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The Central Electricity Regulatory Commission (“CERC”) by way of its order dated 13.03.2026 in Petition No. 1/SM/20261 has proposed to revise the rate of congestion charges applicable in real-time operation of the inter-State transmission system and has also clarified that renewable energy (“RE”) generators cannot be exempted from such charges.
CERC noted that the existing congestion charge of Rs. 5.45/kWh was fixed in 2010 based on the then Unscheduled Interchange regime. It further observed that the power sector has undergone significant changes over the past 15 years.
CERC held that congestion is a matter of grid security and all entities contributing to congestion must remain subject to the same framework. It also noted that, with large-scale integration of RE, RE sources cannot be excluded from the congestion charge mechanism. Therefore, CERC declined to exempt RE generators from congestion charges.
Simultaneously, CERC proposed that the congestion charge be linked to the applicable deviation settlement mechanism (“DSM”) rate and be fixed at 1.5 times the relevant Reference Charge Rate, Contract Rate or Normal Rate of Charges for Deviation, subject to a minimum of Rs. 3 per unit and a maximum of INR 10 per unit. CERC further proposed that no congestion charge should be levied where power flow in the transmission corridor aligns with the schedule, but congestion arises due to forced outage of a line after the drawal schedule has been fixed. In such cases, the situation would be managed through emergency instructions issued by the respective load dispatch centres.
In this regard, CERC has invited comments and suggestions from stakeholders on the above proposal by 06.04.2026 and directed that the matter be listed for public hearing before a final decision is taken.
Footnote
1. Petition No. 1/SM/2026.
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