CERC proposes payment for infirm power from thermal plants before trial run

The Central Electricity Regulatory Commission (CERC) has issued the draft Deviation Settlement Mechanism and Related Matters (Second Amendment) Regulations, 2025, proposing limited payments for infirm power injected by thermal generating stations before trial runs.

Currently, under the DSM Regulations, 2024, no payments are made for infirm power unless scheduled after a successful trial run. Thermal generators raised concerns about unrecovered fuel costs during mandatory testing. The Ministry of Power also called for a review of the existing provisions.

The amendment proposes payment at the Normal Rate of Charges for Deviation, capped at Rs 2.86/kWh, for power injected between first synchronization and the trial run. The rate reflects average energy charges of thermal plants for 2023-24. However, payment will not apply if grid frequency exceeds 50.05 Hz.

CERC clarified that scheduling of infirm power before the trial run will still not be allowed. The change is intended to support financial recovery for generators while preserving grid reliability.

Comments on the draft can be submitted by June 10, 2025.