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CERC notifies Sharing of Inter-State Transmission Charges and Losses Regulations, 2020

The Central Electricity Regulatory Commission (CERC) has recently notified the new regulations for the Sharing of Inter-State Transmission Charges and Losses 2020. The regulations will be applicable to all Designated ISTS Customers (DICs), Inter-State Transmission Licensees, National Load Despatch Centre (NLDC), Regional Load Despatch Centres (RLDCs), State Load Despatch Centres (SLDCs) and Regional Power Committees (RPCs). The principal regulation was notified in June 2010 in accordance with the Electricity Act along with the National Tariff Policy and National Electricity Policy. Since then there have been six amendments to the principal regulations. 
The latest regulation talks about the sharing of transmission charges between the Designated ISTS Customers (DICs) for transferring or trading power in Short-term, Medium-term or Long-term. The regulations also specify the components included in each tariff.

Transmission Deviation:
The transmission deviation caused will be in Rs./MW, for a State or any other DIC located in the State, for a time block during a billing month. The penalty will be applied in the following manner:

Transmission Deviation charges shall be recovered through the third bill and shall be reimbursed to the DICs in proportion to their share in the first bill in the following billing month.
As a part of the rebate for the Long-term & Medium-term consumers, 
1.50% will be allowed for payment of bills within a period of five days of presentation of bills and 1% will be allowed where payments are made on any day after five days and within a period of 30 days of presentation of bills.
Overall, the regulation has reduced the number of charges applicable on consumers, relief for HT consumers as they will now pay the short-term charges against paying transmission deviation charges earlier.  The Day-Ahead Market & Term-Ahead Market will be at par with the inter-state transactions for the DISCOMs. Distribution Companies viability to sell will increase as the injection losses get reduced for them. With the reduction in such losses, the ‘pancaking’ of transmission charges will be addressed and hopefully reduced. With the rebate option in picture for Open Access consumers, reduction in additional surcharge might be seen.
The regulation will be applicable come into force from the date notified by the Commission.