OPEN ACCESS IN INTER OPEN ACCESS IN INTER STATE TRANSMISSIONSTATE TRANSMISSION

Gazette Notification of Open Access in inter state transmission system06-

Feb-04Receipt of application from the sellers/buyers/traders of the existing transactions

05-May-04

Open access for the existing sellers/buyers/traders starts as per CERC norm

20-May-04

Open access for the new transactions will start from the date of issue of guidelines by CTU

06-May-04Reservation of existing buyers/sellers/traders will be done on first cum first serve basis upto

19-May-04RLDCs to post the information on the website

07-Mar-04

SLDCs to post the information on web site04-

Aug-04

TIMEFRAME FOR OPEN ACCESSTIMEFRAME FOR OPEN ACCESS

INTRODUCTIONINTRODUCTION

Open Access is necessary for Open Access is necessary for utilization of short time surpluses.utilization of short time surpluses.

Open Access will also create options Open Access will also create options for distribution companies to buy for distribution companies to buy power.power.

Open Access will provide means to the Open Access will provide means to the traders/buyers/sellers.traders/buyers/sellers.

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

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

LEGAL FRAMEWORKLEGAL FRAMEWORKSECTION 38:SECTION 38: CTU to provide open access to Genco, Licensees CTU to provide open access to Genco, Licensees

and any eligible Customer.and any eligible Customer. State Commission to allow open access to State Commission to allow open access to

consumers on payment of surcharge in addition to consumers on payment of surcharge in addition to transmission charges.transmission charges.

Surcharge shall be for meeting cross subsidy, while Surcharge shall be for meeting cross subsidy, while additional surcharge for stranded cost, if any.additional surcharge for stranded cost, if any.

Surcharge to be progressively reduced and Surcharge to be progressively reduced and eliminated.eliminated.

Surcharge not payable in case of captive Surcharge not payable in case of captive generation for own use.generation for own use.

LEGAL FRAMEWORKLEGAL FRAMEWORK

Section 39 and 40Section 39 and 40 Similar provisions for STU and Similar provisions for STU and

Transmission Licensee.Transmission Licensee.

Section 42Section 42 State Commission to introduce Open State Commission to introduce Open

Access in Distribution in phases and Access in Distribution in phases and conditions to be specified within one conditions to be specified within one year.year.

LEGAL FRAMEWORKLEGAL FRAMEWORKInter-State Transmission SystemInter-State Transmission System Any system for conveyance of electricity by Any system for conveyance of electricity by

means of main transmission line from the territory means of main transmission line from the territory of one State to another State.of one State to another State.

The conveyance of electricity across the territory The conveyance of electricity across the territory of an intervening State which is incidental to such of an intervening State which is incidental to such inter-State transmission of electricity.inter-State transmission of electricity.

The transmission of electricity within a State on a The transmission of electricity within a State on a system built, owned, operated, maintained or system built, owned, operated, maintained or controlled by CTU.controlled by CTU.

Intra-State Transmission SystemIntra-State Transmission System Other than inter-State transmission.Other than inter-State transmission.

LEGAL FRAMEWORKLEGAL FRAMEWORK

CTU can not engage in generation CTU can not engage in generation and trading (Section 38)and trading (Section 38)

STU can not engage in trading STU can not engage in trading (Section 39)(Section 39)

Transmission Licensee can not Transmission Licensee can not engage in trading (Section 41)engage in trading (Section 41)

Direct customerDirect customer -A person directly connected to the system A person directly connected to the system owned or operated by the Central Transmission owned or operated by the Central Transmission UtilityUtility

Embedded customerEmbedded customer

A person who is not a direct customer A person who is not a direct customer

Existing beneficiaryExisting beneficiary

A person having firm allocation from a central A person having firm allocation from a central power generating station on the date of coming power generating station on the date of coming into force of these regulations and who has into force of these regulations and who has entered into Bulk Power Transmission entered into Bulk Power Transmission Agreement with the Central Transmission UtilityAgreement with the Central Transmission Utility

Open access customerOpen access customer

A consumer permitted by the State Commission A consumer permitted by the State Commission to receive supply of electricity from a person to receive supply of electricity from a person other than distribution licensee of his area of other than distribution licensee of his area of supply, and the expression includes a supply, and the expression includes a generating company and a licensee, who has generating company and a licensee, who has availed of or intends to avail of open accessavailed of or intends to avail of open access

Transmission CustomerTransmission Customer

Any person, including open access customer Any person, including open access customer using transmission system of a transmission using transmission system of a transmission licenseelicensee

OPEN ACCESS IN INTER-STATE TRANSMISSION

Categorization of Transmission customers

long term customers => 25 yearsshort term customers. <= 1 year

Access to Transmission System

long term customers - transmission planning criteria short term customers - availability of transmission

capacity

Allotment priority of long term customers shall be higher than that of short term customers

NODAL AGENCYNODAL AGENCY

Long term access - Central Transmission Utility or TS provider in whose system the drawal point is located.

Short term access - RLDC of the Region where the drawal of electricity is situated.

Procedure for Long Term Procedure for Long Term AccessAccess Application to be submitted to CTU (Nodal Application to be submitted to CTU (Nodal

Agency)Agency) Details of Capacity needed, points of Details of Capacity needed, points of

injection and drawal, duration, peak load, injection and drawal, duration, peak load, average load etc to be specified.average load etc to be specified.

Non refundable fee of Rs.One Lakh.Non refundable fee of Rs.One Lakh. CTU to opine whether open access can be CTU to opine whether open access can be

allowed with/without system augmentationallowed with/without system augmentation If system augmentation is not required – If system augmentation is not required –

Intimate OA customer the start dateIntimate OA customer the start date If system augmentation is required – Details If system augmentation is required – Details

to be given to OA customer within 90 days of to be given to OA customer within 90 days of receipt of application.receipt of application.

All long term customers should enter into All long term customers should enter into BPTA with Transmission licensee.BPTA with Transmission licensee.

Procedure for Short Term Procedure for Short Term AccessAccess

Application to be submitted to RLDC Application to be submitted to RLDC (Nodal Agency)(Nodal Agency)

Details of reservation needed, points of Details of reservation needed, points of injection and drawal, duration.injection and drawal, duration.

Non refundable fee of Rs.5000/-.Non refundable fee of Rs.5000/-. This fee shall This fee shall notnot be adjusted towards be adjusted towards

RLDC fees.RLDC fees.

Time-schedule for ProcessingTime-schedule for Processing

Short Term Customer Application Short Term Customer Application

Up to One dayUp to One day 12 hours 12 hours

Up to one week Up to one week Two days Two days

Up to one monthUp to one month Seven days Seven days

Up to one year Up to one year Thirty days Thirty days

Payments to be made by a Short term Payments to be made by a Short term

customercustomer a) a) Transmission chargesTransmission charges

i) Each STU/SEB/transmission licensee i) Each STU/SEB/transmission licensee involved.involved.

ii) Each Regional transmission system ii) Each Regional transmission system involvedinvolved

iii) Inter-regional transmission system iii) Inter-regional transmission system involved.involved.

b) Scheduling and system operation b) Scheduling and system operation charges.charges.

i) Each SLDC involved.i) Each SLDC involved.

ii) Each RLDC involved.ii) Each RLDC involved.

c) Handling and service charges.c) Handling and service charges.

Full amount computed @ 2% of {(a) + Full amount computed @ 2% of {(a) + (b)}above.(b)}above.

d) Non refundable fee : Rs. 5,000/-d) Non refundable fee : Rs. 5,000/-

Procedure for Bidding RLDC concerned shall invite bids if

transmission capacity reservation sought by short term customer is more than the availability in a particular transmission corridor

The floor price of the bids for short term customer shall be about 1/4 th rate chargeable from long term customer and will be in Rupees per MW per day.

If customer gets the quantum of power he has bid for – he has to pay the price quoted by ‘last’ customer.

If customer gets a quantum lesser than that he has bid for – he gets to pay his bid price

PROCEDURE FOR PROCEDURE FOR CURTAILEMENTCURTAILEMENT

In case of transmission constraint , if In case of transmission constraint , if curtailment is necessary then,curtailment is necessary then,

Short term customers firstShort term customers first Long term customers nextLong term customers next

Within the category,Within the category, OA customers haveOA customers have

curtailment on pro rata curtailment on pro rata basisbasis

Revenue from Short term Open Revenue from Short term Open access customersaccess customers

25% of the revenue received from short term customer to be retained by Transmission licensee for system Augmentation works. :- Signal for transmission addition

Balance 75% shall be used for reduction of transmission charges for existing long term customers.

Transmission ChargesTransmission Charges

In an Un-congested corridor – Short term In an Un-congested corridor – Short term customers pay ¼ of Charges applicable to customers pay ¼ of Charges applicable to Long-Term customersLong-Term customers

Annual Transmission charges of previous Annual Transmission charges of previous financial year to be used – Rs/MW/Day.financial year to be used – Rs/MW/Day.

Minimum transmission charges will be for Minimum transmission charges will be for ONE day and in multiples thereof.ONE day and in multiples thereof.

This price will also serve as the floor price This price will also serve as the floor price in case bidding has to be done.in case bidding has to be done.

With bidding, transmission charges of With bidding, transmission charges of power flowing on a corridor can have power flowing on a corridor can have multiple prices.multiple prices.

OPEN ACCESS IN INTER-STATE TRANSMISSION

Any mismatch between schedule and actual drawals at the Any mismatch between schedule and actual drawals at the drawal point anddrawal point and at the injection point shall be met from the at the injection point shall be met from the grid and its price shall begrid and its price shall be governed by the frequency linked governed by the frequency linked unscheduled energy inter-change pricingunscheduled energy inter-change pricing mechanism already mechanism already applicable to inter-State transaction under the ABT.applicable to inter-State transaction under the ABT.

All customers directly connected to POWERGRID network All customers directly connected to POWERGRID network shall have to payshall have to pay reactive energy charges calculated as per reactive energy charges calculated as per the existing scheme.the existing scheme.

All transmission customers directly connected to POWERGRID All transmission customers directly connected to POWERGRID network shallnetwork shall be required to install special energy meters be required to install special energy meters capable of time differentiatedcapable of time differentiated measurement of active energy measurement of active energy and voltage differentiating measurement ofand voltage differentiating measurement of reactive energy.reactive energy.

OPEN ACCESS IN INTER-STATE TRANSMISSION

All users shall pay average energy loss in the All users shall pay average energy loss in the transmission system astransmission system as estimated by the State and estimated by the State and Regional Load Dispatch Centre concerned. TheRegional Load Dispatch Centre concerned. The energy energy loss shall be adjusted in kind i.e. average loss in loss shall be adjusted in kind i.e. average loss in transmission shalltransmission shall be compensated by additional be compensated by additional injection at the injection point.injection at the injection point.

Any complaint regarding delays, discrimination and lack Any complaint regarding delays, discrimination and lack of information in theof information in the matter of open access in inter-state matter of open access in inter-state transmission shall be directed to thetransmission shall be directed to the Member Secretary Member Secretary of Regional Electricity Board of the Region. Anyof Regional Electricity Board of the Region. Any unresolved problem or dispute could be referred to the unresolved problem or dispute could be referred to the Commission.Commission.

KSEB SR

ER

DVC

JEYPORE-GAJUWAKA HVDC

CASE : 1 DIRECT CUSTOMERTRANSACTIONDVC - KSEB0000 HRS – 2400 HRS100MW AT DRAWALPOINT for 30 days

INJECTION POINT : DVC state peripheryDRAWAL POINT : KSEB state peripheryINTERVENING REGION : Nil

TRANSMISSION CHARGES : (in Rs.) ER : ER_ST_Rate X 100 X30 GAJUWAKA HVDC : Jey_Gaju_ST_RateX100X30 SR : SR_ST_Rate x100X30

SCHEDULING CHARGES : (in Rs.)

ERLDC : 3000X30SRLDC : 3000X30 TRANSMISSION LOSS : Say SR (3%) and ER (3.5%)Injection at ER- SR Periphery : 103 MW Injection at DVC Periphery : 106.6 MW

KSEB(D1)

SR

ER

WBSEB(G1)

JEYPORE-GAJUWAKA HVDC

CASE : 2 EMBEDDED CUSTOMERTRANSACTIONWBSEB(G1) - KSEB (D1)0000 HRS – 2400 HRS100MW AT DRAWALPOINT for 30 days

INJECTION POINT : G1 in WBSEB state peripheryDRAWAL POINT : D1 in KSEB state peripheryINTERVENING REGION : NilTRANSMISSION CHARGES : (in Rs.)WBSEB : WBSEB_ST_RateX100X30 ER : ER_ST_Rate X 100 X30 GAJUWAKA HVDC : Jey_Gaju_ST_RateX100X30 SR : SR_ST_Rate x100X30 KSEB : KSEB_ST_RateX100X30SCHEDULING CHARGES : (in Rs.)WBSEBLDC : 3000X30ERLDC : 3000X30SRLDC : 3000X30 KSEBLDC : 3000X30TRANSMISSION LOSS : Say WBSEB (5%) SR (3%) and ER (3.5%) KSEB(5%)Injection at KSEB State’s Periphery : 105 MW Injection at ER- SR Periphery : 108.2 MW Injection at WBSEB State Periphery : 111.9 MWInjection at WBSEB(G1) State Periphery : 117.5 MW

ST_RATE FOR THE YEAR 04-ST_RATE FOR THE YEAR 04-0505

ERTS SYSTEMERTS SYSTEM : 314 RS per MW per day: 314 RS per MW per day

SRTS SYSTEMSRTS SYSTEM : 701 RS per MW per day: 701 RS per MW per day

NRTS SYSTEMNRTS SYSTEM : 650 RS per MW per day: 650 RS per MW per day

WRTS SYSTEMWRTS SYSTEM : 340 RS per MW per day: 340 RS per MW per day

NERTS SYSTEMNERTS SYSTEM : 920 RS per MW per day: 920 RS per MW per day

JEYPORE- GAJUWAKA HVDC JEYPORE- GAJUWAKA HVDC : 1463 RS per MW per day: 1463 RS per MW per day

BHADRAVATHI HVDC BHADRAVATHI HVDC : 882 RS per MW per day: 882 RS per MW per day

(ER-SR)

(WR-SR)

INFORMATION SYSTEMINFORMATION SYSTEM SEPARATE WEB PAGE TITLED :- SEPARATE WEB PAGE TITLED :- ‘OPEN ACCESS ‘OPEN ACCESS

INFORMATION’INFORMATION’ FLOOR RATE IN RS/MW/DAYFLOOR RATE IN RS/MW/DAY CURRENT STATUS OF LONG TERM AND SHORT

CUSTOMERS LIST OF PAST SHORT TERM CUSTOMERS, INFORMATION OF POWER FLOW ON INTER-REGIONAL

LINK

INFORMATION REGARDING AVERAGE ENERGY LOSSES DURING THE PREVIOUS WEEKS/MONTHS.

STATUS REPORT ON SHORT TERM CUSTOMERS

Agencies involved in Open Access Agencies involved in Open Access TransactionTransaction

RLDC (s)RLDC (s) SLDC (s)SLDC (s) CTUCTU STU (s)STU (s) BuyerBuyer SellerSeller TraderTrader

ResponsibilitiesResponsibilities

Many Agencies involved in day to Many Agencies involved in day to day operationday operation

RLDC – fully responsible for inter-RLDC – fully responsible for inter-State and inter-Regional transfer.State and inter-Regional transfer.

SLDC – full responsibility for intra-SLDC – full responsibility for intra-State systemState system

Responsibilities of RLDCs/SLDCsResponsibilities of RLDCs/SLDCs

RLDCs and SLDCs are fully responsible RLDCs and SLDCs are fully responsible for day to day operation.for day to day operation.

Congestion in system to be decided Congestion in system to be decided judiciously.judiciously.

Each and every decision have monetary Each and every decision have monetary implication, so one has to be very careful.implication, so one has to be very careful.

Every decision can be questioned by the Every decision can be questioned by the affected party. So,affected party. So, Our System should be totally transparent.Our System should be totally transparent. Every one to be treated equally.Every one to be treated equally. Judicious decisions to be taken.Judicious decisions to be taken. No decisions to be taken in a hurry under No decisions to be taken in a hurry under

pressure from buyer, seller or trader.pressure from buyer, seller or trader.

Responsible and separate identified Responsible and separate identified persons to be allowed to handle it.persons to be allowed to handle it.

Time management and quick actions is Time management and quick actions is required from RLDC/SLDCs.required from RLDC/SLDCs.

CTU and STU roles are to inform about CTU and STU roles are to inform about capacity of individual links. capacity of individual links.

Analysis of congestion in inter-State Analysis of congestion in inter-State system and inter-Regional links to be done system and inter-Regional links to be done by RLDCs.by RLDCs.

Analysis of congestion in intra-State Analysis of congestion in intra-State system is to be done by respective SLDCs.system is to be done by respective SLDCs.

THANK YOUTHANK YOU