Omnicore Weekly #216 - 18 July 2025

Dear Patrons & Readers,

Petitioner: State Load Despatch Centre

Background: The Miscellaneous Petition stands preferred by the petitioner State Load Despatch Centre of Tamil Nadu with a prayer to accord time extension of nine months to implement certain provisions of the TNERC (Deviation Settlement Mechanism and Related Matters) (Amendment) Regulations, 2024 and to implement the same with retrospective effect i.e. from 01-04-2024 once the software modification is completed.

Commission's Order & View:

Commission expresses grave displeasure over abnormal delay in implementing the provisions of the Deviation settlement mechanism and seeking further extension of time citing software modification without submission of any comprehensive action plan with firm milestones. The whole purpose of implementation of the Deviation Settlement mechanism is to bring more discipline among the generators, better load management and to maintain the grid frequency within the limit as prescribed in the Indian Electricity Grid Code with the available resources. The petitioner is delaying the implementation of the Deviation settlement mechanism Regulation since 2019 by citing various reasons such as communication issues, software modification issues, etc. This delay may perpetuate indiscipline in drawal /injection of power from/to the grid, which in turn may cause deviation in terms of the grid frequency from the IEGC limit, over-drawal/underdrawal by the State entities from the grid leading to payment of higher charges of deviation settlement charges to the Regional pool account. Commission is of the view that timely development of infrastructure is crucial to ensure a stable and reliable power system in the State. The Commission views with serious concern and dissatisfaction over the repeated delays in operationalizing the DSM mechanism which is comprehensively covered by the provisions of Regulations and which is vital for maintaining grid discipline. Repeated time extension would help only the cause of the violators of grid discipline and endanger grid safety. Commission is constrained to add that a well-knit regulation which was framed after great deal of deliberation and strenuous effort would remain only on paper if continuously time extension is sought. Any further extension will not be in the interest of the State Grid. While the Commission recognizes the technical challenges in the software modifications, it is imperative that the SLDC demonstrates proactive and timely execution to meet the regulatory time limits. In the result, the Commission passes the following orders:

a. Given the criticality of the Deviation Settlement Mechanism, Commission hereby extend the time up to 31-12-2025 in implementing the Regulations 7(1)(c), 10(A)(1), 11(A), 11(M), 11(N), 11(Q), Annexure-I, Annexure-III and the change of lower limit of frequency from 49.85 Hz to 49.90 Hz as stipulated under “General Amendments” in the Tamil Nadu Electricity Regulatory Commission (Deviation settlement mechanism and related matters) (Amendment) Regulations, 2024 notified by the Commission vide Notification No. TNERC/DSM&RM/22-3, dated 27-12-2024 and the commercial impact of the above portions of Regulations shall come into effect from 01.01.2026. No more extension of time limit will be permitted by the Commission.

b. The petitioner shall file monthly progress report on various aspects such as readiness of software, data transfer from the generator/consumer end, communication issue, etc. to the Commission on or before 10th of every month up to the month of December, 2025.

Highlights from the week of
11 July 2025 to 18 July 2025