CERC steps in to solve transmission congestion

The Central Electricity Regulatory Commission (CERC) has convened a hearing on March 23 to consider various remedial measures to contain transmission congestion that is severely affecting the flow of power to the southern states. The power exchanges and load dispatch centres would make their submissions at the meeting.

According to industry, out of the total power demand in the south, only 10 per cent is being met due to heavy transmission congestion.

Indian Energy Exchange (IEX) and Power Exchange India (PXI) said southern Indian buyers to the tune of 830 Mw are being deprived of available power in the rest of the country due to transmission congestion. Participants in the south have paid an average price of Rs 6.30 per unit, as compared to the sellers in the rest of India who got only Rs 3.20 per unit. A difference of almost 100 per cent is going to congestion revenue, the exchanges said.

The short-term transmission capacity is open for booking three months in advance.

Meanwhile, CERC has asked IEX and PXI to continue to maintain the congestion revenue (whenever it arises) in a separate account and transfer the same as per applicable regulations.

CERC’s hearing is crucial, especially when the power regulator has proposed introduction of congestion charge as commercial measure to tackle transmission clog in real time. CERC may from time to time specify the rate of congestion charge applicable to whole or a part of the region.

The congestion charge would be payable by a regional entity or entities causing congestion in the inter-regional link or intra-regional link. It would be receivable by a regional entity or entities relieving congestion.