The Central Electricity Regulatory Commission (CERC) has notified the draft CERC (Deviation Settlement Mechanism and Related Matters) (Third Amendment) Regulations, 2026, effective from July 1, 2026.
The draft has replaced time block-wise weighted average area clearing price (ACP) with a daily weighted average ACP for deviation charge computation, shifting the benchmark from time-block to daily average pricing. It also proposed stricter deviation treatment for wind-solar projects bid on or after January 1, 2027, and projects commissioned on or after January 1, 2029, bringing them at par with general sellers. For standalone energy storage systems, including pumped hydro, deviation charges will be linked to energy charge rates under the CERC Tariff Regulations, 2024. Infirm power during testing, from first synchronisation till trial completion, will be paid at deviation settlement mechanism rates, capped at Rs 2 per kWh. The earlier fixed 10-day settlement timeline will now be governed by detailed procedures under the National Deviation and Ancillary Services Pool Account.