| Work Detail |
The Haryana Electricity Regulatory Commission (HERC) has issued the final order for the Haryana Deviation Settlement Mechanism (DSM) and Related Matters Regulations, 2025. The DSM framework was originally notified in 2019, and the latest update aligns with the Central Electricity Regulatory Commission (CERC) DSM Regulations, 2024. The HERC published the revised draft in January 2025 and conducted a public hearing in February to receive inputs from stakeholders including Haryana Power Generation Corporation (HPGCL), HVPNL, CleanMax, DISPA, and others. Several key issues were discussed and decided upon. One of the first was the suggestion from HPGCL and HVPNL to allow a trial run of the DSM system before its commercial implementation. The Commission agreed to provide a four-month trial period after the regulations are published in the Haryana Government Gazette. Another major point raised was whether DSM charges should be applied at a unit-wise or station-wise level. HPGCL requested for a station-wise approach, especially to account for technical flexibility during unit outages. However, the Commission reaffirmed its previous stance that DSM must align with unit-wise tariff determination as per earlier HERC orders. Therefore, DSM will be implemented unit-wise, and not at the plant level. There were also concerns about how the Reference Charge Rate (RCR) should be calculated for weekly DSM settlements, particularly when fuel costs vary daily or are billed monthly. The Commission clarified that the State Load Despatch Centre (SLDC) must prepare proper procedures in consultation with stakeholders and ensure transparency by uploading RCR data on its website. The issue of applicability of DSM regulations to certain types of consumers and generators was discussed in depth. Hydroelectric projects like the Western Yamuna Canal (WYC) project operated by HPGCL were claimed to be non-ABT plants and requested exemption. However, the Commission stated that such projects fall under the definition of general sellers and will be covered under the DSM framework. Similarly, generators and consumers connected to intra-state distribution networks with capacities above 10 MW will be included in the DSM regime, while wind and solar generators will continue to be governed by separate regulations from 2019. Comments regarding measurement units, transmission loss allocations, and deviation calculations were also taken into account. The Commission decided to retain MW and MWh units, as these are standard for SLDC operations. For transmission losses, SLDC will continue using monthly calculations until sufficient weekly data is available. The Commission finalized that deviation charges for buyers will vary based on volume and frequency conditions, and clarified that no additional exemptions will be made. The final HERC DSM Regulations, 2025 will be notified shortly in the state’s official gazette and will come into force after four months of publication. |
