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Availability Based Tariff (ABT)

Availability Based Tariff (ABT) is concerned 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. ABT tries to improve the quality of power and curtail the following disruptive trends:

  • Unacceptable rapid and high frequency deviations causing damage and disruptions.

  • Frequent grid disturbances resulting in generators tripping, power outages and grid instability.

ABT has been implemented in the Western Region since June 1st 2002. One of the main reasons for implementing these tariffs was to encourage grid discipline by making the pricing of power frequency dependent, thereby forcing state participants to improve procedures for forecasting, scheduling and load despatch.

The main objectives of introduction of ABT mechanism at regional level have been:

  • Encourage grid discipline

  • Promote trade in energy and capacity

  • Economic load dispatch

  • Encourage higher generation availability

The ABT mechanism has laid out on financial principles, wherein all generators and beneficiaries must declare a schedule for generation and drawl every 15 minutes one day in advance. Any deviation from the schedule is charged at rates, which are dependent on frequency at that point in time. Currently the ABT is applicable between Central Generating Stations (CGS) and the state beneficiaries.