The Himachal Pradesh Electricity Regulatory Commission (HPERC) has proposed amendments to its Deviation Settlement Mechanism and Related Matters Regulations, 2024, to align the state’s regulations with those recently introduced by the Central Electricity Regulatory Commission (CERC). These changes come after CERC issued new regulations in August 2024, which replaced the 2022 version, and further amended them in December 2024. HPERC’s decision to update its regulations follows the powers granted by the Electricity Act, 2003, and the General Clauses Act, 1897.
The draft amendments were published to gather objections and suggestions from affected stakeholders. These amendments will be reviewed after 30 days from the publication date in the official state gazette, the Rajpatra of Himachal Pradesh.
One of the key proposed changes is the revision of the definition of “Contract rate.” This revision seeks to clarify how the contract rate is determined for different entities, including those selling power through power exchanges or engaged in captive consumption. The amended definition now covers entities whose tariff is not directly determined or approved under certain sections of the Electricity Act. It also clarifies the rate for captive consumption of renewable energy-based plants and deals with situations where multiple contracts or transactions are involved.
In a similar vein, the definition of “Reference Charge Rate” has been revised. This change clarifies how the rate is calculated for general sellers, including those selling power through power exchanges and those consuming non-renewable energy for captive use. The amendment also offers guidance on how to manage multiple contracts or transactions under these circumstances.
Another significant change is the update to the reference to the CERC regulations. The principal HPERC regulations will now refer to the “CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024,” replacing the outdated reference to the 2022 version.
The proposed amendments also include important revisions to the charges for deviation. These changes outline how deviation charges will apply to general sellers, depending on whether deviations occur within or outside the frequency band. The charges are designed to vary based on the degree of deviation and the grid frequency. Special provisions are included for Run-of-River (RoR) generating stations, where the deviation charges are applied without reference to grid frequency. Additionally, the regulations address how deviation charges will be applied to buyers, with different rules for under-drawl and over-drawl. The charges will depend on volume limits and frequency bands, with the regulations specifying the volume limits for buyers as well.
These amendments by HPERC reflect efforts to modernize and standardize the state’s energy regulations in line with national guidelines, ensuring clearer definitions and more detailed procedures for the settlement of deviations and related charges. Stakeholders have the opportunity to provide feedback on the draft regulations, and once finalized, the updated regulations will play a key role in the management of energy distribution and consumption in Himachal Pradesh.
