The Central Electricity Regulatory Commission (CERC) has issued the draft regulations for deviation settlement mechanism and related matters for 2018. According to the regulations, forecasting and power procurement planning by the utilities should be improved. In addition, area control error should be monitored along with deviations. A “gate closure” concept should be introduced for better optimisation of the scheduled despatches. The CERC has suggested the linking of the deviation settlement mechanism price vector with the existing market-discovered prices in the day-ahead market. The number of time slots should also be increased in the power exchange market to provide adequate opportunities to participants.