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Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012
Published vide Notification No. 1 of 2012, dated 8.5.2012
Last Updated 11th June, 2019 [guj285]
Chapter 1
General
1. Short Title, extent and Commencement. - 1.1. These Regulations may be called the "Gujarat Electricity Regulatory Commission (Demand Side Management) Regulations, 2012". 1.2. These Regulations shall be applicable to the Distribution Licensees in the State of Gujarat in their respective areas of supply. 1.3. These Regulations shall come into force from the date of its notification in the Official Gazette. 2. Definitions. - 2.1. In these Regulations, unless the context otherwise requires:i. "Act" means the Electricity Act, 2003 (36 of 2003);
ii. "Baseline data" means the initial base level consumption and/or demand for electricity before a Demand Side Management (DSM) programme begins to provide a starting point for comparison for assessing programme impact;
iii. "Bureau" means the Bureau of Energy Efficiency established under sub-section (1) of Section 2 of The Energy Conservation Act, 2001
iv. "Commission" means the Gujarat Electricity Regulatory Commission constituted under sub-section (1) of Section 82 of the Act;
v. "Cost Effectiveness Index" means an indicator of the attractiveness of any investment in DSM programme or when compared to the costs of energy produced and delivered in the absence of such an investment.
vi. "Demand Side Management" means the actions of a Distribution Licensee, beyond the point of supply, with the objective of altering the end-use of electricity - whether it is to increase demand, decrease it, shift it between high and low peak periods, or manage it when there are intermittent load demands - in the overall interests of reducing Distribution Licensee costs.
vii. "DSM Resource Acquisition" means a mechanism to implement DSM projects through customers, Energy Service Companies, Non-Government Organisations, manufacturers / suppliers, or other private sector organizations, with payment or any other support made to them by the Distribution Licensee for the resultant energy and load reductions
viii. "Energy Services Company" means a company which is in the business of providing energy efficient and load management equipment and/or services to end-use customers and is approved by Bureau
ix. "Evaluation, Measurement and Verification" means activities which evaluate, measure and verify performance or other aspects of DSM/energy efficiency programs or their market environment
x. "Monitoring and Reporting" means activities which monitor and evaluate the progress of DSM/energy efficiency programs of the Distribution Licensee xi. Unless otherwise agreed to, the "Point of Supply" shall be the incoming terminal of the cut-out installed by the consumer, i.e.
(a) Meters/switches installed at the Consumer's Premises in case of LT Consumers;
(b) Control switch-gears that may be installed in the Consumer's Premises as provided subject to provision of this code in case of HT and EHT Consumers.
Chapter 2
DSM Objectives, Targets and Guidelines
3. DSM Objectives. - 3.1. The Commission shall formulate DSM objectives that shall be considered in the advancement and implementation of cost effective DSM initiatives in the State. The objectives may include power shortage mitigation, seasonal peak reduction, cost effective energy savings, lowering the cost of electricity, reduction in emissions of greenhouse gases etc. 3.2. While formulating the DSM Objectives, the Commission may take into consideration the National DSM Objectives / Plans formulated by Bureau, if any. 3.3. The DSM objectives may be consistent with the DSM objectives set out by Bureau as a part of Energy Conservation Plan for the country. 4. Assessment of technical potential for DSM. - 4.1. The Distribution Licensees in the State shall carry out assessment of potential for DSM in their license area one year before the start of every MYT Control Period. Notwithstanding the above provision, the first assessment of technical potential for DSM shall be carried out within twelve months of the notification of these Regulations. 4.2. The Distribution Licensee shall be guided by methodology developed by Bureau while assessing of technical potential for DSM. 5. DSM Targets. - 5.1. The Commission shall establish DSM targets for each Distribution Licensee in the State. 5.2. While setting DSM target for the Distribution Licensee, the Commission will give due consideration to factors such as consumer mix, load profile, etc. 5.3. Examples of DSM targets may include the following:• Percentage reductions in load growth;
• Savings in kW, kWh;
• Savings as a percent of total resources to meet load;
5.4 While establishing the targets, the Commission shall consider the technical potential in the State as assessed 6. Guidelines on DSM process. - 6.1. The Commission shall issue guidelines to guide the Distribution Licensee in execution of the following activitiesi. Load and Market Research
ii. Implementation of DSM programmes
iii. Cost Effectiveness Assessment of DSM programmes
iv. Monitoring and Reporting of DSM Plans and programmes
v. Eligibility criteria for DSM programmes
vi. Methodology for setting DSM targets and funding levels
vii. Database development framework
6.2. The Commission shall issue guidelines on these matters from time to time 6.3. Issuance of such guidelines shall not be a pre-requisite for preparation and submission of the first DSM plan by the Distribution LicenseeChapter 3
DSM Cell
7. Constitution of DSM Cell, its roles & responsibilities. - 7.1. Every Distribution Licensee shall constitute a DSM Cell within one month of notification of these regulations. The DSM Cell shall comprise the Staff as under;• One officer not below the rank of Superintending Engineer
• Two Officers not below the rank of Deputy Engineer
• Five officers not below the rank of Junior Engineer.
• Three members of clerical staff.
Provided that the composition and size of the cell may vary with approval of the Commission. 7.2. The DSM Cell so constituted shall be provided with necessary authority and resources so as to execute the functions assigned to it under these Regulations 7.3. The DSM Cell shall be responsible for:i. Load Research and development of baseline data
ii. Formulation of DSM Plan
iii. Design and development of DSM projects including cost benefit analysis, plans for implementation, monitoring and reporting and for measurement and verification
iv. Seeking necessary approvals to DSM Plan and individual programmes
v. Implementation of DSM programmes
vi. Any other additional function that may be assigned by the Commission from time to time
Chapter 4
DSM Process
8. Load and market research and development of baseline data. - 8.1. Distribution Licensee shall undertake load research to identify the target consumer segment/s and end uses for DSM programmes to build the necessary database 8.2. Distribution Licensee shall undertake market research to estimate market potential for specific energy efficiency technologies and applications, establish key performance indicators, and determine existing baseline market conditions 8.3. On the basis of the results of load and market research, the Distribution Licensee shall develop baseline data for its area of supply 8.4. Distribution Licensee shall design, develop and implement the initial DSM programmes on the basis of available data and studies completed by Bureau till the complete baseline data is available for its area of supply and establishment of base line data shall not be a pre-requisite for design of such initial DSM programmes by the Distribution Licensees. 9. Formulation of DSM Plan. - 9.1. Distribution Licensee shall formulate and submit to the Commission a perspective DSM Plan covering period of the control period, within one year of notification of these regulations. The Plan shall includei. An overall goal for DSM Plan
ii. Description of DSM programmes to form a part of DSM Plan
iii. Implementation process and schedule of each programme in the plan as a whole
iv. Plan for Monitoring and Reporting
v. Indicative cost effectiveness assessment of programmes
Notwithstanding the above, the first DSM Plan shall be prepared within one year of the date of these Regulations and shall be for the period till the end of on-going MYT Control Period. 9.2. The Distribution Licensee shall include all relevant DSM programmes (including multi-state programmes) developed by Bureau in its perspective plan as and when such programmes are announced by Bureau. 9.3. The Distribution Licensee shall submit on rolling basis, an annual plan, not inconsistent with the perspective plan, for upcoming year, along with the Annual Tariff Petitions. 9.4. Selection and prioritisation of various DSM programmes in the DSM Plan shall be guided by the following factors:i. The Cost effectiveness guidelines issued by the Commission
ii. DSM Objectives identified in Regulation 3
iii. Whether the proposed programmes supplement National level efforts adopted by the Bureau
iv. Programmes with high visibility and therefore potential for creation of awareness within consumers
10. Review and approval of DSM plan by the Commission. - 10.1. Distribution Licensee shall submit the DSM Plan to the Commission for approval within 6 months of technical potential available for the first time, and afterwards before 6 months of the filing of MYT Petition 10.2. The Commission may adopt procedures as specified in the Conduct of Business Regulations for according approval to the DSM Plan 11. Preparation of DSM Programme Document. - 11.1. For each DSM programme included in the DSM Plan, a detailed description shall be provided in a separate Programme Document. The description shall include general information, technology, schedule for deployment, budget, cost effectiveness assessment, detailed implementation plan, estimation of savings, etc. 11.2. For each DSM programme cost benefit analysis shall be carried out as per the guidelines (guidelines to be checked) issued by the Commission on Cost effectiveness from time to time. 12. Approval of DSM Programme Document. - 12.1. Prior to implementing any DSM programme, the Distribution Licensee must obtain approval of the Commission. 12.2. Each Programme Document shall include the following:i. Description of the programme;
ii. Objectives and rationale for the programme;
iii. Consumer segments and estimated level of participation;
iv. Estimate of baseline;
v. Assessment of programme in line with Cost Effectiveness Guidelines issued by the Commission
vi. Mechanism for recovery of cost and performance incentives;
vii. Marketing, delivery strategy and Implementation schedule;
viii. Implementation mechanism e.g. Energy Service Companies, Bidding for DSM Projects, DSM Resource Acquisition, etc
ix. Monitoring and evaluation plan;
x. Plan for Training/Seminars/Workshops to increase consumer awareness
12.3. The Commission shall approve a DSM program if it is in line with the Objectives set out in Section 3 of the Regulations. The Commission may direct modifications to proposed or on-going programmes to ensure consistency with the DSM Objectives. However, the Commission shall allow Distribution Licensee adequate time to notify consumers of program modification. 13. Implementation of DSM programmes. - 13.1. Distribution Licensee shall undertake implementation of DSM programmes in line with the guidelines issued by the Commission from time to time 13.2. The implementation of the programme shall be undertaken in the manner as approved by the Commission 13.3. Distribution Licensee shall undertake implementation of quick gain DSM programmes 13.4. Distribution Licensee shall carry out implementation of activities assigned to it either by itself or through appropriate independent entity While doing so, the Distribution Licensee shall ensure that continuity and consistency are maintained and interest of the consumers is not compromised 14. Mechanism for Cost Recovery. - 14.1. Distribution Licensee shall identify the net incremental costs, if any, associated with planning, design and implementation of programmes 14.2. Distribution Licensee may propose methodology for recovery of net incremental costs through tariff or any other mechanism 14.3. In order to qualify for cost recovery, each program must bei. Approved prior to implementation
ii. Implemented in accordance with the approved program plan and
iii. Implemented cost effectively
14.4. Distribution Licensee shall provide all necessary assistance to the Commission, or third party assigned by the Commission in undertaking Evaluation Measurement and Verification of DSM programmes implemented by it. 14.5. The Commission may direct the Distribution Licensee to undertake DSM programmes that may not be cost effective but is highly beneficial to the society. The Commission will make available resources for such project. 15. Monitoring and reporting of DSM Programmes. - 15.1. Distribution Licensee shall prepare plan and undertake monitoring and reporting of DSM programmes as per Guidelines on Monitoring and Reporting issued by Commission from time to time or as approved by the Commission while approving the DSM programme. 16. Evaluation, Measurement and Verification (EMV) of DSM Programme. - 16.1. Distribution Licensee shall prepare plan for evaluation, measurement and verification of savings from DSM programmes as per Guidelines on Evaluation, Measurement and Verification issued by the Commission from time to time. 16.2. Third party Evaluation, Measurement and Verification of DSM programmes may be undertaken by the Commission or a third party assigned by the Commission. While engaging the agency, the Commission shall ensure that the Agency is not undertaking any other engagement that could conflict with the interests of the consumers in the State. 16.3. Distribution Licensee shall make available necessary information/data to the Commission or a third party assigned by the Commission to measure and verify the savings from DSM programmes.Chapter 5
DSM Plan and Programme Completion Report
17. Reports on progress of DSM Plan and expenses incurred on implementation of DSM Plan shall be submitted by the Distribution Licensee every six months. 18. The Distribution Licensee will prepare and submit a detailed Program Completion Report and submit the same to the Commission within three month of completion of such programme. 19. The Report shall cover the programme expenses, achievements, outcomes and outputs, constraints and difficulties faced, conclusions, recommendations, lessons learned and way forward.Chapter 6
Incentives
20. The Commission may provide incentives to Distribution Utilities for achieving or exceeding DSM Objectives as identified in Section 3 of the Regulations.Chapter 7
Miscellaneous
21. The Commission may, at any time, add, vary, alter, modify or amend any provisions of these regulations. 22. If any difficulty arises in giving effect to the provisions of these Regulations, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions of the Act, as may appear to be necessary for removing the difficulty. 23. The Commission may, from time to time, issue orders and directives in regard to the implementation of the regulations and procedures to be followed. 24. All disputes arising under these regulations shall be decided by the Commission based on an application made by the person aggrieved. 25. Saving of inherent power of the Commission. - 25.1 Nothing in these Regulations shall be deemed to limit or otherwise affect the inherent power of the Commission to make such orders as may be necessary for ends of justice or to prevent the abuse of the process of the Commission. 25.2 Nothing in these Regulations shall bar the Commission from adopting in conformity with the provisions of the Acts, a procedure, which is at variance with any of the provisions of these Regulations, if the Commission, in view of the special circumstances of a matter or class of matters and for reasons to be recorded in writing, deems it necessary or expedient for dealing with such a matter or class of matters. 25.3 Nothing in these Regulations shall, expressly or impliedly, bar the Commission to deal with any matter or exercise any power under the Acts for which no Regulations have been framed, and the Commission may deal with such matters, powers and functions in a manner it thinks fit.
