GUJARAT ENERGY TRANSMISSION CORPORATION LIMII : GE CIN No. U40100GJ1999$GC036018 > E STATE LOAD DESPATCH CENTRE, si Telephone No.(0265) 22651312 Ss Web : www.sideguj.com, e-Mail : sldcabtcomm@gmail.com Guj-SLDC/Comm/F-05/ Date: 24/11/2022 To By Email/Speed Post The Secretary, Gujarat Electricity Regulatory Commission, 6th Floor, GIFT One, Road 5-C, Zone 5, GIFT CITY, Gandhinagar-382355, Sub: Submission of Petition under Section 86(1)(c) of the Electricity Act, 2003 read with ABT Order 6 of 2010, Order 3 of 2010 and GERC Letter Dated 05.03.2015 for implementation of the Deviation Settlement Mechanism as per Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 with modifications for the State of Gujarat. Respected Sir, With reference to the above, Petition under Section 86(1)(c) of the Electricity Act, 2003 read with ABT Order 6 of 2010, Order 3 of 2010 and GERC Letter Dated 05.03.2015 for implementation of the Deviation Settlement Mechanism as per Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 with modifications for the State of Gujarat is submitted herewith. The Petition fees Rs. 10000 paid through NEFT, details are as under: UTR No. BKIDN22328654281 dated 24.11.2022. Name of Bank: Bank of India. Kindly register our petition and acknowledge receipt of the same. This is for your kind information and further needful in the matter. Thanking You, Yours faithfully, Qua Ny ae A athoa)*\ v Additional Chief Engineer (LD) SLDC, Vadodara Enclosure: The subject petition in original along with 4 copies Copy to: All respondents. 1324V Gotr ub Station Campus, Opp. Kalpvrux Building, Near T.B. Hospital, Got Road, Vadodara ~ 390021BEFORE THE HONORABLE GUJARAT ELECTRICITY REGULATORY COMMISSION AT GANDHINAGAR, PETITION NO. ___ OF 2022 IN THE MATTER OF Petition under Section 86(1)(c) of the Electricity Act, 2003 read with ABT Order 6 of 2010, Order 3 of 2010 and GERC Letter Dated 05.03.2015 for implementation of the Deviation Settlement Mechanism as per Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 with modifications for the State of Gujarat. AND IN THE MATTER OF: State Load Despatch Centre (Gujarat Energy Transmission Corporation Limited) Sardar Patel Vidyut Bhawan Race Course Vadodara - 390007 Gujarat PETITIONER Vs. Gujarat Urja Vikas Nigam Ltd. & Ors. RESPONDENTS. INDEX Sr.No. Particulars Page Nos. | 1 7 Petition along with supporting affidavit. | +21 0 Annexure-A- GERC order No. 3 of 2006 | 22-33 a Annexure-B - GERC order No. 3 of 2010 34-55 4 Annexure-C- GERC order No. 6 of 2010 56-59 7 5 Annexure-D - Copy of GERC letter No.0436 dated 05.03.2015 60 6 Annexure-E - CERC DSM regulation 2022 61-66 | Qu PETITIONER,1 BEFORE THE HONORABLE GUJARAT ELECTRICITY REGULATORY COMMISSION AT GANDHINAGAR PETITION NO. ___ OF 2022 IN THE MATTER OF Petition under Section 86(1)(c) of the Electricity Act, 2003 read with ABT Order 6 of 2010, Order 3 of 2010 and GERC Letter Dated 05.03.2015 for implementation of the Deviation Settlement Mechanism as per Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 with modifications for the State of Gujarat. AND IN THE MATTER OF: State Load Despatch Centre Sardar Patel Vidyut Bhawan Race Course Vadodara - 390007 Gujarat PETITIONER Vs Gujarat Urja Vikas Nigam Ltd. : Respondent-1 Sardar Patel Vidyut Bhavan Race Course, Vadodara Madhya Gujarat Vij Company Ltd. : Respondent-2 Sardar Patel Vidyut Bhavan Race Course, Vadodara Dakshin Gujarat Vij Company Ltd. - Respondent-3 Urja Sadan, Nana Varachha Road Kapodara, Surat Paschim Gujarat Vij Company Ltd. J Respondent-4 Paschim Gujarat Vij Sewa Sadan Off Nana Mahua Main Road Laxminagar, Rajkot Uttar Gujarat Vij Company Ltd. a Respondent-5 Visnagar Road Mehasana Gujarat State Electricity Co. Ltd. - Respondent-6 Sardar Patel Vidyut Bhavan, Race Course, Vadodara OyeTorrent Power Limited - (Ahmedabad, Surat, Dahej DISCOM, AMGEN) “Samanvay”, 600, Tapovan, Ambawadi, Ahmedabad-380015. Adani Power Mundra Limited 1* Floor, South wing, Adani Corporate House, Shantigram, $.G.Highway, Ahmedabad 382 421 Essar Power Gujarat Limited 44 KM Milestone, Jamnagar-Okha Highway P.O Box No.07, Dist. Devbhumi Dwarka Khambhalia 361305 Apraava Energy Private Limited (formerly known as CLP India Private Limited) Bharuch - Palej Road, Village Paguthan, Gujarat, Bharuch - 392015 Gujarat Industries Power Company Ltd P.O. Petrochemical - 391346 Dist.: Vadodara Gujarat - India Gujarat State Electricity Generation Ltd Block No.15, 3rd floor, Udyog Bhavan, Sector No.11, Gandhinagar 382010. GSPC Pipavav Power Co. Ltd GSPC Bhavan, B/h Udyog Bhavan, Sector-11, Gandhinagar - 382010. Gujarat Mineral Development Corporation Khanij Bhavan, University Ground 132 Ft. Ring Road, Ahmedabad - 380 052 Phillips Carbon Black Limited 7 Palej Plant NH-8, Village- Palej Bharuch-390220 Respondent-7 Respondent-8 Respondent-9 Respondent-10 Respondent-11 Respondent-12 Respondent-13 Respondent-14 Respondent-15 GeOil and Natural Gas Corporation Limited S Respondent-16 Hazira Plant, Cogeneration & Steam System PO. ONGC Nagar (Bhatpore) Surat 394518 Oil and Natural Gas Corporation Limited - Respondent-17 Combined Cycle Power Plant, Gandhar ONGC, Ankleshwar-393010 Surat 394518 Phillips Carbon Black Limited = Mundra Plant Survey No. 47, SH-46, Mokha, Mundra, Kutch-370421 Respondent-18 Welspun Captive Power = Respondent-19 Generation Limited Welspun City, Versamedi, Anjar, Kutch Bhavnagar Biomass Power Project - Respondent-20 Private Limited, 10Th Floor Sangeeta Complex Near Parimal Crossing, Ellisbridge, Anmedabad-380 006 Junagadh Power Projects - Respondent-21 Private Limited, 10Th Floor Sangeeta Complex Near Parimal Crossing, Ellisbridge, Ahmedabad-380 006 Amreli Power Projects Limited e Respondent-22 10Th Floor Sangeeta Complex Near Parimal Crossing, Ellisbridge, Anmedabad-380 006 Goodwatts WTE Botad pvt. Limited = Respondent-23 10Th Floor Sangeeta Complex Near Parimal Crossing, Ellisbridge, Anmedabad-380 006 a=Goodwatts WTE Jamnagar pvt. Limited S 10Th Floor Sangeeta Complex Near Parimal Crossing, Ellisbridge, Anmedabad-380 006 Respondent-24 MPSEZ Utilities Pvt Limited 7 Respondent-25 1* Floor, Infrastructure House, Beside adani house, Mithakhali six road, Navarangpura, Ahmedabad Ultratech Cement Limited 7 Respondent-26 Unit: Gujarat Cement Works, Village- Kovaya, Taluka-Rajula Dist. Amreli:365541 Jindal Saw Limited " Respondent-27 Village: Samaghoga, Mandvi Road, Mundra Taluka, Dist. Kutch:370415 GIFTPCL S Respondent-28 EPS - Building No. 49A, Block 49, Zone 04, Gyan Marg GIFT City, Gandhinagar - 382355, Gujarat. Shanghi Industries Ltd - Respondent-29 10" Floor, Kataria Arcade, Off S.G. Highway, Post: Makarba Dist: Ahmedabad-380051 Abellon CO-GEN Ltd - Respondent-30 10Th Floor, Sangeeta Complex, Near Parimal crossing, Ellis Bridge, Anmedabad-38006 Varsana Ispat Limited. - Respondent-31 Po Box No. 133, Village Varsana, Taluka Gandhidham, Kutch-370201 Deendayal Port Trust Limited : Respondent-32 Port & Customs Building New Kandla, Oe Dist. Kutch. yeSaurashtra Cement Limited 3 Respondent-33 Near Railway Station, Ranavav-360560. Dist. Porbandar. Shree Renuka Sugars Limited 5 Respondent-34 CTS No. 10634, ‘Kanakashree Arcade’, 2nd & 3rd Floor, JNMC Road, Nehru Nagar, Belagavi- 590010, Karnataka. Shreeyam Power & Steel Industries Ltd - Respondent-35 332, New GIDC Industrial Estate, Phase-lI, Vill: Mithirohar, Gandhidham- 370201 Kutch Sal Steel Limited : Respondent-36 Survey No. 245, Village: Bharapar, Tal:Gandhidham- 370201 Dist:Kutch Indian Railway_Gujarat Divisional Railway Manager Office,, Electrical Department, Pratapnagar. Vadodara-390004. a Respondent-37 Bhadreshwar Vidyut Private Ltd. Primex Verterra, Terra 2-A, Flat No. 404 & 405, No. 2/5 Lavende Street, Mugallvakkam Chennai-600125 = Respondent-38 KRIBHCO. Power Plant, Krishak Bharati Co-operative Ltd Surat-394515 - Respondent-39 Nayara Energy Ltd Khambhalia Post, P O Box 24, District Devbhumi Dwarka - 361 305 Gujarat, India : Respondent-40 QeRIL_HAZIRA Hazira Manufacturing Division, Village Mora, P.O. Bhatha Surat-Hazira Road Surat - 394 510 - RIL_VADODARA Vadodara Manufacturing Division, P. O. Petrochemicals, Vadodara - 391 346, Gujarat - Sugen Mega Power Project Torrent power Ltd, Off NH 48 GayPagla, Kamrej, Surat - 394 155 - UnoSugen Torrent power Ltd, Off NH 48 GayPagla, Kamrej, Surat - 394 155 3 Solaris Khavda, Bhuj Kutch - 370 510 - Saurashtra Chemicals , A Division of Nirma Limited, Birla Sagar, Dist.Porbandar-360576 - Deepak Phenolics Itd , Plot No 12/B/1, GACL Dahej, Tal-Vagra, Dist-Bharuch : Respondent-41 Respondent-42 Respondent-43 Respondent-44 Respondent-45 Respondent-46 Respondent-47 QePETITION FOR AMENDMENT OF DEVIATION SETTLEMENT MECHANISM AND. IMPLEMENTATION OF THE CERC DSM REGULATIONS WITH MODIFICATIONS FOR STATE OF GUJARAT MOST RESPECTFULLY SHOWETH 1. That the present Petition is being filed on behalf of the Petitioner - State Load Despatch Centre in regard to the amendment to the deviation settlement mechanism (DSM) in the State of Gujarat in accordance with the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 framed by the Central Commission and stated to come into force on 05.12.2022. 2. In this regard, it is submitted that in an earlier case for implementation of the Amendments in the Deviation Settlement Mechanism, SLDC had approached the Hon’ble Commission vide Letter dated 28.11.2018 for the corresponding changes proposed in the intra-state level and the Hon’ble Commission had opined that a Petition may be filed in this regard and accordingly SLDC had filed the Petition No. 1776 of 2018 which was decided vide Order dated 29.12.2019. 3. It is submitted that the CERC (Deviation Settlement Mechanism and related matters) Regulations, 2022 (hereinafter referred to as ‘CERC DSM Regulations 2022’) was introduced and has been made effective from 05.12.2022 and the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014 stands repealed from the date of commencement of the CERC DSM Regulations 2022. 4, It is submitted that there is now a different mechanism under CERC DSM Regulations 2022 whereby the Deviation Charges are no longer linked to the frequency and there are categorizations in the said Regulations which have to be adapted for the State specific aspects. Therefore the present Petition has been filed for the consideration of the Hon’ble Commission and for amendments in the ABT Orders as considered appropriate. 5. It is submitted that under the Intra-State Availability Based Tariff (Intra-State ABT) was introduced in the State of Gujarat vide Order No. 3 of 2006 dated 11.08.2006. In the said Order, the Hon’ble Commission inter alia observed in regard to deviations: “6. The Indian Electricity Grid Code (IEGC) also provides that the operation of all entities within the State would be coordinated by the concerned State Load Despatch Centre (SLDC), who in turn would coordinate with Regional Load Despatch Centre (RLDC) on real time basis. In the existing Interstate ABT, Gujarat participates as a single unit connected to the Qy-—8 Western grid and also gains or loses in case of deviations from schedule. This may be due to deviation from schedule by individual entities in the State and therefore, such deviating entities have to bear the consequences. The increase in users of the State Transmission network calls for efficient energy accounting and balancing mechanisms. Hence, Inter State ABT principles have to be replicated at the intra-state level. In view of the above, the Commission hereby resolves to implement the scheme of Intra State Availability Based Tariff (Intra-State ABT).” 6. At such time, the UI charges were linked to frequency of the grid and the Order No. 3 of 2006 provided as under: “7 . Unscheduled Interchange (UI) i. Regarding the third part of the tariff i.e. Unscheduled Interchange (UI) charges, the UI rate determined by the CERC is already in force for inter- state ABT and various experts including the FOIR sub-committee recommended adoption of the same UI rate for intra-state ABT. The Commission has considered it appropriate and incorporated the UI rates and threshold frequencies for UI rate as determined by CERC in the Tariff Regulations. So, Unscheduled Interchange (UI) shall be according to Clauses 23 and 41 of GERC Tariff Regulations. ii. Variation between actual generation or actual drawal and scheduled neration or scheduled drawal shall be accounted for through UI charges. . UI for a generating station shall be equal to its actual generation minus its scheduled generation. iv. UI for a beneficiary shall be equal to its total actual drawal minus its total scheduled drawal. v. UI shall be worked out for each 15-minute time block. Charges for all UI transactions shall be based on average frequency of the time block and the following rates shall apply: A copy of the Order No. 3 of 2006 dated 11.08.2006 passed by the Hon’ble Commission is attached hereto and marked as Annexure A. 7. Thereafter, the Hon’ble Commission vide Order No. 3 of 2010 amended the Order No. 3 of 2006 based on the experience gained. The Hon’ble Commission noted that the UI rates shall be in line with the CERC Notifications with certain modifications: “8. The basic UI rate for intra-State entities in Gujarat shall be in line with the CERC notifications on the matter as amended from time to time. The present UI rates, as per CERC Notification dated 30.03.2009, are included in Annexure-1. 9. In the above referred CERC notification, the UI rate for generating stations using coal, lignite or APM gas, and whose tariff is determined by CERC under clause (a) of sub-section (1) of section 62 of the Act, has been capped at 408 paise per kWh, both for over-generation and under- generation. However, for the intra-State generating stations in Gujarat, we do not propose to specify any such UI rate cap, for reasons given below. (i) The UI rate applicable on the periphery of the State has no such cap. When frequency is in the 49.6 - 49.2 Hz range, the State shall have to Pay the full UI rate for any over-drawal and it shall get paid at the full9 UI rate for any under-drawal. It shall, therefore, be in the interest of the State as a whole to encourage all available intra-State generatingstations having variable cost upto the prevailing UI rate to maximize their generation. A Ul rate cap would restrict. such encouragement, and no entity would gain anything by imposition of such aU! rate cap. (ii) CERC has imposed restrictions on over-drawal by the State when frequency falls below 49.5 Hz, and has stipulated an additional UI charge @ 40% of the ceiling UI rate for any over-drawal when frequency falls below 49.2 Hz. The State should therefore, endeavour to avoid getting into over-drawal mode when frequency is below 49.5 Hz. This too requires intra-State generation to be maximized, for which the incentive would be directly provided by paying the full (i.e. uncapped) UI rate to all generating stations. 10. In addition to UI rate corresponding the frequency below 49.22Hz, an additional UI charge shall also be applicable at the rate stipulated by CERC from time to time for overdrawl or under-injection of electricity for each time block when grid frequency is below 49.20 Hz. The present rate of additional UI charge is the rate equivalent to 40% of the UI rate corresponding to frequency below 49.22 Hz. This additional Ul amount will also be put up in UI pool account and balancing shall be done including this additional UI amount.” A copy of the Order No. 3 of 2010 dated 01.04.2010 passed by the Hon’ble Commission is attached hereto and marked as Annexure B. 8. The Hon’ble Commission inter alia amended Para 6 and 7 of the Order No. 3 of 2006: 1. Second sentence of Para 6 “ In the existing ...” shall be amended as below : “In the existing Interstate ABT, Gujarat participates as a single unit connected to the Western grid and is liable to receive or pay UI charges in case of deviations from schedule.” 2. Second and Third sentence of Para 7.¢ (i), viz. “The Commission has GERC Tariff Regulations”, shall stand amended as below: “The Commission has considered it appropriate and incorporated the UI rates and threshold frequencies for UI rate as determined by CERC in the CERC (Unscheduled Interchange charges and related matters) Regulations. 3. Sub-para (v) of para 7.c shall stand amended as follows: “UI shall be worked out for each 15-minute time block. Charges for all UI transactions shall be based on average frequency of the time block and the basic UI rate for intra-State entities in Gujarat. The basic UI rates for intra-State entities in Gujarat from the date of operationalization of implementation of Intra-state ABT Order shall be in line with the CERC notification dated 30.3.2009 and amendments made in the same from time to time. The present rates, as stipulated in CERC Regulation dated 30th March2009, are as given below:” 9. Further an additional para was added in Para 7c: “(vii) The UI rates applicable for all deviations from schedule for the Discoms, licensees and generating stations under ABT shall be the basic UI rates as specified in sub-para (v) above. The UI rates applicable for Essar Qi10. 11. 12. 10 IPP, and all the CPPs shall be 95% of the basic UI rates for over-injection and 105% of the basic UI rates for under-injection. For industries having CPPs opting for this provision, the UI rates payable to them for any power injection into the grid shall be 95% of the basic UI rates. injection from Renewable Energy sources like Wind, Solar energy generation into the grid, which is not covered by any other commercial arrangement, shall be Paid for at 85% of the prevailing tariff rate determined by the Commission for such generation from time to time. (viii) In addition to UI Rate corresponding to frequency below 49.22 Hz, as stipulated under Sub para 7.c(v), an Additional Unscheduled Interchange Charge at the rate equivalent to 40% of the UI Rate corresponding to frequency below 49.22 Hz shall be applicable for over-drawal or under injection of electricity for each time-block when grid frequency is below 49.22 Hz. Provided that this additional UI amount will also be put up in UI pool account and balancing between receivable and payable shall be done including this additional UI amount.” Thus it was noted that Gujarat participates as a single unit connected to the Western Grid and is liable to receive or pay UI charges and the deviations are due to the deviations from schedule of individual entities in the State and it was noted that Inter State ABT principles have to be replicated at the intra- state level. The Hon’ble Commission therefore considered the basic UI rates for intra-state entities in line with the CERC notifications and amendments made in the same from time to time. It was also noted that the Pool Account has to be revenue neutral: “16.1 If total payment receivable in the State UI pool account, after accounting for the receivables from/payables to the Regional UI pool account, is more or less than the UI payable, U! payable/ receivable for the intra-State entities will be proportionately adjusted to make the payable and receivable amounts equal.” The Hon’ble Commission further issued Order dated 24.05.2010 largely to align the Order with the Central Commission Notifications. It may be noted that the Hon’ble Commission has noted that the amendments in the basic UI rates made by Central Commission would be applicable to the intra state entities from the date of the effectiveness as provided by the Central Commission. This is in keeping with the fact that the ABT Orders issued by this Hon’ble Commission adopt the UI rates of the Central Commission. A copy of the Order dated 24.05.2010 passed by this Hon’ble Commission is attached hereto and marked as Annexure C. The Central Commission in the said Order dated 24.05.2010 also amended the ABT Orders and inter alia amended Para 7(c)(vi): “Further para 7 (c) (vi) of the order no.3 of 2006 dated 11.8.2006 provides that “The above average frequency range and UI rates are subject to Qe11 change through a separate notification by the Commission. However, there will be at the most one such notification in a financial year”. Now that the CERC vide its notification dated 28.4.2010 decided to revise the Basic and Additional UI rates on half yearly basis it is essential to keep these rates also applicable to the entities of Intra State ABT to avoid mis- match_in energy accounting of Regional Pool_as well as State Pool. Therefore, the Commission decides to delete the second sentence of above clause.” (Emphasis Supplied) 14. The wind and solar generators are not covered by the above ABT Orders and subsequently GERC notification No. 1 of 2019 Gujarat Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2019 has been notified by the Hon’ ble Commission for the said generators. 15. It is submitted that the above ABT Orders were passed during the period when the CERC (Unscheduled Interchange charges and related matters) Regulations 2009 were in force. Thereafter Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014 was notified which came into force on 17.02.2014. The Deviation Settlement Mechanism was adopted at Intra-State level effective from 17.02.2014 vide Letter No. GERC/Legal/2015/0436 dated 05.03.2015 by this Hon’ble Commission. A copy of the Letter dated 05.03.2015, is attached hereto and marked as Annexure D. 16. That it is submitted that the position is further clear in the Order dated 27.12.2019 in Petition No. 1776 of 2019 for approval of mechanism for sharing of penalty in regard to the Fourth and Fifth Amendment of the CERC Deviation Settlement Mechanism 2014. The Hon’ble Commission held as under: “9. As stated above, it is inevitable for the SLDC to observe the stipulations made in CERC DSM Regulations at State periphery in order to harmonise actions of SLDC for State Constituents, the Commission has clarified to adopt the CERC DSM Regulations vide letter dated 05.03.2015. While doing $0, the Commission continued with the State ABT Order/s to take care of the State specific issues which are not covered in the CERC DSM Regulations. 10. By virtue of implementation of CERC DSM Regulations along with all its amendments, the SLDC started receiving DSM penalties on account of sign change at State periphery. The schedules at State periphery are the aggregation of the schedules by the intra-State constituents. It is necessary for the intra-State constituents to take responsibility of the commercial implication at the State periphery. SLDC being a State Nodal Agency to gperate the intra-State Grid, has become responsible to address this commercial implication. As clarified the SLDC during the course of hearing on dated 11.04.2019, it is not feasible to direct each State Constituent to observe sign change requirement and control or modify its drawal or Qu17, 18. 20. 12 injection since it will lead to unpredictable and undesirable situation at State boundary hampering the Grid stability and security. Under the circumstances, it is advisable to observe the sign change stipulation by SLDC for the State as a whole. The SLDC while complying the sign change Regulations, may receive some bill from RLDC which is required to be shared by the State Constituents on whose behalf the SLDC is functioning. The present petition is for the limited purpose of approval of the mechanism of sharing of sign change penalty amongst the State Constituents. The Petitioner has clarified that only those constituents are required to share this sign change penalty who are payable or receivable of DSM charges. It is also clarified by the Petitioner that sharing of sign change penalty will be based on proportion of payable/ receivable DSM charges. Thus, the entities who are more precise in their scheduling will share less sign change charges. Since, we do not find any inconformity in the proposal of the Petitioner, we approve the same. It is also to clarify that the Petitioner is required to follow the CERC DSM Regulations and_its amendments issued from time to time in order to fall in line with the compliance of the Central Regulations at Regional _and National level, keeping in mind the State specific issues to be taken care of by the State ABT Order/s.” (Emphasis Supplied) That therefore it is accepted that the CERC DSM Regulations have to be considered while keeping in mind state specific issues. That in terms of the existing ABT Orders read with letter dated 05.03.2015, the rates as specified by the Central Commission in the DSM Regulations are adopted for intra-state and this should include the CERC DSM Regulations 2022 also. However the CERC DSM Regulations 2022 has delinked frequency from the deviation charges whereas the ABT orders passed by this Hon’ble Commission continues references to the same. Further the CERC DSM Regulations 2022 provides for categories for buyers and sellers based on which deviation charges are to be applied which needs to be adjusted for the state specific aspects. In addition, the CERC DSM Regulations 2022 provides for a shorter time period for payment of deviation charges and provision for Letter of Credit which is required to be incorporated for intra-state. That it is submitted the Central Commission has framed CERC DSM Regulations 2022. A copy of the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 is attached hereto and marked as Annexure E. Some of the salient features are: a. Every grid connected regional entity shall adhere to its schedule as per the Grid Code and shall not deviate from its schedule [Regulation 5(1)]. b. Computation of Deviation for sellers/Wind-Solar Sellers and buyers [Regulation 6].13 c. The intention is for charges for deviation be such that the costs of deploying ancillary services are recovered. Therefore, Provision for Normal Rate of Deviation Charges under Regulation 7 based on Weighted Average Ancillary Service Charge computed based on total quantum of Ancillary Services deployed and net charges. The same is envisaged at present to be computed by NLDC or any appropriate authority decided by Hon’ble CERC and published on website of NLDC or any appropriate authority decided by Hon’ble CERC. i, However on the basis that the Ancillary Services framework is still in the development phase, the Central Commission has proposed that for a period of one year from the date of effect of the CERC DSM Regulations 2022, normal rate of charges for deviation for a time block shall be equal to the highest of the weighted average Area Clearing Price of the Day Ahead Market segments of all the Power Exchanges; or the weighted average ACP of the Real Time Market segments of all the Power Exchanges; or the Weighted Average Ancillary Service Charge of all the regions for that time block. d. Charges for deviation are provided under Regulation 8 with slabs. However the charges are no longer linked to frequency and are provided based on percentage of deviation and for different categories. e. Charges for injection of infirm power is zero. f. The payment of charges are to be of high priority and payment is to be made within 7 days failing which late payment surcharge @ 0.04% shall be payable for each day of delay. Further in case of any failure in the previous financial year, a Letter of Credit (LC) equal to 110% of their average payable weekly liability for deviations in the previous financial year in favour of the RLDC is to be opened which the RLDC can encash in case of failure to pay within 7 days. (Regulation 10). 21, Based on the above, SLDC proposes that the following mechanism to be implemented intra-state: a. Though provided in the Grid Code, the ABT Orders may also specifically provide for adherence to Schedule and Deviation i.e. it may be provided that “for a secure and stable operation of the grid, every grid connected entity shall adhere to its schedule as per the Grid Code and shall not deviate from its schedule.” b. The formulae for computation of deviation in the ABT Orders may be retained as it is similar to the formula provided in the CERC DSM Regulations 2022 (which in turn remain the same as in the 2014 DSM Regulations).14 c. The Normal Rate of Deviation Charges for a time block shall be considered as provided in the CERC DSM Regulations 2022 as amended from time to time. At present, the same is provided under Regulation 7 of the CERC DSM Regulations 2022 and envisaged to be computed and declared by NLDC/WRPC. d. The charges for deviation for sellers and buyers are to be considered irrespective of quantum of schedule. The deviation charges as applicable to entities are to be computed in accordance with the CERC DSM Regulations. While CERC DSM Regulations 2022 considers different categories, considering the state specific aspects, SLDC is proposing as under: i, Sellers - For all sellers including IPPS, CPPs, all renewable projects other than wind, solar and wind - solar hybrid generators, the charges for Deviation provided for category of General Sellers under the CERC DSM Regulations 2022 is to be considered. It is submitted that the categorization of sellers provided in CERC Regulations are not applicable in State of Gujarat: 1, In State of Gujarat, wind, solar and wind-solar hybrid are covered under the Forescasting Regulations 2019 and excluded from the ABT orders as such. 2, In State of Gujarat, there are no run of the river projects nor are any envisaged. w . In State of Gujarat, the Municipal Solid Waste projects have been covered under ABT Orders and treated similar to other generators and therefore there is no need for any separate category for the MSW projects. 4. In contrast to the existing Mechanism in the State of Gujarat, the captive power producers are no longer to be treated separately and to be considered as any other seller. . ‘Reference Charge Rate’ means (i) 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 (ji) 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, as the case may be;15 6. The prevailing provision is under Regulation 8(1) of the CERC DSM Regulations 2022 as adapted to the State of Gujarat as per above is produced hereunder: Seller Deviation by way of over injection For all Seller including IPPS, | (i) Zero up to [2% Deviation- (W) @ the reference charge rate CPPs and renewable general seller up to generators (other than wind, | (in 9%). [2% Deviation-general seller (in Solar and Solar ~ hybrid Provided that such seller %); generators) shall be paid back for over | (ii) @ 120% of the normal rate injection @ the reference _| of charges for deviation beyond charge rate for deviation up | [2% Deviation-general seller (in t0 [2% Deviation-general | %)] and up to [10% Deviation- seller (in 9%); general seller (in %)}; and and Gi) @ 10% of the normal rate | (iii) @ 150% of the normal rate of charges for deviation of charges for deviation beyond beyond [2% Deviation- [10% Deviation-general seller general seller (in %)], (in), ii. Buyers - The buyers are to be considered as per two categories - 1. Buyers other than renewable rich Buyers - to be considered as per Buyers under general category in the CERC DSM Regulations 2022 i.e. Buyer (other than the buyer with schedule less than 400 MW and RE Rich state). 2, Renewable Rich Buyers - to be considered as per Buyer being RE Rich State. . The definition of RE Rich Buyer being similar to RE rich state as provided in the CERC DSM Regulations 2022. In terms of the current Regulations, the RE Rich State has been defined under Regulation 3(t) of the CERC Regulations and based on the same, the RE Rich Buyer would be a buyer whose combined procurement/PPA of wind and solar electricity is 1000 MW or more. 4, It is stated that the category of schedule upto 400 MW is not considered separately as this is not appropriate for the intra state. If such exceptions are made, the ability of the SLDC to manage the deviation at inter-state level would be impaired. 5. The prevailing mechanism is under Regulation 8(2) of the CERC DSM Regulations 2022 as adapted to the State of Gujarat as per above is produced hereunder:16 Buyer (other than the RE- __] Zero: @ @ normal rate of charges rich Buyer) irrespective of | Provided that such buyer__| for deviation up to [10% quantum of schedule shall be paid back for under | Deviation-buyer (in %) or drawal as under: 100 MW Deviation-buyer (in (i) @ 90% of normal rate of || MWh) in a time block, charges, for deviation up to | whichever is lower}; [10% Deviation-buyer (in %) | (ii) @120% of normal rate of or 100 MW Deviation-buyer | charges for deviation beyond (in MWh) in atime block, | [10% Deviation-buver (in %) whichever is lower]; or 100 MW Deviation-buyer and (in MWh) ina time block, Gi) @ 50% of normal rate of ‘| whichever is lower] and up to charges, for deviation beyond | [15% Deviation-buyer (in %) [10% Deviation-buyer (in %) | or 200 MW Deviation-buyer | or 100 MW Deviation-buyer | (in MWh) in a time block, (in MWh) in a time block, whichever is lower]; whichever is lower] and up to | and [15% Deviation-buyer (in %) | (iii) @150% of normal rate or 200 MW Deviation-buyer | of charges for deviation | (in MWh) ina time block, | beyond [15% Deviation. | whichever is lower). buyer (in %) or 200 MW Deviation-buyer (in MWh) in @ time block, whichever is lower). Buyer (being an RERich | Zero: @ @ normal rate of charges Buyer) irrespective of Provided that such buyer __| for deviation up to [10% quantum of schedule shall be paid back for under | Deviation-buyer (in %) or drawal as under: 200 MW Deviation-buyer (in @ @ 90% of normal rate of | MIVA) in a time block, charges for deviation up to _| whichever is lower]; [10% Deviation-buyer (in %) | (ii) @120% of normal rate of or 200 MW Deviation-buyer | charges for deviation beyond (in MWh) ina time block, | (10% Deviation-buyer (in %) whichever is lower]; or 200 MW Deviation-buyer and (in MWh) ina time block, (ii) @ 50% of normal rate of | whichever is lower] and up charges for deviation beyond | to [15% Deviation-buyer (in {10% Deviation-buyer (in %) | %) or 300 MW Deviation or 200 MW Deviation-buyer | buyer (in MWh) in a time (in MWh) in a time block, _| block, whichever is lower]; whichever is lower] and up | and to [15% Deviation-buyer (in| (iii) @150% of normal rate %) or 300 MW Deviation- | of charges for deviation buyer (in MWh) ina time _| beyond [15% Deviation- block, whichever is lower). | buyer (in %) or 300 MW Deviation-buyer (in MWh) in a time block, whichever is lower! | e. Charges for injection of infirm power by generating stations be considered as zero. f. The Intra-State pool will be continued as revenue neutral pool. i.e. ZERO Balance pool (making payable and receivable equal). The existing provision under Para 16.1 of ABT orders would continue. This means that any liability of the SLDC at the Regional level shall be adjusted back to back with the state entities. Qe17 g. In terms of Clause 5 of complimentary commercial mechanism (attachment-I) of Amendment order no. 3 of 2010 issued by Hon’ble Commission, Payment of UI charges shall have a high priority and the concerned constituents/pool members shall pay the indicated amounts within 10 (ten) days of the statement issue into a state UI pool account operated by the SLDC. The payment of charges for deviation shall continue to have a high priority; however the schedule of payment of deviation charges, the late payment surcharge as well as consequences of non payment including the Letter of Credit in relation to payment of deviation charges shall be similar to the CERC DSM Regulations 2022. At present, Regulation 10 of the CERC DSM Regulations 2022 governs the issue and in terms of the same, the following is to be applicable to intra -state entities also. i. The payment of charges for deviation shall have a high priority and the concerned entity shall pay the due amounts within 7 (seven) days Of the issue of statement of charges for deviation, failing which late payment surcharge @ 0.04% shall be payable for each day of delay. ii, Any regional entity which at any time during the previous financial year fails to make payment of charges for deviation within the time specified in these regulations, 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 in favour of the State Load Despatch Centre within a fortnight from the start of the current financial year. iii, In case of failure to pay into the State UI Pool Account within 7 (seven) days from the date of issue of statement of charges for deviation, the State Load Despatch Centre shall be entitled to encash the LC of the concerned entity to the extent of the default and the concerned entity shall recoup the LC amount within 3 days. = . It may also be provided that in case of failure of any entity to make Payments of charges for deviations or to recoup or maintain the LC by the entity, SLDC may refuse to schedule the contracted power without affecting the liability of the entity to pay all charges related to open access and deny further approvals or consents for open access. |. Deviation charge for wind and solar generators would continue in accordance with GERC notification No. 1 of 2019 Gujarat Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2019. Quit18 22. That since the ABT orders make reference to frequency which is no longer the applicable mechanism and further certain state specific aspects is to be considered even for the UI rates (now Deviation Charges), the SLDC proposes that the amendment may be made to ABT orders and modify the existing UI/DSM Provisions in line with the above. 23. That it is essential for the above amendments to the Intra State ABT to be made on an urgent basis so that there can be smooth functioning of the implementation of the CERC DSM Regulations 2022. 24, That the CERC DSM Regulations have been notified to come into force from 05.12.2022 and it is submitted that the State mechanism should also come into force on 05.12.2022. In any case, as already provided under Para 16.1 of the ABT Order, any liability of SLDC at the regional level in view of the CERC DSM Regulations 2022 has to be shared/adjusted back to back with the state entities. 25, That SLDC craves leave to file appropriate additional submissions in support of the Petition and further craves leave to file any submission, documents, pleading etc as directed by this Hon’ble Commission. 26. That the present Petition has been filed bona fide and in interest of justice. 27. PRAYER: The Petitioner hereby most respectfully submits and prays as under: a. to list the Petition on urgent basis; b. to provide for the deviation and settlement mechanism in terms of Para 21 of the present Petition to be applicable from 05.12.2022; C. initiate the proceedings for appropriate amendments to the ABT Orders as per Para 21 of the present Petition; d. declare that any liability of SLDC at the regional level in view of the CERC DSM Regulations 2022 shall be shared/adjusted back to back with the state entities in line with the ABT Orders; €. Pass any other order(s) which the Hon’ble Commission may deem just and proper in the circumstances of the matter. PETITIONER Quo19 DECLARATION Declaration that the subject matter of present Petition has not been raised by the Petitioner before any other competent forum and that no other competent forum is currently seized of the matter or has passed any order in relation thereto. DATE: PLACE: PETITIONER20 BEFORE THE HONORABLE GUJARAT ELECTRICITY REGULATORY COMMISSION AT GANDHINAGAR PETITIONNO. ___ OF 2022 IN THE MATTER OF Petition under Section 86(1)(c) of the Electricity Act, 2003 read with ABT Order 6 of 2010, Order 3 of 2010 and GERC Letter Dated 05.03.2015 for implementation of the Deviation Settlement Mechanism as per Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 with modifications for the State of Gujarat. AND IN THE MATTER OF: State Load Despatch Centre Sardar Patel Vidyut Bhawan Race Course Vadodara - 390007 Gujarat PETITIONER, Date: 26 / | /20 2 AFFIDAVIT 4) ® |, Mr.Arjunbhai Rathod, son of Shri Balubhai Rathod, aged 47 years, resident of Vadodara do solemnly affirm and state as under: 1. | am the Additional Chief Engineer in the Petitioner, State Load Despatch Centre, Gujarat Energy Transmission Corporation Limited and am duly authorized by the said Petitioner to make this affidavit. 2. | say that the contents of the accompanying Petition are based on the records of the Petitioner maintained in normal course of business and believed by the Deponent to be true. 3. | say that the annexures are true copies. aie : Solamnly Affirmed/Deglarec : Si Before meby.......).- on Ex (ee pon a IRISH N. THAKRAR on 26-Fab -75 Beer GIRISH I. NOTARY (Govt of Gyarai) fauna ab) i) ae22— Nota:21 VERIFICATION: |, the deponent above named do hereby verify that the contents of my above affidavit are true to my knowledge, no part of it is false and nothing material has been concealed there from. Verified atapashadac n this day of November 2022. DEPONENT