The Meghalaya State Electricity Regulatory Commission has issued a comprehensive Standard Operating Procedure for intra-state deviation settlement. The Meghalaya State Electricity Regulatory Commission has issued a comprehensive Standard Operating Procedure for intra-state deviation settlement.
The SOP has been issued under Regulation 10.1 of the MSERC Intra-State Deviation Settlement Mechanism Regulations 2025.
It defines the operational framework for scheduling, metering, deviation computation, and financial settlement.
The framework applies to all grid-connected entities operating within the Meghalaya state grid.
Entities covered
The SOP covers generating stations, distribution licensees, and large open-access consumers.
These entities will be required to follow formal scheduling discipline.
Their deviations from approved schedules will be measured and settled under the DSM framework.
This brings Meghalaya’s intra-state grid operations closer to the structured settlement systems used at the inter-state level.
SLDC role
The State Load Despatch Centre has been designated as the apex accounting body for DSM settlement.
The SLDC will consolidate deviation data from all qualified scheduling entities.
It will compute gross and net deviations for each scheduling interval.
It will then apply applicable DSM charge rates and issue settlement bills periodically.
This gives the SLDC a central role in financial and operational grid discipline.
Payment timeline
The SOP establishes a payment timeline of 10 working days from the date of bill issuance.
Entities liable to pay DSM charges must settle their dues within this period.
This short payment cycle is designed to prevent accumulation of receivables in the DSM pool.
It also ensures that entities entitled to receive DSM payments are paid on time.
Delay interest
For delayed payments, the SOP prescribes interest at 0.04% per day.
The interest will apply from the due date until actual payment.
This creates a financial disincentive for delayed settlement.
It also strengthens payment discipline among grid participants.
Letter of Credit requirement
The SOP mandates a Letter of Credit requirement.
All qualifying entities must maintain an LC equivalent to 110% of their average DSM liability in the preceding quarter.
This financial security provision is designed to protect the settlement pool.
It reduces the risk of default by entities that regularly incur deviation charges.
Grid discipline
Meghalaya’s grid is relatively small compared with larger state systems.
However, it is integrating increasing volumes of renewable energy.
This includes small hydro and solar rooftop installations.
A formal intra-state DSM mechanism will help improve demand forecasting and scheduling discipline.
It will also reduce the risk of real-time imbalances.
Utility impact
The framework is particularly relevant for Meghalaya’s distribution utility.
Better forecasting and scheduling will become important to avoid excessive deviation charges.
If deviation costs rise, they can eventually translate into higher power supply costs for consumers.
The SOP therefore creates an incentive for sharper operational planning.
Regulatory significance
The SOP aligns Meghalaya’s framework with broader national trends.
Across India, regulators are strengthening DSM mechanisms to improve grid stability.
As renewable penetration grows, real-time balancing becomes more important.
The MSERC SOP is a step toward more accountable, transparent, and financially secure intra-state grid operations.
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