Bihar Regulator Seeks Public Input On New Deviation Settlement Mechanism Regulations 2025
Source： solarquarter
The Bihar Electricity Regulatory Commission has issued a public notice inviting comments, suggestions, and objections on the draft Bihar Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2025. The notice was released on August 14, 2025, and is part of Suo-Motu Proceeding No. SMP 31/2025. The Commission has made available both the draft regulations and a consultative paper on its official website, and stakeholders can also obtain a free copy from the Commission’s office. The deadline for submitting written comments is September 8, 2025, and a public hearing has been scheduled for September 11, 2025, at 11:30 a.m. in the Commission’s courtroom in Patna.
These regulations are being introduced under the powers granted by Section 181 of the Electricity Act, 2003. The objective is to ensure that all grid-connected state entities in Bihar follow their electricity schedules for both drawal and injection in order to maintain grid security and stability. The Commission explained that deviation from schedules can affect the reliability of the grid, and hence, a clear settlement mechanism is necessary. The proposed regulations apply to distribution licensees, deemed licensees, and open access consumers in the state, including renewable energy-based generation projects with a capacity of 5 MW or more.
The consultative paper highlights that earlier in 2020, BERC had notified regulations in line with the Central Electricity Regulatory Commission’s 2014 DSM regulations. However, since then, the CERC has introduced amendments, the latest being the 2024 DSM regulations, which brought changes to commercial principles governing deviations. In view of these national developments and changing market conditions, Bihar’s regulatory framework also needs to be updated to remain aligned.
The draft regulations lay down definitions, scope, and procedures to be followed by all entities. They stress that every intra-state entity must adhere strictly to its schedule, with any deviations to be settled commercially through the State Load Despatch Centre (SLDC). The SLDC will oversee metering, data collection, deviation calculations, and settlement of accounts. State entities are required to disclose their contracts and abide by grid codes, while the SLDC will issue weekly statements of deviation charges.
The regulations also define how deviations are computed for sellers and buyers, including renewable energy projects, and outline how charges are levied based on system frequency and volume limits. Specific provisions are included for different types of generating stations, such as run-of-river hydro plants, municipal solid waste plants, wind and solar projects, and standalone energy storage systems. The charges for deviation are linked to reference charge rates, contract rates, and market prices such as the Day Ahead Market and Real Time Market rates.
To maintain financial discipline, entities must pay deviation charges within 10 days, failing which a late payment surcharge will apply. In some cases, entities may be required to open a Letter of Credit as a payment guarantee. The regulations also establish a State Deviation Pool Account to manage inflows and outflows of deviation charges, with surplus funds earmarked for improving grid reliability, training, and capacity building. Shortfalls, however, will be recovered through supplementary charges from state entities.
The regulations repeal the earlier 2020 framework and empower the Commission to relax or amend provisions as required. The Commission has emphasized the importance of stakeholder participation in finalizing these rules and has invited wide-ranging feedback to ensure that the regulations balance operational discipline with evolving market needs.