The Karnataka Electricity Regulatory Commission has issued the Intra-State Deviation Settlement Mechanism and Related Matters Regulations, 2025, to ensure commercial discipline in power scheduling and maintain grid security. These regulations apply to all grid-connected entities engaged in intra-state electricity trade, including distribution licensees, generating stations, captive generating projects, and open access consumers operating within Karnataka. The framework mandates that generators and buyers follow scheduled drawal and injection instructions, with penalties imposed for deviations. Generators supplying power both within and outside Karnataka, through long, medium, or short-term contracts, are also covered under the new regulations. Wind, solar, and hybrid plants exceeding 5 MW, as well as all conventional fuel-based generators, must adhere to these scheduling norms.
Deviation charges will be calculated for each 15-minute time block using the actual versus scheduled figures for generation or drawal. For general sellers and renewable energy generators, deviations are measured in MWh and percentages. The normal rate for deviation charges will be determined by the highest value among three components: the weighted average area clearing prices of the Integrated day-ahead market and real-time market segments, and a third component that includes a portion of ancillary service charges. These rates apply differently depending on the grid frequency and the type of deviation, such as overdrawal or underdrawal by buyers, and over- or under-injection by sellers. Specific charge rates are laid out for general sellers, renewable energy sellers, and municipal solid waste and run-of-river generators. Entities failing to declare capacity or drawal will be assigned zero values, and only two schedule revisions per month are permitted.
The state load despatch centre (SLDC) is tasked with monitoring, revising schedules, and issuing weekly deviation and monthly energy settlement statements. Energy settlement will consider scheduled drawal adjusted for grid losses, with excess consumption treated as deviation. Medium-scale consumers will be billed by the distribution licensee as per actual usage, deducting open access schedules. Deviation payments are to be made within ten days through the state deviation pool account. Delays will incur 0.04 per cent daily interest. Entities with prior defaults must furnish a letter of credit equal to 110 per cent of peak liabilities. SLDC will also have authority to curtail schedules due to transmission constraints.
