Frequency Deviation Settlement Mechanism – CERC draft regulation 2013

With an objective to maintain grid security and grid discipline as envisaged under the Grid Code through the commercial mechanism of Deviation Settlement by controlling the users of the grid in scheduling, despatch, drawl and injection of electricity, CERC released the draft guidelines for Deviation Settlement Mechanism.

The main reason behind these regulations is the two major grid failures on 30th July 2012 and another on 31st July 2012, which forced government and other regulatory bodies to take measure to stop such incident to happen again.

The NLDC was asked to submit a proposal in this regard, the NLDC submitted three major recommendations

(a) Narrowing down frequency band further to 49.9 Hz to 50.1 Hz, so that system operates close to 50 Hz;

(b) Imposing limits on UI injection/withdrawal and making its truly inadvertent interchange; and

(c) Introduction of location bias in UI settlement rate.


With reference to this , CERC released draft regulations on 20th June 2013.

Draft Regulation

Statement of reasons



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