Availability-based Tariff - Introduction

Introduction

ABT Mechanism (Energy policy of India) is adopted in India (ABT Order dated January 2000 of CERC) and in a few other countries for pricing bulk power across various stakeholders. ABT concerns itself with the tariff structure for bulk power and is aimed at bringing about more responsibility and accountability in power generation and consumption through a scheme of incentives and disincentives. As per the notification, ABT was initially made applicable to only central generating stations having more than one SEB/State/Union Territory as its beneficiary. Through this scheme, the Central Electricity Regulatory Commission (CERC) looks forward to improve the quality of power and curtail the following disruptive trends in power sector:

  • Unacceptably rapid and high frequency deviations (from 50 Hz) causing damage and disruption to large scale industrial consumers
  • Frequent grid disturbances resulting in generators tripping, power outages and power grid disintegration.

The ABT scheme has now been expanded to cover the Intrastate systems as well.

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