OPEN ACCESS

IN

INTER-STATE

TRANSMISSION

DEFINITION OF “OPEN ACCESS” IN DEFINITION OF “OPEN ACCESS” IN THE ELECTRICITY ACT, 2003THE ELECTRICITY ACT, 2003

“The non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”

CERC Order/Regulations on Open CERC Order/Regulations on Open AccessAccess

Final Order issued : 30.01.2004

Final Regulations issued : 30.01.2004

Gazette Notification : 06.02.2004

CERC’s Order effective from 06.02.2004.

Salient Features of CERC Order / Salient Features of CERC Order / RegulationsRegulations

Open Access customers categorised :

Short-Term - Upto One year.Long-Term - Twenty Five years

or more

All Open Access customers to abide by Indian Electricity Grid Code.

Further Classification of Open Access Further Classification of Open Access CustomersCustomers

Direct Customer – Persons directly connected to system owned

and operated by CTU

Embedded Customer – Other than direct customer

NODAL AGENCYNODAL AGENCY

For Short-Term Customers– RLDC of the Region in which the drawal point

is located.

For Long-Term Customers– Central Transmission Utility (CTU)– STU of the region in which the drawal point is

located when CTU system is not involved.

Responsibilities of CTU/RLDCsResponsibilities of CTU/RLDCs

Procedure for reservation of transmission capacity for short term customers including the detailed procedure for bidding within 45 days by RLDC.

Procedure and application forms for long-term customers within 30 days by CTU.

Notice of 60 days to the existing customers for applying afresh.

Standardization within 60 days, the other commercial conditions for transmission charges and scheduling and system operation charges.

RLDCs to post “Open Access information” on their website within 30 days:

Information SystemInformation System

RLDC to post the following on their websites within 30 days: Floor rate in Rs./MW/Day for Short-Term customer

– Regional System– Inter-Regional link– System of STU/SEB/Transmission Licensee

Status Report on current short-term customer Month-wise and year-wise report on past short-term customer Information regarding usage of

– Inter-Regional links– Links between CTU and States systems– To be updated on hourly basis and wherever feasible on 15minute basis

Average energy losses for previous 52 weeks.

Processing of ApplicationProcessing of Application

For Long-Term Customers Long term access to be granted based on planning criteria.

Application for long term access should be submitted to CTU along with a Processing fees of Rs. 1.0 Lakh.

The application shall contain the details, such as capacity needed, point(s) of injection, point(s) of drawal, duration of availing open access, peak load, average load, etc.

Based on the system studies, CTU will intimate within 30 days whether or not the long term access can be allowed without further system strengthening.

If no system strengthening is required, open access to be allowed immediately after entering into commercial agreements.

In case system strengthening is required required, applicant may request CTU to carry out further system studies, preliminary investigation for the purpose of cost estimate & completion schedule.

Actual extra-expenditure incurred by CTU to be reimbursed by applicant.

CTU to intimate result of studies within 90 days on receipt of such request.

BPTA mandatory for long –term customers. Long-term customer cannot transfer or relinquish

his rights obligation under BPTA, without prior approval of Commission.

It may be allowed, subject to payment of compensation as determined by the Commission.

Processing of ApplicationProcessing of Application

For Short-Term Customers Nodal RLDC to interact with concerned RLDCs/SLDCs to

process the same in specified time period.

Processing time as per CERC Order– Upto One Day : 12 Hours– Upto One Week : 2 days– Upto One month : 7 days– Upto One year : 30 days

Applicant to furnish details of transactions like point of injection/drawal, quantum (MW), duration, alongwith necessary payments.

Approval ProcessApproval Process

Short-term open access to be allowed by utilising : (a) Inherent design margins,(b) Margins available due to variation in power flows, and(c) Margins available due to in-built spare transmission capacity created to cater to future load growth.”

In case of congestion snap bids are to be invited by RLDC. In case of transmission constraints, the short-term customers

shall be curtailed prior to the long term customers. Provided within a category, the open access customers shall

have equal priority and will be curtailed on pro-rata basis.

Short- Term Open Access ChargesShort- Term Open Access Charges

A. Transmission Charges: (Rs./MW/Day)ST_RATE = 0.25 x [TSC/ Av_CAP]/365To be applied on postage stamp basis for each – Regional System– Inter-Regional link– STU/SEB or Transmission Licensee System 25% of this charges to be retained and balance 75 % to be adjusted

in the transmission charges payable by long term customer. The transmission charges payable shall be for one day and in multiples of

whole no. of days. Every transmission licensee to declare rate in Rs. Per MW per day which

shall remain fixed for one year.

Where TSC for any transmission licensee is not available the per MW per day charge applicable for the system owned by CTU of the region will be applicable.

Transfer capacity reservation by short-term customers is non-transferable.

In case of under utilisation , customers to bear the full transmission and Scheduling and system operation charges as per original reservation.

B. Scheduling and System operation Charges The Short-Term customer has to pay Scheduling and System Operation Charges @ Rs. 3000/- per day per customer to each RLDCs and SLDCs involved .

C. Handling and processing charges to nodal RLDC

– 2% of the total billed amount(A+B).

D. Non-refundable Processing fee– Rs. 5000/- per application

Unscheduled inter-change chargesUnscheduled inter-change charges UI charges to be applicable to all open access

customers. For Direct Customer

– separate bill for UI charges.

For Embedded Customer – A composite bill for the State as a whole– Segregation to be done at State Level

Reactive Energy chargesReactive Energy charges All customers directly connected to CTU network shall

have to reactive energy charges as per IEGC. The reactive energy charges to be paid to or received from

Pool A/c shall not be apportioned to the embedded customers.

For Embedded Customer reactive energy charges shall be governed by the regulations of the respective State.

Energy LossesEnergy Losses The transmission customers shall bear average energy

losses in the transmission system as estimated by CTU and SLDC concerned.

The energy losses shall be compensated by additional injection at the injection point(s).

Special Energy Meters The Special Energy Meters shall be installed by the direct

customers and if required by the embedded customers.

Redressal MechanismRedressal Mechanism All grievance related to open access is to be made to

Member Secretary, REB or RPC of the region against whom the complaint is made, is located.

Member Secretary, REB or RPC shall investigate and endeavour to resolve the grievance.

In case, Member Secretary, REB or RPC is unable to resolve the grievance, it should be reported to the Commission for decision.

Procedure for reservation of transmission capacity by Long-Term Open Access

Customer

Long Term Open Access - Procedure

Receipt of Application for long term Open access by CTU in the prescribed format

CTU to carry out system studies within 30 days of receipt of application to determine whether

Scenario - Iopen access can be

allowed without any system

strengthening

Scenario-IIAdditional system strengthening would

be required for desired open access

Procedure – Scenario - I

Applicant to confirm with in 30 days to sign

BPTA

– Otherwise application shall be canceled

Long term Open access – effective only after

signing of BPTA

Procedure – Scenario - IIResponsibility Time frame Activities

Receipt of application

POWERGRID 30 Days Communicate necessity of system strengthening

Cost for carrying out studies

Consent for Studies

Applicant 30 Days Communicate to POWERGRID the consent for carrying out studies

Receipt of cost POWERGRID 90 Days Communicate study results, preliminary cost estimate & completion schedule

Receipt of study result

Applicant 30 Days Confirm acceptance of results

90 Days Execute BPTA with POWERGRID and other transmission licensee

15 Days Forward agreement signed with other transmission licensee

Application for Long Term Open Access – As per CERC Notification

POWERGRID developed following format/documents long

term open access

– Application Form with its covering letter

– Guidelines

– Terms and Conditions

– Format for intimation of open access

Applicants shall deposit application fees of Rs. 1 Lakh through

DD.

Note : POWERGRID proposes that applicant should confirm the

acceptance of terms and conditions.

Application for Long Term Open Access – As per CERC Notification

POWERGRID developed following format/documents long

term open access

– Application Form with its covering letter

– Guidelines

– Terms and Conditions

– Format for intimation of open access

Applicants shall deposit application fees of Rs. 1 Lakh through

DD.

Note : POWERGRID proposes that applicant should confirm the

acceptance of terms and conditions.

Application and Guidelines

Guidelines for application– Applicant shall complete the Application form for seeking

Long Term Open Access and provide following in a

prescribe format: Details of the applicant Power transfer requirement (peak load, average load) Details of points of injection and drawl Date of commencement and duration Generating station details including various clearances in case

of new Gen. Station Name of trader if any Confirm acceptance of Terms & Conditions

Additional Terms & conditions for Applicants

Comply with IEGC in force from time to time

POWERGRID shall only carry out the study and shall not be bound to

construct the identified system strengthening

Indemnify POWERGRID for any loss or damage arising as a consequence of

study carried out by us.

Open Access shall be effective from the date of permission or date on which

identified system strengthening is in place, whichever is later

Share the RLDCs fees & charges and any other charges as per directions of

CERC.

Shall not transfer rights and obligations specified in BPTA without approval

of CERC and shall be subjected to payment of compensation as determined

by CERC.

Procedure for reservation of transmission capacity by Short-Term Open Access

Customer

Notice issued to existing customers-5th Mar, 2004.

Long Term Open Access - Guidelines, Procedure and Application forms issued

-29th Mar, 2004.Short Term Open Access – Procedures for

reservation of transmission capacity issued-31st Mar, 2004.

ST_Rate for CTU system posted on websites of RLDCs

-31st Mar, 2004.

OUTLINE– Procedures in compliance of the provisions of

the CERC Regulations dated 30.01.2004. – All short term Open Access Customers to

comply with these procedures.– Review if necessary, after three months. – RLDCs reserve the right to review/revise/

modify/ amend the procedures as and when considered necessary.

APPLICATION AND ITS ENCLOSURES– Separate application for each transaction.– Applications received between 1000 hrs. of a

day and 1000 hrs. of the following day to be treated as to have been received together.

– An incomplete / vague application or an application not found to be in conformity with these procedures/ Regulations shall be rejected.

Enclosures along with the application:– Copies of the agreements/MOUs entered by the

buyer / seller /trader.– Advance payment through a bank draft or

electronic transfer covering the following: Transmission charges of STU/SEB/transmission

licensee system payable to the respective STU/SEB/Licensee.

Transmission charges of CTU system payable to POWERGRID.

Scheduling and system operation charges payable to the SLDCs.

Scheduling and system operation charges payable to the RLDCs

Handling and service charges payable to the Nodal RLDC.

Non-refundable fee payable to the Nodal RLDC. Advance payment for 31 days when Application for

more than one month. Otherwise, full payment in advance.

PROCESSING/APPROVAL OF APPLICATIONS

– Each day to be reckoned as a working day (excluding holidays) of 24 hours.

– Nodal RLDC to seek consent of other SLDCs/ RLDCs involved.

– A non-receipt of timely consent from the SLDCs/ RLDCs to be considered as acceptance by the concerned SLDC/RLDC.

– Approval to be issued transaction wise by Nodal RLDC– Applicant to confirm his acceptance/ refusal of the

approval.– Non receipt of acceptance from the applicant to be

considered as refusal.

– Grid security / stability / reliability shall not be compromised while granting approval.

– RLDC to issue transaction-wise approvals from The point of injection of a seller to the injecting

State’s periphery From the periphery of injecting State up to the

periphery of the drawee State. From the periphery (control area boundary) of the

drawee State to the point of drawal of buyer as confirmed by the concerned SLDC.

SCHEDULING– Customer’s coordinator to coordinate with the

Utilities. – Transaction details to be furnished to each of

the SLDCs involved, on a daily basis.– SLDCs to advise RLDCs by 15.00 hours each

day regarding Open Access transactions.– Ramp-up/ramp-down, if required, to commence

at the time of commencement of the transaction and to end at the time of termination of the transaction.

– No request to be entertained for revisions.

Advance payments by Short -Term Open Access Applicants

– Transmission charges Each STU/SEB/transmission licensee involved. Each Regional / inter-regional system involved.

– Scheduling and system operation charges. Each SLDC involved @ Rs3000/- per day Each RLDC involved @ Rs3000/- per day

– Handling & Service ChargesFull amount computed @ 2% of above charges.

- Non refundable Application fee : Rs. 5,000/-

– If the applied period is 31 days or less, the advance comprises of the actual period.

– If the applied period is more than 31 days, the advance to be payable for one month (31 days).

– Payment to be made fortnightly through Bank Draft/ electronic transfer, in case of transaction for a period exceeding 31 days,.

– No separate bills to be issued for the fortnightly payment.

– Short-term Open Access charges shall not be adjusted against any other payment/charges.

- The decision of the RLDCs regarding the existence of a force majeure condition shall be final and binding.

- Customers to bear average energy losses estimated by RLDC/SLDC.

- Energy losses to be compensated by additional injection at the injection points.

ST_RATES FOR SHORT TERM OPEN ACCESS TRANSACTIONS

REGION TSC AV_CAP RATE ST_RATE

in Rs./lakhs in MW in Rs./MW/day in Rs./MW/day

(1) (2) (3) (4)=0.25*(3)

SOUTHERN 62678.75 6125.00 2803.63 700.91

WESTERN 37872.96 7630.09 1359.90 339.98

EASTERN 22939.97 5005 1255.73 313.93

NORTHERN 103853.74 10945.86 2599.44 649.86

NORTH-EASTERN 16261.07 1211 3678.85 919.71

INTER-REGIONAL LINKS TSC AV_CAP RATE ST_RATE

in Rs./lakhs in MW in Rs./MW/day in Rs./MW/day

(1) (2) (3) (4)=0.25*(3)

SR-WR 12869.75 1000 3525.96 881.49

SR-ER 10675.81 500 5849.76 1462.44

WR-ER 4739.02 1200 1081.97 270.49

WR-NR 1703.26 500 933.29 233.32

ER-NR 7063.32 500 3870.31 967.58

ER-NER 7058.08 1050 1841.64 460.41

Commercial Conditions for the Short-term Open Access Customers

– Payment to be made transaction-wise.– Payment to be made as per schedule of fortnightly

payment issued by the Nodal RLDC.– Payment to be remitted only by Bank draft/ electronic

transfer.– The Nodal RLDC to suspend the transaction in case of

a payment default.– In case of persistent payment default, new applications

from such a customer may not be entertained for a period upto twelve months.

– The advance payment to be forfeited by the Nodal RLDC in case of relinquishment /abandonment by an applicant,

– In case of approval with curtailment followed by relinquishment /abandonment by the applicant, only the non-refundable application fee to be retained and the balance advance payment to be refunded.

Payment Security Mechanism– Intended to ensure recovery of the payment

through LC in case of payment default.– Not a mechanism for regular payment.– Letter of Credit (LC) - security against payment

default for fortnightly payment. – The Bank Guarantee (BG) - security against

payment default in case of relinquishment / abandonment by a customer.

Letter of Credit– The customer to open a fortnightly irrevocable

revolving Letter of Credit (LC) on acceptance of an approval (transaction period > 31 days),

– LC to be opened in a bank as mutually agreed between a customer and the Nodal RLDC.

– LC to be opened within 10 days.– LC to be operated by the Nodal RLDC as and

when customer fails to remit the fortnightly payment.

– Terms and conditions as prescribed by the RLDCs.

Bank Guarantee– Irrevocable Bank Guarantee (BG) in favor of

the Nodal RLDC.– BG to be equal to the amount payable by the

customer for the balance period of the approved transaction.

– BG to be provided from a bank as mutually agreed between a customer and the Nodal RLDC.

– BG to be submitted in original to the Nodal RLDC within five (5) days of the date of acceptance by the customer.

– The BG to be encashed by the Nodal RLDC After five days from the previous date of operation

of the LC, if the same is not recouped. The customer fails to pay the full charges in terms

of the provisions under para 14 (iii) of the Regulations on Open Access, 2004.

Bidding Procedure– Nodal RLDC to invite snap bids when the

capacity sought to be reserved is more than the transfer capacity expected to be available (Para 6 of Regulation).

– Bids to be invited only for such period during which congestion occures.

– The decision of the RLDC/SLDC to be final and binding regarding congestion.

– The bidding procedure is not an “Auction Process”.

– Bids to be submitted on-line. – No bids through fax/post.– Only Applicants entitled to submit a bid.– Bid price in terms of percentage price above the

floor price.– RLDCs reserve the right to reject an incomplete

or vague bid.

GENERAL– RLDC to process application through e-mail if

advance payment is received.– Re-routing to be considered on its merit.– Amendment/ modification to be treated as fresh

application.– Expenses related to Bank draft/ LC/ BG to be

borne by the customer.– Applicant to indemnify RLDCs/ SLDCs from

any damage, losses, claims etc.

Standard Formats– Application for grant of short term open access.– Consent for short term open access.– Approval for short term open access.– Acceptance of short term open access.– Refusal of short term open access.– Format for invitation of bids.

WBSEB

WBPDCL

CESC

DTL

100 MW, 00 to 06 hrs

150 MW, 06 to 12 hrs

125 MW, 22 to 24 hrs

Treated as 3 separate transactions and needs 3 separate applications

ISSUES REGARDING CHARGES

Case-I (Customer is PTC for all three)

WBSEB

DTL

DTL

DTL

100 MW, 06 to 12 hrs

150 MW, 15 to 18 hrs

250 MW, 22 to 24 hrs

Case :I) – If covered in 1 application – will be

considered as one transaction and transmission charges shall be paid for 250 MW.

II) If 3 separate applications then will be treated as 3 transactions.

CASE- II(Customer is PTC for all three)

Eastern Region Northern Region

West Bengal

WBPDCL Delhi

BSES

HVDC Pusauli

Short-Term Open Access - A Case Study

: SELLER : WBPDCLBUYER : BSES (Delhi Discom)TRADER : PTCQUANTUM : 100 MWDURATION : 1 YEAR ( 01.04.2004 to 31.03.2005) 

NODAL AGENCY : NRLDC  

    PTC shall submit application to NRLDC.    NRLDC shall co-ordinate with the concerned agencies for processing and approval of the Short-Term Open Access.    NRLDC shall collect and disburse all the Short-Term Open Access Charges.

ESTIMATED CHARGES PAYABLE Non refundable processing fee Rs.5000/- Transmission charges (POWERGRID)- Rs.7.04 crores

– (for ERTS, NRTS, ER-NR link) Transmission charges(STU) - Rs.3.54 crores

– ( for West Bengal and DTL) Scheduling & system operation charges

– RLDCs(ERLDC & NRLDC) - Rs.0.22 crores– SLDCs (WB SLDC & Delhi SLDC)- Rs.0.22 crores

Handling & Processing charges - Rs.0.22 crores Total (payable by short term customer)- Rs.11.24

crores POWERGRID share - Rs.2.20 crores Other Constituent’s share - Rs.9.04 crores

Total Charges Payable : Approx. 13 paisa per unit

Number of Short term Open Access Transactions(All Regions)

61

69

50

606259

76

58

0

10

20

30

40

50

60

70

80

May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04

Nu

mb

er

of

ST

OA

Tra

ns

ac

tio

ns

6th May 2004 to 31st Dec 2004

Average Numbers = 62

The STOA was 3.5% of the total energy generated in the country. The no. of players out to share this 3.5% cake is going up.

Energy (in MU) traded through Short term Open Access(All Regions)

1060

1569

1109

1673

14511405

19681943

0

500

1000

1500

2000

2500

May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04

Mil

lio

n U

nit

s (

MU

) 6th May 2004 to 31st Dec 2004

Average 1522 MU

e-bidding for transactions in e-bidding for transactions in (All regions May-Dec 2004)(All regions May-Dec 2004)

e-bid conducted (no. of times) 9

Price quote above floor rate (no. of times, details below)

3

Congested Link

Bid for no. of days

Max bid Price (time floor rate)

Effective ST Tr. Charges

WR-NR 7 5.010 1.33

WR Tr. System

3 9.999 1.96

ER-WR 7 3.000 1.59

Summary of STOA Summary of STOA Transactions Transactions

(All Regions)(All Regions)May-04 to Dec-04 Total

No of transactions 495

Total Energy Generated MU

347783

Approved MU for STOA 12178

STOA As % of Total Energy Generated

3.5

Short-term market size and % utilization of STOA approvals in Northern Region

65

33

47

42

3.5 %3.4 %4.2 %

5.9 %7.7%

5.0 %3.8 %2.6 %

71

72

83

70

7772

86

58 57

22

18

74

0

10

20

30

40

50

60

70

80

90

100

May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04

Scheduled STOA energy as % of Total energy consumption

No of applications processed

Scheduled STOA as % of Approved STOA

Open Access-the NR Open Access-the NR experienceexperience

Yr 2004

(May to Dec)

NR Energy Consumption

(MU)

STOA requested

(MU)

STOA approved

(MU)

STOA Scheduled

(MU)

Total 109174 10894 6691 4984

Average (per

month)

13647 1362 836 623

Scheduled STOA was 4.5% of total regional energy. Further only 75% was scheduled vis-à-vis approved.

% Sharing (Jun- Dec 04) of NR Tr. Charges vis-a-vis network utilisation for STOA

0

27

20

6

0

27

1311

9

5

13

17

4

23

3

18

14

0

5

10

15

20

25

30

UPPCL * DTL PSEB RajDiscoms

HVPNL PDD, J&K HPSEB UPCL UT Chd

Per

cen

tag

e (%

)

STOA Utilisation (Buy & Sell) Tr. Charge Sharing

Network Utilisation (NR) for STOA as % of Tr. Charge sharing

515

188

12696

71

23 12 0

181

0

100

200

300

400

500

600

HPSEB PSEB HVPNL UPCL DTL PDD, J&K RajDiscoms

UT Chd UPPCL *

Per

cen

tag

e (%

)

Southern Region - Percentage STOA vis-a-vis % Tr. Charges sharing sharing

13

63

1113

33

2322

14

0

10

20

30

40

50

60

70

TNEB APTRANSCO KPTCL KERALA

Constituents

Per

cen

tag

e

% STOA utilisation % Tr. Charge Sharing

Network utilisation (SR) for STOA as % of Tr. Charges sharing

268

93

5139

0

50

100

150

200

250

300

APTRANSCO KERALA KPTCL TNEB

Per

cen

tag

e (%

)

Eastern Region - Percentage STOA vis-a-vis % Tr. Charges sharing

1

33

48

15

13

34

26

23

7 7

2

0

10

20

30

40

50

60

Bihar WBSEB GRIDCO DVC JSEB SIKKIM

Constituents

Pe

rce

nta

ge

% STOA utilisation % Tr. Charge Sharing

Network utilisation (ER) for STOA as % of Tr. Charges sharing

210204

127

104

102

0

50

100

150

200

250

GRIDCO DVC WBSEB SIKKIM JSEB Bihar

Per

cen

tag

e (%

)

Western Region - Percentage STOA vis-a-vis % Tr.Charges Sharing

36

20

32

0 0

12

0

33

29

24

4 4 3 3

0

5

10

15

20

25

30

35

40

MSEB MPSEB GEB DNH GOA CSEB DD

Constituents

Per

cen

tag

e

% STOA utilisation % Tr. Charge Sharing

Network utilisation (WR) for STOA as % of Tr. Charges sharing

390

131

108

69

1 0 00

50

100

150

200

250

300

350

400

450

CSEB GEB MSEB MPSEB GOA DD DNH

Per

cen

tag

e (%

)

STOA- Service Request/Approved Pattern (All Regions , May'04 - Dec'04)

Others (<12 hrs)7 %

More then 18 hrs Transactions

93 %

Eastern Region

Orissa

Northern Region

Inter Region Link

Change in point of injection

WBSEB

CESC CTU

Punjab

GRIDCO

WBSEB

Eastern Region

Inter Regional link

Northern Region

CTUJaipur

Ajmer

Rajasthan

ExampleExampleIn a 100 MW transaction from GRIDCO to

Punjab, if point of injection is changed from GRIDCO to CESC in Eastern Region, the network changes involve,– GRIDCO to Orissa network changed to CESC to

WBSEB network.– Orissa to CTU network changed to WBSEB to

CTU network.

In both the cases, the network is to be rechecked for availability of capacity in the new paths.

In a 50 MW transaction from WBSEB to Jaipur, if point of drawal is changed from Jaipur to Ajmer in Northern Region, the network changes involve,– CTU to Rajasthan(GSS-1) network changed to

CTU to Rajasthan(GSS-2) network.– Rajasthan to Jaipur network changed to Rajasthan

to Ajmer network.

In both the cases, the network is to be rechecked for availability of capacity in the new paths.

Concluding remarkConcluding remarkEntry barriers are essential to screen genuine players and to prevent those who are only testing waters. It is required to prevent bystanders to stray into the arena. Therefore the Open access charges must not be so low as to cause a stampede. It is a service that is being offered and the compensation has to be fair and reasonable.With the opening of the flow gate there is mad scramble to get a pie of a cake which is really small which is giving rise to conflict of interests. Therefore each one must be given a fair and equitable chance to play his cards. Freedom and flexibility are required there is no doubt about it but it must be ensured that it does not become a spoke to jam the entire machinery.

Summary of Short Term Open Access Transactions

 May'0

4June'04 July'04

Aug'04

Sept'04 Oct'04 Nov'04Dec'0

4Jan'05 Total

No of Transactions 61 69 59 50 76 60 58 62 77 572

Energy (MU) 1405 1060 1569 1943 1968 1109 1451 1673 1385 13563

Applications fees (Rs in Cr) 0.03 0.03 0.03 0.31 0.04 0.03 0.03 0.029 0.033 0.555

Transmission Charges (Rs in Cr) 8.51 9.02 9.21 14.97 17.37 12.47 16.46 17.88 14.73 120.6

Scheduling Charges (Rs in Cr) 0.38 0.31 0.37 0.55 0.63 0.69 1.06 1.164 1.06 6.21

Handling Charges (Rs in Cr) 0.18 0.19 0.19 0.31 0.36 0.26 0.35 0.381 0.32 2.537

Total (Rs in Cr) 9.10 9.55 9.79 15.86 18.40 13.45 17.91 19.45 16.14 129.6

Short Term Rate (Paise/unit) 6.47 9.00 6.24 8.17 9.35 12.02 12.34 11.63 11.66 9.65