

4
©DGPC
2024
 Deviation Calculation

General Deviation (MWh) = Actual Injection (MWh) – Scheduled Generation (MWh)

Seller Deviation(%) = 100 * (Actual injection (MWh) – Scheduled Generation (MWh))/Scheduled generation
(MWh)

WS Seller Deviation (MWh) = Actual Injection (MWh) – Scheduled Generation (MWh)

Deviation(%) = 100 * (Actual injection (MWh) – Scheduled Generation (MWh)) / Available Capacity in
MWh

Buyers Deviation (MWh) = Actual Drawal (MWh) – Scheduled Drawal (MWh)

Deviation(%) = 100 * (Actual Drawal (MWh) – Scheduled Drawal (MWh))/Scheduled Drawal (MWh)

Rate Time Block wise Rate to be published by NLDC, INDIA post-facto after completion of week.
Week to start from Monday to Sunday.

5
©DGPC
2024
 Deviation Charge of Seller
(from 08.02.2023)
50.03 >= f >= 49.95
Seller Over Injection
General Seller other than Upto 10% or 100MW whichever is less:
RoR and Municipal Solid Amount receivable by seller @RCR
Waste Beyond 10% or 100 MW: zero
RoR (Run of the River) Upto 10% or 100 MW whichever is less:
Generating Station Amount receivable by seller @RCR
Beyond 10% or 100 MW: zero
Municipal Solid Waste Upto 20%: Amount receivable by seller
based Generating Station @Contract Rate or in absence of that @
weighted average ACP of DAM in that Time
Block.
Beyond 20%: Zero
Under Injection (Payable by seller)
Upto 10% or 100 MW: @ RCR
10% (100): 15%(150): @ 120% of NROCFD
> 15% (150): @ 150% of NROCFD
Upto 10% or 100 MW: @ RCR
10% (100): 15%(150): @ NROCFD
> 15% (150): @ 110% of NROCFD
Upto 20%: @ 50% of Contract Rate or in
absence of that @ 50% of weighted average
ACP of DAM
> 20%: @ NROCFD

6
©DGPC
2024
 Deviation Charge of Seller
(from 08.02.2023)
50.03 >= f >= 49.95
Seller Over Injection Under Injection (Payable by seller)
WS (Wind or 0 – 10%: Amount receivable by seller @Contract Rate or in Upto 10%: Nil
Solar or Hybrid absence of that @ (WA) ACP of DAM in that Time Block 10%-15%: @ 10 % of contract rate or in
of wind-solar 10 – 15%: Amount receivable by seller @ 90% of Contract absence of that @ 10 % WA ACP of DAM
resources) Seller Rate or in absence of that @ 90% of (WA) ACP of DAM in >15%: @ 50 % of contract rate or in
that Time Block absence of that @ 50 % WA ACP of DAM
Beyond 15%: Zero

WS (Wind) Seller 0 – 15%: Amount receivable by seller @Contract Rate or in
absence of that @ (WA) ACP of DAM in that Time Block
15 – 20%: Amount receivable by seller @90% of Contract
Rate or in absence of that @ 90% of (WA) ACP of DAM in
that Time Block
Beyond 20%: Zero
Upto 15%: Nil
15%-20%: @ 10% of contract rate or in
absence of that @10% WA ACP of DAM
>20%: @ 50% of contract rate or in
absence of that @50% WA ACP of DAM

7
©DGPC
2024
 Deviation Charge of Buyer
(w.e.f. 08.02.2023)
50.03 >= f >= 49.95; including CB and IR
Buyer Under Drawl ( Receivable by buyer) Over Drawl (Payable by buyer )
Buyer (except RE rich Upto 10% or 100 MW which ever is lower: Upto 10% (or 100 MW): @ NROCFD,
state and buyers with @ 90% of NROCFD 10% (or 100 MW): 15% (or 200 MW): @ 120%
schedule < 400 MW ) 10% (or 100 MW): 15% (or 200 MW): @ of NROCFD
50% of NROCFD > 15% (or 200 MW): @ 150% of NROCFD
>15%: Zero
Buyer with schedule < Upto 20% or 40 MW which ever is lower: @ Upto 20% (or 40 MW): @ NROCFD
400 MW 90% of NROCFD > 20% (or 40 MW): @ 120% of NROCFD
> 20%: Zero
RE rich Buyer Upto 200 MW: @ 90% of NROCFD 200 MW: @ NROCFD,
200 MW – 300 MW: @ 50% of NROCFD 200 MW – 300 MW: @ 120% of NROCFD
> 300 MW: Zero > 300 MW: @ 150% of NROCFD

8
©DGPC
2024
 Deviation Charge (Buyer)
As per CERC DSM order dated 06-02-2023
For Frequency < 49.95 Hz
Buyer Under Drawl (Receivable by buyer) Over Drawl (Payable by buyer )
All Buyer When 49.90 < f < 49.95: @ 120% of NROCFD When 49.90 < f < 49.95: @ 150% of NROCFD
When f <= 49.9: @ 150% of NROCFD When f <= 49.9: @ 200% of NROCFD
No volume deviation limit For any volume deviation

For Frequency > 50.03 Hz

Buyer Under Drawl (Receivable by buyer) Over Drawl (Payable by buyer )
All Buyer When 50.03 < f < 50.05: @ 50% of NROCFD When 50.03 < f < 50.05: @ 75% of NROCFD
When f >= 50.05: @ 0% of NROCFD When f >= 50.05: @ 0% of NROCFD
No volume deviation limit For any volume deviation

9
©DGPC
2024
 Important Provisions

Infirm power Regulation 8 (3) (a)

The charges for deviation for injection of Infirm Power shall be zero. If scheduled same as General
seller

Start-Up Power Regulation 8(3) (b)

The charges for deviation for drawal of start-up power before CoD of a generating station or for drawal
of power to run the auxiliaries during shut-down of a generating station shall be payable @ RCR or
Contract Rate or in absence of RCR and Contract rate, the weighted average of the DAM of all PXs for
the respective Time block.

Cross-Border Deviation, Regulation 8 (4A)

The charges for deviation in respect of cross-border transactions, caused by way of over drawal or
under drawal or over injection or under-injection shall be payable or receivable, at the deviation charge
rates and subject to volume limits as applicable to a seller (of respective category) or to a buyer (other
than an RE-rich State), as the case may be.
10
©DGPC
2024
 Roles of RLDC and RPC in DSM, 2022

RLDC
• Deviation calculation to RPC’s by
Thursday ( W1) for previous Week (W0)
i.e. Monday to Sunday.
• Operation and maintenance of Deviation
and Ancillary Service Pool account.
RPC
• Publishing DSM statement by
ensuing Tuesday (W2).
• Maintaining Separate books of
account for Principal and Interest
component.

11
©DGPC
2024
 Deviation and Ancillary Service Pool Account

1) Payment from seller

for UI
1) Payment to seller
2) Payment from buyer
for OI
for OD
2) Payment to buyer
3) Late payment Deviation and for UD
Surcharges Credit Ancillary Service Debit 3) Full cost to SRAS-
4) Payment made by Pool Account UP provider
SRAS-Down
4) Full cost to TRAS-
provider
UP provider.
5) Payments made by
TRAS-Down
provider

12
©DGPC
2024
 Salient Points
• In case of deficit in the Deviation and Ancillary Service Pool account of a Region,
surplus amount available in other Region could be used.

• In case of overall deficit, the balance shall be recovered through the RLDC Fees and
Charges.

• Due date for DSM payment will be 7 days from the issuance of statement. Delay in
payment will attract the surcharge of 0.04% per day.

• If any regional entity fails to deposit the payment any time in previous financial year, it
shall be required to open a Letter of Credit (LC) equal to 110% of their average payable
weekly liability for deviations in the previous financial year.

13
©DGPC
2024
 Deviation Charge of Bhutan (Buyer)
As per CERC DSM order dated 06-02-2023 w.e.f. 08-02-23
For Frequency Range 49.95 to 50.03
Buyer Under Drawl (Receivable by buyer) Over Drawl (Payable by buyer )
Buyer (except RE rich Upto 10% or 100 MW which ever is lower: @ Upto 10% (or 100 MW): @ NROCFD,
state and buyers with 90% of NROCFD 10% (or 100 MW )- 15% (or 200 MW): @ 120%
schedule < 400 MW) 10% (or 100 MW) – 15% (or 200 MW ): @ of NROCFD
50% of NROCFD > 15% (or 200 MW): @ 150% of NROCFD
>15%: Zero

Buyer with schedule Upto 20% or 40 MW which ever is lower : @ Upto 20 % (or 40 MW): @ NROCFD
< 400 MW 90 % of NROCFD > 20 % (or 40 MW): 120% of @ NROCFD
> 20%: Zero

The charges for deviation in respect of cross-border transactions, caused by way of over drawal or under drawal or over
injection or under-injection shall be payable or receivable, at the deviation charge rates and subject to volume limits as
applicable to a seller (of respective category) or to a buyer (other than an RE-rich State), as the case may be.
14
©DGPC
2024
 Deviation Charge of Bhutan (Buyer)
As per CERC DSM order dated 06-02-2023 w.e.f. 08-02-23
For Frequency < 49.95 Hz
Buyer Under Drawl (Receivable by buyer) Over Drawl (Payable by buyer )
All Buyer When 49.90 < f < 49.95: @ 120% of NROCFD When 49.90 < f < 49.95: @ 150% of NROCFD
When f <= 49.9: @ 150% of NROCFD When f <= 49.9: @ 200% of NROCFD
No volume deviation limit For any volume deviation

For Frequency > 50.03 Hz

Buyer Under Drawl ( Receivable by buyer) Over Drawl (Payable by buyer )
All Buyer When 50.03 < f < 50.05: @ 50% of NROCFD When 50.03 < f < 50.05: @ 75% of NROCFD
When f >= 50.05: Zero When f >= 50.05: Zero
No volume deviation limit For any volume deviation

15
©DGPC
2024
 Deviation Charge of Bhutan (Seller)
As per CERC DSM order dated 06-02-2023 w.e.f. 08-02-23
For Frequency Range 49.95 to 50.03
Seller Over Injection Under Injection (Payable by seller )
General Seller other Upto 10% or 100 MW whichever is less: Upto 10% or 100 MW: @ RCR
than RoR and Municipal Amount receivable by seller @RCR 10% (100) – 15%(150) : @ 120% of NROCFD
Solid Waste Beyond 10% or 100 MW: zero > 15% (150) : @ 150% of NROCFD

RoR (Run of the River) Upto 10% or 100 MW whichever is less: Upto 10% or 100 MW: @ RCR
Generating Station * Amount receivable by seller @RCR 10% (100) – 15%(150): @ NROCFD
Beyond 10% or 100 MW: zero > 15% (150): @ 110% of NROCFD

The charges for deviation in respect of cross-border transactions, caused by way of over drawal or under drawal or over
injection or under-injection shall be payable or receivable, at the deviation charge rates and subject to volume limits as
applicable to a seller (of respective category) or to a buyer (other than an RE-rich State), as the case may be.

* ROR Generating Stations are not linked with frequency

16
©DGPC
2024
 Deviation Charge of Bhutan (Seller)
As per CERC DSM order dated 06-02-2023 w.e.f. 08-02-23
For Frequency < 49.95 Hz
Seller Over Injection (Receivable by Seller) Under Injection (Payable by Seller)
General Seller When 49.90 < f < 49.95: @ 120% of RCR When 49.90 < f < 49.95: @ 150% of RCR
other than RoR When f <= 49.9: @ 150% of RCR When f <= 49.9: @ 200% of RCR
and Municipal
solid waste No volume deviation limit For any volume deviation

For Frequency > 50.03 Hz

Seller Over Injection ( Receivable by Seller) Under Injection (Payable by Seller )
General Seller When 50.03 < f < 50.05: @ 50% of RCR When 50.03 < f < 50.05: @ 75% of RCR
other than RoR When f >= 50.05: Zero When f >= 50.05: Zero
and Municipal
solid waste No volume deviation limit For any volume deviation

17
©DGPC
2024
 DSM in transactions with Bhutan through PTC

ERPC
Issues weekly DSM

DSM payable DSM receivable

NVVN makes payment to ERLDC and

gets reimbursement from PTC NVVN receives payment from ERLDC
and transfers to PTC

PTC makes payment to NVVN and

gets reimbursement from Bhutan PTC transfers payment received
from NVVN to Bhutan
Bhutan makes payment to PTC

18
©DGPC
2024
©DGPC
dgpc.info@drukgreen.bt | www.drukgreen.bt
2024