Low Peak Frequency

High Off-Peak Frequency

Wide Frequency Fluctuation

Damage to Generating Plants and Consumers’ Equipment

Merit Order not followed - Optimizatn. Oppor. Lost

Perpetual Operational and Commercial Disputes

UFR Load Shedding - Ineffective for Tackling Contingencies

Over-drawal in Low Frequency Reluctance to Back-down Governor Action Supressed

on Most Units No Spinning Reserve No Frequency Response Inadequacy/Low Availability

of Generating Capacity : Widening Gap

Reactive Power Drawals Back-log in Capacitor Installation

Regional Energy Accounting In Daily/monthly MU, Disregarding TOD And/or System Situation (Freq)

Unscientific Tariff Structre No Disincentive for Hurting the Grid Conflict With Merit Order Inappropriate Criteria for

Judging Plants’ Performance

Compounding effects of frequency fluctuations

No formal Scheduling Process for Fixing Datums for Generation and Drawal Levels

No Clear Demarcation of Scheduling and Despatch

Incorporation Of Effective Automatic Load-shedding

Maximization Of Generation During Peak- load Hours And Load Curtailment Equal To The Remaining Generation Deficit

Backing Down Of Generation To Match The System Load Reduction During Off-peak Hours Putting All Generating Units On Free-governor Mode Operation

Installation Of Capacitorss To The Required Extent

Absorbtion Of Vars During Off-peak Hours

With a view to promote overall economic operation of the power sector and to achieve improvement in operational parameter GOI felt that the existing tariff structure in power sector needs to be rationalized. Accordingly GOI proposed, for sale of electricity by generating companies to the beneficiaries, a three part tariff structure in viz. Capacity charge, Energy charge, Unscheduled interchanges (UI)