Central Electricity Regulatory Commission (CERC) has issued a draft amendment to the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024 (Principal Regulations). The Principal Regulations were published in Part III, Section 4, No. 642 of the Gazette of India (Extraordinary) dated August 21, 2024. The First Amendment Regulations, 2024 were published in Part III, Section 4, No. 1030 of the Gazette of India (Extraordinary) dated December 24, 2024. The Second Amendment Regulations, 2025 were published in Part III, Section 4, No. 473 of the Gazette of India (Extraordinary) dated June 25, 2025. The present amendment is the Third Amendment to the Principal Regulations.

The following amendments are made to the Principal Regulations.

Definitions and Interpretation

In sub-clause (j)(iii) of Regulation 3 of the Principal Regulations, the words and expressions “weighted average ACP of the Integrated-Day Ahead Market segments of all Power Exchanges for the respective time block” shall be substituted as “daily weighted average Area Clearing Price (ACP) of the Integrated-Day Ahead Market segments of all Power Exchanges for the day.”

In sub-clause (y)(iii) of Regulation 3 of the Principal Regulations, the words and expressions “weighted average ACP of the Integrated-Day Ahead Market segments of all Power Exchanges for the respective time block;” shall be substituted as “daily weighted average Area Clearing Price (ACP) of the Integrated-Day Ahead Market segments of all Power Exchanges for the day;”.

Insertion of New Clause (4A) after Clause (4) of Regulation 8

A new clause shall be inserted after clause (4) of Regulation 8 of the Principal Regulations, as under:

“(4A) Notwithstanding the provisions of clause (4) of this Regulation, the charges for Deviation, in respect of a WS Seller, shall be treated at par with General Sellers in the following cases:

(a) for projects under bidding route, with tendering or bid submission dates on or after 01.01.2027; and

(b) for projects, other than those covered under sub-clause (a), having date of commercial operation on or after 01.01.2029.”

Insertion of a Note after Clause (5) of Regulation 8

A Note shall be inserted after clause (5) of Regulation 8 of the Principal Regulations, as under:

“Note: The charges for deviation in respect of a standalone ESS being a pumped hydro storage plant under Section 62 of the Act shall be computed at the energy charge rate as specified under Clause 3 of Regulation 66 of the CERC (Terms and Conditions of Tariff) Regulations, 2024, as amended from time to time.”

Amendments to Clause (8) of Regulation 8

In sub-clause 8(1) of Regulation 8 of the Principal Regulations, the words and expression “The charges for injection of infirm power shall be zero, except in cases specified under clauses (2) and (3) of this Regulation” shall be read as “The charges for injection of infirm power shall be zero, except in cases specified under clauses (2), (2A) and (3) of this Regulation”.

A new clause shall be inserted after sub-clause 8(2) of Regulation 8 of the Principal Regulations, as under:

“(2A) In case of Standalone Energy Storage System (ESS), the infirm power injected into the grid from the date of first synchronization of ESS up to the successful completion of the trial run shall be paid @ Normal Rate of Charges for Deviations for each time block, subject to a ceiling of ₹ 2.00/kWh.”

In sub-clause 8(4) of Regulation 8 of the Principal Regulations, the words and expression “Notwithstanding the provisions of clauses (2) and (3) of this Regulation,” shall be read as “Notwithstanding the provisions of clauses (2), (2A) and (3) of this Regulation,”.

Amendment to Regulation 10 — Schedule of Payment of Charges for Deviation

In clause (1) of Regulation 10 of the Principal Regulations, the words and expression “10 (ten) days of the issue of the statement of charges for deviation by the Regional Power Committee,” shall be substituted by “the timeline stipulated in the Detailed Procedure for implementation, maintenance and operation of the National Deviation and Ancillary Services Pool Account,”.

In clause (3) of Regulation 10 of the Principal Regulations, the words and expression “10 (ten) days from the date of issue of the statement of charges for deviation” shall be substituted by “the timeline stipulated in the Detailed Procedure for implementation, maintenance and operation of the National Deviation and Ancillary Services Pool Account”.