Presentation Outline Indian Electricity Market Open Access in inter-State Transmission...

Presentation Outline

• Indian Electricity Market• Open Access in inter-State Transmission

– Regulations– Procedures

• Issues– Four Pillars of Market Design– Control Area – Definition & Obligation– Transmission & Transfer Capability– Congestion Management

• Expectations

Regional Grids – ‘Geographical’

30,500 MW

16,00053,997 MW

48,073 MW

47,238 MW

23,197MW

2,506 MW

Installed Generation CapacityCurrent: 174,911 MWTarget for Year 2012: 200,000 MWFigures as on 31-AUG-2011

Inter regional Inter regional LinkLink

MW capacityMW capacity

NER-ER 1,260

ER-NR 7,930

ER-SR* 3,630

ER-WR 2,990

SR-WR 1,720

WR-NR 4,220

Other 132 KV Links

600

*Talcher Kolar HVDC Bipole

2,500

Total as on date 22,350

Target for 2012 37,700

Peculiarities of Regional Grids in IndiaPeculiarities of Regional Grids in India

SOUTHERN REGION

WESTERNREGION

EASTERN REGION

NORTHERN REGION NORTH-

EASTERN REGION

REGIONAL GRIDS

Deficit Region

Snow fed – run-of –the –river hydro

Highly weather sensitive load

Adverse weather conditions: Fog & Dust StormVery low load

High hydro potential

Evacuation problems

Industrial load and agricultural load

Low load

High coal reserves

Pit head base load plants

High load (40% agricultural load)

Monsoon dependent hydro

CHICKEN-NECK

Merging of markets along with synchronization of regions

NEW Grid

SouthGrid

South

West

North

East

Northeast

Five Regional GridsTwo Frequencies

October 1991East and Northeast

synchronized

March 2003West synchronized

With East & Northeast

August 2006North synchronized

With Central Grid

Central Grid

INDIA

3,287,263 sq. km area

More than 1 Billion people (2001 census)

Installed Capacity of

174 GW (May-11)

International ConnectionsInternational Connections

Bhutan Tala HEP (1020 MW) – 400 KV Chukha HEP (336 MW) – 220 KV Kurichu HEP (60 MW) – 132 KV Net import by India

Nepal Over 16 links of 132/33/11 KV Net export to Nepal (about 10% of Nepal’s demand)

04/21/23 NRLDC,POWERGRID

Ministry of Power, Govt of India

MOP, State Govt.

Central Sector Companies

• Generating Utilities, NTPC, NHPC, NEEPCO, NPCIL

• Transmission Utility, POWERGRID

• RLDC

• Finance, PFC

• Rural Electrification REC

Authorities

CEA, REBs,

R&D

CPRI, NPTI, PSTI,

Mega IPPs

State Sector

• Generation

• Transmission

• DistributionState IPPs

Institutional Framework

Independent

CERC

Independent

SERC

Appellate

Tribunal

Trading Co.

• PTC India

• NVVNL Pvt. DISCOM

04/21/23 NRLDC,POWERGRID 7

LEGISLATION,REGULATION AND GOVERNANCE

RE

GU

LA

TO

R

RLDC RLDC

RP

C R

PC

STAKEHOLDERSSTAKEHOLDERS

DISCOMTRANSCO

SEB LICENCEE

CPP,IPP

GENCO

ISGS

SLDC’sSLDC’s RE

GU

LA

TO

R

CTU

MERCHANT GEN.

NL

DC

NL

DC

NLDC 8

Indian Electricity Market

NLDC 9

A Typical Dispatch

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

36

34

32

30

28

26

24

22

FIRM SHARES IN ISGS

ADVANCE SHORT TERM BILATERAL CONTRACTS

Day Ahead, PX

Sell

BuyBuy

Sell

Forecast

UI

Contingency Real-time

Surpluses/Deficits - Balance supply and demand

Hours

‘00 M

W

NLDC 10

-1000

-500

0

500

1000

1500

2000

2500

3000

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93

ISGS/LTOA STOA PX UI

MW

Typical Utility Procurement Portfolio

LTOA STOA

U I

U I

PX

Indian Electricity MarketIndian Electricity Market

ENABLERSLegislation

Indian Electricity Act 2003

National Electricity Policy

12-Feb-2005, Para 5.7.1(d)

Regulation

IEGC-Feb 2000

ABT Order-Jan2000

Open Access-May-2004

Power Exchange- Jan 2008

Execution: CTU/STU, RLDC/SLDC

Grid & Market Operation

Control Centres & SEMs

ABT settlement: in stages 2002-03

Scheduling Procedures

STRUCTUREBalancing Mechanism

Frequency linked

Unscheduled Interchange

Intra-day STOA

Day-ahead PX

Short-term BilateralDay-ahead

First-come-first served

Three-month ahead

Medium Term & Long-term Bilateral

Shared resources (ISGS)

Own resources

IEGCFeb.’2000

Ancillary Market

ABT2002-03

Open Access2004

PX 2008

Capacity Market

Evolution of Power Market in India

04/21/23 NRLDC: POSOCO 13

Open Access Open Access In In

Inter-state Transmission systemInter-state Transmission system

Principal Regulation 2008( 25Principal Regulation 2008( 25 thth Jan’2008) Jan’2008)Amendment Regulation 2009(20Amendment Regulation 2009(20 thth May’2009) May’2009)

Order-Removal of difficulties,(28Order-Removal of difficulties,(28 thth June,2011) June,2011)Order-Amendment to CTU procedure 28Order-Amendment to CTU procedure 28 thth Oct,2009 Oct,2009

D.K.JAIN, DGMNRLDC, POSOCOD.K.JAIN, DGMNRLDC, POSOCO

Definition Of “Open Access” In The Electricity Act, 2003

• Electricity Act, 2003

– Key feature : Competition– Non-discriminatory open access

“Open Access” means 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”.

Section 2(47) of Electricity Act 2003

Legal Framework(Sections 38/39/40/42) CTU / STU/ Distribution licensee /

Transmission licensee-functions & duties

• To provide non-discriminatory open access to its transmission system for use by-(i) any licensee or generating company on payment of the transmission charges; or(ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the Central Commission:.

• CTU can not engage in generation/trading.• STU can not engage in trading• Transmission Licensee can not engage in trading

Open Access In India

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

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

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

• Non- discriminatory / Transparent Process• Freedom to buy/sell power• Efficient Market Mechanism to address supply /

demand mismatches• Encourage investment in Transmission

04/21/23

OPEN ACCESS IN INTER-STATE TRANSMISSION

• Products –– Long term Access– Short term Access

• Monthly– Advance– First Come First Serve

• Day ahead • Intra day transactions

• Permits usage of spare transmission capacity through a transparent process

• Offers choice and freedom to buy & sell power

• Provides signals for investment in transmission

Present Market at a Glance

Long TermLong Term MarketMarket

12-25 Yr12-25 Yr

Short Term Open AccessShort Term Open Access

Bilateral Bilateral TransactionTransaction

Collective Collective TransactioTransactio

nn

Day Ahead Day Ahead TransactioTransactio

nn

Contingency Contingency TransactionTransaction

3 month 3 month aheadahead

Day Ahead Day Ahead aheadahead

After After Clearance of Clearance of

PXPX

On the day of On the day of operationoperation

SchedulesSchedules

Balancing Market ( UI )Balancing Market ( UI )( Real Time Operation )( Real Time Operation )

Medium Medium TermTerm

MarketMarket

3months3months-3Years-3Years

Term Term aheadahead

Regulations on Open Access

• 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

• CTUs Short Term Open Access Procedure approval : 27.03.2004

• Amendments on 21-02-2005

• Revised Regulations for Open Access in ISTS issued on 25.1.2008.

These revisions were effective from 1.4.2008.

• Revised Regulations for Open Access in ISTS issued on 20.05.2009.

These revisions were effective from 15.6.2009 ( for application

submitted on or after 15.06.2009 )

Open Access Regulations, 2008 ( 25.01.2008 )

AND

Subsequent (Amendment) Regulations, 2009

( 20.05.2009 )

Open Access Regulations, 2008 - Specific

• Procedure for Bilateral Transaction- CERC Approval on 31.01.2008 - Effective from 01.04.2008

• New regulation also cater for transaction through Power Exchange (Px)

• Procedure for Collective Transaction– POWERGRID/CTU -submitted on 12.02.2008– CERC Approval on 06.06.2008

– IEX functioning wef 27.06.08 for scheduling on 28.06.08

– PXIL functioning wef 22.10.08 for scheduling on 23.10.08

Regulations cover only Short-term Open Access

• Transactions categorized as Bilateral and Collective (through Px)

• Nodal Agency – Bilateral : RLDCs where the drawal point is situated– Collective : NLDC

• Both Buyers and Sellers of Collective transactions to bear transmission charges and absorb transmission losses

• Inter-Regional links - No Separate treatment. • SLDC consent mandated along with application• In case of Congestion – e-Bidding without Price Cap( i.e

multiple of Rs10/MWh)• Exit Option provided with payment of up to 5 days open

access charges.( Revised in amendment order )

Open Access Regulations, 2008 - SpecificOpen Access Regulations, 2008 - Specific

Agencies involved in Short-Term Open Access Transaction

• RLDC (s)

• SLDC (s)

• CTU

• STU (s)

• Buyer

• Seller

• Trader

Who is a Customer?

– Intending to avail electricity ?– Intending to deliver electricity?– Intending to have an access in CTU/STU system?– Wants to trade electricity?– Who participates in Regional pool UI

mechanism?– Power Exchange ?

• Direct Customer: – Person directly connected to the system owned and operated by

the CTU

• Embedded Customer:– a person who is not a direct customer

Catergorisation of Customers

The customers are divided into three categories:

(a) Long-term customers - The persons availing or intending to avail access to the inter-state transmission system for a period of 25 years or more shall be the long-term customers (have long-term lien over an ISTS)

(b) Medium-Term Customers – The persons availing or intend to avail access to the inter-state transmission system for a period of 3 years or less shall be the Medium-term customers

(c) Short-term customers - The transmission customers other than the long-term customers shall be the short-term customers. But short-term customers would get open access maximum for one month at a time ( Open Access Customer intending to avail OA, for Bilateral Transaction / Collective Transaction )

Open Access in ISTS

Short term Open

Access

Long Term & Medium

Term

Access

Two scenarios arise Generation already connected to the grid and

harnessing margins available in transmission capacity for its optimal utilisation

--Inherent design margins

--Margins available due to in-built spare transmission capacity created to cater future load growth

New generation developer seeking connectivity and power transfer through the grid

LEGAL FRAMEWORK [SECTION-9(2)]LEGAL FRAMEWORK [SECTION-9(2)]

• Every person, who has constructed a captive generating plant and maintains and operates such plant, shall have the right to open access for the purposes of carrying electricity from his captive generating plant to the destination of his use

• Provided that such open access shall be subject to availability of adequate transmission facility and such availability of transmission facility shall be determined by the Central Transmission Utility or the State Transmission Utility, as the case may be

Legal Framework

Section 38: (CTU Function)• CTU to provide open access to Licensee or Generating

Company on payment of transmission charges.• Any consumer when open access is provided by State

Commission on payment of surcharge in addition to transmission charges.

• CTU can not engage in generation and trading.

Sections 39: (STU Function)• Similar provisions for STU and Transmission Licensee.• Transmission Licensee can not engage in trading (Section

41)

Regulation 2: Definitions• “bilateral transaction” means a transaction for exchange

of energy (MWh) between a specified buyer and a specified seller, directly or through a trading licensee or discovered at power exchange through anonymous bidding, from a specified point of injection to a specified point of drawl for a fixed or varying quantum of power (MW) for any time period during a month

• “collective transaction” means a set of transactions discovered in power exchange through anonymous, simultaneous competitive bidding by buyers and sellers;

• “regional entity” means a person whose Scheduling ,metering and energy accounting is done at the regional level;

• “intra-State entity” means a person whose metering and energy accounting is done by the State Load Despatch Centre or by any other authorized State utility;

Regulation 2: Definitions….contd• “short-term customer” means a person who

has availed or intends to avail short term open access

• “short-term open access” means open access for a period up to one (1)month at one time

• Short term access applications allowed upto 3 months in advance considering ATC/TTC issues.

Regulation 2: Definitions….contd

• “State network” means network owned by the State Transmission Utility, distribution licensee or any other person granted licence by the State Commission to construct, operate and maintain the transmission system;

• “State utility” means a State Transmission Utility, or a State Electricity Board,or Electricity Department of the State, or a State Government organization authorized to sell or purchase electricity on behalf of the State;

• “time block” means 15 minutes time period specified in the Grid Code for the purposes of scheduling and despatch; and

Regulation 3: Scope

• The long-term-customer and the medium-term customer shall have priority over the short-term customer for use of the inter-State transmission system.

• The short-term customer shall be eligible for short-term open access over the surplus capacity available on the inter-State transmission system after use by the long-term customer and the medium-term customer, by virtue of

• inherent design margins;• margins available due to variation in power flows; and• Margins available due to in-built spare transmission

capacity created to cater to future load growth or generation addition.

Regulation 4: Detailed Procedure

• Subject to the provisions of these regulations, the Central Transmission Utility, till the Regional Load Despatch Centre is operated by it and thereafter the Government company or any authority or corporation notified by the Central Government under subsection (2) of Section 27 of the Act: shall, after obtaining prior approval of the Commission, issue the detailed procedure to operationalise open access and on any residual matter not covered under these regulations

Regulation 5: Nodal Agency

• The nodal agency for bilateral transactions shall be the Regional Load Despatch Centre of the region where point of drawal of electricity is situated and in case of the collective transactions, the nodal agency shall be the National Load Despatch Centre.

NODAL AGENCY • For Long & Medium Term Customers

– Central Transmission Utility (CTU), if its system is used

– Transmission Licensee/ STU of the region in which the drawl point is located when CTU system is not involved.

CTU PROCEDURES

Regulation 6: Submission of STOA Application• A short-term customer or the power exchange (on behalf of buyers and

sellers) intending to avail of STOA for use of the transmission lines or associated facilities for such lines on the ISTS, shall make an application to the nodal agency

• The application for a bilateral transaction shall contain the details, such as – names and location of supplier and buyer, – contracted power (MW) to be scheduled and interface at which it is

referred to, – point of injection, – point of drawal, – starting time block and date, – ending time block and date, and – such other information that may be required in the detailed

procedure.• The application for a collective transaction shall contain the requisite

details in accordance with the detailed procedure.

Procedure for Scheduling of

Open Access ( Bilateral Transaction)

Advance, FCFS, Day-Ahead & Contingency

GENERAL CONDITIONS/APPLICATION SUBMISSION• As per OA regulations Dtd. 25/01/08 w.e.f 01/04/08 & OA Amendment Regulations Dtd. 20/05/09 & as per order-amendment to CTU procedure Dtd.28/10/09

• RLDC will check if connectivity with CTU/ ISTS or STU system (as the case may be) is established, necessary metering,protection, communication are in place, transfer capability upto the CTU network for power flow of the quantum of injection/drawal applied for is available on the date of application and whether the applicant has undertaken to abide by the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations.

• Application to be submitted to::– Nodal RLDC where point of drawal is situated– & also to all RLDCs involved in the transaction

• Application Contents– Details:: Buyer / Seller / Point of injection/ point of drawal /

Contracted power at supplier interface/ date/ time period (as per (Format-I-Application for scheduling) alongwith application fee/SLDC concurrance

CTU PROCEDURES

Regulation 7: Application Fee

• An application made for each bilateral transaction or the collective transaction shall be accompanied by a non-refundable fee of Rupees five thousand (Rs. 5000/-) only

• Provided that the fee for bilateral transaction on the day of the application or may be deposited within three working days of submission of the application.

Regulation 8: Concurrence of SLDC for bilateral and collective transactions

• When a Proposed bilateral transaction has a State utility or an intra-State entity as a buyer or a seller– concurrence of the SLDC shall be obtained in advance and

submitted along with the application to the nodal agency in the form as in the detailed procedure.

• When a State utility or an intra-State entity proposes to participate in trading through a power exchange, it shall obtain – a “no objection” or a prior standing clearance from the

SLDC in the form as in the detailed procedure, specifying the MW up to which the entity may submit a buy or sell bid in a power exchange.

3(a) For obtaining concurrence or ‘no objection’ or prior standing clearance :

• Application before the SLDC• SLDC to Acknowledge receipt of the application, either by e-

mail or fax, or any other recognized mode ,• within twenty four hours • From the time of receipt of the application.

3(b) SLDC shall verify the following, namely-(i) existence of infrastructure necessary for time-block-wise

energy metering and accounting in accordance with the provisions of the Grid Code in force, and

(ii) availability of surplus transmission capacity in the State network.

3(c) SLDC to concur ‘no objection’ / prior standing clearance• Within three (3) working days if infrastructure exists• Within seven (7) working days for a first time STOA

Customer• Within two (2) working days for a defective/incomplete

application

Regulation 8: Concurrence of SLDC for bilateral and collective transactions…..contd

• In case of SLDCs refusal ( When Application is in order)– To be communicated, within the period of three (3) working

days or seven (7) working days(First Time)– Reasons for such refusal:

• In case of no Communication by SLDC– STOA shall be deemed to have been granted:

• In case of deemed STOA grant by SLDC– the applicant while making application shall submit to the

nodal agency an affidavit (in the format provided in the detailed procedure), duly notarised, declaring that –

• (a) the SLDC has failed to convey any deficiency or defect in the application or its refusal or concurrence or ‘no objection’ or prior standing clearance


• (b) necessary infrastructure for time-block-wise energy metering and accounting in accordance with the provisions of the Grid Code in force, is in place; and enclosing with the affidavit –

– (i) a copy of the complete application after removal of deficiency or rectification of defects, if any communicated, made to the SLDC for seeking concurrence or ‘no objection’ or prior standing clearance, as the case may be, and

– (ii) a copy of the acknowledgement, if any, given by the SLDC, or any other evidence in support of delivery of the application.


• SLDC concurrance– Concerned SLDCs concurrence in advance (Format

- II-Concurrance from SLDC)– In case of deemed concurrance the applicant

alongwith the application shall submit duly notarized affidavit (Format-IIA-Affidavit-Deemed concurrance from SLDC

• RLDC concurrance - Bilateral Transaction having a State Utility or an intra-state

Entity as a Buyer/Seller in other region:: concurrence of the concerned Regional Load Despatch Centre(s).

- Nodal applications to be considered first before giving other concurrance

- Reasons for refusal

SUBMISSION OF APPLICATIONCTU PROCEDURES

• Affidavit for deemed SLDC concurrance:

• (a) the State Load Despatch Centre has failed to convey any deficiency or defect in the application or its refusal or concurrence or ‘no objection’ or prior standing clearance, as the case may be, within the specified time(3/7days)

• (b) necessary infrastructure for time-block-wise energy metering and accounting in accordance with the provisions of the Grid Code in force, is in place; and enclosing with the affidavit –

• (i) a copy of the complete application after removal of deficiency or rectification of defects, if any communicated for seeking concurrence or ‘no objection’ or prior standing clearance, as the case may be, and

• (ii) a copy of the acknowledgement, if any, given by the State Load Despatch Centre, or any other evidence in support of delivery of the application to the State Load Despatch Centre.”

SUBMISSION OF APPLICATIONCTU PROCEDURES

Categories & Time Line For Open Access

M0

M1

M2

M3

DLDL-5DL-10 DL+5

DOP

DOP-1

DOP-4

Adv Application for M1

Adv Application for M2, Approvals for M1

Adv Application for M3,Approvals for M2

Approvals for M3

FCFSFCFS

Day Ahead / PX

Day Ahead / PX LEGEND:

DOP : Day of Operation DL : Last day of M0

LEGEND: DOP : Day of Operation DL : Last day of M0

CONTINGENCYCONTINGENCY

ADVANCE SCHEDULINGADVANCE SCHEDULING• Advance Scheduling – 3 months in advance• Separate Application –

– Month wise - each transaction• Time Line for submission

– Last date for submission ( -10 / -5 / 0 days prior to end of current month MO – for transaction in M1, M2, M3)

– Cut-off time of application: 17:30 Hrs. of last day (Day 0)– Request for concurrence (RLDC) – by 12:00 Hrs.(Day 1) (Format- III)– Concurrence - by 20:00 Hrs (Day 1)– Congestion Information to Applicant – 12:00 Hrs (Day 2)-Format-

IV(Congestion information-Advance scheduling)– Revised Request/re-routing – 11:00 HRs. (Day3)-Format-V-Request

for revision due to congestion)– E-bidding – in case of Congestion (Day 4)– Acceptance/Refusal of Scheduling Request – (Day5)-Format-VI-

Acceptance for scheduling

Outline

• CERC Regulations on Open Access in Inter-State Transmission, 2008 and subsequent ( Amendment ) Regulation 2009

• Applicable for Scheduling of Open Access (Bilateral Transactions)– w.e.f. 15.06.2009

Submission Of Application• Nodal Agency

– RLDC where point of drawal is situated• Application Contents

– Details -Buyer /Seller /Point of injection/point of drawal/Contracted power at supplier interface/date/time period

• Application Fee (Rs. 5000/-)– Along with application – With in 3 working days ( for same day or next day transaction) from the

date of Acceptance.• A copy of the Application shall be endorsed by the applicant to the

following:a) Each RLDC involved in the transaction.b) Each SLDC involved in the transaction.

• Endorsement– Concerned RLDCs/SLDCs (Format-II) OR– Prior Clearance .[FORMAT-II A:“AFFIDAVIT – regarding Deemed

Concurrence from SLDC”]

Time Line For Open Access ApprovalTime Line For Open Access Approval

M1

M2

M3

M4

DLDL-5DL-10 DL+5

DOP

DOP-1

DOP-4

Adv Application for M2

Adv Application for M3, Approvals for M2

Adv Application for M4,Approvals for M3Approvals for M4

FCFSFCFS

Day Ahead / PX

Day Ahead / PX LEGEND:

DOP : Day of Operation DL : Last day of M1

LEGEND: DOP : Day of Operation DL : Last day of M1

New Open Access Regulations w.e.f. 01-April-2008

Application for advance scheduling

M0 M1 M2 M3

Application

Application

Separate application shall be made for each month, and for each transaction.

Separate application shall be made for each month, and for each transaction.

Advance Scheduling

• Advance Scheduling – 3 months in advance• Separate Application –

– Month wise - each transaction

• Time Line for submission– Last date for submission ( -10 / -5 / 0 days prior to end of

current month MO – for transaction in M1, M2, M3)– Cut-off time of application: 17:30 Hrs. of last day (Day 0)– Request for concurrence (RLDC) – by 12:00 Hr. next day (Day

1)– Concurrence - by 20:00 Hrs (Day 1)– Congestion Information to Applicant – next day 12:00 Hrs (Day

2)– Revised Request – next day 11:00 HRs. (Day3)– E-bidding – in case of Congestion (next day) (Day 4)– Acceptance/Refusal of Scheduling Request – (Day 5)

e-Bidding Procedure• Invitation of Bids from the concerned applicant

– period of congestion– RTS/IR corridor – expected to get over stressed

• Only Registered Users – User ID & Password– Electronic submission – website of CTU– Bid Closing time as specified – Single Price Bid – No Modification/withdrawal once submitted

• Bid Price - in addition to Open Access Transmission Charges

• Multiples of Rs. 10/ MWh . ( Min. Rs. 10/MWh)• Mandatory - Non-participation – Rejection of Application• Acceptance - Decreasing order of Price Quoted• Equal Price Bids – Pro-rata

“First-come-first-served” Basis (FCFS)• Scope

– FCFS shall be considered only when transactions are commencing & terminating in the same calender month.

• Separate Application for each month• To be submitted 4 days prior to date of Scheduling• Processing time – 3 days• Processed on FCFS basis• Application Received up to 1730 hrs in a day to be

processed together – same priority• Application Received after 17:30 Hrs. - consider as

next day• Congestion Management – pro-rata

Day-ahead Bilateral Transaction

• Applications received within 3 days prior to the day of Scheduling and up to 15:00 Hrs. of the day immediately preceding the day of scheduling shall be treated as same priority.

• Processing only after processing of the Collective Transactions of the Power Exchange (s).

• Congestion Management – Pro-rata

Scheduling Of Bilateral Transaction In A Contingency

• Only Buying Utility to make an Application to the Nodal RLDC.

• To be considered after 1500 hrs of the day immediately preceding the day of scheduling.

• In case of intra- day/same day – scheduling from 6th time block ( not mandatory )

Incorporation In Daily Schedules

• RLDCs to incorporate in Daily Schedules of the Regional Entities

• Average energy losses - estimated on weekly basis

– RLDCs – ISTS (Inter State TS)– SLDC – intra-State TS

• Resolution of 0.01 MW at each State/inter-Regional boundaries.

• Ramp-up – at the time of commencement of the transaction

• Ramp-down – at the time of termination of the transaction

Regulation 10 Congestion Management : e- Bidding Procedure

• Invitation of Bids from the concerned applicant– period of congestion– RTS/IR corridor expected to get over stressed

• Only Registered Users – User ID & Password– Electronic submission – website of CTU– Bid Closing time as specified – Single Price Bid – No Modification/withdrawal once submitted

• Bid Price • – In addition to Open Access Transmission charges

- Multiples of Rs. 10/ MWh . ( Min. Rs. 10/MWh)• Mandatory - Non-participation – Rejection of Application• Acceptance - Decreasing order of Price Quoted• Equal Price Bids – Pro-rata• Applicant getting approval < request Charges as quoted• Applicant getting approval=request Charges as paid by last

applicant getting approval = request

Regulation 11,12,&13 Regulation 11,12,&13 Procedure for FCFS, Day ahead & Procedure for FCFS, Day ahead & Contingency bilateral transactionsContingency bilateral transactions

““FIRST-COME-FIRST-SERVED”(FCFS)FIRST-COME-FIRST-SERVED”(FCFS)• Scope

– FCFS shall be considered only when transactions are commencing & terminating in the same calender month.

• Separate Application for each month• To be submitted 4 days prior to date of Scheduling• Processing time – 3 days on FCFS basis• Applications received during last 10 / 5 days of month of M0 for M1

would be considered only after complete processing of Advance transactions for M1

• Application Received upto 1730 hrs in a day to be processed together – same priority

• Application Received after 17:30 Hrs. - to be considered as received next day

• Congestion Management – pro-rata

Regulation 12: DAY-AHEADRegulation 12: DAY-AHEAD

• Applications received within 3 days prior to the day of Scheduling and up to 15:00 Hrs. of the day immediately preceding the day of scheduling shall be treated as same priority

• Processing only after processing of the Collective Transactions of the Power Exchange (s)


Application for Day ahead scheduling

M0

M1

M2 M3

ApplicationApplicationApplicationApplication

Separate application for each transaction.Separate application for each transaction.

D0D-03

Processing timeProcessing time

Approval after CollectiveApproval after CollectiveApproval after CollectiveApproval after Collective

Regulation 13: CONTINGENCY

• Buying Utility/Trader on its behalf to make an Application to the Nodal RLDC

• To be considered after 1500 hrs of the day immediately preceding the day of scheduling.All applications received up to 18.00 Hrs shall be clubed together.

• In case of intra-day/same day – scheduling from 6th time block


Comparison of CERC RegulationsSl. No.

Amended Regulations

(w.e.f. 01.04.2005)

Regulations, 2008

(w.e.f. 01.04.2008)

Amendment Regulation, 2009

( w.e.f. 15.06.2009 )

1. Transmission Charges

a. Intra Regional – 25% of Long Term Charges

b. Inter-Regional - 50% of

Long Term Charges

Transmission Charges: Bilateral:

- Rs.30/MWh – intra- regional

- Rs.60/MWh – Between adjacent regions

- Rs90/MWh – Wheeling through one or more region

Collective Transactions (Px):

-Rs. 30/MWh for each point of injection and drawal

Transmission Charges: Bilateral:

- Rs.80/MWh – intra- regional- Rs.160/MWh – Between

adjacent regions- Rs240/MWh – Wheeling

through one or more region

Collective Transactions (Px):

-Rs. 100/MWh for each point of injection and drawal

2.

Retention by CTU

a. Intra Regional - 25% of Charges Collected

b. Inter Regional - 12.5% of Charges collected

c. Balance disbursed to States

Retention by CTU- 25% to be retained by CTU- Balance disbursed to

States by CTU

Retention by CTU- 25% to be retained by CTU- Balanced disbursed to

States by nodal RLDC

3. RLDC Charges

a. Application fee – Rs. 5000/-

b. Scheduling Charges

– Rs. 3000/day for each RLDC involved

c. Handling & Service Charges

– Nil

RLDC Charges :

Bilateral:



– Rs. 2000/day for each RLDC involved

c. Handling & Service Charges – Nil

Collective Transactions:



– Rs. 5000/day to NLDC for each State involved

-NLDC to Share with RLDCs

No change

4. Open Access Duration

- Up to Three Months max.

- single application possible

Open Access Duration

Bilateral

-Up to 3 months -separate application for each month-Collective:-Only Day ahead

Open Access Duration

No change

Collective :

Provision for intra-day, day ahead, week ahead and month ahead

5. ST Rate

- in Rs./MW/Day

-Charges as per continuous block of upto 6 hours, 12 hours and more than 12 hours

Rate

-in Rs/MWh

- Based on Scheduled Energy

No Change

6. Congestion Management

- E-Bid with price cap

Congestion Management

Bilateral:

- E-Bid without price cap

Collective:

- NLDC in coordination with Px

Congestion Management

Bilateral:

- E-Bid without price cap

Collective :

- NLDC to issue pro rata ATC to both the exchange including un-congested Blk.

7 Reservation of Transmission Capacity

Scheduling of Open Access transaction

No Change

New Guideline in Amendments Regulation

Consent of SLDC – Time frame defined

- 7days / 3 days for concurrence

- 3 days for refusal

Concurrence charge specified for SLDC

-RS.5000/- per application

Affidavit by applicants for deemed clearance by SLDC

Information system for SLDCs

No open Access to defaultersShall not grant short-term open access to the entities and associates of such entities, who consistently and willfully default in payment of Unscheduled Interchange charges, transmission charges, reactive energy charges, congestion charges and fee and charges for NLDC or RLDC including the charges for the ULDC Scheme

Revison Of Schedule

• Only in case of “Advance Scheduling” or “First-Cum-First Served basis”

• Accepted schedule for Day-Ahead & Contingency transaction shall not be revised or cancelled.

• minimum two (2) days notice • Transmission Charges and Operating Charges

for 2 days • Margin Available – could be utilized for

scheduling of other Open Access Transactions

EXAMPLE OF DOWNWARD REVISION

R0From date To Date From time To Time MW MWh

20-Mar-11 31-Mar-11 00:00 24:00 100 28800.00Scheduled MWh28800.00Billed MWh 28800.0012 days

APPLICATION FOR REVISION ON 17TH MarchR1 App. Date : 17thFrom date To Date From time To Time MW MWh

20-Mar-11 31-Mar-11 00:00 24:00 50 14400.00Scheduled MWh14400.00Billed MWh 16800.0012 days

additional charge =(100-50)*24*2 for 20th & 21st March 2400.00

APPLICATION FOR REVISION ON 2OTH MarchR1 App. Date : 20thFrom date To Date From time To Time MW MWh

20-Mar-11 22-Mar-11 00:00 24:00 100 7200.0023-03-2011 31-03-2011 00:00 24:00 50 10800.00

Scheduled MWh18000.00Billed MWh 20400.0012 days

additional charge =(100-50)*24*2 for 23rd & 24th March 2400.00

Operating charges

Operating charges

INITIAL APPLICATION

Operating charges

19. Notwithstanding anything contained in Regulation 6.5(18), in case of forced outage of a unit for a Short Term bilateral transaction, where a generator of capacity of 100 MW and above is seller, the generator shall immediately intimate the same along with the requisition for revision of schedule and estimated time of restoration of the unit, to SLDC/RLDC as the case may be. With the objective of not affecting the existing contracts, the revision of schedule shall be with the consent of the buyer till 31.07.2010. Thereafter , consent of the buyer shall not be a pre-requisite for such revision of schedule. The schedule of the generator and the buyer shall be revised, accordingly. The revised schedules shall become effective from the 4th time block, counting the time block in which the forced outage is declared to be the first one.. The RLDC shall inform the revised schedule to the seller and the buyer. The original schedule shall become effective from the estimated time of restoration of the unit. However the transmission charges as per original schedule shall continue to be paid for two days.

Regulation 15:: CURTAILMENT IN CASE OF Regulation 15:: CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS TRANSMISSION CONSTRAINTS

• Transmission constraint or to maintain grid security

• Curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security

• Curtailment priority ::STOA(bilat)Collective(PX)MTOALTA

• In case of reallocation of GOI share leading to corridor constraints

• Rerouting allowed without curtailment of existing transactions

• Pro-rata refund of Transmission Charges

• No revision of operating charges

Curtailment In Case Of Transmission Constraints

• Transmission constraint or to maintain grid security

• Curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security

• Open Access Bilateral Transactions would generally be curtailed first followed by the Collective Transactions

• Rerouting allowed without curtailment• Pro-rata refund of Transmission Charges

Commercial Conditions • All Payment related to Open Access Charges

– Payment to be made by Applicant to the Nodal RLDC – within three working days from the date of acceptance

• Application Fees (as per Para 7 of Regulation)– non-refundable fee of Rupees five thousand (Rs.5000/-) only – For Advance / FCFS application ( Alongwith application)

• Transmission charges (Para 16 of Regulation) – Intra-region (Rs.80/MWh)– Adjacent Region (Rs. 160/MWh)– Wheeling (Rs.240/MWh)– STU charges – as specified by respective SERCs or Rs.

80/MWh

• Operating charges (as per Para 17 of Regulation) – Rs. 2000/- per day each RLDCs/SLDCs involved

Regulation 17: Operating ChargesRegulation 17: Operating Charges

• Bilateral Transaction– Rs.2000/- per day or part of the day/transaction /RLDC– Rs.2000/- per day or part of the day/transaction /SLDC

• Collective Transaction– Rs.5000/- per day or part of the day/state to NLDC– Rs.2000/- per day or part of the day/transaction for each

SLDCs involved– NLDC to share operating charges with each RLDC

• NLDC keeps Rs.2000/- and Rs.3000/- divided amongst 5 RLDCS @ Rs.600/RLDC

– Clubbing of buyers & sellers within a state– Each group be considered as single entity for Operating

charges and for scheduling by NLDC– Each point of drawal & injection shall be counted separately for

the purpose of intra-state transmission charges

Regulation 18: Regulation 18: Payment of transmission charges and Payment of transmission charges and operating chargesoperating charges

• Bilateral transaction: – the applicant to deposit with the nodal agency

transmission charges and operating charges within three (3) working days of grant of acceptance

• Collective transactions:– the power exchange shall deposit with the nodal

agency these charges by the next working day falling after the day on which its application was processed

– the transmission charges for use of State network and operating charges for SLDC shall be settled directly by the power exchange with respective SLDC.

Transmission Charges …. contd• The intra-State entities shall pay the transmission charges for use of

the State network as fixed by the respective State Commission in addition to the charges specifie

• Provided that in case the State Commission has not determined the transmission charges, the charges for use of respective State network shall be payable at the rate of Rs.80/MWh for the electricity transmitted:

• Provided further that non-fixation of the transmission charges by the State Commission for use of the State network shall not be a ground for refusal of short –term open access:

• Provided also that the transmission charges payable for use of the State network shall be conveyed to the Regional Load Despatch Centre concerned who shall display these rates on its web site:

• Provided also that the transmission charges payable for use of the State network shall not be revised retrospectively.

COMMERCIAL CONDITIONS (SUMMARY)

• All Payment related to Open Access Charges– Payment to be made by Applicant to the Nodal RLDC – within three working days from the date of

acceptance – Payment as per MWh contract value

• Application Fee:: (Rs. 5000/-) to Nodal RLDC– Along with application (for Advance/FCFS

transaction)– With in 3 working days ( for same day or next day

transaction) from the date of application submission.

• Operating charges:: Rs. 2000/- per day for each RLDCs/SLDCs involved and Rs.5000/- per day per entity for collective

CTU PROCEDURES

INCORPORATION IN DAILY SCHEDULES• Incorporation in Daily Schedules of the Regional Entities

• Average energy losses - estimated on weekly basis and converted to Tier I, II, III slabs

– RLDCs – ISTS (Inter State Control area)– SLDC – (Intra-State/Control area)

• Resolution of 0.01 MW at each State/inter-Regional boundaries.

• Losses on the system to be compensated by Drawing utility (net drawal schedule after deducting losses) till 30th Sep,2011

• W.e.f 1st October,2011 losses to apportioned to both buyers & sellers

CTU PROCEDURES

• If State utility is Buyer/Seller, Transmission Charges shall not include the charges for that State network and the Operating Charges for that State Load Dispatch Center. A certificate in this regard from the concerned STU(s)/SLDCs shall be submitted by the Applicant

• The transaction wise payment details shall be submitted as per enclosed format[FORMAT-VII: “Details of Payment”].

COMMERCIAL CONDITIONS (SUMMARY)CTD.. CTU PROCEDURES

Default In Payment Of Open Access Charges

• Nodal RLDC / NLDC, as directed by CommissionShall not grant short-term open access to the entities and associates of such entities, who consistently and willfully default in payment of Unscheduled Interchange charges, transmission charges, reactive energy charges, congestion charges and fee and charges for NLDC or RLDC including the charges for the ULDC Scheme

• simple interest at the rate of 0.04 % for each day of default from the Due Date of Payment

• Cheque has been dishonored – No cheque payment - next three (3) months

Regulation 19: Default in payment of STOA charges

• Default in payment of the application fee or specified charges :– charges the nodal agency may decide not to

schedule the transaction, or– to cancel the scheduling of already scheduled

transaction or – not to entertain any application of such persons

in future until such time the default is cured

• The person committing default in payment – Shall pay simple interest at the rate of 0.04% for

each day of default.

DEFAULT IN PAYMENT OF OPEN ACCESS CHARGES – Additional Pts

•Cheque has been dishonored

– No cheque payment - next three (3) months

– Payment to be made by electronic transfer/demand draft

CTU PROCEDURES

Disbursal Of Payment • Reconcile the Open Access Charges

Nodal RLDC will reconcile the Open Access Charges collected during the previous month and disburse the Transmission Charges and Operating Charges within 7 working days from the issuance of monthly Regional Energy Accounting by the respective Regional Power Committees.

• Transmission Charges and Operating Charges – for State SystemConcerned STUs / SLDCs

• For ISTS Transmission charges collected for use of the transmission system other than that of the State network shall be disbursed by nodal RLDC to the RLDCs of the respective Region. The 25% of the Transmission Charges collected for use of the transmission system other than the State network shall be disbursed to CTU and balance 75% shall be disbursed to long-term customers through the RLDC of the respective Region. Refund due to curtailment by 15th day of the current month

DISBURSAL OF PAYMENT – Additional Pts

• Nodal RLDC :: Reconcile the Open Access Charges collected for previous month & disburse the Transmission/Operating Charges

• Transmission Charges and Operating Charges – for State System– Concerned STUs/SLDCs

• Refunds due to curtailment/revision in previous month– 15th day of the current month

• No responsibilty for payment dishonour: Disbursement only to extent of receipt

CTU PROCEDURES

General Conditions• Entities which are making Application for the first time must submit

the “One- Time” information as per enclosed format (FORMAT-VIII: “Registration Form) to the concerned nodal RLDC.

• Application - through Post / fax • Any amendment/modification

– fresh Application • Applications not been accorded the Acceptance

– stand disposed off with suitable intimation to the concerned Applicant(s)

• All costs/expenses/charges associated with the Application, including Bank Draft, shall be borne by the Applicant.

• Incomplete / vague Application– summarily rejected

• The Applicant shall abide by the provisions of The Electricity Act, 2003, Indian Electricity Grid Code and CERC Regulations, as amended from time to time

• Applicant shall keep each of the SLDCs/ RLDCs indemnified

Transparency - Information Sharing Transparency - Information Sharing

Available Transfer Capacity (ATC) -3 months ahead Past & Current Transactions Injection & Drawal Schedules Un-requisitioned Surplus Frequency Trend Urgent market information – unit tripping, load crash,

contingencies 52 week ISTS pooled losses STOA Rate / Procedures for capacity reservation

………much more on RLDCs websites

STOA – Encouraging Facts• International Transactions done between WBSEDCL and NEPAL

(NEA) wef 2nd Jan’09 & continuing till now (20 MW RTC). NRLDC is NODAL.

• Transactions between extreme corners of the country– Nagaland, Arunachal, Tripura to Maharashtra, UP

• Most of the States participated.

• Market Players – Simultaneous Buy & Sell on same day– CESC – Buy in Peak, Sell in off-peak

• Transactions from few MW to hundreds of MW – 3 MW (DSP, SAIL, WB – SAIL, Salem, TN)

– 400 MW (AP to Rajasthan)

• Improved performance of Generating Plants – Kayamkulam GPS (PLF Improved, in 2006-07 – 57% and 2007-08- 82%)

• Diversity being gainfully utilized

• Application approved more than 99%

• Curtailment in real time very less

Open Access: Key Success FactorsOpen Access: Key Success Factors

Control area demarcation & boundary metering Robust transmission system Assessment of Transfer Capability Balancing mechanism Methodology for transmission charge sharing Treatment of transmission losses Streamlined scheduling and settlement mechanism Transparency and non-discriminatory implementation Compliance Dispute redressal mechanism Congestion management

90 04/21/23 POWERGRID

All India Trade under Short-Term Open Access

17

2324

3130

778

3938

5933

11781

9560

12

14

16

18

20

22

24

26

28

30

32

2004-05 2005-06 2006-07 2007-08 2008-09

En

erg

y (

BU

s)

----

->

0

5000

10000

15000

Nu

mb

er

of

Tra

ns

ac

tio

ns

---

->

Volume of trade (BUs) No. of transactions

* 2008-09 data includes Bilateral + Collective transactions.

91 04/21/23 POWERGRID

All India Trades Through Power Exchange MU)

Typical example

From : SAIL Durgapur Steel Plant (DVC), To : SAIL Bhilai Steel Plant (CSEB)

Quantum : 20 MW

Source : SAIL

Short-Term Open Access transaction by Captive Power PlantsShort-Term Open Access transaction by Captive Power Plants

Network Involved

Transmission Losses

Transmission and System Operation Charges

DSPRs. 2.33 / kWh( 15.6 % loss )

DVCTSC + SOC = Rs.0.084

PGCIL ERTSC + SOC = Rs.0.084

BSPRs.2.66 / kWh

CSEBTSC + SOC = Rs.0.084

PGCIL WRTSC + SOC = Rs.0.084

Rs. 2.49 / kWh

Rs 2.58 / kWhRs 2.41 / kWh

Transmission Capacity vs Transfer CapabilityTransmission Capacity vs Transfer Capability

Transmission Capacity Transfer Capability1 Is a physical property in isolation Is a collective behaviour of a system

2 Depends on design only Depends on design, topology, system conditions, accuracy of assumptions

3 Deterministic Probabilistic

4 Constant under a set of conditions Always varying

5 Time independent Time dependent

6 Non-directional Directional

7 Determined directly by design Estimated indirectly using simulation models

8 Declared by designer/ manufacturer Declared by the Grid Operator

9 Understood by all Frequently misunderstood

10 Considered unambiguous & sacrosanct

Subject to close scrutiny by all stakeholders

Limits to Transfer CapabilityLimits to Transfer Capability

Thermal limits– Establishes the maximum electrical current that a

electrical facility can conduct before it sustains permanent damage

Voltage limits– Must be maintained within IEGC band– Wide spread collapse in system voltage can lead to

blackout Stability limits

– Oscillations must diminish when electrical system attains a new stable operating point

– Instability may cause equipment damage/blackout

Limits to Transfer capabilityLimits to Transfer capability

Thermal Limits

Voltage Limits

Stability Limits

Limiting conditions may shift with time Limiting conditions may shift with time as network operating conditions changesas network operating conditions changes

Time Horizon

Power Flow

Thermal Limit

Voltage Limit

Stability Limit

Total Transfer capability

Transmission Reliability Margin (TRM)Transmission Reliability Margin (TRM)

Has been defined by NERC as -“The amount of transmission transfer capability necessary to provide a reasonable level of assurance that the interconnected transmission network will be secure.TRM accounts for the inherent uncertainty in system conditions and its associated effects on ATC calculations, and the need for operating flexibility to ensure reliable system operation as system conditions change. All transmission system users benefit from the preservation of TRM by transmission providers.”

A kind of a safety margin to ensure reliable system operation as system conditions change.

TRM could be 8% or 10% of the TTC

Capacity Benefit Margin (CBM)

Capacity Benefit Margin (CBM) is defined as that amount of transmission transfer capability reserved by load serving entities to ensure access to generation from interconnected systems to meet generation reliability requirements.

Its use is intended only for the time of emergency generation deficiencies.

CBM reservations may be sold on a non-firm basis (or recallable use).

TTC calculation-basis

Short term Open Access

Long Term Open AccessLong Term Open Access

Reliability margin

ATC

TTC

ATC = TTC- Reliability Margin

Four Pillars of Market DesignFour Pillars of Market Design

IMBALANCESCONGESTIONMANAGEMENT

ANCILLARYSERVICES

SCHEDULING &

DISPATCH

ELECTRICITY MARKET

“Making Competition Work in Electricity”, Sally Hunt

Control Area: Definition and ObligationsControl Area: Definition and Obligations

IssuesIssues

Mismatch between market development and compliance of reliability standards

– Ancillary services market– Congestion management

Capacity market vs energy market High growth Financial discipline

LogisticsLogistics

Energy Management System

Market Management and Monitoring System

Asset Management System

Communication Network Management System

Knowledge Management System

Automation

ExpectationsExpectations

Focus on reliability of the physical system Designing markets that complement reliability Appreciation of System Operation as an

important function– Allocation of resources– Automation– Capacity building

Grid security comes before Economics– No economic theory, no legislation, no regulation can

repeal the Laws of Physics

Some Current Issues

Scheduling of infirm power through Open AccessISGSMerchant plant

Approval of open access with anticipated infrastructure

TDS issues

Denial of Open Access by SLDCs – HINDALCo

Automation – Implementation of Uniform Software

Open Access in TransmissionOpen Access in TransmissionS No Dimension India International

1. Tr. Infrastructure Coordinated planning Market oriented

2. Market Energy only Capacity, Energy

Ancillary

3 Losses Socialized

Paid in kind

SO procures

4 Balancing Frequency-linked UI Explicit mkt

5 Settlement period 15- minute time block Hourly / half hourly

6 Settlement cycle Weekly / Daily

7 Transmission

charge

Long-term: postage stamp

Short-term bilateral: Contract path

Collective: Point of connection

Zonal / Nodal

8 Trading Physical Physical, Financial

9 Congestion Management

Congestion charge LMP…

Application of POC methodology for STOA transactions

Calculation of Nodal POCs

Load Flow Studies

Input

Output

Network ParametersLoad & Generation Data

Converged Network

Network Reduction

Software for PoC Charge & Loss Computation

Reduced Network

Line wise YTC

Nodal PoC Charges and

LAF

Application of POC Transmission Charge methodology for STOA transactions

• Nodal POCs zoned to form Zonal POC for each Control area• Slabbing done to fall into either high, Average or Low slabFor New Grid:• High Rs. 1,00,000/Mw/month Average Rs. 85,000/MW/Month Low• Rs.70,000//MW/Month• Converted to High 14paise/unit Average 12 paise/unit Low

10paise/unit• Hence STOA rates applicable are Rs.140/MWH, Rs.120/MWh, Rs.100/MWh for

High, average, Low slab respectivelyFor SR Grid :• Slab rates are Rs. 150/MWh, 130/MWh, 110/MWH for High, Average, Low slabs

respectively

Application of POC Transmission Charge methodology for STOA transactions

• Transmission charges payable by Entity X injecting 100MW RTC power to Entity Y• Assume X falls in high injection slab in NEW Grid while Y fall in low withdrawal

slab in SR Grid

• Hence POC injection for X Rs 140/MWH• Withdrawal POC for Y Rs.110/MWh

• Transmission charges payable for injection would be : = 2400MWh x 140

• Transmission charges payable for withdrawal would be: = 2400MWh X 110

• Total charges payable by Trader to Nodal RLDC: = 2400*(140+110) Rs.

• STU charges would be payable in addition

Regulation 20:: Unscheduled Inter- change (UI) Regulation 20:: Unscheduled Inter- change (UI) ChargesCharges

• All transactions for State utilities and for intra-State entities scheduled by the nodal agencies shall be accounted for and included in the respective day-ahead net interchange schedules of the concerned regional entity issued by the RLDC

• Based on net metering on the periphery of each regional entity, composite UI accounts shall be issued for each regional entity on a weekly cycle and transaction-wise UI accounting, and UI accounting for intra-State entities shall not be carried out at the regional level.

• The State utility designated for the purpose of collection / disbursement of UI charges from / to intra-State entities shall be responsible for timely payment of the State’s composite dues to the regional UI pool account.

Regulation 20:: Unscheduled Inter- change (UI) Regulation 20:: Unscheduled Inter- change (UI) ChargesCharges

• Any mismatch between the scheduled and the actual drawal at drawal points and scheduled and the actual injection at injection points for the intra-State entities shall be determined by the concerned SLDC and covered in the intra-State UI accounting scheme.

• Unless specified otherwise by the concerned State Commission, UI rate for intra-State entity shall be 105% (for over-drawals or under generation) and 95% (for under-drawals or over generation) of UI rate at the periphery of regional entity.

• No charges, other than those specified under these regulations shall be payable by any person granted short-term open access under these regulations.

Regulation 21: Reactive Energy ChargesRegulation 21: Reactive Energy Charges

• No separate reactive energy charge accounting for STOA transactions shall be carried out at inter-State level:Provided that the State Utility designated for the purpose shall be responsible for timely payment of the State’s composite dues to the regional reactive charge account in accordance with the provisions of the Grid Code.

• The reactive energy drawals and injections by the intra-State entities shall be governed by the regulations applicable within the State concerned.

Regulation22: Special Energy Meters

1. Special Energy Meters shall be installed by the Central Transmission Utility for and at the cost of the regional entities and by the State Transmission Utility for and at the cost of the intra-State entities.

2. Special Energy Meters installed shall be capable of time-differentiated measurements for time block wise active energy and voltage differentiated measurement of reactive energy in accordance with Annexure – 2 to Chapter–6 of the Grid Code.

3. Special Energy Meters shall always be maintained in good condition.

4. Special Energy Meters for the regional entities shall be open for inspection by any person authorized by the Central Transmission Utility or the Regional Load Despatch Centre.

Regulation23:: Transmission losses

1. The buyers and sellers of the electricity shall absorb apportioned energy losses in the transmission system as estimated by the Regional Load Despatch Centre and the State Load Despatch Centre concerned, and applied in accordance with the detailed procedure.

2. The energy losses shall be accounted for by providing a differential between schedules at the points of supply, inter-utility transfer and drawal of electricity.

3. The applicable transmission losses for the regional transmission system as well as for State network shall be declared in advance and shall not be revised retrospectively.

Regulation23:: Transmission losses- Amendment of procedures by CTU

• Nodal POC losses found from Webnetuse software • Zoning done to form loss for each scheduling entity• Assume POC injection loss of X = a% & POC withdrawal loss of B = y%• For 100Mw injection transaction from X to Y:Upto 30th September,2011 losses to be absorbed by Buyers only Point of contract Sellers periphery Injection schedule of X = -100Mw Withdrawal schedule of Y = 100*(1-a/100)*(1-b/100) rounded off to 2

decimalsAfter 1st October,2011 losses to be apportioned to both buyer & Seller Point of contract Regional periphery where entity located Injection schedule of X = -100/(1-a/100) rounded to 2 decimals Withdrawal schedule of Y = 100*(1-b/100) rounded to 2 decimals

• Losses classified as Tier-I , II , II according to Low, Average or High slab.

Loss calculation-Amended CTU loss procedures

• If W current week, loss of week W-1 is estimated & applied for week W+1• If a = losses as per SEM data for W-1 losses for Tier I, II, III slabs would be Low(Tier-I) = [a/2-0.3]% Average(Tier-II)= a/2 High(Tier-III) = [a/2+0.3]% E.g. estimated loss for w-1 for NR = 3.90% Low(Tier-I) = 1.65% Average(Tier-II)= 1.95% High(Tier-III) =2.25%

The Tier-I, II, II slabs are fixed as per studies & are constant for the review period are as below

• Similiarly injection/withdrawal losses for all other regions are calculated

• Regulation 24::Compliance of Grid Code

–The buyers and sellers of energy shall comply with the provisions of the Grid Code in force from time to time.

Regulation 25: Collection and Disbursement of Transmission Charges Regulation 25: Collection and Disbursement of Transmission Charges and Operating Charges(previous)and Operating Charges(previous)

• The transmission charges and the operating charges payable by the persons allowed short-term open access shall be collected and disbursed by the nodal agency, except for transmission charges for State network and operating charges for SLDC in the case of the collective transaction

• Operating/Transmission charges for SLDCs/STUs to be settled directly by PX with the concerned SLDC/STU

• The transmission charges collected by the nodal agency for use of the transmission system other than State network, for a bilateral transaction shall be directly disbursed to CTU.

Reg.25(previous)…Ctd

• The operating charges including application fees are deposited in LDC Development Fund.

• The transmission charges for use of State network shall be disbursed to the State Transmission Utility concerned.

• In case a State utility is the short-term customer, the operating charges and the transmission charges collected by the nodal agency shall not include the charges for use of the State network and operating charges for the State LoadDespatch Centre.”

Collection and Disbursement of Transmission Charges and Operating Collection and Disbursement of Transmission Charges and Operating Charges (amended vide CERC order Dtd. 28Charges (amended vide CERC order Dtd. 28thth June,2011) June,2011)

• The transmission charges and operating charges payable by the persons allowed short-term open access shall be collected by the nodal agency, except for transmission charges for state network and operating charges for State Load Despatch Centre in the case of the collective transaction.

• The transmission charges collected by the nodal agency for use of the transmission system other than State network, for both bilateral and collective transaction shall be given to the CTU for further disbursement to long-term customers in accordance to Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010, and the approved detailed procedure there under for Billing, Collection and Disbursement.

Billing, Collection & Disbursement Procedures Approved by CERC Vide Billing, Collection & Disbursement Procedures Approved by CERC Vide order dtd.29order dtd.29thth April,2011 – Para &(3) b & c April,2011 – Para &(3) b & c

• For STOA, DIC shall have to pay applicable transmission charges to the RLDC/NLDC at the time of application. The payment made for the STOA charges for varying quantum and varying duration with respect to (i) bilateral transactions to the region of LTA granted and (ii) all collective transactions, shall be credited to that DIC in the next month billing subject to the upper limit of the amount paid as LTA charges after accounting for the MTOA charges, if any, as per 7.2 (b) above, provided that the STOA is in the direction of the targeted regions mentioned in the LTA granted to the DIC by the CTU.

• If the STOA is other than the targeted regions mentioned in the LTA, then such STOA, PoC charges shall not be adjusted against the LTA granted by the CTU and a separate applicable PoC charges shall have to be paid by the DIC.

Billing, Collection & Disbursement Procedures Approved by CERC Vide Billing, Collection & Disbursement Procedures Approved by CERC Vide order dtd.29order dtd.29thth April,2011 – Para &(3) b & c April,2011 – Para &(3) b & c

• Provided that this adjustment shall not be done for collective transaction and bilateral transactions done through portfolio trader.

• For STOA transactions not qualifying for aforementioned credit, the STOA charges after disbursing 25% of such transmission charges to the CTU in accordance with the CERC (Open Access) in inter-State Transmission Regulation 2008 and amendment thereof, shall be adjusted with respect to the paying DICs (for the respective applicable month) by the next 30 days of receipt of such payments.

BCD Procedures-Amendment order Dtd.15BCD Procedures-Amendment order Dtd.15thth June,2011 June,2011

• For STOA, DIC shall have to pay applicable transmission charges to the RLDC/NLDC at the time of application. The payment made for the STOA charges for the quantum with respect to bilateral transactions upto the LTA for the specific Region of LTA granted without identified beneficiaries,, shall be credited to that DIC in the next month billing after accounting for the MTOA charges, if any, as per 7.2 (b) above.

• Provided that the STOA is in the direction of the targeted regions mentioned in the LTA granted to the DIC by the CTU. If the STOA is other than the targeted regions mentioned in the LTA, then such STOA, PoC charges shall not be adjusted against the LTA granted by the CTU and a separate applicable PoC charges shall have to be paid by the DIC.

• Provided that this adjustment shall not be done for bilateral transactions done through portfolio trader.”

Short-Term Open Access transactionby embedded utilities

EXAMPLE

From : TATA Steel , DVCTo : NDPL Discom, Delhi Quantum : 100 MWPath : ER – WR - NR

Source : SAIL

Loss calculation Methodology (upto 30th Sep,2011)Contract value 100MWTransaction Tata steel- DVC - ER – WR – NR – DTL- NDPL DVC STU loss 3% DVC Inj POC loss 1.5%Delhi withdrawal POC loss 2% DTL STU loss 1.5%

TATA STEEL

NDPL

100MW CONTRACT

TATA STEEL BDY

97MW

DVC BDY

93.64MW

DTL BDY

92.24MW

NDPL BDY

ER

WR

NR

95.55MW REGIONAL BDY

RLDCs need to show schedules

only upto requisite control area

peripheryHence schedule values only upto DVC boundary &

DTL boundary need be shown by

RLDCs. Accordingly, all

STU losses are not required. [Values

are shown for understanding

only].

Loss calculation Methodology (w.e.f 1st October,2011)

Contract value 100MWTransaction Tata steel- DVC - ER – WR – NR – DTL- NDPL DVC STU loss 3% DVC Inj POC loss 1.5%Delhi withdrawal POC loss 2% DTL STU loss 1.5%

TATA STEEL

NDPL

104.66MW

TATA STEEL BDY

101.52MW

DVC BDY

98MW

DTL BDY

96.53MW

NDPL BDY

ER

WR

NR

100MW CONTRACT

RLDCs need to show schedules

only upto requisite control area

peripheryHence schedule values only upto DVC boundary &

DTL boundary need be shown by

RLDCs. Accordingly, STU

losses are not required w.e.f

01/10/11 [Values are shown for understanding

only].

STOA charges calculation Methodology:: Tata Steel-DVC-ER-WR-NR-DTL-NDPL

Contract value 100MW RTC power x 5 days 12000MWh(total contracted energy)Transaction Tata steel- DVC - ER – WR – NR – DTL- NDPL DVC injection POC 14p/unit Rs.140/MWhDelhi withdrawal POC 10p/unit Rs.100/MWh

TATA STEEL

NDPL

DVC SLDC operating charges = 2000 x 5

DTL SLDC operating charges = 2000 x 5

ER

WR

NR

100MW CONTRACT VALUE

DVC injection POC transmission charges = 140 x 12000

Delhi withdrawal POC transmission charges = 100 x 12000

ALL OF ABOVE +NON REFUNDABLE APPLICATION FEES Rs.5000/-

Upto 30th Sep,2011 Contract value at sellers’ periphery. No change in calculations

ERLDC operating charges = 2000 x 5

NRLDC operating charges = 2000 x 5

WRLDC operating charges = 2000 x 5

DVC STU transmission charges = 80 x 12000

DTL STU transmission charges = 41.85 x 12000

Sam

ple

bill

for

the

tran

sact

ion Nodal RLDC : NRLDC

Acceptance No. : ERLDC/BILAT/2011-12/ 556 F Date : 9/6/2011

Ref : Original Application No. : TPTCL/OA/2011-12/3072 Date : 9/6/2011

1 Name of applicant : TPTCL

2 Name of Injecting Entity / State / Region : TATA STEEL / DVC/ ER

3 Name of Drawee Entity / State / Region : NDPL / DTL / NR

4 Wheeling Region(s) : NIL5 Open Access Scheduling Accepted :

From To From To Requested Accepted

0:00 24:00 100 100 1200000000

12000.00

6 Bidding Details :

From To From To

7 Payment Schedule : Payment Due Date : 9/10/2011

i) Transmission Charges

ii) Operating Charges

iii) Non Refundable application fee ( if not paid earlier )

8 A curtailed acceptance is being granted on account of Nil9 This acceptance is subject to provisioning of CERC (Open Access in inter-State Transmission) Regulations,2008.

POSOCO Portion : 35000 OTHERS : 4362200To: 1. Applicant: TPTCL, Mahalxmi Bldg, Lower parel, Mumbai--400013

Fax :022-66310849

2. NRLDC, New Delhi

3. SLDCs: SLDC, DVC

4. SLDCs: SLDC, DTL, New Delhi, Th' NRLDC Designation :

Registration Code : ER0000TPTC

Hours Applicable Bid Rate( Rs. / Mwh )

Route Mwh

Total Mwh

ER , WR, NR

Date Hours Schedule (MW)

Transmission System Rate (Rs./Mwh) Mwh

15/Jun/2011 19/Jun/2011

Transmission System

Date

Total ( Rs )

8041.85140

STU / DVCSTU / Delhi

POC DVC injection

Bidding

120001200012000

9600005022001680000

0

4342200.0Total of (i) :

Rate (Rs./ Day) Number of Days Total ( Rs )

SLDC, DVCSLDC DELHI

ERLDCNRLDC

2000200020002000

5555

2000

Signature :

100001000010000

WRLDC

Name :

10000

Total of (ii) : 50000

5000

5

POC Delhi Withdrawal 100 12000 1200000

पू�र्वी� क्षे�त्री�य भा�र प्रे�षण के�न्द्र

FORMAT - VIOPEN ACCESS (BILATERAL TRANSACTION) - ACCEPTANCE FOR SCHEDULING

4397200Grand Total ( I + ii + iii )

10000

Regulation 25A:: STOA Not To Be GrantedRegulation 25A:: STOA Not To Be Granted

• When so directed by the Commission, the National Load Despatch Centre or the Regional Load Despatch Centre, as the case may be, shall not grant short-term open access to the entities and associates of such entities, – who consistently and willfully default in payment of

• Unscheduled Interchange charges, • transmission charges, • reactive energy charges, • congestion charges and • fee and charges for National Load Despatch Centre or

Regional Load Despatch Centre• including the charges for the Unified Load Despatch and

Communication Scheme

Regulation 26::Redressal MechanismRegulation 26::Redressal Mechanism

• All disputes arising under these regulations shall be decided by the Commission based on an application made by the person aggrieved.

GENERAL CONDITIONS• Entities which are making Application for the first time must

submit the “One- Time” information as per enclosed format (FORMAT-VIII: “Registration Form) to the concerned nodal RLDC.

• Application - through Post / fax • Any amendment/modification

– fresh Application • Applications not accorded the Acceptance:

– stand disposed off with suitable intimation to the concerned Applicant(s)

• All costs/expenses/charges associated with the Application, including Bank Draft, shall be borne by the Applicant.

• Incomplete / vague Application– summarily rejected

• No charges payable for a transaction shall be adjusted by against any other payments/charges.

• The Applicant shall abide by the provisions of The Electricity Act, 2003, Indian Electricity Grid Code and CERC Regulations, as amended from time to time

• Applicant shall keep each of the SLDCs/ RLDCs indemnified

CTU PROCEDURES

Regulation 27:: Information System–NLDC & Regulation 27:: Information System–NLDC & RLDCsRLDCs

National Load Despatch Centre and each Regional Load Despatch Centre shall post the following information on their websites in a separate web-page titled “Open access information”:a) These regulations;b) The detailed procedurec) A list of bilateral transactions accepted by the nodal agency, to be displayed till

the end of the month in which transactions are scheduled, indicating:(i) Name of customers;Name of customers;(ii) Period of the short-term open access (ii) Period of the short-term open access

granted granted (start date end date); (start date end date);(iii) Point or points of injection;(iii) Point or points of injection;(iv) Point or points of drawal;(iv) Point or points of drawal;(v) Transmission systems used (in terms of (v) Transmission systems used (in terms of

regions regions and States);and States);

(vi) Accepted schedule (MW) with start time and (vi) Accepted schedule (MW) with start time and end timeend time

• Each State Load Despatch Centre, shall within 60 days of coming into force of these regulations, develop its website and post the following information on separate web-page titled “information on Inter-State Open Access”:

• (a) List of bilateral transactions for which concurrence has been granted and list of entities to whom concurrence or “no objection” or prior standing clearance, as the case may be, has been granted till the end of the month in which such concurrence or no objection or prior standing clearance has been granted, indicating:

– (i) Name of customer;– (ii) Period of concurrence or “no objection” or standing clearance, as the– case may be, (start date and end date);– (iii) Point or points of injection and drawal,; and– (iv) Accepted schedule (MW).

• (b) Average transmission losses for the State network for the immediately preceding 52 weeks;• (c) Applicable transmission charges and transmission losses for the State network;• (d) List of applications where concurrence or “no objection” or standing clearance, as the case may be, was not granted, along with reasons for refusal, to be displayed till one month after the scheduling period given in the application; and• (e) A list of applications pending for decision.]

Regulation 27A::Information System– SLDCsRegulation 27A::Information System– SLDCs

Regulation 28 ::Savings and RepealRegulation 28 ::Savings and Repeal

• The provisions of the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall not apply to the short-term open access] customers whose applications are processed under these regulations.

• The provisions relating to long-term customers as contained in the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall continue to apply till Commission notifies separate regulations covering aspects relating to long-term customers.

• The provisions relating to short-term open access as contained in the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall stand repealed on 1.4.2008.

OA FROM STATES’ PERSPECTIVE

Aspects to be coveredAspects to be covered

• Model Terms & conditions for Intra State OA Regulations released by FOR on Sep’2010

• Topics to be discussed to be limited to following aspects:– Connectivity– Eligibility for OA– Categories for OA– Open Access Charges applicable– Limited STOA customer– Sample OA charges calculations

ConnectivityConnectivity

• Only a consumer having load of 10 MW and above or a Generating Station having capacity of 10 MW and above shall be eligible to obtain connectivity to the intra-State transmission system, unless already connected, and shall apply for connectivity, in accordance with the provisions in this chapter

• Generating Station having installed capacity less than 10 MW shall be eligible to obtain connectivity to the Distribution system and shall apply for connectivity as per the provisions of these regulations, unless already connected, in accordance with the provisions in this chapter.

Eligibility for OAEligibility for OA

• Licensees, generating companies, captive generating plants and consumers shall be eligible for open access to the intra-State transmission system of the State Transmission Utility or any transmission licensee on payment of transmission and other charges as may be determined by the Commission

• Licensees, generating stations, captive generating plants and consumers shall be eligible for open access to distribution system of a distribution licensee on payment of the wheeling and other charges as may be determined by the Commission

• Open access shall be permissible to the consumers seeking open access capacity upto which SERC has introduced open access and are connected through an independent feeder emanating from a substation of licensee or industrial feeder provided that all the consumers on such industrial feeder opt for open access and having simultaneous schedule of drawal under such open access:

Eligibility for OAEligibility for OA

• Provided that the consumers who are not on independent feeders, shall be allowed open access subject to the condition that they agree to rostering restrictions imposed by utility on the feeders serving them

• Provided further that duties of the distribution licensee with respect to such open access consumers shall be of a common carrier providing non-discriminatory open access as per section 42(3) of the Act

• A person having been declared insolvent or bankrupt or having outstanding dues against him for more than two months billing of distribution/transmission licensee at the time of application shall not be eligible for open access.

Categories for OA customersCategories for OA customers• The application procedure, application fee and the time frame of processing

request by eligible consumers seeking Open Access shall be based on the following criteria:

• (1) System to which connected– (a) Intra-State transmission system– (b) Distribution system

• (2) Inter-se location of drawal and injection points– (a) Both within the same distribution system– (b) within the State but in different distribution systems– (c) In different States

• (3) Duration of Open Access– (a) Long term access– (b) Medium-term open access– (c) Short-term open access

• The period of Access for categorization of LT customers is not yet uniform across States e.g for WB >= 15 Yrs, Orissa >=25Yrs, Jharkhand >=10years

OA charges-Transmission chargesOA charges-Transmission charges• Inter State charges as applicable• Intra-State charges calculated as follows:Transmission Charges = ATC/(PLST X365) (in Rs./MW-day)Where,ATC= Annual Transmission Charges determined by the Commissionfor the State transmission system for the concerned year.PLST= Peak load projected to be served by the State transmissionsystem in concerned year• Transmission charges shall be payable on the basis of contracted Capacity/

Scheduled Load or actual power flow whichever is higher.• For Open Access for a part of a day, the transmission charges shall be

payable on pro-rata basis:• Where a dedicated transmission system used for open access has been

constructed for exclusive use of an open access customer, the transmission charges for such dedicated system shall be worked out by transmission licensee for their respective systems and got approved by the Commission and shall be borne entirely by such open access customer till such time the surplus capacity is allotted and used for by other persons or purposes.

OA charges-Scheduling & System Operation chargesOA charges-Scheduling & System Operation charges

• Intra-State charges for above other than Inter-State as decided by CERC as follows:

• Long-term access and medium-term open access– SLDC charges determined by the Commission under sub-

section (3) of section 32 of the Act

• Short-term open access – A composite operating charge @ Rs.2,000/- per day or part of

the day shall be payable by a short-term open access customer for each transaction to the SLDC or as determined by the Commission from time to time.

– The operating charge includes fee for scheduling and system operation, energy accounting, fee for affecting revisions in schedule on bonafide grounds and collection and disbursement of charges.

OA charges-Wheeling ChargesOA charges-Wheeling Charges

• Wheeling Charges = (ARR – PPC – TC) /(PLSD X365) (in Rs./MW-Day)

• ARR= Annual Revenue Requirement of the distribution licensee in the concerned year

• PPC= Total Power Purchase Cost of distribution licensee in the concerned year

• TC = Total transmission charges paid by distribution licensee for State and Inter-State transmission system for the concerned year

• PLSD= Total Peak load projected to be served by the concerned distribution system in the concerned year

• Provided that Wheeling charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher.

• For Access for a part of a day, the wheeling charges shall be payable on prorata basis:

OA charges-Wheeling ChargesOA charges-Wheeling Charges• Provided further that where a dedicated distribution system used for open

access has been constructed for exclusive use of an open access customer, the wheeling charges for such dedicated system shall be worked out by distribution licensee for their respective systems and got approved by the Commission and shall be borne entirely by such open access customer till such time the surplus capacity is allotted and used for by other persons or purposes;

• Provided also that an open access customer connected to the STU system shall be liable to pay the wheeling charges determined under this regulation, if such customer was paying wheeling charges directly or indirectly before availing open access.

• In case an Open Access customer continues to pay the fixed charge and such fixed charge can be attributed to wheeling/distribution network related cost, partly or fully, SERC may provide for adjustment of such fixed charges against the wheeling charges determined as above

OA charges-Cross Subsidy SurchargeOA charges-Cross Subsidy Surcharge• If open access facility is availed of by a subsidising consumer of a distribution

licensee of the State, then such consumer, in addition to transmission and/or wheeling charges, shall pay cross subsidy surcharge determined by the Commission.

• Cross subsidy surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access consumers based on the actual energy drawn during the month through open access. The amount of surcharge shall be paid to the distribution licensee of the area of supply from whom the consumer was availing supply before seeking open access.

• Cross Subsidy Surcharge formula:• S = T – [ C (1+ L / 100) + D ]• S is the surcharge• T is the Tariff payable by the relevant category of consumers;• C is the Weighted average cost of power purchase of top 5% at the margin

excluding liquid fuel based generation and renewable power• D is the Wheeling charge in per kWh basis (to be derived from the wheeling charge

in Rs./MW-Day • L is the system Losses for the applicable voltage level, expressed as a percentage• Provided that in case the above formula gives negative value of surcharge, the same

shall be zero:

OA charges-Cross Subsidy SurchargeOA charges-Cross Subsidy Surcharge

• Provided further that the Commission may fix a lower surcharge in the situation of shortages and load shedding by the distribution licensee:

• Provided also that such cross subsidy surcharge shall not be levied in case distribution access is provided to a person who has established a captive generation plant for carrying the electricity to the destination of his own use.

• Cross subsidy surcharge so determined by the Commission shall be reduced by 20% every year at a linear rate, taking the year in which the Commission has allowed open access to a category of consumers as the first year.

• e.g. Cross subsidy surcharge of 1 Rs./ kWh determined in the first year will be 80 Paise/kWh in second year and 60 paise/ kWh in third year and so on:

• Provided that in case power supply position or the consumer load seeking open access changes substantially, the Commission may review the Cross Subsidy Surcharge as and when required

• Provided further that the revised cross subsidy surcharge so determined by the Commission in subsequent years shall be applicable only to the new Open Access applicants.

OA charges-Additional surchargeOA charges-Additional surcharge

• Additional surcharge shall become applicable only if the obligation of the licensee in terms of power purchase commitments has been and continues to be stranded or there is an unavoidable obligation and incidence to bear fixed costs consequent to such a contract. However,the fixed costs related to network assets would be recovered through wheeling charges.

• The distribution licensee shall submit to the Commission on six monthly basis, a detailed calculation statement of fixed cost which the licensee is incurring towards his obligation to supply.

• The Commission shall scrutinize the statement of calculation of fixed cost submitted by the distribution licensee and obtain objections, if any, and determine the amount of additional surcharge:

• Provided that any additional surcharge so determined by the Commission shall be applicable only to the new open access customers.

• Additional surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access consumers based on the actual energy drawn during the month through open access:

• Provided that such additional surcharges shall not be levied in case distribution access is provided to a person who has established a captive generation plant for carrying the electricity to the destination of his own use

OA charges-Standby chargesOA charges-Standby charges

• In cases of outages of generator supplying to open access customer under open access, standby arrangements should be provided by the distribution licensee for a maximum period of 42 days in a year, subject to the load shedding as is applicable to the embedded consumer of the licensee and the licensee shall be entitled to collect tariff under Temporary rate of charge for that category of consumer in the prevailing rate schedule subject to the condition that such tariff shall not exceed the highest consumer retail tariff in the prevailing rate schedule:

• Provided that in cases where temporary rate of charge is not available for that consumer category, the standby arrangements shall be provided by the distribution licensee for a maximum of 42 days in a year and on payment of fixed charges of 42 days and energy charges for that category of consumer in the prevailing rate schedule:

• Provided further that in case of stand by arrangements sought by continuous process industries, the licensee shall charge on the basis of actual costs involved in arranging power:

• Provided also that open access customers would have the option to arrange stand-by power from any other source.

OA charges-Imbalance ChargesOA charges-Imbalance Charges

• In case of deviation by open access consumers with load of less than 10 MW, the difference between the applicable sanctioned Open Access load and the actual drawal shall be accounted through the Time of Day (ToD) Meters on monthly basis and settled at the rate of the imbalance charge as determined by the Commission (where imbalance charge has not been determined by the Commission, UI charges as specified by the Central Commission shall be applicable).

• In case of underdrawal as a result of non availability of the distribution system or unscheduled load shedding, the open access consumer shall be compensated by the distribution licensee at the average power purchase cost of the distribution licensee.

• Deviations between the schedule and the actual injection/drawal in respect of open access consumers with load of 10 MW and above and the Generating Stations irrespective of the capacity, shall be settled based on the composite accounts for imbalance transactions issued by SLDC on a weekly cycle based on net metering in accordance with the charges specified by the State Commission.

• Where the imbalance charges are not specified by State commission UI charges specified by the Central Commission to be used.

OA charges-Imbalance ChargesOA charges-Imbalance Charges

• Payment of imbalance charges shall have a high priority and the concerned constituents (including the licensees or the open access customers as the case may be) shall pay the indicated amounts within 10 (ten) days of the issue of the statement, into a State imbalance pool account operated by the SLDC.

• Recipient would then be paid out from the State imbalance pool account, within three (3) working days.

• If payments against the above imbalance charges are delayed by more than two days, i.e., beyond twelve (12) days from the date of issue of statement, the defaulting party shall have to pay simple interest @ 0.04% for each day of delay.

• The interest so collected shall be paid to the person who had to receive the amount, payment of which got delayed.

• Persistent payment defaults, if any, shall be reported by the SLDC to the Commission, for initiating remedial action.

OA charges- Reactive Energy chargesOA charges- Reactive Energy charges

• In respect of open access consumer having a load of 10 MW or above, the payment for the reactive energy charges by open access consumers shall be in accordance with provisions stipulated in the State Grid Code.

• Where the reactive energy charges are not specified by the State Commission, charges as per provisions stipulated in the IEGC shall be applicable

• In respect of open access consumers of load less than 10 MW, reactive energy charges shall be calculated on Power Factor basis as specified by the Commission.

State OA charges- Sample calculations for Transmission charges State OA charges- Sample calculations for Transmission charges onlyonly

State Methodology of calculation of LT & ST transmission charges

LT & ST Transmission charge calculations

West Bengal

LT customer = [TSC/ Av_CAP]/12 [Rs/MW/Month] ST customer = 0.25 X [TSC/ Av_CAP] / 365 [Rs./MW/day] i)Up to 6 hours in a day in one block:: 1/4 of above ii)>6 hours and up to 12 hours in a day in one block:: ½ of above iii)>12 hours and up to 24 hours in a day in one block = above ST charges [Rates as mentioned above will not be applicable to those short-term customers who have their drawal point within the State of West Bengal and injection point outside the State]

WBSETCL(F.Y.2010-11) Revenue Recoverable through Tariff Rs. 67284.35 Lakhs Average System Demand on the basis of average of the daily peak 4205.42 MW LT charges Rs. 67284.35 lakh / (4205.42x12) = Rs. 1,33,329/MW/month Rate for short-term users Rs. (1,33,329 x 0.25)/30 = 1111.08Rs./MW/day RLDCS Rs.80/MWH as not declared in Rs./MWH format

State OA charges- Sample calculations for Transmission charges State OA charges- Sample calculations for Transmission charges onlyonly

State Methodology of calculation of LT & ST transmission charges

LT & ST Transmission charge calculations

Orissa LT rate =[ Net approved transmission cost(NATC) / Average demand in the State(MW)]/365 ST_RATE = 0.25 x LT rate (Rs./MW/day) i)Up to 6 hours in a day in one block:: 1/4 of above ii)>6 hours and up to 12 hours in a day in one block:: ½ of above iii)>12 hours and up to 24 hours in a day in one block = above ST charges 25% of the charges collected from the short-term customers shall be retained by the transmission licensee and the balance 75% shall be adjusted towards reduction in the transmission charges payable by the long-term customers.

OPTCL(F.Y 2011-12) Net Annual Revenue Requirement (Rs. cr.) 572.50 Power flow (equivalent of 22877 MU) in MW 2612MW Long term Open Access Charges in terms of Rs./MW/Day 6005 rounded to 6000/- OR Rs.250/MWh Short term Open Access Charges in terms of Rs./MW/Day 1500 OR Rs.62.5/MWh RLDCs initially Rs.62.5 MWH as declared by ORIERC Rs.80/MWH taken In view of revocation of above & declaration in Rs/MW/day format

Trading: A Separate Licensed Activity

• Purchase and resale of Electricity : Section 14(c)

• No separate trading License for a Distribution Licensee

• Trading prohibited for transmission Licensee: Section 41

• Appropriate Commission may specify trading margin, if

needed. CERC has specified 4 paise/kwh as trading margin

• 42 Traders have been issued Trading Licenses by CERC for

carrying out Inter State Trading as on 18.12.08

Highlights of Regulations for Inter State Trading

• The Inter-State Trading Licence shall be granted for 25 years

• The application fee is Rs. 1.00 lakh which is subject to adjustment after the same is prescribed by the Central Government

• Specifies the methodology for publication of the licence application.

• The technical requirements for being an electricity trader stipulates having at least one full time professional each with experience in

- Power System Operations and commercial aspects of power transfers

- Finance, Commerce and Accounts• Six Categories of Trading Licences ( A to F )• A-16; B- 3; C- 6; D- Nil; E- 1; F-16

Legal Framework For Trading

Section 12 : Authorised persons to transmit electricity

No person shall undertake trading in electricity unless he is authorized to do so by license issued under Section 14.

Section 14 : Grant of license

The Appropriate Commission may, on an application made to it, grant a license to any person to undertake Trading in electricity as an electricity trader in any area which may be specified in the license.

Section 52 : Provisions w.r.t electricity trader

The Appropriate Commission may specify the technical requirement, capital adequacy requirement and credit worthiness for being an electricity trader.

CAPITAL ADEQUACY REQUIREMENT

Sl. No. Category of the Trading Licence

Vol. of Electricity Proposed to be Traded Per Annum (in Units)

Net Worth (Rs. in Crore)

1. A Up to 100 million 1.5

2. B 100-200 million 3.0

3. C 200-500 million 7.5

4. D 500-700 million 10.0

5. E 700-1000 million 15.0

6. F Above 1000 million 20.0

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