Abstract: “Congestion relief management (CRM) is introduced as one of ancillary services in electricity market. The CRM maintains the system operation within the security limits and defines the revenue transaction for congestion relief. In this paper a mathematical model has been developed for actual congestion relief charge (CRC) in bilateral transaction as a penalty on the generator in the gaming condition. The Market clearing price (MCP) in uncongested system in two area are equal but in future when the load in area A1 or A2 varies then MCP in two area will differ. Generators want to do more transaction from low tariff area to high tariff area on the basis of profit maximization objective, resulting in line congestion. CRC, which is liable to be paid by the generator, will be equal to the generators profit in gaming condition. At this stage generator will not have tendency to do more transaction in high tariff area. Therefore, there will be automatic congestion relief management. This particul”

Keywords: Congestion relief charge (CRC), Congestion relief index