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
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.