In a serious bid to maintain grid discipline and discourage overdrawal of power by the northern grid, the Central Electricity Regulatory Commission (CERC) on Tuesday increased the unscheduled interchange (UI) ceiling rate to Rs 10 per unit. The UI ceiling rate will remain Rs 7.45 before the order comes in to effect from January 7.
As reported by FE, the CERC passed the order on a petition filed by the northern regional load despatch centre against the unwarranted and rampant overdrawal of power by northern states causing serious danger to the functioning of the national grid. Maharashtra had also taken up the matter with the power ministry.
The CERC took serious note of incidents of low frequency wherein in October the frequency remained below 49 Hertz for 10% of the time deteriorating further in November. On November 14 the grid frequency was below 49 Hertz for a record 32.4% of the time.
According to CERC, the existing UI ceiling rate of Rs 7.45 per unit, notified in April, was not proving adequate for sufficiently discouraging power overdrawal. Therefore, it issued the order after receiving comments and suggestions from various state electricity boards.
Further, CERC has modified the scheduling procedure for hydro-generating stations regulated by it through separate amendments in the regulations in which the possibility of making extra money on this account has been plugged. In case of thermal generating stations, UI rate for generation above the schedule by coal and lignite-fired stations and for the stations burning only administered price mechanism gas would now be capped at Rs 4.06 per unit. This UI cap rate would not be applicable for re-gassified liquefied natural gas (RLNG)/liquid fuel generating stations, hydro power plants, merchant plants, merchant capacity and any other generating stations for which its fixed cost is not being reimbursed through capacity charge.