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Ui Mechanism
KARNATAKA ELECTRICITY REGULATORY COMMISSION

Date: 26th December 2005

Action Plan for Implementation of Intra-state Availability Based Tariff (ABT)

1. Introduction

For the purpose of transmission of electricity, India has been divided into five regions namely, Eastern, Western, Southern, Northern and North-Eastern Regions. These regions have been interconnected to form a “National Grid” with a view of bringing reliability and stability in power transmission across the nation along with efficient usage of available resources. Prior to introduction of inter-state ABT, there was a lot of indiscipline in the grid operation in these regions resulting in frequent blackouts and islanding. There was lack of balancing between generation and demand for power on real time basis. This was mainly due to excessive generation in the northern and northeastern regions resulting in higher frequencies in these regions and over loads in western and southern regions resulting in lower frequencies in these regions. In this context M/s ECC, USA, after a study in 1993-94 recommended to GoI to introduce Availability Based Tariff (ABT), in all the regions to bring about grid discipline. However after the constitution of CERC in 1998, the matter came under the purview of the CERC. In 1999, the CERC issued necessary orders and regulation for implementation of Inter-state ABT in India and ABT has been implemented region by region during 2002 and 2003. ABT was implemented in the Southern region with effect from 1st January 2003. The implementation of inter-state ABT has brought about substantial improvement in the grid operation resulting in Grid discipline and optimal utilization of the generation capacities.

The implementation of Inter-state ABT has brought about the following improvements in the operation of the regional grid as indicated in the FOIR sub-committee

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