1 | Page BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION BAYS No. 33-36, SECTOR-4, PANCHKULA- 134112, HARYANA Case No. HERC/PRO-11 of 2017 Date of Hearing : 17.06.2020 Date of Order : 17.06.2020 In the Matter of Petition seeking clarification on various applicable charges under Clause 19, 20, 21, 22, 23, 24, 57, 58 and 59 of Haryana Electricity Regulatory Commission (Terms and conditions for grant of connectivity and open access for intra State transmission and distribution system) Regulations, 2012 (No. 25/HERC/2012 dated 11.01.2012) to be levied on Northern Railways (Deemed Distribution Licensee) for availing medium term open access. Petitioner Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL), Hisar Respondents 1. Northern Railway, New Delhi 2. Haryana Vidyut Prasaran Nigam Ltd. (HVPNL) Present On behalf of the Petitioner through Vidyo App 1. Shri Samir Malik, Advocate for DHBVNL Present On behalf of the Respondents through Vidyo App 1. Shri Pulkit Aggarwal, Advocate for Northern Railways 2. Shri. Rajesh Goel, SE, HVPNL Quorum Shri D.S. Dhesi, Chairman Shri Pravindra Singh Chauhan, Member Shri Naresh Sardana, Member ORDER Brief Background of the case 1. DHBVNL has filed the petition seeking clarification on the existing ambiguities over issues which are likely to arise upon granting of consent to the Northern Railways (Deemed Distribution Licensee) for availing of medium-term open access, their
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BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION
(UHBVN)} have a distinct and separate status of one “fragmented control area”.
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The Scheduling and despatch of electricity, the deviation settlement mechanism
charges and imbalance charges for electricity sourced by Indian Railways on Open
Access from sources outside the state of Haryana will and can be effectively
addressed at the Regional Level by the NRLDC. These also include the energy
flowing through the intra-State Transmission System of HVPNL. The SLDC of
Haryana can forward the necessary details to NRLDC and NRPC and the energy
accounting of the Electricity drawn by the Indian Railways as against the Scheduled
energy for each time Block in respect of all drawl points of Indian Railways in the
State can be finalised by RLDC and RPC based on treating the Indian Railways as
one fragmented control area for the State. In such a situation, the imbalance charges
applicable to Indian Railways for the electricity sourced from outside the State shall
be akin to the charges applicable DHBVNL and UHBVNL. The imbalance charges for
the imbalance quantum of electricity drawn by Indian Railways at the Haryana
Periphery including the quantum drawn at traction sub stations should therefore be
what is applicable as per the Central Commission Regulations.
17. Indian Railways is undertaking distribution of electricity within its area of operation
and restricted to the purposes of Railways and there being no business of distributing
electricity to public at large as in the case of other licensees. It is submitted that the
existing imbalance charges even if applicable to the other distribution licencees in the
State will not be relevant to the Indian Railways because of the above features on the
operation of the Indian Railways.
18. It is submitted that Indian Railways is getting electricity in the State of Haryana
through open access from a generator situated outside the State of Haryana and as
such is procuring power through inter-state transmission system in terms of Section
2(36) of the Electricity Act, 2003. Section 2(36) of the Electricity Act, 2003 provides
as under:
“(36) “inter-state transmission system” includes –
(i) any system for the conveyance of electricity by means of main transmission
line from the territory of one State to another State;
(ii) the conveyance of electricity across the territory of an intervening State as
well as conveyance within the State which is incidental to such inter-state
transmission of electricity
(iii) the transmission of electricity within the territory of a State on a system built,
owned, operated, maintained or controlled by a Central Transmission Utility;”
19. Thus, for the charges to be paid by the Indian Railways on account of imbalance
charges, the same should be done by treating all the TSSs within the State of
Haryana as one single entity. Further, the same should be addressed at the Regional
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Level and not at the State Level and in terms of the charges specified by the Central
Commission. However, the HVPNL at present is imposing imbalance charges at the
State Level as per the Regulations framed by this Commission.
20. With regard to standby charges, in the meeting of Western Regional Power
Committee, it was agreed that Railways would make agreements with respective
states for drawal of power and the power would be billed at temporary tariff of the
respective states. This would be applicable after the generator trips or when
scheduled generation is reduced. The Railways is agreeable for a similar solution for
Haryana also. However, in the present case, the agreement with M/s. Jindal India
Thermal Power Limited provides for alternate arrangements and therefore the above
decision of WRPC would be applicable only when the M/s. Jindal India Thermal
Power Limited is unable to make alternate arrangements.
21. It is submitted that the concept of stand by charges at temporary tariff is based on
the fact that the temporary tariff are usually much higher than normal tariff and
therefore compensates licensee providing standby power, for arranging power when
such power is required for very short periods of time and not on a continuous basis.
Thus, the distribution licensee may charge temporary tariff for the said time (day or
hours) of supply.
22. With regard to the issue of Cross Subsidy Surcharge, it is submitted that Indian
Railways is no longer a consumer of the Distribution Licensee after it started availing
power from M/s. Jindal India Thermal Power Limited on Open Access at its Traction
Sub-Stations. The cross subsidy surcharge is applicable on a consumer and not on
other licensees.
23. There is no provision for applicability of cross subsidy surcharge on a licensee. The
intent of cross subsidy surcharge is on a consumer who consumes power from a
source other than the distribution licensee of the area. When the distribution licensee
of the said area itself is procuring power using the network of another licensee and
not distributing electricity for retail supply to the consumers in the licensed area of
any other distribution Licensee, there cannot be any cross subsidy surcharge. The
Indian Railways as the distribution licensee is not supplying to any consumers of
either of the State Distribution Licensees in the State of Haryana thereby taking away
their subsidizing consumers for which purpose the cross subsidy surcharge has been
devised as payable. The Indian Railways is not therefore liable to pay cross subsidy
surcharge to another distribution licensee in the same area.
24. With regard to Additional Surcharge, it is submitted that like Cross Subsidy
Charges. Additional Surcharge under Section 42(4) of the Electricity Act, 2003 is
applicable to a consumer only. Indian Railways, being a distribution licensee, cannot
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be subjected to Additional Surcharge. The Petitioner cannot seek imposition of
charges de hors the Act.
25. It is submitted that the Indian Railways is ready and willing to comply with all the
terms and conditions of the Open Access Regulations as applicable to distribution
licensees. It is submitted that there can be no additional condition on the Indian
Railways in order to safeguard the interest of the Petitioner as requested.
Indian Railway/ Northern Railways filed its written submissions dated 25.11.2019,
reiterating its earlier submissions dated 17.12.2018. Additional submissions of
Railways are summarized as under:-
1. Though Indian Railways is a deemed distribution licensee, the functions and activities
of Indian Railways are distinct from other distribution licensees under the Electricity
Act, 2003. While other distribution licensees have the duty to distribute and supply
electricity to every consumers and have universal service obligation in their area of
operation in terms of Section 42 and 43 of the Electricity Act 2003, the functions and
activities of Indian Railway as distribution licensee is restricted to the Railway
network and systems being operated by Indian Railways and matters incidental and
ancillary thereto. The geographical area for Indian Railways is not like that of other
distribution licensees but is confined to the tractions / railways lines using electricity,
stations and facilities therein. There is no obligation on the part of Indian railway to
have any universal service obligation to the general public situated in an area.
Though Railways may supply electricity to shops in the Railway Stations, colonies
etc, the same is in connection with the working of the Railways and Railways is not in
the business of supplying electricity to public at large as in the case of other
licensees. Therefore Section 16 providing for conditions of distribution licence issued
under the Electricity Act, 2003 has no application to the Railways.
2. In the facts and circumstances mentioned above, the terms and conditions of license
including charges that may be specified by the Commission under Section 16 of the
Electricity Act, 2003 in the case of other distribution licensees will not be entirely
applicable to Indian Railways as deemed licensee. Similarly, many of the other
Regulations notified by the Commission from time to time qua the distribution
licensees in general will not also be entirely applicable to Indian Railways. However,
to the extent such conditions of license or other regulations which have application to
Indian Railways, the same will be complied by Indian Railways.
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Scheduling and despatch related to Indian Railways and applicability of
charges to Indian Railways:
3. That determination of some of the charges sought by DHBVN and HVPNL have no
relation or relevance in so far as the activities of Indian Railways as Deemed
Licensee are concerned.
4. That the charges to be paid by the Indian Railways on account of imbalance
charges, should be imposed by treating all the TSSs within the State of Haryana as
one single entity to be addressed at the Regional Level and not at the State Level
and in terms of the charges specified by the Central Commission. Since, though the
Traction Substations of the Indian Railways are connected to the Transmission
System of the State Transmission Utility, the same should be considered as
incidental to interstate transmission as Indian Railways is procuring power through
inter-state transmission system and the usage of the intra-state transmission system
is incidental to such procurement of power by the Indian Railways. However, the
HVPNL at present is imposing imbalance charges at the State Level as per the
Regulations framed by Commission which are being paid regularly/timely under
protest.
Presently, Indian Railways is drawing power through inter-state transmission network
with MTOA and LTA granted by CTU. Thus, the determination of deviation charges
for Indian Railways should be similar to that of DHBVNL/UHBVNL procuring power
through inter-state transmission network. Presently, imbalance charges are being
levied for drawal of power on inter-state open access by Indian Railways on the
highest tariff for overdrawal and being adjusted on the lowest tariff for underdrawal.
Indian Railways, as deemed licensee, is drawing power on open access in a number
of states across the country and the charges for deviation for procurement of power
through inter-state open access are being levied as per CERC DSM Regulations.
The practice followed by HVPN for levying of imbalance charges is not being
implemented by any other State Utility for procurement of power through inter-state
open access. The Commission has already vide notification dated 29.04.2019
notified revised DSM Regulations effective from 29.10.2019 and the Commission is
requested to direct HVPNL to revise its earlier bills towards imbalance charges as
per DSM Regulations notified by the Commission and adjust/refund the excess
amount along with interest.
5. With regard to transmission charges, it is stated that HVPNL as well as DHBVNL
have prayed before this Commission, that the Indian Railway shall be made liable to
pay transmission charges, from the date of start of Medium term Open access based
on the Contract demand (MVA) (in case of 3 phase supply) and capacity blockage of
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Power Transformer (in case of two phase supply), before Indian Railways started
procuring power through open access, for following TSS:-
Sr. No Name of S/Stn./Drawl
point
Supply
system
Contract demand (MVA) based on
sanctioned by DISCOM before MTOA
agreement/ Capacity blockage of Power
Transformer (virtual load i.e. capacity
blockage of Power Transformer)
1 132 KV Sub-Station
TSS Asaudha
2 phase
supply
5 MVA (Contract Demand)
2 220/66 kV BBMB,
Ballabhgarh
3 phase
supply
33 MVA (Contract Demand)
3 400/200 kV PGCIL,
Abdullapur
2 phase
supply
12.5 MVA (Contract Demand)
4 132 kV PTPS Diwana 3 phase
supply
30 MVA (Contract Demand)
5 132 kV Sub-Station
Uuchana TSS Ghaso
2 phase
supply
17.3 MVA i.e. capacity blockage of
Power Transformer (Contract Demand
10 MVA)
Total 97.8 MVA
6. The contract demand sanctioned by the DISCOM was prior to the passing of the
Order dated 05.11.2015 of the Central Commission. The Indian Railways are not
having any contract demand with DHBVNL / UHBVNL since commencement of
OA/ISTS power to all above traction drawl points from 01/10/2017 after duly
disconnecting from the two Haryana Discoms.
7. The Central Commission in its order dated 05.11.2015 in Petition No. 197/MP/2015
has held that Indian Railways drawing electricity in a State with multiple drawal points
shall be treated as a single entity for the purpose of scheduling. Thus, for all the
purposes, including billing, Indian Railways should be considered as one single entity
with the maximum demand being considered in a simultaneous manner, at all the
drawl points, namely the traction substation of Indian Railways situated within the
State of Haryana. For the State of Haryana, the Indian Railways is procuring power
(38MW) through open access to be consumed / availed by it at all the traction
substations (simultaneously). The Railways is also paying the corresponding
transmission charges for the said quantum. HVPNL has been raising transmission
charges from 01.10.2017 to till date for 38MW capacity i.e. 42.2MVA (=38/0.9). This
38MW contracted capacity was converted into transformation capacity by considering
the power factor of 0.9.
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8. The same has also been approved by this Commission in Multiyear Tariff order dated
07.03.2019, considering the above computation method approved by this
Commission in Amendment to the Open Access Regulations, 2012. In fact, pursuant
to the order dated 05.11.2015 passed by the Central Commission, similar
arrangement with regard to simultaneous maximum demand is being implemented in
other states, such as Madhya Pradesh, Gujarat and Maharashtra etc.
9. Further, the instances of over drawl by the Indian Railways, i.e., over and above
38MW in some time blocks within a month cannot be a basis for HVPNL and
DHBVNL to seek transmission charges based on the summation of contract demand
sanctioned / transformation capacity allocated by the Discom at each Traction Sub
Station. It is submitted that any drawl of power over and above the power scheduled
by Railways is to be dealt with under the DSM / UI Mechanism of the Central
Commission. For grid stability and to avoid over drawl Railway has already started
taking additional OA/ISTS power of 15 MW ( besides 38 MW Jindal Power) from
BRBCL since 09.04.2019.
10. That the contention of HVPNL is wholly misconceived and denied. Thus, in view of
the order dated 5.11.2015 passed by the Central Commission, the total contracted
capacity for the purposes of calculation of transmission charges will have to be
considered as the sum total of the power being sought to be procured by the Indian
Railways through open access across all its traction substations within the State of
Haryana, i.e., earlier 38 MW and now 53 MW. Further, mere increase in number of
drawal point does not necessarily increase the load requirement of Indian Railways in
that proportion as after addition of new drawal points the traction load of Indian
Railways gets distributed and the loading in the existing drawal points (TSSs) gets
reduced and balanced. In fact since inception of OA till present month, Indian
Railways are being charged transmission charges on the basis of total open access
quantum which are being regularly/timely paid under protest. However, HVPNL is
now seeking to change its stand to make unlawful gains and that too at the cost of
Indian Railways.
11. In view of the above, it is submitted that the transformation capacity of Indian Railway
in Haryana for the purpose of payment of transmission charges shall be calculated
for enhanced quantum in similar manner as was determined by HVPNL and
approved by this Commission in Multiyear Tariff. Therefore, transformation capacity
for 53MW power shall be only 58.9MVA (=53/0.9).
12. Without prejudice to the above, it is submitted that Indian Railways has a two phase
system at various traction substations across the country since commencement of
electric traction and nowhere till date, Indian Railways is being charged for the
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transmission capacity on the basis of alleged virtual capacity as is being sought to be
levied by the HVPNL. Neither Indian Railways is paying any capacity/capacity
blockage charges nor any other states has raised the issue of capacity
blockage/virtual capacity. It is submitted that Transmission charges should be as per
contracted capacity agreed between Railways & State transmission utility. On same
line, other States are raising transmission charges as per connection agreement
made with them. Even otherwise, HVPNL has failed to provide any justification for
the calculation being proposed by it of calculating virtual transformation capacity.
13. With regard to standby charges, in the meeting of Western Regional Power
Committee, it was agreed that Railways would make agreements with respective
states for drawal of power and the power would be billed at temporary tariff of the
respective states. This would be applicable after the generator trips or when
scheduled generation is reduced. The Railways is agreeable for a similar solution for
Haryana also. However in the present case, the agreement with M/s. Jindal India
Thermal Power Limited provides for alternate arrangements and therefore the above
decision of WRPC would be applicable only when the M/s. Jindal India Thermal
Power Limited is unable to make alternate arrangements.
14. It is submitted that the concept of stand by charges at temporary tariff is based on the
fact that the temporary tariff are usually much higher than normal tariff and therefore
compensates licensee providing standby power, for arranging power when such
power is required for very short periods of time and not on a continuous basis. Thus
the distribution licensee may charge temporary tariff for the said time (day or hours)
of supply.
15. Further, DHBVN in response dated 15.08.2019 has referred to the orders passed by
the various State Commissions with regard to the stand by charges. In this regard it
is submitted that the orders referred to by DHBVN are either not applicable in the
facts of the present case (order passed by Maharashtra Commission) or are not
applicable on the Indian Railways as the power being drawn by Indian Railways is
still as a consumer (West Bengal, Chhattisgarh and Andhra Pradesh). It is submitted
that the for the State of Maharashtra, the Standby charges being referred to in the
order referred to by DHBVN is a different standby charge which has been determined
only for the Mumbai Region. It is submitted that the said standby charge is payable
by the distribution licensees of Mumbai Region for the special privilege granted to
them by MSEDCL for making power available 24*7 even at the cost of MSEDCL
shedding its load in the rest of Maharashtra outside Mumbai Region.
16. Without prejudice to the above, DHBVN in its response dated 15.08.2018 has offered
to enter into a special arrangement with Indian Railways for standby arrangement. It
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is submitted that Indian Railways is ready and willing to consider the arrangement
that may be proposed by the DHBVN with regard to the stand by charges provided
that it is fair & just and in line with sprit of open access.
17. With regard to the issue of Cross Subsidy Surcharge and Additional Surcharge, it
is submitted that Indian Railways started procuring power in the State of Haryana on
open access from 01.10.2017 on Medium Term through inter-state open access.
Further, the connectivity agreements have also been executed by the Indian
Railways for its Traction Substations as a Deemed Distribution Licensee after
disconnecting from Distribution Companies as a consumer. Thus, when Indian
Railways sources power from a source/entity other than the State Distribution
Licensee in the area, it is in its status as an entity authorised under the Railways Act
1989 and also as Deemed Licensee procuring power under the Electricity Act, 2003.
18. Section 173 of the Electricity Act, 2003 saves the Railways Act, 1989 in so far as
there is any inconsistency within the provisions of the two legislations. Indian
Railways in terms of Section 11 and 12 of the Railways Act, 1989 is permitted to
undertake supply of electricity only in relation to the Railways Administration, namely,
for self or associated consumption. Whereas under the Electricity Act, 2003 a
distribution licensee is required to supply electricity to its consumers in terms Section
2(17) and 2(70) of the Electricity Act, 2003. Thus, there is inconsistency in so far as
the obligation of Indian Railways to supply under the Railways Act, 1989 and
Electricity Act, 2003 is concerned. Therefore, in terms of Section 173, the
requirement of supply under Section 2(17) and 2(70) of the Electricity Act, 2003 shall
not have any effect in so far as distribution activity of Indian Railways in concerned.
19. Section 2(17) and 2(70) of the Electricity Act, 2003 cannot have any overriding effect
over the provisions of Railways Act, 1989 in terms of Section 174 of the Electricity
Act, 2003. Section 174 of the Electricity Act, 2003 provides that subject to Section
173, the Electricity Act 2003 shall have overriding effect notwithstanding anything
inconsistent with any other law for the time being in force or in any instrument having
effect by virtue of any law other than the Electricity Act, 2003.
20. The cross subsidy surcharge is leviable in terms of the provisions of Section 42(2)
read with Section 38(2)(d)(ii), Section 39(2)(d)(ii) and 40 (c)(ii) only when the open
access is sought for the conveyance of electricity to a consumer. There is no
imposition of cross subsidy surcharge if the conveyance of electricity through open
access is to a licensee and not a consumer. It is submitted that the Indian Railways is
only liable to pay such charges as are required to be paid by an Open Access
Customer as a licensee and not as a consumer of the DHBVN.
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21. There is no provision for applicability of cross subsidy surcharge on a
licensee/deemed licensee. The intent of cross subsidy surcharge is on a consumer
who consumes power from a source other than the distribution licensee of the area.
When a distribution licensee of the said area itself is procuring power using the
network of another licensee and not distributing electricity for retail supply to the
consumers in the licensed area of any other distribution Licensee, there cannot be
any cross subsidy surcharge.
22. Similarly, Additional Surcharge under Section 42(4) of the Electricity Act, 2003 is
applicable to a consumer only. Indian Railways, being a distribution licensee, cannot
be subjected to Additional Surcharge. DHBVN cannot seek imposition of charges de
hors the Act.
23. Section 42 of the Electricity Act, 2003 deals with the Cross Subsidy and Additional
Surcharge. Section 42 (2) and (4) provides as under:
“Section 42. (Duties of distribution licensee and open access):
………………………………………
(2) The State Commission shall introduce open access in such phases and
subject to such conditions, (including the cross subsidies, and other operational
constraints) as may be specified within one year of the appointed date by it and in
specifying the extent of open access in successive phases and in determining the
charges for wheeling, it shall have due regard to all relevant factors including such
cross subsidies, and other operational constraints:
Provided that [such open access shall be allowed on payment of a surcharge] in
addition to the charges for wheeling as may be determined by the State
Commission:
Provided further that such surcharge shall be utilised to meet the requirements of
current level of cross subsidy within the area of supply of the distribution licensee:
Provided also that such surcharge and cross subsidies shall be progressively
reduced in the manner as may be specified by the State Commission:
Provided also that such surcharge shall not be leviable in case open access is
provided to a person who has established a captive generating plant for carrying the
electricity to the destination of his own use:
Provided also that the State Commission shall, not later than five years from the date
of commencement of the Electricity (Amendment) Act, 2003, by regulations, provide
such open access to all consumers who require a supply of electricity where the
maximum power to be made available at any time exceeds one megawatt.
…………………………………………
(4) Where the State Commission permits a consumer or class of consumers to
receive supply of electricity from a person other than the distribution licensee of his
area of supply, such consumer shall be liable to pay an additional surcharge on the
charges of wheeling, as maybe specified by the State Commission, to meet the fixed
cost of such distribution licensee arising out of his obligation to supply.”
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Section 42 (2) specifically speaks about the Cross Subsidy Surcharge in the context
of a consumer of electricity and not when the electricity is procured by a licensee.
The purpose of Cross Subsidy Surcharge is to compensate the distribution licensee
of the area in regard to the prevalent extent of the cross-subsidization of one
category of consumers by another category. It cannot have any application in the
case of a licensee. Similarly, Section 42 (4) speaks about the Additional Surcharge
in the context of the State Commission permitting a consumer of a class of consumer
and not in the case of a distribution licensee procuring power.
24. With regard to the issue of payment of fixed charges for the stranded capacity, it
is submitted that there is no vital right of the distribution licensee or STU which is
being lost. The Railways have the right to seek open access under Electricity Act,
2003 independent of any other provision. The DHBVN cannot seek imposition of any
additional charges merely because they might lose Railways as a consumer. The
concept of stranded power arises from the obligations of the DHBVN to supply power
to its consumers. Indian Railways, being a distribution licensee, cannot be subjected
to any such charge on account of stranded power. It is submitted that the DHBVN is
seeking to compare the Indian Railways to Industrial Consumers availing open
access which is not acceptable.
25. Further, the DHBVN has not submitted any provision under Electricity Act, 2003
under which such Fixed Charges are being claimed. Indian Railways is no longer a
consumer of the DHBVN. The fixed cost determined by the Commission is for the
power purchased by the DHBVN for supply to its consumers. Therefore, there is no
rationale for Indian Railways to pay any fixed charges to the DHBVN. The DHBVN
cannot seek imposition of charges de hors the Act.
26. It is further submitted that if Indian Railways is required to pay monthly fixed charges
to the DHBVN, then the same is equivalent of Indian Railways continuing to a be a
consumer of the DHBVN.
27. It is submitted that the Indian Railways is ready and willing to comply with all the
terms and conditions of the Open Access Regulations notified by this Commission
and the Central Commission, as applicable to a deemed distribution licensee. It is
submitted that there can be no additional condition on the Indian Railways in order to
safeguard the interest of the DHBVN as claimed in the petition.
28. This Commission vide its interim order dated 23.02.2017 had held as under:
“In view of the above, the Discoms may issue ‘No Objection Certificate’ to the
Northern Railways, as a deemed distribution licensee, for availing medium term
Open Access, subject to the Northern Railways fulfilling the following:-
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i) Pay all dues, arrears to the Haryana Power Utilities prior to disconnection of supply
from the existing distribution licensee of the area.
ii) Provide ABT meter and associated equipments as per Central Electricity Authority
Metering Regulations, 2006 at all their Traction Sub – Stations prior to drawl of power
from JIPTL, or any other source for that matter, under Open Access Mechanism.
iii) Shall agree to pay reactive energy charges, transmission charges, open access
charges and any other charges including charges for standby power that the
Commission may decide by way of Regulations / Specific Order in the matter.
iv) Shall agree to settle / disburse the Transmission Charges / Open Access charges
and any other charges that the Commission may decide in the matter for use of State
Transmission / Distribution Utilities Network directly with HVPNL / Discoms.
………”
29. That without prejudice to the above Indian Railways has been making payment under
protest of transmission charges and imbalance charges. Further, Discoms have been
raising invoices for various other charges and insisting payment of the same before
processing NOC applications for open access for additional quantum of power
through Exchange. It is submitted that the above actions on the part of the Discoms
is nothing but arm twisting to compel Indian Railways to succumb to its illegal
demands without there being an order by this Commission in this regard. Further,
due to the above acts and/or omissions on the part of discoms for delaying the
process of procurement of additional quantum through open access is resulting in
over drawal and in turn payment of huge DSM charges/Imbalance Charges by
Railways to HVPNL.
(B) Reply filed by HVPNL
HVPNL filed its reply vide Memo no. CH-38/STU/OA-658 dated 22.08.2017 with
reference to Interim Order of the Commission dated 23.02.2017, submitting that
clause 7 of CEA Metering Regulations, 2006 regarding location of meters, should be
made applicable in the instant case, which provides as under:
“Location of meters: -
The location of interface meters, consumer meters and energy accounting and audit
meters shall be as per the Table given below: -
Provided that the generating companies or licensees may install meters at additional
locations in their systems depending upon the requirement.
S Stages Main Meter Check Meter
Stand by Meter
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N
B Transmission and Distribution System
At one end of the lice between the sub-stations of the same licensee, and at the both ends of the line between sub-stations of two different licensees. Meters at both ends shall be considered as main meters for respective licensees.
- There shall be no separate standby meter. Meter installed at other end of the line in case of two different licensees shall work as standby meter.
”
HVPNL further submitted that M/s. Northern Railways have also conveyed vide their
letter dated 18.08.2017 that in other States like Madhya Pradesh, Gujarat,
Maharashtra, Rajasthan etc. where railways is taking power on Open Access as
deemed distribution licensee, the meters have been provided at the Grid Sub-
Stations and not at Traction Sub-Stations of Railways.
HVPNL further submitted that in case of all consumers drawing power through Short
Term/Medium Term/Long Term Open Access in Haryana, the ABT meters are
installed at Grid Sub-Station end and not at the consumer’s end, so that all the line
losses of independent feeders are to the consumer’s account.
The issue raised by HVPNL was addressed vide memo no. 2213-16/HERC/Tech.
dated 26.09.2017 with the following substitution of the condition no. ii to the “NOC”,
specified in the Order of the Commission dated 23.02.2017:-
Original condition:
“ii) Provide ABT meter and associated equipments as per Central Electricity Authority
Metering Regulations, 2006 at all their Traction Sub – Stations prior to drawl of
power from JIPTL, or any other source for that matter, under Open Access
Mechanism.”
Substituted by:
“ii) Metering as per Central Electricity Authority, Metering Regulations, 2006 read with
subsequent amendment thereof.”
HVPNL has filed its reply vide memo no. Ch-14/STU-OA-658/HERC dated
04.01.2019, with reference to the Commission’s memo no. 3761-62/HERC/Tariff
dated 23.01.2018 directing HVPNL and DHBVNL to submit the study report on the
charges being levied on deemed distribution licensees by other states. DHBVNL &
HVPNL were also directed to follow up with the Government of Haryana on the issue
of exemption of levy of cross subsidy charge on the Railways, vide its Interim Order
dated 13.12.2018 and letter nos. 1507/HERC/Tariff dated 01.08.2017 &
2704/HERC/Tariff dated 03.11.2017.
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HVPNL has submitted as under: -
1. Open access to Northern Railways as deemed distribution licensee in Haryana.
The Northern Railway’s Delhi Division has applied for Medium Term Open Access as
a deemed distribution licensee for drawl of 38 MW Power from JIPTL, Orissa for
following TSS delivery points: -
a. 132 KV Sub-Station GSS Asaudha (HVPNL) A/c No. RT22-0001 with contract
demand of 5 MVA.
b. 66 KV sub-station Ballabhgarh (BBMB) A/c No. RT01- LS with contract demand
of 33 MVA.
c. 220 KV sub-station, Abdullhapur (PGCIL) A/c No. A4-247 with contract demand
of 12.5 MVA.
d. 132 KV sub-station PTPS, Panipat (HPVNL) A/c No. RT01 0 1001-K with contract
demand of 30 MVA.
1.1 At the time of making application for Medium Term Open Access, Northern Railways
was a consumer of DISCOMs, having certain account nos., sanctioned Load and
contract demand. However, the Northern Railways applied for disconnection and
cease the consumer of DHBVN from the day they get power through Medium Term
Open Access.
1.2 A Petition seeking clarification on various applicable charges under Clause 19,
20,21,22,23,24,57,58 and 59 of the Haryana Electricity Regulatory Commission
(Terms and conditions for grant of connectivity and open access for intrastate
transmission and distribution system) Regulations, 2012 (No. 25/HERC/2012 dated
11.01.2012) to be levied on Northern Railways as Deemed Distribution Licensee for
availing open access was filed by DHBVN before the Commission.
1.3 The Commission, vide interim order dated 23.02.2017 has observed that the
Northern Railways is a deemed licensee under the Electricity Act, 2003 as also held
by the CERC and Hon’ble APTEL. A deemed licensee has been exempted from
making an application to the Commission for seeking license. However, a deemed
licensee is bound by the terms and conditions of license specified or to be specified
by the Appropriate Commission under proviso to Section 16 of the Electricity Act and
also directed that “The DISCOMS may issue ‘No Objection Certificate’ to the
Northern Railways, as a deemed distribution licensee, for availing medium term Open
Access, subject to the Northern Railways fulfil the conditions.
2. The Commission in its Interim Order has also observed as under:-
2.1 Northern Railways is connected to the STU in Haryana as a consumer and has
submitted that they will cease to be a consumer (by making an application for
disconnection), hence, it shall be ensured that the connection agreement / grant of
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connectivity by the STU as an Open Access Consumer shall be as a distribution
licensee.
2.2 Further, it is noteworthy that Open Access is to be granted to Northern Railways
under the provisions, terms and conditions contained in the Haryana Open Access
Regulations, 2012. However, in the present case, the deemed licensee i.e. Northern
Railways desires to procure power to meet its own power requirement at different
Traction Sub-Stations (TSS) and not to distribute the same to any other consumers /
group of consumers.
2.3 Shall implement and comply with the Distribution Code specified by the Commission;
provided that the Commission may issue an order either on an application or suo-
motu relieving the Northern Railways of its obligations under the Distribution Code to
such extent as the Commission may lay down.
2.4 Shall operate its Distribution System (TSS) connected to the Grid Sub-Stations in
accordance with the Distribution System Operating Standards together with the
Distribution Code as approved by the Commission.
3. Medium term open access to Northern Railways:-
The Medium Term Open Access (MTOA) was granted and accordingly agreement
was signed with Northern Railway on 29.09.2017 for transfer of 38 MW Power in
compliance to HERC order dated 23.02.2017, after receipt of consent from DISCOM.
The Northern Railways has entered into a Power Purchase Agreement (PPA) with
JITPL for Power supply of 38 MW. The One no. Traction Sub-station i.e. Ghaso from
132 kV HVPNL Sub-station Uchana was also included in the said MTOA Agreement
vide letter dated 04.01.2018.
The detail of Medium Term Open Access (MTOA) granted by is as under:-
4. Provision in HERC Open Access regulation for Imbalance charges
As per clause 24 of the 1st amendment of HERC Open Access Regulation, the UI
charges as notified by CERC for intra-state entities or highest tariff (other than
temporary metered supply), including FSA and PLEC (in case over drawl happens to
be during peak load hours), as determined by the Commission for the relevant
financial year for any consumer category, whichever is higher, shall be paid by the
Injection of Power Drawl of Power
Entity / Location of Generating Station
Region
MTOA Granted for (MW)
Date from which MTOA is Granted
Date upto which MTOA is granted
Entity / Location of Loads
Region
Jindal India Thermal Power Ltd. Odisha
ER 38 1-Oct-2017 25-Apr-2020 Northern Railway, Haryana
NR
29 | P a g e
open access consumer to the distribution licensee for the over drawl. However, the
over drawl will be loaded with intra-state transmission losses, as determined by the
Commission in the tariff order for transmission business for that year, and distribution
losses, as used for calculation of wheeling charges in the tariff order for distribution
business for that year, before calculating the payable amount
The invoice of imbalance charges is being issued to Railway and paid by Railway.
5. Transmission charges for Open Access on Indian Railways by other States:-
5.1 MAHARASHTRA: Petition (case no. 114 of 2016) of Maharashtra State
Electricity Distribution Co. Ltd for a mechanism for recovery of charges on
account of over-drawl by Indian Railways before the MERC.
The intra- state Charges shall be shared by Distribution Licensees in accordance
with their respective contributions to the average of CPD (coincident peak demand)
and NCPD (non coincident peak demand).
The MoP has notified a Scheme for utilization of Gas-based Power generation
capacity on 27 March, 2015 for FY 2015-16 and FY 2016-17. Around 14,305 MW of
capacity has been classified as ‘stranded gas-based Plants’ due to non-availability of
domestic gas. The Scheme envisages financial support to buy imported gas for the
stranded Gas Plants under the Power System Development Fund (PSDF).
Under this Scheme, Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) has secured gas
and has tied up to supply of power to the Indian Railways for 620 MW. Indian
Railways is utilizing this power in the States of Maharashtra, Gujarat, Madhya
Pradesh and Jharkhand.
Further As per Regulation 3 of MSERC of the Gas-based Power Utilization Scheme
Regulations, the Central Railways is exempted from paying Transmission Charges
for the gas-based power sourced from RGPPL
In view of the above, the STU shall recover, with applicable interest, the
Transmission Charges and Losses for the over-drawal of power by Indian Railways
in FY 2015-16 and FY 2016-17 from the State Grid because of tripping of RGPPL’s
contracted Units or for any other reason.
Copy of Hon’ble MERC order in Case No. 114 of 2016 (In the matter of Petition of
Maharashtra State Electricity Distribution Co. Ltd is enclosed as Annexure-I
5.2 MADHYA PRADESH Petition No. 32/2017: In the matter of Petition for allowing
billing / recovery of Transmission Charges in respect of control period FY 2016-17 to
FY 2018-19 and beyond from Long Term Open Access Customers, on the basis of
capacity recorded beyond allocated capacity, subject to True-up, with a view to
remove difficulties in judicious allocation of capacity before MPERC Bhopal as
under:-
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In case the supplementary agreement is not executed by Respondent No.5 (WCR)
within two months as mentioned above, the transmission capacity utilized over and
above the contracted capacity in existing BPTA shall be billed by MPPTCL at 1.5
times of transmission charges for WCR as per Commission’s Transmission tariff
order applicable for such period. The aforesaid billing shall commence from the
month in which over utilization of transmission capacity as mentioned at S. No. (i) is
violated. In case the delay in execution of supplementary agreement is on account of
MPPTCL, the transmission capacity utilized over and above the contracted capacity
in existing BPTA shall be billed by MPPTCL at normal transmission charges for WCR
as per Commission’s transmission tariff order applicable for such period.
6. HERC SUPPLY CODE REGULATION, 2014: The relevant portion of HERC
The HVPNL is having 3–phase system, whereas the Railway is having supply at 2-
phase system at TSS Assaudha, Abdullapur and Ghaso.
Therefore, the total Transformation Capacity at 2-phase i.e. capacity blockage of
Power Transformer (virtual capacity of Transformer) works out higher as compared to
3 phase.
For example, In the approval for TSS Ghaso wherein ultimate load of 10 MVA at 2-
phase is equal to virtual load of 17.3 MVA i.e. capacity blockage of Power
Transformer at 3-phase.
8. It is submitted that, the Norhern Railways has not made any arrangement for
stand-by power, this has resulted in over-drawal of power from the Grid by
Northern Railways. Such events occurring frequently affect the Grid of the
State as well as financially impact the Utilities. Further the Northern Railway is
also drawing more Power than Contracted capacity.
9. Present method for recovery of Transmission charges:-
As per Clause No 10 of HERC Open Access 1st amendment Regulation (Regulation
19 of the Principal Regulations) the annual transmission charges shall be shared by
all the beneficiaries i.e. distribution licensees, long-term open access consumers and
medium-term open access consumers in the ratio of their allocated transformation
capacity or contracted capacity, whichever applicable, and shall be payable on
monthly basis.
Note: Where allocated Transformation Capacity (MVA) of a beneficiary is not
available, the contracted capacity in MW shall be converted in MVA at a power factor
of 0.90 and the same shall be considered for computation of monthly transmission
charges payable by the beneficiaries.
Accordingly, the transmission charges according to contracted capacity of 38
MW equivalent to 42.22 MVA (MW capacity converted in MVA at a power factor of
0.90) is being charged from Northern Railway.
However, it has been also observed that this method is best suited for
“embedded open access consumer” means a consumer who has a supply
agreement with the distribution licensee without ceasing to be a consumer of the said
distribution licensee and continues to pay various charges as per tariff schedule
applicable to relevant consumer category
32 | P a g e
The Railway is drawing excess power as against the MTOA granted. In
addition, the allocated Transformation capacity to Northern Railway works out to be
more than the Medium Term Open Access Capacity of 38 MW. As such, the
applicable Transmission charges from Northern Railway may be applied as per ratio
of their allocated transformation capacity as applicable to other Discom as one of the
option for recovery of Transmission charges.
10. Various mechanism for recovery of Transmission Charges: -
10.1 The applicable Transmission charges can be recovered as under: -
Mechanism 1 Based on the Maximum Power drawn by Northern Railway at all interconnection point during the corresponding month over and above contracted capacity in MW.
Mechanism 2 Based on Contract demand (MVA) sanctioned by DISCOM and mentioned in the MTOA agreement.
Mechanism 3 Based on capacity blockage of Power Transformer being fed through Single/Two Phase supply i.e virtual capacity.
Mechanism 4 Based on the allocated transformation capacity at drawl point.
Mechanism 1: - Based on the maximum power drawn by Northern Railway at all interconnection point during the corresponding month over and above the contracted capacity in MW.
Month Contracted Capacity (MW)
Max. sum of Drawl of all interconnection point during any time slot (MW)
Maximum Over drawl or Deviation (MW) for MTOA Transmission Charges
Mechanism 2: - Based on Contract demand (MVA) sanctioned by DISCOM before
MTOA agreement: - As per HERC open Access Regulation “contract demand” means
demand in kilovolt ampere (KVA) or megavolt ampere (MVA) mutually agreed between the
distribution licensee and the consumer as entered into the agreement for supply of
electricity. It is submitted that when northern Railway was consumer of Discom the northern
Railway was having Contract Demand. After signing of Medium Term Open Access (MTOA)
as a deemed licensee the northern railway ceased the consumer of Discoms, as such no
contract demand of individual TSS is available in record and monitored by Discoms for tariff
purpose.
Mechanism 3: - Based on capacity blockage of Power Transformer being fed through
Two Phase i.e virtual capacity: - The Railway is drawing power at Various TSS from 2-
phase from HVPNL sub-stations. Therefore, the total Transformation Capacity i.e. capacity
blockage of Power Transformer (virtual capacity of Transformer) works out as higher that the
3 phase. One such example available when Chief Engineer/ Planning HVPNL vide R. no.
1360/Ch-15/HAP-85 dated 07.09.2015 has approved the TSS Ghaso from 132 kV sub-
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station Uchana with ultimate load of 10 MVA and also specified that (virtual load of 17.3
MVA i.e. capacity blockage of Power Transformer.
Mechanism 4: - Based on the allocated transformation capacity at drawl point
mentioned in the Medium Term Open Access Agreement: - Northern Railway is no more
consumer of Discom and is deemed distribution licensee. As such the applicable
Transmission charges from Northern Railway is applicable in the ratio of their allocated
transformation capacity as applicable to other Discoms. The contract Demand as available in
MTOA agreement may be considered as allocated transformation capacity
11. The following prayer has been made:-
At present, the Railways is paying transmission charges on scheduled capacity of 38
MW (42.22 MVA). However, the Transformation capacity allocated to Northern Railway
works out to be more than the Medium Term Open Access capacity. In addition, Railway is
drawing excess power against the 38 MW of MTOA granted & moreover Railway can draw
any quantum of Power without any restriction in absence of any penalty mechanism which
was earlier available for violation of Contract Demand of individual TSS of embedded
consumer but not available for deemed licensee.
In view of the above, HVPNL has requested to decide the method to recover/charge
Transmission charges from Railway from the date of start of Medium term Open access
based on the Contract demand (MVA) (in case of 3 phase supply) and capacity blockage of
Power Transformer (in case of two phase supply) for following TSS: -
HVPNL rejoinder to the reply of Northern railways:-
HVPNL, vide its memo no. Ch-22/STU/OA-658/Petition dated 12.02.2019, filed rejoinder to
the reply filed by Northern Railways. HVPNL submitted as under:-
Sr. No
Name of S/Stn./Drawl point
Supply system Contract demand (MVA) based on sanctioned by DISCOM before MTOA agreement/ Capacity blockage of Power Transformer (virtual load i.e. capacity blockage of Power Transformer)
1 132 KV Sub-Station TSS Asaudha
2 phase supply
5 MVA (Contract Demand)
2 220/66 kV BBMB, Ballabhgarh
3 phase supply
33 MVA (Contract Demand)
3 400/200 kV PGCIL, Abdullapur
2 phase supply
12.5 MVA (Contract Demand)
4 132 kV PTPS Diwana 3 phase supply
30 MVA (Contract Demand)
5 132 kV Sub-Station Uuchana TSS Ghaso
2 phase supply
17.3 MVA i.e. capacity blockage of Power Transformer
Total 97.8 MVA
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A. IMBALANCE CHARGES (CLAUSE NO 24 OF OPEN ACCESS REGULATION):
1. The imbalance charges levied to the Northern Railway are in accordance with the
prevailing HERC Regulations and MTOA Agreement.
2. The Commission notified the HERC (Terms and conditions for grant of connectivity
and open access for intra-State transmission and distribution system) Regulations,
2012 on 11.01.2012 (herein after referred to as OA Regulation, 2012). The scope
and extent of Imbalance Charge as per ibid Regulations applicable to an open
access consumer who is not consumer of the distribution licensee is as under :-
Regulation (24) “Imbalance Charge: - (1) Scheduling of all transactions pursuant to
grant of long-term access or medium term open access or short-term open access
shall be carried out on day-ahead basis in accordance with the relevant provisions of
IEGC for inter-State transactions and in accordance with Haryana Grid Code for
intra-State transactions. The entitlement at the drawal point for any 15 minute time
block shall be worked out after taking into account transmission or distribution losses
in accordance with the provisions of regulation 28 of these regulations.
(2) Imbalance charge applicable for all open access transactions for over drawl /
under injection or under drawl / over injection by long-term, medium-term and short-
term open access consumers / generators shall be as given below:
(A) Due to reasons attributable to the open access consumers
(a) Over drawl by open access consumer / under injection by generating company:
(i) An open access consumer who is not consumer of the distribution licensee:
UI charges as notified by CERC or highest tariff (other than temporary metered
supply) including FSA and PLEC etc. as determined by the Commission for the
relevant financial year for any consumer category, whichever is higher.
(ii)….
(iii)…..
(b) Under drawl by open access consumer / over injection by generating company:
The open access consumer / generating company shall be paid by the licensee UI
charges as notified by CERC or lowest tariff as determined by the Commission for
the relevant financial year for any consumer category (excluding agriculture power
supply) or power purchase price/sale price contracted by the open access consumer/
generating company whichever is lower.”
3. Further, as per 1st amendment dated 03.12.2013 of HERC OA Regulation, 2012, the
Regulations 24 (2) of the Principal Regulations was substituted as under:
“(2) Imbalance charges applicable for all open access transactions for the overdrawl
/underdrawl by an open access consumer or for the under injection / over injection by
a generator or trader shall be as given below.
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(A) Due to reasons attributable to the open access consumers/generator/trader
I. Over drawl by open access consumer/under injection by a generator or trader:
(i) An open access consumer who is not a consumer of the distribution licensee:
UI charges as notified by CERC for intra-state entities or highest tariff (other than
temporary metered supply), including FSA and PLEC (in case over drawl
happens to be during peak load hours), as determined by the Commission for the
relevant financial year for any consumer category, whichever is higher, shall be
paid by the open access consumer to the distribution licensee for the overdrawl.
However, the overdrawl will be loaded with intra-state transmission losses, as
determined by the Commission in the tariff order for transmission business for
that year, and distribution losses, as used for calculation of wheeling charges in
the tariff order for distribution business for that year, before calculating the
payable amount.
(ii)….
(iii)…..
II. Underdrawl by open access consumer/Over injection by generator/trader
(i) Under drawl by open access consumer: In the event of underdrawl, the consumer
will be paid by the licensee UI charges as notified by CERC for intra-state entities or
lowest tariff as determined by the Commission for the relevant financial year for any
consumer category or power purchase price/sale price contracted by the open
access consumer whichever is lower provided that no imbalance charges shall be
payable by the distribution licensee to the open access consumer for the under drawl
beyond 10% of the entitled drawl in a time – slot or beyond 5% of the entitled drawl
on aggregate basis for all the 96 time-slots in a day. However, if the under drawl by
the consumer is on account of any force majeure conditions such as earth quake,
flood, war or any other act of God which simultaneously do not disable the
distribution licensee from supplying power, the consumer will be paid imbalance
charges as above for the entire under drawl during such period.”
4. The provisions regarding imbalance charges as mentioned in Hon’ble Punjab State
Electricity Regulatory Commission (Terms and Conditions for Intra-state Open
Access) Regulations, 2011 is as under:-
“(Regulation 31): Imbalance Charge :- The entitlement at the drawal point for
any 15 minute time block shall be worked out after considering the Transmission and
Distribution losses as determined by the Commission in the Tariff Order for that year.
(1) Open Access customer When the Open Access customer is not a
consumer of the licensee, the mismatch of scheduled entitlement and actual drawal
36 | P a g e
for any 15 minutes time block shall be met from the grid and will be paid/charged as
under: -
Overdrawal UI charges + Congestion charges, if any, as notified by CERC
from time to time or Highest tariff for any permanent consumer category at that point
of time (including PLEC), approved by the Commission in its Tariff Order for that
year. whichever is higher, will be paid by the Open Access customer to the
distribution licensee.
However, the overdrawal will be loaded with the intra-State T&D losses
determined by the Commission in its Tariff Order for that year, before calculating the
payable amount. b) Underdrawal In the event of underdrawal for any 15 minute time
block, the Open Access customer will be paid by the distribution licensee as under:
UI charges or Applicable lowest tariff for any permanent category/sub-
category determined by the Commission in its Tariff Order for that year, or the
purchase/sale price of the open access customer, whichever is the lowest.”
5. Further, a petition no. 03 of 2017 regarding Imbalance charges was filed before
Hon’ble Punjab State Electricity Regulatory Commission (PSERC) in the matter of
Punjab State Power Corporation Ltd. (PSPCL) versus Northern Railways, Ambala
Division wherein Hon’ble Commission has ordered (order dated 28.02.2018, page
no. 29) as under:
“The Commission refers to Punjab State Electricity Regulatory Commission (Terms
and Conditions for Intra-State Open Access) Regulations, 2011, and observes that
such exigencies/overdrawals by open access customers are to be dealt under
“Imbalance Charges‟ and provision for standby charges as proposed by PSPCL does
not exist in the existing Regulations. However, the petitioner is at liberty to file a
separate petition for consideration of amendment to the Regulations by the
Commission.”
6. The provisions regarding imbalance charges are similar in HERC OA Regulation &
PSERC Open Access Regulation and PSERC vide order dated 28.02.2018 ordered
that the Northern Railway has to pay imbalance charges as per state regulation for
Open Access.
7. The provisions regarding imbalance charges as mentioned in the HERC MYT
Regulation are reproduced as under:
(Regulation 35) UNSCHEDULED INTERCHANGE CHARGES: - (a) As and when
intra state ABT is implemented, all variations between actual net injection and
scheduled net injection for generating plant, and all variations between actual net
drawl and schedule net drawl for beneficiaries shall be treated as their respective
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unscheduled interchanges (UI) and will be dealt with as per the intra-State ABT
regulations to be notified by the Commission.
8. The Commission has recently published draft “Deviation settlement Mechanism &
Related matter Regulation 2018” for the comments of stake holders wherein it has
been clearly specified that the ibid Regulation shall be applicable on all licensee
including deemed licensee.
9. As per provision of MYT regulation, the profit and loss on account of unscheduled
interchange or imbalance charges shall be to the account of the generating company.
However, railway is advocating for application of CERC rates for settlement of
imbalance charges whereas no other consumer till date has disputed the provision of
the HERC Regulations although all power schedule by Open Access consumer in the
Haryana is either through IEX or Bilateral are inter-state in nature.
It is submitted that the objective of the Central Electricity Regulatory Commission
(Deviation Settlement Mechanism and related matters regulations) is to maintain grid
discipline and grid security as envisaged under the Grid Code through the
commercial mechanism i.e. Deviation Settlement Mechansim.
Further, as per Central Electricity Regulatory Commission (Deviation Settlement
Mechanism and related matters) 3rd Amendment Regulations, 2016 the following
proviso has been added below Regulation 2 (1) (h) of the Principal Regulations:
“Provided that deviation shall be calculated for the Regional Entities by the
concerned RLDC/RPC which shall be attributed to various entities embedded within
the State by SLDC.”
In view of above provisions mentioned in HERC Regulations and PSERC Regulation,
the imbalance charges are applied on Northern railway are in line with the HERC
Regulation. As such, the submission made by Northern Railways in its reply is not
tenable.
B. TRANSMISSION & WHEELING CHARGES:
10. The Commission vide its letter dated 23.01.2018 has directed DHBVN and HVPNL to
submit study report on the charges being levied on deemed distribution licensees by
other states. Accordingly, the study report alongwith orders of Hon’ble Maharashtra
Electricity Regulatory Commission (MSERC) and Madhya Pradesh Electricity
Regulatory Commission (MPERC) were submitted vide letter memo dated
04.01.2019 along with a request to approve levy of Transmission charges as per
transformation capacity blocked by Northern Railway.
11. Further, clause 51 of HERC OA Regulation, 2012 regarding penalty for over
injection/drawl from the system stipulates as under:-
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“Over injection / drawl from the system: - In case an open access consumer
injects or draws more than the allocated capacity in the transmission and or
distribution system beyond 10%, the open access consumer shall pay 150% of the
applicable transmission and or wheeling charges for this excess injection / drawl than
the allocated capacity. The charges for this excess injection / drawl beyond 10% are
to be levied in accordance with the approved detailed procedure. Provided that in
case an open access consumer frequently injects or draws more than the allocated
capacity then the nodal agency may revise the allocated capacity in the transmission
and or distribution system in accordance with the approved detailed procedure.
However, before doing this, opportunity shall be given to the open access consumer
to explain its position.”
Northern Railway is drawing excess power from grid as compare to
scheduled MTOA capacity i.e. 38 MW.
In view of above submission and provisions in HERC Open Access
Regulation, the Commission is requested to approve:-
i) The transmission charges shall be levied as per contract demand in MVA (in
case of 3 phase supply) and capacity blockage of Power Transformer (in case
of 2-phase supply) and that shall be applicable from start date of Medium Term
Open Access
ii) Northern Railway shall also make payment of transmission charges as per
clause 51 of HERC OA regulation for excess drawl beyond 10% of the allocated
capacity from the date of Start of Medium Term Open Access.
C. REACTIVE ENERGY CHARGES (CLAUSE 25 OF OPEN ACCESS REGULATION)
12. Regulation clause 25 of HERC OA Regulation, 2012 provides that long term open
access consumer or medium term open access consumer or short term open access
consumer, including distribution licensee, shall pay for the reactive energy in
accordance with provisions of the Intra-State ABT Regulations and Haryana Grid
Code notified by the Commission. In absence of the aforesaid regulation of the
Commission or rates to be specified by the Commission, the rates specified in Indian
Electricity Grid Code or the rates specified by CERC shall be applicable.
13. The Regulation clause 48 of HERC MYT Regulation, 2012 regarding reactive energy
charges stipulates as under:
“(a) The reactive energy charges shall be as provided in the Haryana Grid Code as
amended from time to time.
(b) Reactive energy charge shall be payable and shared as per regulation 5.5.1 of
Haryana Grid Code (HGC) Regulation, 2009 as amended from time to time;
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(c) Reactive energy account shall be maintained and operated as per the intra-
State ABT regulations to be notified by the Commission and as amended from
time to time. Until the intra-State ABT regulations are notified by the
Commission, CERC ABT regulations shall be applicable;”
Further, Regulation clause 61.3 provides as under:-
“The reactive energy charges payable by the distribution licensee to the transmission
licensee shall be payable as per regulation 5.5.1 of the Haryana Grid Code (HGC) as
amended from time to time.”
In view of above provisions, the Reactive Energy Charges shall be applicable as per
HERC Open Access Regulation 2012 on Northern Railway. However, at present
Northern Railway is not paying these charges. As such, It is requested that Northern
Railway may be directed to pay the Reactive energy charges along with the
surcharge as per HERC OA Regulation, 2012 as amended from time to time.
D. STANDBY CHARGES FOR DRAWL OF POWER BY OPEN ACCESS CONSUMER
FROM DISTRIBUTION LICENSEE (CLAUSE 23) OF OPEN ACCESS
REGULATION
14. The clause 23 of HERC OA Regulation, 2012 regarding standby charges stipulates
as under: -
“(a) If an open access consumer requires power from the distribution licensee in
case of outage of the generator or the source supplying power to such open
access consumer, or a generator connected to distribution system injecting
power through open access, requires start up power from the distribution
licensee, then such open access consumer or generator may make an
application to the distribution licensee seeking standby power. The application
shall be made on the format and in the manner as may be prescribed in the
detailed procedure. However, every such application should invariably contain
details of quantum and period for which standby power is required.
(b) The distribution licensee shall provide standby power to such open access
consumer subject to availability of requisite quantum of power and subject to the
load shedding as applicable to other consumers of his area of supply.
(c) For providing standby power, the distribution licensee shall be entitled to charge
applicable temporary supply tariff and other applicable charges besides PLEC, if
applicable, as determined by the Commission. Provided further that the open
access consumers would have the option to arrange standby power from any
other source subject to the conditions that such power shall be drawn through
the same system for which open access has been granted.
15. The Northern Railway in their reply dated 17.12.2018, intimated as under:
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“ ……..Thus the distribution licensee may charge temporary tariff for the said
time (day or hours) of supply.”
In view of the above submission, the standby charges shall be applicable on
Northern Railway as per HERC OA Regulation, 2012.
However, after availing medium term Open Access, the Northern Railway ceased to
be the consumer of DISCOM & no such request for Standby power has been
submitted by the Northern Railway. As such, the Northern Railway may be directed
to make agreement with the DISCOM for stand by Power and submit application
containing details of quantum and period for which standby power is required. Others
modalities/procedure regarding submission of application to the distribution licensee
of individual TSS location needs to be framed by DISCOMs.
16. As per National tariff Policy, the surcharge may be collected either by the distribution
licensee, transmission licensee, STU or CTU, depending on whose facilities are used
by the consumer for availing electricity supplies. In all cases the amounts collected
from a particular consumer should be given to the distribution licensee in whose area
the consumer is located. In case of two licensees supplying in the same area, the
licensee from whom the consumer was availing supply shall be paid the amounts
collected. Further, clause 21 of HERC OA Regulation, 2012 provides that if open
access is availed by a consumer of a distribution licensee of the State, then such
consumer, in addition to payment of transmission and / or wheeling charges, shall
pay cross subsidy surcharge. Cross subsidy surcharge on per unit basis shall be
payable, on monthly basis, by the open access consumer for the actual energy
drawn through open access during the month. The amount of surcharge shall be paid
to the distribution licensee of the area of supply in which such consumer is located.
17. The provisions regarding cross subsidy charges (CSS) mentioned under ARR order
of different States are as under:
i) MAHARSHTRA:
As per Hon’ble MERC order in case No 195 of 2017 dated 12.09.2018 at page no
504 (in the matter of Mid-Term Review Petition of Maharashtra State Electricity
Distribution Company Limited for Truing-up of ARR of FY 2015-16 and FY 2016-17,
Provisional Truing-up of ARR of FY 2017-18 and Revised Projections of ARR for FY
2018-19 and FY 2019-20), the applicable cross subsidy surcharge for
Railways/Metro/Monorail Traction is Rs 1.67 per kwh.
ii) GUJRAT:
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As per Hon’ble GERC order dated 31st March, 2016 in case no. 1547 of 2015 and
case no. 1547 of 2015 (page no 43) (Truing up for FY 2014-15 approval of
provisional ARR for FY 2016-17 and determination of Tariff for FY 2016-17 for Uttar
Gujarat Vij Company Limited (UGVCL), it has been provided as under: -
“Railway as deemed licensee –Railway is a deemed Licensee under the third
proviso to Section 14 of the Electricity Act 2003. Further, Hon'ble CERC has ruled
that Railway is a deemed distribution licensee vide petition no. 197/MP/2015 (Para
52 (b) dated 05.11.15). In view of the above, Railway shall be exempted from paying
the cross subsidy and accordingly Railway traction tariff may be reduced
substantially.
Reply of DISCOM 1- As per the Hon’ble CERC order dated 5.11.2015, Indian
Railway has been granted the status of deemed distribution licensee under third
proviso to Section 14 of the Electricity Act, 2003. Accordingly, Indian Railway is
entitled to arrange its power requirement on its own from various sources. As such,
Indian Railway has surrendered its contract demand with DISCOMs and commenced
sourcing power requirement from the sources of its choice by entering into contract at
the mutually agreed terms and conditions between them and became pool member
of UI/DSM accounts of SLDC-Gujarat. Since, Indian Railway presently not being a
consumer of DISCOMs, the issues raised on the tariff proposal / structure for FY
2016-17 is not subsisting at all.
Cross Subsidy: The National Tariff Policy mentions the need to have a
rationalization of tariff to various consumer categories such that it is more aligned to
the cost of supply and in a band of ± 20 % to the average cost of supply. However,
while implementing the above, ground realities of the sector has to be kept in view.
One of the primary beneficiaries of the State’s efforts to supply good quality,
uninterrupted power is the Industries and commercial entities in the state. On the
other hand, agriculture category is being supplied only limited power per day of about
8 hours. Further, mostly this power is supplied to them during off peak hours and
during night time, when the average cost of power purchase from various generating
stations is much lower due to the merit order stacking mechanism for power off take.
In effect, the cost of supply to agriculture category would be much lower than to other
categories enjoying power during peak hours also. Thus, it is natural that the tariff
rates for agriculture should be lower than other consumer categories. While, in the
long run it would be desirable to have some rationalization of tariff across consumer
categories, the socio-economic situation of power consumers cannot be neglected as
supplying power at affordable rates to all classes of consumers is a primary
responsibility of a power utility. In the era when most of the public serving utilities are
42 | P a g e
working with the principle of subsidising some part of the consumers, it is not
possible for the utility to bill a particular category on the basis of cost to serve without
changing the tariff of the other categories of consumer. Further, to ensure uniform
tariff rates for all four state owned Distribution Companies, differential bulk supply
tariff mechanism is in place. Average realization from the Railway has been within
the limit of +20%.
Commission’s (GERC) Observations: The response of the DISCOMs is self-
explanatory. As regards, the Commission has always endeavoured to reduce the
cross subsidy as provided under the Electricity Act, 2003 and the Tariff Policy.”
iii) Jharkhand:
Hon’ble JSERC vide order dated 27.04.2018 on Annual Performance Review for FY
2016-17 and Determination of Revised ARR and Tariff for the FY 2017-18 & FY
2018-19 for Jharkhand Bijli Vitran Nigam Limited (JBVNL) has determined the cross
subsidy surcharge payable by Railway as Rs1.23 per Kwh.
iv) MADHYA PRADESH
Hon’ble MPERC in petition No 3/2018 (in the matter of determination of ARR and
Retail Supply Tariff for FY 2018-19) based on the ARR & Tariff Petition filed by the
Distribution Licensees has approved cross subsidy applicable on Railways.
v) PUNJAB: -
Hon’ble PSERC in petitions filed by PSPCL (for true up of FY 2016-17, annual
performance review of FY 2017-18 and revised estimates for FY 2018-19) has
ordered that as per clause 26(2) of PSERC (Open Access) Regulations 2011, the
cross-subsidy surcharge for Railway Traction during FY 2018-19 shall be 103
paise/kWh.
vi) TELENGANA: -
As per petition dated 26.08.2017for determination of Cross Subsidy Surcharge for FY
2017-18, it has been ordered as under: -
“If the Indian Railways desires to avail of the Deemed Licensee status in order to
avail of the exemption from payment of Cross Subsidy Surcharge, it can approach
the Commission through a Petition as per the Regulations in force, and such petition
shall be disposed-off in accordance with the provisions of the Act after following the
principles of natural justice.”
(F) ADDITIONAL SURCHARGE
18. that on the reading of ARR order of various states mentioned above, most of states
has levied the additional surcharge on Indian Railway for availing Open access as
mentioned in above order of various states. As per available Tariff order of various
states, the surcharge is applicable on all Open access consumers located in the area
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of supply of a distribution licensee but availing open access exclusively on inter-State
transmission system are also required to pay the additional surcharge.
19. Keeping in view the above facts, the para-wise reply to the letter dated 17.12.2018 of
Northern Railway is as under-
Paras 1 - 6
The contents of paras 1 to 6 are matter of record and do not call for any reply.
Para 7
It is correct that Indian Railway is entitled for Open Access as per order of this Hon’ble Commission but on payment of various applicable charges as per HERC OA Regulation, 2012 being medium term Open Access consumer
Para 8 to 11
The contents of Paras 8 & 9 are the matter of record and do not call for any reply.
Para 12
The section-16 of Electricity Act, 2003 provides conditions for licensee. As per CERC order dated 05.11.2015, the Northern Railway was granted the status of deemed distribution licensee under 3rd proviso of clause 14 of Electricity Act, 2003. The clause 16 of Electricity Act, 2003 provides conditions for licensee eligible under clause 14. The clause 16 provides that appropriate Commission may specify any general or specific conditions to a licensee and such conditions shall be deemed to be conditions of such licence. The relevant clause is reproduced as under: “The Appropriate Commission may specify any general or specific conditions which shall apply either to a licensee or class of licensees and such conditions shall be deemed to be conditions of such licence”
Para 13
Railway is drawing excess Power at one or two traction substations over and above their contract demand. The Indian Railway may be directed to limit drawl at individual TSS as per contract demand mentioned under medium term Open Access agreement.
Para 14
The Medium Term Open Access agreement was executed on 29.09.2017 in accordance with the HERC Open Access Regulation, 2012 after order of the Commission on 23.02.2017. Accordingly, charges mentioned under ibid Regulation are applicable on Northern Railways.
Para 15 & 16
From the Hon’ble Central Commission order, it is understood that for the TSSs situated in a State and connected to State network, the function of scheduling, metering, balancing, applicability of ISTS charges and losses etc. shall vest in the concerned SLDC. Therefore, the contention of Railways that the imbalance charges for the imbalance quantum of electricity drawn by Indian Railways at the Haryana periphery including the quantum drawn at traction substations should be applicable as per Central Commission Regulations in incorrect. Indian Railway is an entity embedded in Haryana State and as such imbalance charges shall be applicable as per HERC Regulation, whereas the DISCOMs (UHBVN & DHBVN) are regional entity for scheduling of interstate generating station and imbalance charges/UI charges calculated by NRPC as per CERC regulation are applicable.
Para 17
The imbalance charges are being levied in accordance with the provisions of HERC OA Regulation, 2012 and as agreed in the Medium Term Open Access agreement dated 29.09.2017 executed between HVPNL & Northern Railways. It is already submitted in the above paras that imbalance charges are applicable for maintaining grid discipline and any entity can avoid the charges by scheduling generation according to load requirement.
Para 18
It is correct that Indian Railway is getting Electricity in the state of Haryana through Open Access from a generator situated in Orissa. However, it is not correct that only inter- state transmission is used as Indian Railway is connected to HVPNL system directly.
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Further, before availing Power through Open Access, the Northern Railway was consumer of Discom & having Contract demand etc. As such, terms & conditions applicable for Inter-state Open Access Regulation & Intra state Open Access Regulation are applicable on Northern Railways.
Para 19
It is evident from the Hon’ble Central Commission order dated 05.11.2015 that for the TSSs situated in a State and connected to State network, the function of scheduling, metering, balancing, applicability of ISTS charges and losses etc. shall vest in the concerned SLDC. Hon’ble PSERC in its order has already ordered that for scheduling purposes Railways will be considered as a single customer, however the metering/billing will be done at the individual points where Railways draws power, for which Railways will declare the maximum demand at each point before being granted Open Access. The Railways would also have to comply with all conditions of connectivity at individual points where it draws power, as set out in the Commission/CERC and relevant Regulations/Grid Code, in order to ensure safety and stability of the grid at these points. Further, the imbalance charges are being levied on Northern Railway as per HERC Open Access Regulation after considering the Northern Railway as single entity.
Para 20 & 21
As per clause 23 of HERC Open Access Regulation, 2012 as agreed by Northern Railway at para No 21, the distribution licensee shall be entitled to charge applicable temporary supply tariff and other applicable charges besides PLEC, if applicable, as determined by the Commission. However, Northern Railways has not submitted the copy of agreement in this regard & not the copy of back to back agreement. The Railways may submit the copy of agreement in this regard. Further, the modalities/ procedure for charging standby charges in the case of tripping of generator or when schedule generation reduced needs to framed by DISCOMs.
Para 22-23
It is correct that Indian Railways is no more consumer of Discom after availing MTOA & sourcing the Power from Third party generation & not from captive source. As per HERC OA Regulation, such surcharge shall not be levied only on a person who has established a captive generation plant and carries the electricity to the destination of his own use. The status of various states regarding levying of Cross subsidy surcharge by other states is mentioned above.
Para 24
It is not correct that Indian Railways is a distribution licensee. As per submission made by Railway at para no 10, Indian Railway is deemed licensee. As per clause 22 of HERC OA Regulation 2012, the additional surcharge shall not be levied in case open access is provided to a person who has established a captive generation plant for carrying the electricity to the destination of his own use. As per available Tariff order of various states, the surcharge is applicable on all Open Access consumers located in the area of supply of a distribution licensee. The Northern Railway may confirm the waiver of Additional surcharge Surcharge by other states.
Para 25
In the reply at para 25, the Indian Railways is willing to comply with all terms and conditions of the Open Access Regulation as applicable to distribution licensee. As per clause 9 of HERC OA Regulation 2012, the special provisions for distribution licensees and existing consumers has been provided as under:-– (1) For distribution licensees: (i) The distribution licensees using intra-State transmission and or distribution system in the State on the date of coming into force of these regulations under an existing arrangement shall be entitled to continue to avail open access to such transmission and / or distribution system on the same terms and conditions for the term of existing agreement or arrangement on payment of transmission and wheeling charges and other
45 | P a g e
applicable charges as may be determined by the Commission. As such, the terms & conditions applicable on DISCOMs are different from deemed licensee i.e. Northern Railway.
Para 26
The contents of Para 26 do not call for any reply.
In view of above, HVPNL has made the following prayer:
i) The Northern Railway may be directed to pay reactive energy charges as per HERC OA
Regulation, 2012 from the start date of medium term Open Access;
ii) The Northern Railway may be directed to pay transmission charges based on contract
demand (in case of 3-ph supply) and as per virtual capacity blockage of Power
Transformer (in case of two phase supply) in accordance with clause 19 of HERC OA
Regulation, 2012 from the date of start of medium term Open Access;
iii) The Northern Railway may be directed to pay transmission charges as per clause 51 of
HERC OA Regulation, 2012 in case of excess drawl i.e. beyond 10% of the allocated
capacity from the start date of Open Access.
iv) The Imbalance charges shall be applicable as per clause no. 24 of HERC OA
Regulation, 2012 from the start date of Open Access.
v) The Commission may also decide various other charges as applicable to Northern
railway as per submission of DISCOMs.
ADDITIONAL SUBMISSION ON BEHALF OF HVPNL. HVPNL, vide memo no. Ch-36/STU/OA-658/HERC dated 04.12.2019, filed the following
additional submissions:-
1. The Commission, vide interim order dated 23.02.2017 has observed that the
Northern Railways is a deemed licensee under the Electricity Act, 2003 as also held
by the CERC and Hon’ble APTEL. A deemed licensee has been exempted from
making an application to the Commission for seeking license. However, a deemed
licensee is bound by the terms and conditions of license specified or to be specified
by the Appropriate Commission under proviso to Section 16 of the Electricity Act and
also directed that “The DISCOMS may issue ‘No Objection Certificate’ to the
Northern Railways, as a deemed distribution licensee, for availing medium term
Open Access, subject to the Northern Railways fulfil the conditions. The present
status with respect to conditions fixed by Hon’ble commission is as under:-
Directives of HERC Present Status
Pay all dues, arrears to the Haryana Power Utilities prior to disconnection of supply from
Relates to UHBVNL/DHBVNL.
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the existing distribution licensee of the area.
Provide ABT meter and associated equipment’s as per Central Electricity Authority Metering Regulations, 2006 at all their Traction Sub – Stations prior to drawl of power from JIPTL, or any other source for that matter, under Open Access Mechanism.
The Current Transformers & Potential
Transformers as per metering regulations of
CEA are yet to be provided by Railway at three
locations, namely Asaudha, Abdullhapur and
PTPS, Panipat.
Shall agree to pay reactive energy charges, transmission charges, open access charges and any other charges including charges for standby power that the Commission may decide by way of Regulations / Specific Order in the matter.
The bills are being raised for transmission
charges (for a transformation capacity of …….
MVA), SLDC charges (for a transformation
capacity of ……. MVA), Imbalance charges &
Reactive Energy Charges as per provisions of
HERC Open Access Regulations & MYT
Regulations. However, Railway is making
belated payments for imbalance charges,
Transmission & SLDC charges and no payment
for reactive energy charges is being made by
the Railways.
Regarding methodology presently used for
bills transmission and SLDC charges and
proposed for billing transmission and SLDC
charges, details are provided henceforth.
However, specific order/regulation of the
commission is still awaited.
Shall agree to settle / disburse the Transmission Charges / Open Access charges and any other charges that the Commission may decide in the matter for use of State Transmission / Distribution Utilities Network directly with HVPNL / Discoms.
To be decided by the Commission
Shall provide telemetry to the SCADA system of Haryana SLDC / HVPNL for monitoring purpose.
No SCADA system has been created/
integrated with Haryana SLDC by Railways till
date.
Shall abide by the relevant Regulations / Rules / Guidelines / Directions of HERC/CERC/CEA/ RLDC/ SLDC in vogue for connection / protection and smooth operation of the Grid.
Railways does not monitor its drawal from the
Grid. At times power drawal at particular TSS’s
increases even beyond 150% of the normal
rating of the CTs affecting accuracy of
metering system and causing unnecessary
tripping’s. No full-time control room has been
established by Northern Railways and no
improvement in such incidences has been
noticed till date.
Shall pay the cost towards modifications / alterations to the infrastructure of HVPNL/Discoms, if any, for providing connectivity.
Connectivity is being provided to Railways as
per requirement.
Shall seek prior approval of STU (HVPNL) in case Not maintaining load up to the rating of CTs
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of any increase of load, changes in connectivity or physical interconnection.
while the requirement given by NR was even
lesser.
Shall co-ordinate with the HVPNL / DHBVNL regarding final joint meter reading as per the schedule agreed upon between them.
Meter readings are downloaded by using
CMRIs by HVPNL.
Shall implement and comply with the Distribution Code specified by the Commission; provided that the Commission may issue an order either on an application or suo-motu relieving the Northern Railways of its obligations under the Distribution Code to such extent as the Commission may lay down.
No comments
Shall operate its Distribution System (TSS) connected to the Grid Sub-Stations in accordance with the Distribution System Operating Standards together with the Distribution Code as approved by the Commission.
No association/communication with SLDC and
HVPNL GSSs regarding load management and
operation of Grid.
Shall provide to SLDC, STU and/or to other Licensees such information that may reasonably be required to perform its functions and exercise its powers under the Act.
-
Shall comply with the directions of SLDC and STU issued under the Act.
-
Shall co-operate with the generating companies,
other Licensees in Haryana and with the SLDC
for the efficient and co-ordinated operation of
the power system in the State.
No control room/ nodal office has been
established by Northern Railways for round
the clock exchange of information.
2. MEDIUM TERM OPEN ACCESS TO NORTHERN RAILWAY: -
The Medium Term Open Access (MTOA) was granted and accordingly agreement
was signed with Northern Railway on 29.09.2017 for transfer of 38 MW Power in
compliance to HERC order dated 23.02.2017 after receipt of consent from Discom.
The said MTOA has further been extended from dated 26.04.2020 to 25.09.2020 with
assurance from Railways that all pending bills will be cleared.
The detail of Medium Term Open Access (MTOA) is as under: -
Injection of Power Drawl of Power
Entity / Location of Generating Station
Region
MTOA Granted for (MW)
Date from which MTOA is Granted
Date upto which MTOA is granted
Entity / Location of Loads
Region
Jindal India Thermal Power Ltd. Odisha
ER 38 1-Oct-2017 25-Apr-2020 Northern Railway, Haryana
NR
Jindal India Thermal Power Ltd. Odisha
ER 38 26-Apr-2020 25-Sep-2020 Northern Railway, Haryana
NR
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3. Consent for Long Term Open Access to Northern Railways: -
The Northern Railway vide letter dated 21.01.2019, has intimated that an agreement
has been executed for procurement of Power from Bharat Rail Bijlee Company
Limited (BRBCL), Nabinagar for various Traction sub-stations located in the state of
Haryana under Long Term Open Access (LTOA). The list of TSS is place.
The No Objection Certificate/ Consent of Haryana STU to Northern Railway
for supply of 15 MW Power from Bharat Rail Bijlee Company Limited (BRBCL),
Nabinagar, Bihar under Long Term Open Access for various upcoming and existing
Railway TSS in Haryana has already been issued on dated 05.03.2019.
4. Determination of allocated Transformation Capacity, presently adopted
methodology & its limitations and Proposed Methodology for recovery of
Transmission and SLDC Charges from Northern Railways:
a) The transmission system is created by HVPNL (STU) for catering the load
requirements of the Distribution licensees and other long term and medium term
Open Access consumers of Haryana. The Annual Revenue Requirement (ARR) of
HVPNL is shared by long term and medium term open access consumers
(beneficiaries) as specified in Regulation No 19 of The HERC Open Access
Regulations 2012, Regulation No 50 of MYT as per following formula:
Where
ATC = Annual Transmission charges payable by all the beneficiaries (ATC shall be equal to the annual transmission cost determined by the Commission in the tariff order for transmission business for the relevant year)
CA = Transformation Capacity (MVA) allocated to each beneficiary. CS = Sum of Transformation Capacity (MVA) allocated to all the
beneficiaries. Note: Where allocated Transformation Capacity (MVA) of a beneficiary is not available, the contracted capacity in MW shall be converted in MVA at a power factor of 0.90 and the same shall be considered for computation of monthly transmission charges payable by the beneficiaries.
b) The definition of beneficiary as provided in HERC Open Access Regulations is as
under:
“(2a) “beneficiary” in relation to transmission system means the person who has availed of the transmission system on payment of transmission charges as determined by the Commission under relevant regulations. This includes a distribution licensee, a transmission licensee, a person who has setup a captive
49 | P a g e
power plant or a generating company including merchant power plant or a consumer availing long-term or medium-term open access utilizing such transmission system. Short-term open access consumers will not be treated as beneficiaries;”
As such Northern Railway being deemed distribution licensee is a beneficiary in
terms of HERC Open Access Regulations and MYT Regulations
c) The Commission vide order dated 07.03.2019 in petition No HERC/PRO-60 of
2018 approved the ARR of HVPN for the year 2019-20 and allocated the
transmission charges to various beneficiaries as per ratios of allocated
Transformation Capacity at para 4.2 of the aforesaid orders. It was also ordered
that:
“In case of any addition of new beneficiary, the transmission charges
shall be levied in proportion of the allotted capacity.”
The procedure for evaluating the inter-se ratio between beneficiaries is detailed. As
per orders of the Commission the inter-se ratio of the beneficiaries are being
altered as and when new beneficiary is added as per methodology and the revision
in the ratios, if any, is being submitted to the Commission in the true up petitions.
d) The demand/load profile of Railway is not balanced three phase and is fluctuating.
The movement of the traction locomotive and its location decides load on a
particular phase in transition, as a traction locomotive draw load from all the three
different phases of system while transiting from one location to another location as
per distribution of the Railways. At a given time a locomotive draws load from one
phase only and railway has devised no such mechanism for movement of its
locomotive to draws balanced three phase load as at a time different locomotives at
different locations may/can draw power from one phase only. Thus in order to avoid
overloading and to abide by the Planning Criteria of CEA in case of any outage,
substantial transformation capacity of three phase power system is kept dedicated
to cater the fluctuating single phase load demand of Railways.
e) The detail of existing traction substations where railways draws load on a single
phase up to the extent of its contract demand (prior to the disconnection from
DISCOMs and getting NOC for deemed licensee) is placed.
f) For upcoming traction sub-stations of railway, the transformation capacity of TSS
was created as per request of DISCOMs/ contract demand applied by railway
applied for a particular TSS being a consumer of DISCOMs, prior to going for
LTOA/MTOA as deemed licensee. But, now railway is applying for a much lesser
capacity as compare to the infrastructure being created/under execution and at
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advanced stage of commissioning. The details of transformation capacity being
created/catered for upcoming TSS and the capacity of LTOA being applied by
railways with a reduced quantum is placed.
g) It is further submitted that the transmission system has been created as per
specific requirement of Northern Railways and for its ultimate requirements. Since,
before arranging power through LTOA/MTOA the Railways was consumer of the
DISCOMs and as such was not a beneficiary of the STU/SLDC. Moreover, the
ultimate transmission capacity requirement of Railways cannot be created at a
given substation in piecemeal, that is, initially for 5MVA and which may be further
extended upto 10MVA, 20MVA or upto 70MVA as per increase in traffic with
electric locomotives as requested by the Railway. A letter received from Railways
in this regard is placed. The transmission system planning and execution is a
lengthy process and for a particular TSS is being planned and executed in one go
for its ultimate load as per specific requirement of railway. As such Railways shall
also bear transmission charges for the transformation capacity created for its
specific requirements.
h) Accordingly, it would be unfair to bill the transmission charges of the transformation
capacity created/used/blocked by the Railways to other beneficiaries.
i) Hon’ble PSERC in its order dated 28.02.2018 has ordered that for scheduling
purposes railways will be considered as a single customer, however the
metering/billing will be done at the individual points where Railways draws power,
for which Railways will declare the maximum demand at each point before
being granted Open Access. The Railways would also have to comply with all
conditions of connectivity at individual points where it draws power, as set out in
the Commission/CERC and relevant Regulations/Grid Code, in order to ensure
safety and stability of the grid at these points. The ibid order is placed for reference
please.
j) The drawl of power by railway in excess to its contract demand at various locations
has already been submitted to the kind consideration of Hon’ble Commission vide
HVPNL submissions dated 12.03.2019 at para ii and for sake of brevity are not
reproduced again.
k) However, as matter of levy of various charges on railway are under sub-judice
before the Commission, the transmission Charges to the extent of LTOA/MTOA are
being billed to Railways for 59.52MVA (42.22 MVA for MTOA and 17.3 MVA for
LTOA).
l) In view of above, HVPNL submitted that Transformation Capacity (MVA) allocated
to Railways (CA) in the aforesaid formula wherein transmission charges are
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allocated to beneficiaries for intra state transmission system may be settled afresh
as per peculiar type of load demand of Railways, as transmission capacity
blocked/used by Railway is much higher.
HVPNL further submitted that the already submitted proposals/methods vide
HVPNL affidavit dated 14.01.2019 may be amended with the following request:-
(i) The contract demand, or ultimate load requirement requested by the Railways
for a new TSS, may be converted to three phase equivalent in order to arrive
at the transformation capacity allocated to that TSS.
(ii) A Separate energy meter of 0.2S accuracy class on each phase for
measurement of maximum demand of the outgoing Railways feeders is
required in addition to the existing ABT meter on the same core. The
maximum demand thus recorded in all the three phases shall be multiplied by
three and maximum among these will be the transformation capacity utilized
by the Railway. The maximum demand thus ascertained during the financial
year shall be trued up as the transformation capacity utilized by the Railway for
that particular TSS.
(iii) Whenever for any TSS, the maximum demand recorded as per para (ii) above
is more than the transformation capacity allocated as per para (i) above, the
transformation capacity as per para (ii) shall be considered.
(iv) The above methodology shall be implemented from the date of commissioning
of TSS or date of obtaining of MTOA/LTOA whichever is later and thereafter
the transmission charges will be recast accordingly.
(v) The same methodology can also be applicable for appropriating the SLDC
charges.
(C) Reply filed by DHBVNL
DHVBNL, in response to the Interim Orders dated 13.10.2017, 13.12.2018 and
01.03.2019, filed its reply dated 14.08.2019. DHBVNL submitted as under:-
1. That the Commission in its Order dated 13.12.2018 directed the Petitioner to study
and analyze the charges being levied by other States on such deemed distribution
licensee and also to follow up with Government of Haryana on the issue of exemption
of levy of cross subsidy charges on the railways in terms of Commission’s memo no.
1507/HERC/Tariff dated 01.08.2017 and memo no. 2704/HERC/Tariff dated
03.11.2017. The response of Government of Haryana is still awaited.
2. That in response to the direction issued to study and analyze the charges being
levied by other States on such deemed distribution licensee, Petitioner place on
record following facts on the issue of Cross Subsidy Charge and/or Additional
Surcharge in other States:-
Maharashtra:
1. In Mumbai, 3 Nos. of Distribution Licensees, namely, TPC-D, RInfra-D and BEST has
standby agreement dated 12.03.1985 with MSEDCL w.e.f. 01.02.1984 wherein TPC-
D, RInfra-D and BEST have contract demand for 550 MVA with MSEDCL and can
52 | P a g e
take power from MSEDCL accordingly. And the three licensees have to pay fixed
charge for 550 MVA on their respective share in the average of Coincident Peak
Demand (CPD) and Non Coincident Peak Demand (NCPD) of the Mumbai Energy
Demand. Further, the licensee which avails the standby arrangement from MSEDCL
has to pay energy charges at the rate of the Weighted Average System Marginal
Price (WASMP) of power for the actual power drawl. TPC-D had filed petition before
MERC vide Case No. 53 of 2017 wherein TPC-D had requested to Allocate Standby
Charges among the various beneficiaries in the Mumbai Distribution Network
including deemed distribution licensees and the captive and open access consumers.
Accordingly, Hon’ble Commission vide its order dated 23.03.2018 directed Indian
Railways to pay its share of Stand-by Charges to MSEDCL within a month of its
determination by the Commission, the relevant excerpt is as under:-
“Based on the data provided by MSLDC, MSEDCL shall quantify the
Stand-by Charges payable by the Mumbai Distribution Licensees, including Indian
Railways to the extent of its operations in the Mumbai System, and include its
proposal in its Mid-Term Review (MTR) Petition. For the past period, Indian
Railways shall pay its share of Stand-by Charges to MSEDCL within a month of
its determination by the Commission, for adjustment against the amounts payable
by the other Mumbai Distribution Licensees to MSEDCL or other modality as
may be approved by the Commission in its forthcoming MTR Order.
Considering the circumstances of the matter, this amount shall not attract interest.”
2. Accordingly, MERC vide order dated 21.09.2018 on Mid-Term Review of MSEDCL
for Truing-up of ARR of FY 2015-16 and FY 2016-17, Provisional Truing-up of ARR
of FY 2017-18 and Revised Projections of ARR for FY 2018-19 and FY 2019-20,
Case No. 195 of 2017, have issued Annual share of India Railway (Mumbai Area) in
stand-by charge and has determined Rs. 1.03 Crore for FY 2018-19 and Rs. 1.02
Crore for FY 2019-20 as monthly share of sand-by charge. Relevant excerpt, Table
9-33: Stand-by Charges for FY 2018-19 and FY 2019-20, as approved by
Commission, has been reproduced here as under:
Distribution Licensee Base TCR % of Share of Mumbai Utilities & IR
Annual Share of Stand-by Charges (Rs. Crore)
Per Month Share of Stand-by Charges (Rs. Crore)
FY 2018-19
TPC-D 824.80 25.19% 99.76 8.31
Rinfra-D 1,495.59 45.68% 180.90 15.08
BEST 851.19 26.00% 102.96 8.58
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IR (Mumbai Area) 102.35 3.13% 12.38 1.03
Total 3,273.93 100.00% 396.00 33.00
FY 2019-2020
TPC-D 843.71 24.95% 98.82 8.23
Rinfra-D 1,556.59 46.04% 182.32 15.19
BEST 876.31 25.92% 102.64 8.55
IR (Mumbai Area) 104.40 3.09% 12.23 1.02
Total 3,381.00 100.00% 396.00 33.00
West Bengal:
1. In order to address the issue of interchange of power between two licensees, viz.,
West Bengal State Electricity Distribution Company Limited (WBSEDCL) & Calcutta
Electricity Supply Corporation (CESC), due to variation of load, these two licensees
have entered into Power Supply Agreement for which tariff is determined by WBERC,
state commission of West Bengal, through Tariff Order.
Chhattisgarh:
1. CSPDCL, state distribution licensee, in order to retain Indian Railways as a
consumer had proposed various benefits and a competitive tariff to Indian Railways
in their petition for ARR for FY 2018-19. The said proposal has been accepted by the
CSERC, State Commission of Chhattisgarh, and published through Tariff Order for
FY 2018-19. In the said Tariff Order, CSERC has allowed Rs 4.20/KVAH as energy
charge and Rs 350/KVA/month as demand charge for supply voltage on
132KV/220KV. Further, CSERC has allowed 10% rebate in energy charge for new
railway traction project for a period of 5 years from date of connection for which
Agreements for availing supply from the Licensee are finalised during FY 2018-19.
Furthermore, a rebate of 30% on energy charge for TSS of Indian Railways is also
allowed for the entire energy consumption of the month in which load factor is above
20%.
Andhra Pradesh:
1. APERC, state commission of Andhra Pradesh, vide Tariff Order for FY 2017-18
dated 31.03.2017 has allowed the proposed tariff for Railway Traction by the
APDISCOMs at the rate of Rs 3.55/KVAH as energy charge and fixed charge at the
rate of Rs 300/KVA/month in public interest and the interest of the State to make the
relationship more viable in economic terms. In the above said tariff order,
APDISCOMs stated that they have proposed a lower tariff for Railways in order to
retain the Railways consumption. Further, same tariff has been continued in the Tariff
Order for FY 2018-19 by APERC.
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3. Northern Railway is agreeable to compensate Petitioner by providing charge at
temporary tariff against withdrawal of Northern Railway for very short period towards
standby arrangement of distribution licensee. The proposed arrangement can only be
acceptable in the event that Railways shall be informing the Petitioner well in
advance in case alternate arrangement has to be made and in the event Railways
fails to intimate the Petitioner well within time or withdraws the power in excess of
request made then penalty mechanism may be devised by the Commission in order
to safeguard interest of Petitioner and consumers.
4. In order to further substantiate the foregoing, the Petitioner proposed the following
arrangements/proposals:
1. In case Northern Railway continues to be disconnected consumer of Nigam
special agreement can be entered into between Petitioner and Railways for
arrangement of stand-by power in accordance with the load covering fixed cost
and energy cost to be incurred by Nigam. Tariff for the same shall be determined
by Hon’ble Commission under Electricity Act, 2003.
2. In case Northern Railway agrees to withdraw its application for surrender of its
connection and chooses to continue its connection with the Nigam, then Nigam
is agreeable to a tariff structure competitive with Open Access rates for supply of
electricity to Northern Railway, if approved by the Commission under Electricity
Act 2003.
5. Pertinently, Northern Railway (Account No. RT01-LS) has been a large electricity
consumer of DHBVN and had contract demand of 33KVA with connected load of 50
MW. That in order to provide efficient service to Northern Railway, DHBVN had
already made power purchase commitments which on disconnection of Northern
Railway remained stranded to the tune of 50 MW. Further, Northern Railway is bound
to compensate the Petitioner on the account of fixed cost to the tune of above said
stranded capacity and same shall not be borne by other open access consumer(s)
and/or Petitioner. The average per unit fixed cost of power purchase, approved by
this Commission through Tariff Orders is tabulated hereunder under:-
Particulars 2016-17 2017-18 2018-19
Per Unit Fixed Cost of Power Purchase (Rs/kWh) 1.24 1.2149 1.22
6. That if Northern Railway continues to be disconnected consumer then the
Commission, may adjudicate the issue of fixed cost against the stranded capacity on
disconnection and further direct the Northern Railway to pay fixed cost to Petitioner
either as a fixed cost component or as an additional charge.
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7. HVPNL vide Memo No. Ch-56/STU/OA-658/HERC/Petition dated 17.06.22020 made
additional submissions through joint affidavit on behalf of DHBVNL and HVPNL in
reference to the direction issued by the Commission in its Order dated 26.05.2020.
The same is briefly states as under:-
The clarification was sought from the Commission w.r.t. applicability of charges on
the Northern Railways, which is a deemed licensee, for availing medium term open
Subsidy Surcharge, Additional Surcharge, Standby Charges, Reactive Energy
Charges and Imbalance Settlement Charges. It has been submitted that the
Commission vide interim Order dated 23.02.2017 has held that NR as a deemed
licensee is an eligible entity under HERC Open Access Regulations, 2012
(HERC/25/2012). However, a deemed licensee is bound by the terms and conditions
of license specified or to be specified by the Appropriate Commission. A Connection
Agreement and Medium-Term Open Access (MOTA) agreement was signed
between HVPNL and NR. Additionally, a list of charges being collected from NR was
also provided.
8. That in view of the above stated grounds, facts and circumstances the Petitioner
herein has prayed that this Commission may:-
i. To determine applicable tariff to be levied upon deemed distribution
licensee(s);
ii. To determine and make applicable the temporary charge 2.5 times the rate of
normal tariff to be paid by deemed distribution licensee(s);
iii. To direct the Railways to pay for the fixed cost incurred by the Petitioner
against the stranded capacity;
iv. To pass any other order as this Commission may deem fit.
Commission’s Analysis and Order
9. The Commission heard the arguments of the parties at length as well as perused the
application/reply filed in the matter. The Commission has carefully examined the
statutes, case laws , regulations as well as dispensation in similar matter approved
by a few SERCs.
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At the onset the Commission observes that the NR was an embedded electricity
consumer of Haryana Distribution Licensee(s). In the licensed area of DHBVNL it had
a sanctioned load of 50 MW and Contract Demand of 33 MVA. As a consumer, NR
was paying tariff and charges including PLEC as determined by the HERC. Since ,
1.10.2017 NR on its own accord seized to be a consumer of the Haryana Discoms.
Resultantly, all traction drawl points were disconnected by the Discoms and
subsequent to the NOC dated 26.04.2017 , NR continued to use the State Network
as Medium-Term Open Access consumer in Haryana.
The issues have arisen due to the changed nature of NR in Haryana from an
embedded electricity consumer to a medium-term open access consumer. In the
proceedings, the Commission observes, that on quite a few charges both the parties
agree. Nonetheless, the Commission, has considered it appropriate to deliberate and
decide all the issues in order to set to rest any ambiguity that may arise between the
parties. The detailed deliberation on each issue is as under:-
i) Deemed Licensee Status – This issue is res judicata. However, the Commission
has examined whether NR is a deemed distribution licensee in Haryana. On this
issue we can gainfully extract from the judgement of the Appellate Tribunal dated 3rd
May, 2013 (Cf. Judgement of the Hon’ble Supreme Court dated 25th April, 2014 in
Civil Appeal No. 5479 of 2013 (M/s Sesa Sterlite Vs. OERC & Ors) as under:-
“49. As correctly indicated by the State Commission, the definition of term
“distribution licensee” as enumerated under Section 2(17) of Electricity Act, 2003,
emphasizes upon the distribution licensee to operate and maintain a distribution
system and supply of power to the consumers. Considering the definition of ‘supply’
in Section 2(70), the supply here means sale of electricity to consumers. By merely
being authorized to operate and maintain a distribution system as a deemed
licensee, would not confer the status of distribution licensee to any person. The
purpose of such establishment is for supply of power to consumers. Mere fact that
the Appellant claims to be a deemed distribution licensee is of no consequence at all
since admittedly, the entire power purchased by the Appellant is for its own use and
consumption and not for the purpose of distribution and supply/sale to consumers.
50. An entity which utilizes the entire quantum of electricity for its own consumption
and does not have any other consumers, cannot, by such a notification, be deemed
to be distribution licensee, even by a legal fiction. By virtue of the legal fiction created
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by the notification dated 3.03.2010, the Developer of SEZ notified under the SEZ Act,
who distributes electricity can be deemed to be a distribution licensee. Thus, this
legal fiction cannot go further and make a person who does not distribute electricity
to the consumers as to distribution licensee. Therefore, there is no merit in the
contention of the Appellant.
43. We are in agreement with the aforesaid rationale in the impugned order of the
Appellate Tribunal as that is the only manner in which the two Acts can be
harmoniously construed. To recapitulate briefly, in the present case no doubt by
virtue of the status of a developer in the SEZ area, the Appellant is also treated as
deemed Distribution Licensee. However, with this, it only gets exemption from
specifically applying for licence under Section 14 of the Act. In order to avail further
benefits under the Act, the Appellant is also required to show that it is in fact having
distribution system and has number of consumers to whom it is supplying the
electricity. That is not the case here. For its own plant only, it is getting the electricity
from Sterlite Ltd. for which it has entered into PPA. We have to keep in mind the
object and scheme of SEZ Act which envisages several units being set up in a SEZ
area. This is evident from a collective reading of the various provisions of the SEZ
Act viz. Section 2(g)(j)(za)(zc), Section 3, 4, 11, 12, 13 and 15. There can be a
Sector Specific SEZ with Several Units i.e. for IT, Mineral Based Industries etc. but
instances of single unit SEZ like in the present case of the Appellant may be rare.
The Notification dated 03.03.2010 providing for the “Developer” of SEZ being
deemed as a “Distribution Licensee” was issued keeping in view the concept of Multi
Unit SEZs and will apply only to such cases in which the Developer is supplying the
power to multiple Units in the SEZ. The said Notification will not apply to a Developer
like the Appellant who has established the SEZ only for itself”.
Admittedly, NR is not in the business of supplying electricity to public / consumers at
large but distributing electricity within its own operational area and in connection with
the working of the Railways. Hence, an entity i.e. NR which utilizes the entire
quantum of electricity for its own consumption and does not have any other
consumers, cannot, be deemed to be distribution licensee. If this was to be so quite a
few consumer category (Government Connections) like Public Water Works, Street
Light, Lift Irrigation / MITC etc. would also become deemed distribution licensee(s)
and in case they also fully source power under Open Access mechanism will also
claim exemptions from various charges making the distribution and retail supply
business of the existing distribution licensee (s) unviable. In conclusion the
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Commission reiterates that NR by merely being authorized to operate and maintain a
distribution system under the Railways Act, 1989 as cited by the NR would not confer
the status of distribution licensee in Haryana.
Additionally, the Commission notes that a deemed distribution licensee is merely
exempted from obtaining licence under Section 14 of the Electricity Act, 2003.
Further, Section 16 of the Act provides that “The Appropriate Commission may
specify any general or specific conditions which shall apply either to a licensee or
class of licensees and such conditions shall be deemed to be conditions of such
licence:
Provided that the Appropriate Commission shall, within one year from the appointed
date, specify any general or specific conditions of license applicable to the licensees
referred to in the first, second, third, fourth and fifth provisos to section 14 after the
expiry of one year from the commencement of this Act”.
In pursuance to the above, the Commission had framed and notified Haryana
Electricity Regulatory Commission (Conditions of License for Distribution and Retail
Supply Business) Regulations, 2004 dated 30th November, 2004. Hence, all the
general terms and conditions specified therein has to be necessarily complied with by
a distribution licensee including deemed to be a distribution licensee. Which is not
the case in the present matter of NR as well as Military Engineering Service (MES) -
a case earlier dealt with by the Commission.
The dispensation flowing from the judgements of the Hon’ble Supreme Court
as well as Hon’ble Appellate Tribunal for Electricity is squarely applicable to
NR. On this issue the Commission concludes that NR, as far as Haryana is
concerned, is a fully Medium-Term Open Access Consumer having
connectivity agreement and medium-term open access agreements.
Having held as above, the Commission (also agreed to by the parties i.e. HVPNL,
Discoms and NR), considers it appropriate to frame / notify specific set of
Regulations applicable to the deemed distribution licensee as some of the terms and
conditions as appearing in the HERC (Conditions of Licence for Distribution and
Retail Supply Business) Regulations, 2004 may not be relevant in the case of a
deemed to be a distribution licensee. It is observed that a draft of General Terms of
License for Deemed Licensee (u/s 16 of the Electricity Act, 2003) was put in public
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domain and public notice inviting comments / objections was also issued and in
response to which UHBVNL vide Memo No. Ch-08 / SS-403/619/METL/Distribution
Licensee/CE/C-I dated 02.06.2017 filed their comments on the draft terms and
conditions. The Commission, in view of the time gap, has considered it appropriate
to frame a draft afresh for inviting comments / suggestions from the stakeholders
before giving a final shape to the same. Accordingly, a revised draft is also
appended to the present Order (Annexure – A).
As prayed for by the Petitioner herein, the Commission has deliberated and decided
that the following charges shall be payable by the Respondent NR.
i. Transmission Charges – As per the HERC MYT Regulations in vogue, the tariff
for intrastate transmission of electricity by a transmission licensee to a distribution
licensee or to open access consumers is determined under section 62 and 64 of the
Act. Accordingly, the Commission determines transmission charges in the ARR /
Tariff Order of HVPNL to be recovered from the beneficiaries of the intrastate
transmission network. Further, the Haryana Electricity Regulatory Commission
(Terms and conditions for grant of connectivity and open access for intra-State
transmission and distribution system) Regulations, 2012 provides that “transmission
charges shall be payable on the basis of contracted capacity in case of long term and
medium-term open access consumers”. HVPNL has submitted that they are currently
recovering Transmission Charges from NR as per contracted capacity i.e. 53 MW (53
MW as per MOTA and 15 MW as per LOTA). Additionally, HVPNL has submitted that
annual transmission charges ought to be levied on NR for 97.8 MW i.e.
transformation capacity allocated to NR for various TSS. HVPNL has suggested that
the transmission charges from NR can be recovered on the basis of maximum power
drawn by NR at all interconnection points or based on contract demand (MVA)
sanctioned by the Discoms prior to signing of Open Access Agreement or capacity
blockage of power transformer being fed through 2 phase or based on allocated
transformation capacity mentioned in Open Access Agreement. Per contra NR has
submitted that NR should be considered as a single entity with the maximum demand
being considered in a simultaneous manner, at all the drawl points in Haryana. It has
been further submitted that since commencement of OA / ISTS NR is having no
contract demand with DHBVNL / UHBVNL after the disconnection. The Commission
has considered the rival submissions and observes as follows. Admittedly, NR after
disconnection is not having any contract demand with the Discoms, however, given
the nature of power requirement of NR its power requirement is not expected to fall
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below the CD prior to the disconnection from the Discoms. Hence, in the considered
view of the Commission Capacity blockage of power transformer being fed through 2
phase shall be an appropriate method for recovery of transmission charges from NR
as this would appropriately indicate the transformation capacity of HVPNL that will be
utilised by NR. The methodology of ‘contracted capacity’ mentioned in the HERC
Open Access Regulations will be difficult to implement as converting the non-existing
CD into transformation capacity by using the standard power factor will become too
theoretical. After due deliberations the Commission is of the considered view that the
recovery of transmission charges from NR shall be on the basis of transformation
capacity blockage as against contract demand or any other methodology to the
contrary that may have been mentioned in any other Order / Regulations of this
Commission.
II. Wheeling Charges –
The HERC OA Regulations provide that Open access consumer using intra-State
distribution system shall pay wheeling charges to the distribution licensee (s) for
usage of the distribution system as determined by the Commission for the relevant
financial year.
The Commission, from the submissions made on 17.06.2020, observes that
presently Wheeling Charges are not being recovered from NR, in turn NR has also
not raised any issue regarding wheeling charges. The Commission observes that the
Electricity Rules, 2005 defines a distribution system as “4. Distribution System.- The
distribution system of a distribution licensee in terms of sub-section (19) of section 2
of the Act shall also include electric line, sub-station and electrical plant that are
primarily maintained for the purpose of distributing electricity in the area of supply of
such distribution licensee notwithstanding that such line, substation or electrical plant
are high pressure cables or overhead lines or associated with such high pressure
cables or overhead lines; or used incidentally for the purposes of transmitting
electricity for others”. Hence, it can be seen from the ibid Rules that a distribution
system also includes high pressure cables used for transmitting electricity.
The Commission after due deliberations is of the considered view that NR, as a
Medium-Term Open Access consumer, as per the ibid Rules is using, incidentally,
the distribution system of UHBVNL and DHBVNL. NR is not an embedded Open
Access Consumer. Hence, wheeling charges determined by the Commission are not
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recoverable from NR. However, NR is liable to bear, besides intra state transmission
loss, the distribution system network cost as determined by the Commission for the
relevant year i.e. Rs. 0.47 per Unit for FY 2020-21 in the ARR/Tariff order of HVPNL
(STU).
III. SLDC Charges: As per HERC OA Regulations in respect of intra-State open
access - Long-term open access and medium-term open access consumer shall be
liable to pay SLDC charges as determined by the Commission under sub-section (3)
of section 32 of the Act. Accordingly, the Commission, in its ARR / Tariff Order for the
FY 2020-21 (HVPNL) has determined recovery of SLDC charges from the
beneficiaries including NR based on installed capacity / transformation capacity
indicated by HVPNL. The same shall be applicable till revised / amended by the
Commission to avoid any conflict between the present Order and the ARR / Tariff
Order issued by the Commission w.e.f 1.04.2020.
IV. Reactive Energy Charges - In line with the provisions of the HERC OA
Regulations, the NR, as a Medium-Term Open Access Consumer shall pay reactive
energy in accordance with provisions of the Intra-State ABT Regulations and
Haryana Grid Code notified by the Commission. In absence of the aforesaid
regulation of the Commission or rates to be specified by the Commission, the rates
specified in Indian Electricity Grid Code or the rates specified by CERC shall be
applicable. Hence, no further deliberations are required on this issue.
V. Cross Subsidy Surcharge (CSS) – The Commission observes that CSS is a
compensatory charge payable to the Distribution Licensee of the area concerned
even if the distribution network of the Licensee is not used. The Distribution Licensee
u/s 43 of the Act has an universal obligation to supply electricity. Hence, an Open
Access Consumer but for the drawl under open access mechanism, would have
availed electricity supply from the Discoms and the cross-subsidy so generated
would have been utilized for subsidizing the consumer categories paying tariff below
the CoS within the limits specified by the National Tariff Policy. Accordingly, the
HERC OA Regulations provides that Cross subsidy surcharge shall also be payable
by such open access consumer who receives supply of electricity from a person
other than the distribution licensee in whose area of supply he is located, irrespective
of whether he avails such supply through transmission / distribution network of the
licensee or not. In the present case NR is using the network of the licensee (s).
Accordingly, the Commission, in its Order on TRUE- UP FOR THE FY 2018-19,
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ANNUAL (MID-YEAR) PERFORMANCE REVIEW FOR THE FY 2019-20,
AGGREGATE REVENUE REQUIREMENT OF UHBVNL AND DHBVNL FOR THE
MYT CONTROL PERIOD 2020-21 TO FY 2024-2025 AND DISTRIBUTION &
RETAIL SUPPLY TARIFF FOR THE FY 2020-21, has determined CSS payable by
NR and the same shall be applicable.
The Commission observes that Clause 8.5.1 of the National Tariff Policy provides,
“provided further that Appropriate Commission, in consultation with the Appropriate
Government, shall exempt levy of cross subsidy charge on the Railways, as defined
in the Indian Railways Act, 1989 being a deemed licensee, on electricity purchased
for its own consumption. Accordingly, the Commission, vide Memo No. 1507 / HERC
/ tariff dated 1.08.2017 requested the State Government to intimate its stand on the
exemption of CSS on the NR. Since no reply has been received from the State
Government, even after considerable lapse of time, it can be concluded that the
State Government is not willing to extend exemption of CSS to the NR.
VI. Additional Surcharge – The HERC OA Regulations provides that an open
access consumer, receiving supply of electricity from a person other than the
distribution licensee of his area of supply, shall pay to the distribution licensee an
additional surcharge in addition to wheeling charges and cross-subsidy surcharge, to
meet out the fixed cost of such distribution licensee arising out of his obligation to
supply as provided under sub-section (4) of Section 42 of the Act. The only exception
to this is a person who has established a captive generation plant for carrying the
electricity to the destination of his own use which is not the present case. Resultantly,
NR shall be liable to pay Additional Surcharge as determined by the Commission for
the relevant year.
VII. Charges for Standby Power - The Commission observes that the HERC OA
Regulations clearly provides as under: -
23. Standby power and standby charges for drawl of power by open access
consumer from distribution licensee. - (1) If an open access consumer requires
power from the distribution licensee in case of outage of the generator or the source
supplying power to such open access consumer, or a generator connected to
distribution system injecting power through open access, requires start up power
from the distribution licensee, then such open access consumer or generator may
make an application to the distribution licensee seeking standby power. The
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application shall be made on the format and in the manner as may be prescribed in
the detailed procedure. However, every such application should invariably contain
details of quantum and period for which standby power is required.
(2) The distribution licensee shall provide standby power to such open access
consumer subject to availability of requisite quantum of power and subject to the load
shedding as applicable to other consumers of his area of supply.
(3) For providing standby power, the distribution licensee shall be entitled to charge
applicable temporary supply tariff and other applicable charges besides PLEC, if
applicable, as determined by the Commission.
Provided further that the open access consumers would have the option to arrange
standby power from any other source subject to the conditions that such power shall
be drawn through the same system for which open access has been granted.
DHBVN has proposed that special arrangement can be made between the petitioner
and NR for standby power at the tariff to be determined by the Commission.
Additionally, it has been suggested that in the event NR fails to inform well in
advance or withdraw power in excess of the request made by them a penalty
mechanism may be devised by the Commission. The Commission has considered
the submission on the above issue and is of the view that providing standby power is
subject to sub-regulation 2 & 3 of Regulation 23 of the HERC OA Regulations.
Further, it is observed, from the submissions of NR, that such contingencies may
arise only in the case the alternate arrangements made by M/s Jindal India Thermal
Power Limited also does not materialise. The Commission observes that such
contingency i.e. outage of the generator or the source supplying power to such open
access consumer is covered under regulations (Supra.). As far as penalty is
concerned the Commission observes that for temporary supply (short duration) the
Discoms can charge 1.5 times the tariff (Fixed + Energy) as well as FSA and PLEC if
applicable. In the case of NR (taking supply at say 66 or 132 kV) this would work out
in excess of Rs. 11 / kWh without including FSA and PLEC. Hence, there may not be
any need to build in any further deterrence in the shape of penalty mechanism.
VIII. Imbalance Charges – The Commission observes that the imbalance is currently
being settled in line with the HERC OA Regulations, 2012. The relevant clause has
been reproduced earlier in the present Order. It is observed that specific Regulations
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have been notified by the Commission namely Haryana Electricity Regulatory
Commission (Deviation Settlement Mechanism and related matters) Regulations,
2019 dated 29th April, 2019. In this set of regulations fully open access consumer has
also been defined as an Open Access Consumer connected to transmission system
or distribution system but not having any contract demand with the distribution
licensee within the state; which is the NR case. Hence, imbalances / deviations shall
be settled in line with the terms of the said Regulations instead of HERC OA
Regulations, 2012 as amended from time to time.
In conclusion, the Commission Orders that all the relevant regulations and charges
including losses and RPO Obligations as applicable to Long Term / Medium Term
Open Access consumers shall be applicable to NR also except any deviation
specifically allowed in the present Order till such time the NR fulfils all the terms and
conditions including payment of Fees specified for a distribution licensee / deemed to
be distribution licensee.
In terms of the above Order, the present petition is disposed of.
Date: 17.06.2020 (Naresh Sardana) (Pravindra Singh Chauhan) (D.S. Dhesi) Place: Panchkula Member Member Chairman
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ANNEXURE – A
Draft Notification for inviting Comments / Objections
The***********, 2020
Regulation No. HERC/ XX / 2020: - The Haryana Electricity Regulatory
Commission, in exercise of the powers conferred on it by section 181 of the
Electricity Act 2003 (Act 36 of 2003) read with Section 14 and 16 of the Act and all
other powers enabling it in this behalf, after previous publication, hereby frames the
following regulations: -
PART - I PRELIMINARY
1. SHORT TITLE, COMMENCEMENT, EXTENT, AND INTERPRETATION
1.1 These regulations shall be called the Haryana Electricity Regulatory Commission (Terms and Conditions of License for Deemed Licensee) Regulations, 2020.
1.2 These regulations shall come into force w.e.f. the date of publication in the Haryana Government Gazette and shall remain in force till reviewed, amended or repealed by the Commission.
1.3 These regulations shall extend to the whole of the State of Haryana.
2. SCOPE OF APPLICATION
2.1 These regulations shall be applicable to deemed to be distribution
licensee under Section 14 of the Act read with the proviso (s) under the
territorial jurisdiction of Haryana State.
3. DEFINITIONS AND INTERPRETATION
3.1 “Act” means the Electricity Act, 2003 (36 of 2003) as amended from time to time;
3.2 ‘Commission' means the Haryana Electricity Regulatory Commission
referred to in sub-section (1) of section 82 of the Act; 3.3 ‘Full Open Access Consumer’ shall mean Open Access Consumer
connected to transmission system or distribution system but not having any contract demand with the distribution licensee within the state;
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3.4 ‘Grid Code’ means the Grid Code specified by the Commission under clause (h) of sub-section (1) of Section 86 of the Act.
3.5 ‘Indian Electricity Grid Code’ (or ‘IEGC’) means the Grid Code specified
by the Central Electricity Regulatory Commission under Section 79(1)(h) of the Act;
3.6 ‘Load Despatch Centre’ means National Load Despatch Centre, Regional
Load Despatch Centre or State Load Despatch Centre, as the case may be, responsible for coordinating scheduling of the Buyers and the Sellers in accordance with the provisions of Grid Code;
3.7 ‘Partial Open Access Consumer’ / ‘Embedded Open Access
Consumer’ shall mean Open Access Consumer connected to transmission system or distribution system and having part of his contract demand with the distribution licensee within the state;
4.0 Save as aforesaid and unless repugnant to the context or the subject-matter
otherwise requires, words and expressions used in these regulations and not
defined, but defined in the Act, or the Grid Code or any other regulations of this
Commission shall have the meaning assigned to them respectively in the Act or the
Grid Code or any other regulation as the case may be.
General Conditions
1. Compliance with Regulations, Codes, Orders, Guidelines and Directions
1.1 The deemed licensee, under fifth proviso to Section 14 read with Section 16
of the Electricity Act, 2003 (hereinafter referred to as "Licensee”), shall comply
with the regulations/ codes/ orders/ guidelines/ directions including practice
directions issued by the Commission from time to time and shall act in
accordance with these terms, except where the licensee obtains the approval
of the Commission for any deviation of such regulations/ codes/ orders/
guidelines/ directions and terms.
1.2 The Licensee shall refer all disputes arising under the purview of the license
for settlement by the Commission.
2. Payment of Fees
2.1 The Licensee shall be liable to pay to the Commission an annual license fee
as prescribed under regulation 3 (c) of the Haryana Electricity Regulatory
