CERC Reaffirms Procedure for Recovering Legacy Dues in DSM Pool
ECONOMY & POLICY

CERC Reaffirms Procedure for Recovering Legacy Dues in DSM Pool

The Central Electricity Regulatory Commission (CERC) has reiterated that the approved methodology in the National Load Despatch Centre's (NLDC) detailed procedure applies to all deficits in the Deviation Settlement Mechanism (DSM) Pool Account, starting September 16, 2024.

It has directed distribution companies (DISCOMs) to ensure the timely payment of dues to avoid delays in compensating ancillary service providers and maintaining grid stability.

Notified in August 2024, the regulations outline a process for addressing deficits in the Deviation and Ancillary Service Pool Account (DSM Pool Account) under Regulation 9(7). Following the notification, the NLDC submitted a detailed procedure for recovering dues in two categories:

? Legacy dues: Dues accumulated before September 16, 2024. ? Current dues: Dues accrued on or after September 16, 2024.

CERC approved the procedure to facilitate efficient recovery of dues. However, NLDC reported that some DISCOMs had either not paid or had partially paid their dues. The DISCOMs raised concerns about the fairness of recovering legacy dues, arguing that the procedure did not explicitly mention provisions for such recovery.

The Commission emphasized that the DSM Pool Account is crucial for ensuring payments to ancillary service providers and maintaining grid security. Delays in payments could discourage service providers, potentially affecting grid operations.

CERC referred to its earlier Staff Paper on ‘Grid Security Charge,’ which highlighted the growing deficit in the DSM Pool Account due to high demand and insufficient reserves. The explanatory memorandum to the DSM Regulations also noted a ?4 billion (~$46.2 million) deficit as of March 2024, underscoring the need for a robust recovery framework.

Most available forecasting models provide predictions only in broader hourly intervals, which are insufficient for the precision demanded by the new rules. Additionally, these tools often fail to account for hyper-local weather conditions—especially critical for wind farms, where slight variations in wind speed across small distances can result in significant deviations from the forecasted output.

The Central Electricity Regulatory Commission (CERC) has reiterated that the approved methodology in the National Load Despatch Centre's (NLDC) detailed procedure applies to all deficits in the Deviation Settlement Mechanism (DSM) Pool Account, starting September 16, 2024. It has directed distribution companies (DISCOMs) to ensure the timely payment of dues to avoid delays in compensating ancillary service providers and maintaining grid stability. Notified in August 2024, the regulations outline a process for addressing deficits in the Deviation and Ancillary Service Pool Account (DSM Pool Account) under Regulation 9(7). Following the notification, the NLDC submitted a detailed procedure for recovering dues in two categories: ? Legacy dues: Dues accumulated before September 16, 2024. ? Current dues: Dues accrued on or after September 16, 2024. CERC approved the procedure to facilitate efficient recovery of dues. However, NLDC reported that some DISCOMs had either not paid or had partially paid their dues. The DISCOMs raised concerns about the fairness of recovering legacy dues, arguing that the procedure did not explicitly mention provisions for such recovery. The Commission emphasized that the DSM Pool Account is crucial for ensuring payments to ancillary service providers and maintaining grid security. Delays in payments could discourage service providers, potentially affecting grid operations. CERC referred to its earlier Staff Paper on ‘Grid Security Charge,’ which highlighted the growing deficit in the DSM Pool Account due to high demand and insufficient reserves. The explanatory memorandum to the DSM Regulations also noted a ?4 billion (~$46.2 million) deficit as of March 2024, underscoring the need for a robust recovery framework. Most available forecasting models provide predictions only in broader hourly intervals, which are insufficient for the precision demanded by the new rules. Additionally, these tools often fail to account for hyper-local weather conditions—especially critical for wind farms, where slight variations in wind speed across small distances can result in significant deviations from the forecasted output.

Next Story
Infrastructure Energy

NTPC Signs $11.5 Billion Clean Energy Deals in Chhattisgarh

Juniper Green Energy has successfully commissioned a 100-MW solar power project aimed at supplying electricity to Bhutan, marking a significant milestone in regional energy integration. According to the company's statement, the project facilitates a crucial cross-border agreement allowing Bhutan to receive 50% of the power generated during the winter months. This arrangement permits Bhutan to directly import power from an Indian generator under an established bilateral trade framework. Located in Rajasthan, the solar project contributes a total generation capacity of 100 MW. Highlighting the..

Next Story
Infrastructure Energy

Juniper Green Commissions 100-MW Solar Project for Bhutan

The New Delhi Municipal Council (NDMC) held its first council meeting since the Delhi Assembly polls focusing on a comprehensive Summer Action Plan aimed at achieving 100% solar energy adoption by 2026. The meeting, led by MP Bansuri Swaraj, began with the swearing-in of three new NDMC members — Delhi Minister and New Delhi MLA Parvesh Sahib Singh, Delhi Cantt. MLA Virender Singh Kadian, and Ravi Kumar Arora, Additional Secretary of the Ministry of Housing and Urban Affairs. Solar Energy Push NDMC Vice Chairman Kuljeet Singh Chahal announced the civic body's ambitious solar energy plans, ..

Next Story
Infrastructure Energy

NDMC Pushes for 100% Solar Energy by 2026

Mumbai-based energy storage startup AmpereHour Energy has raised $5 million from Avaana Capital, with participation from UC Impower and other angel investors. Founded in 2017 by IIT Bombay alumni, AmpereHour Energy focuses on building AI/ML-enabled Energy Storage Systems ranging from kW/kWh scale systems for Mini-grids to MW/MWh scale systems compatible with solar PV and wind plants. The systems are designed to be plug-and-play, integrated with the company’s proprietary Energy Management platform, Elina. The fresh capital will be directed towards expanding manufacturing and software capabi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?