The Maharashtra Electricity Regulatory Commission has released the Draft Maharashtra Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2025. These new draft regulations are aimed at maintaining the stability and security of the power grid by ensuring that grid users follow their scheduled electricity generation and consumption. To make this happen, the regulations introduce a commercial mechanism that penalizes those who deviate from their schedules. Once notified in the official Gazette, the new regulations will replace the existing 2019 regulations.
These draft regulations apply to various types of electricity transactions, such as short, medium, and long-term open access transactions that use the intra-state transmission system. The Deviation Settlement Mechanism will cover all general sellers, which include generating stations other than wind or solar. It also applies to open access generators and certain bagasse-based cogeneration or biomass power plants that have an exportable capacity of 5 MW or more. However, wind and solar power generation will still be governed by the earlier regulations released in 2018. The rules also apply to all buyers, including distribution licensees and full open access consumers who are connected to the intrastate transmission network.
A major role in this regulation is played by the State Load Despatch Centre, or SLDC. The SLDC is responsible for maintaining the reliability and integrity of the state’s power system. All State Entities must share details of their contracts with the SLDC and operate their equipment in a way that follows the Indian Electricity Grid Code. The SLDC is also responsible for giving instructions related to the dispatch of generating stations. These instructions are binding on all State Entities to help ensure the grid remains stable.
Under these draft regulations, the scheduling period is divided into 96 time blocks, each of 15 minutes. Deviations from the schedule will be calculated by the SLDC on a weekly basis for each State Entity. These deviations will then be settled through a State Deviation Pool Account.
One of the main features of these regulations is the method of calculating charges for deviations. The “Normal Rate of Charges for Deviations” will be the highest among three values—the weighted average price of the Integrated Day-Ahead Market, the Real Time Market, or a combined value of both, along with an added Ancillary Service Charge. This method ensures a fair and transparent way to decide the financial penalties for deviations.
The draft also includes provisions to prevent gaming. Gaming refers to the act of mis-declaring capacity or schedules to earn money from deviation charges. If an entity is found guilty of gaming, the Commission may cancel any deviation charges for that period and could take further action.
These new draft regulations also give a detailed structure for calculating deviation charges for general sellers. Different rates are applied for over-injection and under-injection of electricity depending on the frequency of the grid at that time. This system is designed to promote responsible behavior and better management of the power grid, which is essential for its stability and smooth operation.
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