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UNIT 5 Non Discriminatory Open Access of Transmission 121

Unit 5 Notes
__________________
__________________
Non Discriminatory Open __________________

Access of Transmission __________________

__________________
__________________
__________________
Objectives
__________________
After studying this unit you should be able to:
__________________
y Understand the requirement & importance of open-access
__________________
transmission

Open Access from SERC's Perspective

Defined under section 1(47) of the EA 2003

"Open Access" means nondiscriminatory 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.

Open Access:

n Section 9(2)

n Section 38 (2)

n Section 39 (2)

n Section 40

n Section 42(2), 42 (3) and 42 (4)

Implications of the provisions of EA 2003:

n Open Access to be allowed to system of CTU, STU and

the transmission licensees on discriminatory basis.

n Immediate Open Access to licensees and generating

companies in the transmission system on payment of
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Notes transmission charges and in the distribution system on

__________________ payment of wheeling charges subject to absence of
__________________ operational constraints.
__________________
n Captive generating plants to have open access for self
__________________ use from effective date of the EA 2003. This will be
__________________ however, subject to availability of adequate transmission
__________________ capacity and absence of operational constraints in the
__________________ distribution system. CTU or STU to determine
__________________ availability of capacity and in case of dispute the same
__________________
shall be adjudicated by the Appropriate Commission.

__________________ n Captive generators not to pay surcharge for open access.

n If Captive generation used for other use (other then self

use) then these would be treated as any other generating
company and would have to pay surcharge.

n Captive generators will have to pay the wheeling

charges.

n Open Access for consumers to be subjected to

i. Phasing in such a manner that all consumers with

connected load of 1 MW are allowed open access not
later than 5 years effective from Jan 2004.

ii. Availability of adequate transmission facility.

iii. Absence of operational constraints in distribution.

iv. Payment of surcharge before elimination of cross

subsidy.

v. Additional surcharge if supply is received by a person

other than the distribution licensee of the area to meet
the fixed cost of the distribution licensee arising out of
obligation to supply.

Based on the provisions SERC is required to

n Oversee and allow nondiscriminatory open access in

transmission to licensees, generating companies and
also to captive plants (subject to availability of capacity)
from 10th June 2003.
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UNIT 5 Non Discriminatory Open Access of Transmission 123
n Develop a phased plan for introducing open access in Notes
distribution to be decided within one year (10th June __________________
2003). __________________

n Develop phased program for reduction and elimination __________________

of cross subsidies. __________________

__________________
n Determine transmission charges, wheeling charges,
__________________
surcharge, additional surcharge, system operation
charges, service charges (reactive energy), UI charges. __________________

Specify the manner and utilization of the surcharge. __________________

__________________
n Adjudicate on disputes regarding capacity availability,
__________________
operation of the grid or instructions given by SLDC.

Meaning of Nondiscriminatory Open Access:

n Entitlement of the users to use transmission &

distribution network of the licensees.

n Licensees maintaining these network cannot refuse such

usage merely because such system belongs to him.
n Universal service obligation.
n Differential treatment of unequals is not discrimination
if such unequals are clearly identifiable as a separate
class and there are justifiable reasons for separating
them.

n Uses of the transmission system can be classified and

conditions of the open access can be structured
differently. Thus classification can be made between the
existing and new users, long and short term users,
continuous and seasonal users, peak and non peak hour
users, distribution licensees having universal service
obligation and others who do not have.
n Provisions cannot be interpreted to mean that the
transmission capacity already availed and used by
others should be partly taken away and given to new
entrants.

n Open Access in transmission subject to availability of

capacity.
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Notes n Open Access in distribution system subject to

__________________ availability of capacity and other operational
__________________ constraints.
__________________
__________________
Issues in Open Access
__________________ Capacity Assessment
__________________
It is the extent of surplus capacity available on the network
__________________
that can be used to provide open access without impacting
__________________
the existing users, reserve capacities and redundancy
__________________
requirements. Following needs to be addressed
__________________
a. Approach to capacity assessment: Does it mean point
to point capacity or for the network as whole?

Recom: given current situation of network capacity and

constrained investments system be tested on limited
flexibility i.e. point to point approach. Available capacity
to be determined keeping in view existing users and
their usage pattern, reserved capacity, line loading,
voltage control, sil, steady and transient stability limits.
Capacity addition to be planned.

b. Allocation of capacity: Limited available capacity need

to be prioritised.

u Nature- Distribution licensee and Others

u Current Status- Existing and New

u Tenure- Long and Short term

u Nature of open access- Firm or Non-firm

u Periodicity

Recom: for simplicity categorisation may be limited to

nature and tenure of consumers. Both existing licensee
and long term (more then 5 years) to get highest priority.
Priority order (decreasing):

u Existing licensees and consumers

u Distribution licensee- long term
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UNIT 5 Non Discriminatory Open Access of Transmission 125
u Others- Long term Notes
__________________
u Distribution licensee- short term
__________________
u Others short term __________________
__________________
c. Curtailment policy: Curtailment of supply
__________________
Recom: Existing priority policy (Armed forces, Railways __________________
and Water Works) to continue and short term consumers __________________
to be curtailed first followed by long term customers. __________________

d. Revocation of capacity: Blocking of capacity without __________________

usage is not an economic utilization and therefore is not __________________

desirable.

Recom: Allotted capacity may be reduced or cancelled

when such capacity is under utilised. To determine
extent of under utilisation past usage may be considered
but licensees must be allowed margin for future load
growth.

Pricing For Open Access

Pricing policy needs to

n Be simple to understand and administer.

n Promote efficient use of the system.

n Provide adequate compensation to the system owner.

n Give economic signals for new investments and demand

side management.

n Avoid misuse through gaming and speculation.

Pricing issues before SERC

Transmission charges

1. Connection charges: For recovery of costs for assets

used for interconnection to the grid. The charges are
fixed and allocated to specific consumer based on
capacity reserved.
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Notes 2. System usage charges: Recovery of the cost for using

__________________ the transmission network Methods of allocation (include
__________________ transmission losses)
__________________
__________________
i. Postage Stamp Method

__________________ v Regional postage stamp method

__________________
v Incremental postage stamp method
__________________
__________________ v Zonal postage stamp method
__________________
__________________ ii. Contract path method

iii. MW-Mile method

Recom: (A-1) Presently used by CERC, state can be

divided into number of zones.

3. Congestion pricing:

u Pricing to reflect overloading of the network and

costs related with it.

u Allocated to user causing congestion.

u Encourages efficient use of assets and foster

investment.

Recom: Short term users to bid for capacity based on a

transmission charge price. The average transmission
charge would be the floor price.

Transmission losses

Electricity lost on account of transmission. Ideally user

causing should bear it not the market as a whole. Losses are
function of the distance travelled, voltage level and loading
of the system (included in system use charge).

Recom: Apply actual loss of the voltage level at which

consumer takes the supply. If voltage wise losses not
known then allocate losses on the basis of energy drawn.
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UNIT 5 Non Discriminatory Open Access of Transmission 127
Wheeling Charges Notes
__________________
Similar to transmission charges (include technical losses).
__________________
Distribution losses __________________

Should include technical and nontechnical losses. Since losses __________________

category wise are not known the losses can be allocated __________________
uniformly across all categories. __________________
__________________
Surcharge for cross subsidy
__________________
Aimed at recovering cross subsidy that the consumer __________________
provides. The Surcharge will be used to meet the current
__________________
levels of cross subsidy. This allows for the surcharge to be
less but not more than the prevalent cross subsidy. The two
can follow a different reduction path, (includes commercial
losses).

Recom: Surcharge as a proportion of cost of supply.

Additional surcharge

It emanates from distribution licensee's obligation to supply

any consumer in its area. The licensee incurs

i. fixed cost for long term supply agreement with generator

and transmission licensee irrespective of energy drawn.
ii. Investments in network. This will be payable by any
existing consumer including any consumer who puts up
a captive plant for his own use. The Act does not provide
for the period it will be applicable. Ideally it should be
for a period alternate buyers are found on agreement or
modified. Say 1 year.

SLDC surcharges

These Charges are for using the services of SLDC. These

have to be based on cost of operation and investment
required. Charges paid by short term users netted off total
cost which is then allocated to long term users.

Service charges

Activities those are necessary to support transmission of

power maintaining reliability & quality such as frequency
control, reactive power, and black start service.
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Notes Operational Issues

__________________
Grid Management- Introduction of ABT
__________________
__________________ n ABT to be introduced to state players to enforce grid
__________________ discipline.
__________________ n Balancing required (with a back up arrangement).
__________________
n UI Charges.
__________________
__________________ n Extent of deviation to prevent players from getting away
__________________ from the responsibility of paying fixed charges.
__________________ Recom: for smaller consumers monthly scheduling,
different UI charges for captive, generators and
licensees. +/- 5% deviations from the contract value for
deviations above this charge over and above UI rates.

Metering

ABT compliant metering is adopted.

Recom: Supplier to provide main meters with

distribution licensee to supply check meters.

Communication

Real time information exchange regarding availability,

schedule and deviations.

Systems at SLDC

Capability to execute trades, etc.

Billing settlement system

Bills to be based on previous month losses and final

adjustment at the end of the year.

Payment security arrangement

Security of last three months either in the form of LC, etc.

One who receives electricity is liable for UI charges of itself,
its generator or trader.

Capacity Building

Capacity Building of all the players.

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UNIT 5 Non Discriminatory Open Access of Transmission 129
Issues in Eligibility and Phasing Notes
__________________
n Eligibility governed by i. Connection voltage ii.
__________________
Consumption level iii. Consumer categories iv.
__________________
Geographical area. Act identifies MW as one of the
criteria. __________________
__________________
n Phasing governed by i. EA 2003 ii. Capacity constraints
__________________
iii. System preparedness iv. Transaction costs v.
__________________
Financial impact
__________________
Recom: 25 MW & above, 1 year latter 10 MW & above, 1 __________________
year latter 5 MW & above and 1 year latter 1 MW &
__________________
above.

Contractual Issues
n PPA including balancing arrangement for balancing
power i. Capacity provided ii. Priority of capacity
iii. Point of injection & drawl iv. Duration of contract.

n Transmission agreement i. MW/MVA allocated ii.

Duration iii. Loss iv. Commercial v. Point of injection &
drawl.

n Grid Agreement i. Monitoring & Control ii. Energy

balancing iii. Accounting iv. Billing.

n Wheeling Agreement.

n Trading Agreement.

Issues in process of approval for open access

n Nodal Agency- STU.

n Application to nodal agency -time frame to be defined.

n Adjudication/Dispute resolution.

Notes:

Cross-subsidy surcharge and additional surcharge for

open access

The National Electricity Policy lays down that the amount

of cross-subsidy surcharge and the additional surcharge to
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Notes be levied from consumers who are permitted open access

__________________ should not be so onerous that it eliminates competition which
__________________ is intended to be fostered in generation and supply of power
__________________ directly to the consumers through open access.
__________________ When open access is allowed the surcharge for the purpose
__________________ of section 38, 39, 40 and sub section 2 of section 42 would be
__________________ computed as the difference between
__________________
i. the tariff applicable to the relevant category of
__________________
consumers and,
__________________
ii. the cost of the distribution licensee to supply electricity
__________________
to the consumers of the applicable class.

In case of a consumer opting for open access, the distribution

licensee would be in a position to discontinue purchase of
power at the margin in the merit order. Accordingly, the cost
of supply to the consumer for this purpose may be computed
as the aggregate of

a. the weighted average of power purchase costs (inclusive

of fixed and variable charges) of top 5% power at the
margin in the merit order approved by SERC adjusted
for average loss compensation of the relevant voltage
level and,
b. the distribution charges determined on the principles
as laid down for intrastate transmission charges.

[Illustration #

1. Tariff payable by the relevant category of consumers

Rs.4.0 per unit
2. Weighted average cost of power purchase of top
Rs.3.0 per unit
5% at the margin in the merit order
3. Applicable system loss 6%
4. Applicable distribution/wheeling charge
Rs.0.3 per unit
5. Cross subsidy surcharge =4-(3.0/0.94 + 0.3)
= Rs.0.51 per unit
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UNIT 5 Non Discriminatory Open Access of Transmission 131
# Values of different parameters have been assumed for Notes
the purpose of illustrating methodology of computation] __________________
__________________
2. Consumers who were permitted to get supply from a
__________________
source other than distribution licensee of their area
under earlier laws and were not contributing to cross- __________________

subsidies at the commencement of the Act would not be __________________

required to pay cross subsidy surcharge till the current __________________
validity of such permission. __________________
__________________
3. The surcharge may be collected either by the
distribution licensee, the transmission licensee, the STU __________________

or the CTU, depending on whose facilities are used by __________________

the consumer for availing electricity supplies. In all
cases the amounts collected from a particular consumer
should be given to the distribution licensee in whose
area the consumer is located. In case of two licensees
supplying in the same area the licensee from whom the
consumer was availing supply shall be paid the amounts
collected.

4. The additional surcharge for obligation to supply as per

section 42(4) of the Act should become applicable only if
it is conclusively demonstrated that the obligation of a
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. The fixed costs related
to network assets would be recovered through the
wheeling charges.

5. Wheeling charges should be determined on the basis of

same principles as laid down for interstate transmission
charges and in addition would include average loss
compensation of the relevant voltage level.

6. In case of outages of generator supplying to a consumer

on open access, standby arrangements should be
provided by the licensee on the payment of tariff of that
consumer category or applicable UI charges whichever
is higher.

[Short term course, IME, IITK]

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Notes CERC Report on access to interstate

__________________ Transmission System
__________________
1. In exercise of powers conferred by Section 178 of the
__________________
Electricity Act, 2003 and all other powers enabling on
__________________
this behalf, and after previous publication, the Central
__________________
Electricity Regulatory Commission, hereby makes the
__________________ following regulations as below:
__________________
2. The transmission customers shall be divided into two
__________________
categories, namely:
__________________
a. Long-term customers, and
__________________
b. Short-term customers.
3. The persons availing or intending to avail access to the
interstate transmission system for a period of twenty
five years or more shall be the long-term customers:
Provided that the existing beneficiaries of a regional
transmission system owned or operated by the Central
Transmission Utility shall be deemed to be the long-
term customers of the particular regional system owned
or operated by the Central Transmission Utility for the
purpose of these regulations.
4. The transmission customers other than the long-term
customers shall be the short-term customers:
Provided that the maximum duration for which the short-
term access allowed at a time shall not exceed one year.
Provided further that the short-term customer shall be
eligible and re-eligible to obtain fresh reservation after
expiry of his term.

Criteria for allowing transmission access

5. i. The long-term access shall be allowed in accordance

with the transmission planning criterion stipulated
in the Grid Code;

ii. The short-term access shall be allowed, if request

can be accommodated by utilizing:

a. Inherent design margins;

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UNIT 5 Non Discriminatory Open Access of Transmission 133
b. Margins available due to variation in power Notes
flows; and __________________
__________________
c. Margins available due to in-built spare
__________________
transmission capacity created to cater to future
load growth. __________________
__________________
Criteria for Allotment/ Reservation of Transmission
__________________
Capacity
__________________
6. i. Allotment priority of a long-term customer shall be __________________
higher than reservation priority of a short-term __________________
customer; __________________

ii. In case of short-term customers, at given point of

time, if all the requests for access can be
accommodated, each short-term customer shall pay
the transmission charges in accordance with
regulation 16;

iii. a. In case of short-term access, if the capacity

sought to be reserved by the customers is more
than the available transmission capacity at that
point of time, the Regional Load Despatch Centre
concerned shall invite snap bids through fax/e-
mail;

b. The floor price for the bidding shall be the price

determined in accordance with regulation 16;

c. The bidders shall quote price in terms of

percentage points above the floor price;

d. The reservation of transmission capacity will be

made in decreasing order of the price quoted;

e. In case of equal price, if required, the reservation

of transmission capacity shall be made pro rata
to the capacity sought;

f. The customer getting reservation for a capacity

less than the capacity sought by him shall pay
charges quoted by him and the customers getting
transmission capacity reservation equal to the
capacity sought by them shall pay charges quoted
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Notes by the last customer getting reservation of

__________________ transmission capacity;
__________________
iv. The Regional Load Despatch Centres shall, within
__________________
45 days, formulate a detailed procedure for
__________________ reservation of transmission capacity to short-term
__________________ customers, including the detailed procedure for
__________________ bidding.
__________________
7. Within a category (long-term or short-term), there shall
__________________
be no discrimination between open access customers and
__________________ self-use by an integrated entity like the State Electricity
__________________ Board. The transmission licensees shall declare existing
long-term customers using their system (including self-
use and use by unbundled agencies which were
previously integrated) either on their own website or
on the website of the Regional Load Despatch Centre
or the State Load Despatch Centre concerned within
180 days. All future requests for use of the transmission
system for interstate transmission shall be handled in
accordance with these regulations.

Nodal Agency

8. i. The nodal agency for arranging the long-term

transmission access shall be the Central
Transmission Utility if its system is used, otherwise
the nodal agency shall be transmission licensee in
whose system the point of drawal of electricity is
situated;

ii. The nodal agency for the short-term transmission

access shall be the Regional Load Despatch Centre
of the region where point of drawal of electricity is
situate.

Procedure for Long-Term Customer

9. i. An application for long-term access shall be

submitted to the nodal agency;

ii. The application shall contain the details, such as

capacity needed, point(s) of injection, point(s) of
drawal, duration of availing open access, peak load,
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UNIT 5 Non Discriminatory Open Access of Transmission 135
average load and such other additional information Notes
that may be specified by the nodal agency: __________________
__________________
Provided that the nodal agency shall issue necessary
__________________
guidelines, procedure and application forms within
30 days of publication of these regulations in the __________________

Official Gazette. __________________

__________________
iii. The application shall be accompanied by a non-
__________________
refundable application fee of Rs one lakh payable in
__________________
the name and in the manner to be decided by the
nodal agency; __________________
__________________
iv. Based on system studies conducted in consultation
with other agencies involved including other
transmission licensees, the nodal agency shall,
within 30 days of receipt of the application, intimate
to the applicant whether or not the long-term access
can be allowed without further system
strengthening:

Provided that where the long-term access can be

allowed without further system strengthening, this
shall be allowed immediately after entering into
commercial agreements.

v. If, in the opinion of the nodal agency, further system

strengthening is essential before providing the long-
term access, the applicant may request the nodal
agency to carry out the system studies and
preliminary investigation for the purpose of cost
estimates and completion schedule for system
strengthening;

vi. The nodal agency shall carry out the studies

immediately on receipt of request from the applicant
under clause.

vii. Intimate results of the studies within 90 days of

receipt of request from the applicant;

viii. The applicant shall reimburse the actual

expenditure incurred by the nodal agency for system
strengthening studies:
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Notes Provided that the fee of rupees one lakh paid by the
__________________ applicant shall be adjusted against the actual
__________________ expenditure to be reimbursed by the applicant.
__________________
10. The allotment of transmission capacity to a long-term
__________________ customer may be relinquished or transferred to any other
__________________ long-term customer in accordance with regulation 12 of
__________________ these regulations.
__________________
Bulk Power Transmission Agreement
__________________
__________________ 11. A long-term customer shall enter into Bulk Power
__________________
Transmission Agreement with the transmission licensee
for use of interstate transmission system.

Exit Option

12. i. A long-term customer shall not relinquish or transfer

his rights and obligations specified in the Bulk Power
Transmission Agreement, without prior approval of
the Commission.

ii. The relinquishment or transfer of right and

obligations by a long-term customer shall be subject
to payment of compensation, as may be determined
by the Commission.

Procedure for Short-Term Customer

13. i. A short-term customer shall submit an application

for transmission access to the nodal Regional Load
Despatch Centre;

ii. The application shall contain the details such as

capacity needed, point of injection, point of drawal,
duration of availing open access, peak load, average
load and such other additional information that may
be specified by the Regional Load Despatch Centre;

iii. The application shall be accompanied by a non-

refundable application fee of Rs five thousand
payable in the name and in the manner to be decided
by the Regional Load Despatch Centre;
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UNIT 5 Non Discriminatory Open Access of Transmission 137
iv. The reserved transmission capacity shall not be Notes
transferred by a short-term customer to any other __________________
customer. __________________
__________________
Non-Utilisation of reserved transmission capacity by
short-term Customer __________________
__________________
14. i. In case a short-term customer is unable to utilise,
__________________
full or substantial part of the reserved transmission
__________________
capacity reserved, he shall inform the Regional Load
__________________
Despatch Centre along with reasons for his inability
to utilise the reserved transmission capacity and may __________________

surrender the reserved transmission capacity; __________________

ii. The Regional Load Despatch Centre may reduce or

cancel the reserved transmission capacity of a short-
term customer when such a short-term customer
frequently under-utilises the reserved transmission
capacity;

iii. The transmission short-term customer, who has

surrendered the reserved transmission capacity or
whose reserved transmission capacity has been
reduced or cancelled, shall bear full transmission
charges and the scheduling and system operation
charges based on original reserved transmission
capacity and the period for which the transmission
capacity was reserved;

iv. The transmission capacity available as a result of

surrender or reduction or cancellation of the
reserved transmission capacity by the Regional Load
Despatch Centre under clause i. or clause ii. above,
may be reserved for any other short-term open access
customer in accordance with these regulations.

Treatment of Existing Transactions

15. Any person, other than the existing beneficiary, using

the interstate transmission system on the date of
commencement of these regulations, shall be given 60
days notice by the Regional Load Despatch Centre to
submit an application to the nodal agency for grant of
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138 Power Transmission fo
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Notes access to the transmission system in accordance with

__________________ these regulations.
__________________
Transmission Charges
__________________
__________________ 16. The transmission charges for use of the transmission
__________________
system of the transmission licensee for interstate
transmission shall be regulated as under, namely:
__________________
__________________ i. The annual transmission charges shall be determined
__________________ by the Commission in accordance with the terms and
__________________ conditions of tariff notified by the Commission from
__________________
time to time and after deducting the adjustable
revenue from the short-term customers, these
charges shall be shared by the long-term customers;

ii. a. The charges payable by a short-term customer

shall be calculated in accordance with the
following methodology:

ST_RATE = 0.25 x [ TSC/ Av_CAP ]/ 365

Where

ST_RATE is the rate for short-term open access

customer in Rs per MW per day. ST_RATE shall
be calculated and applied for each - a. regional
system; b. inter-regional link, and c. system of
the State Transmission Utility or the State
Electricity Board or any other transmission
licensee forming part of the interstate system.

"TSC" means the Annual Transmission Charges

of the transmission licensee for the previous
financial year determined by the Appropriate
Commission.

"Av_CAP" means the average capacity in MW

served by the transmission system of the
transmission licensee in the previous financial
year and shall be the sum of the generating
capacities connected to the transmission system
and contracted capacities of other transactions
handled by the system of the transmission
licensee.
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UNIT 5 Non Discriminatory Open Access of Transmission 139
b. The transmission charges payable by a short-term Notes
customer shall be for one day and in multiples of __________________
whole number of days. __________________
__________________
c. Non-availability of TSC for the transmission
system shall not be reason for delay in providing __________________

transmission access and where TSC for any __________________

transmission licensee are not available, the per __________________
MW per day charge applicable for the system __________________
owned by the Central Transmission Utility of the __________________
region in which the system of transmission __________________
licensee is situate, shall be used.
__________________
d. Every transmission licensee shall declare rate in
Rs per MW per day, which shall remain fixed for
a period of one year:

Provided that in case of north-eastern region,

where the Uniform Common Pooled
Transmission Tariff (UCPTT) of 35 paise/KWh is
applicable, the Central Transmission Utility shall
notify ST_RATE as 25% of the UCPTT in Rs/MW/
Day.

Provided further that where reservation of

transmission capacity has been done consequent
to bidding in the manner specified in Regulation
6, the ST_RATE shall be taken as the floor price
for bidding.

iii. 25% of the charges collected from the short-term

customer 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.

Scheduling and System Operation Charges

17. i. The scheduling and system operation charges of

Rs.3000/-per day or part of the day shall be paid by a
short-term customers to each Regional Load
Despatch Centre and State Load Despatch Centre
involved in the transaction;
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Notes ii. The scheduling and system operation charges

__________________ collected by the Regional Load Despatch Centre in
__________________ accordance with clause i. above shall be in addition
__________________ to the fees and charges approved by the Commission.
__________________ Explanation
__________________
Scheduling and system operation charges shall be payable
__________________
by a generating company when allowed access under these
__________________
regulations.
__________________
__________________ Unscheduled Inter-change (UI) charges
__________________ 18. i. The mismatch between the scheduled and the actual
drawal at drawal point(s) and scheduled and the
actual injection at injection point(s) shall be met from
the grid and shall be governed by UI pricing
mechanism applicable to the interstate transactions;

ii. A separate bill for UI charges shall be issued to the

direct customers and in case of the embedded
customers, a composite UI bill for the State as a
whole shall be issued, the segregation for which shall
be done at the State level.

Reactive Energy Charges

19. The payment for the reactive energy charges for the
direct customers on account of open access shall be
calculated in accordance with the scheme applicable to
transactions involving interstate transmission approved
by the Commission from time to time.

20. The reactive energy charges payable to or receivable by

the State Electricity Board or the State Transmission
Utility shall be paid to or received from the pool by the
State Electricity Board or the State Transmission Utility
concerned and shall not be apportioned to the embedded
customers.

21. The reactive energy drawals and injections by the

embedded customers shall be governed by the
regulations applicable within the State concerned.
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Time-schedule for Processing Application Notes
__________________
22. As far as practicable, the following time schedule shall
__________________
be adhered to by the respective nodal agency for
__________________
processing of the application for grant of open access:
__________________
__________________
__________________
__________________
__________________
__________________
__________________

Curtailment Priority
23. When because of transmission constraints or otherwise,
it becomes necessary to curtail the transmission service
of the transmission customers, the short-term customers
shall be curtailed first followed by the long-term
customers:
Provided that within a category, all users shall have
same curtailment priority and shall be curtailed pro rata
to the allotted transmission capacity in the case of long-
term customers and the reserved transmission capacity
in the case of short-term customers.

Other Commercial Conditions

24. Other commercial conditions for transmission charges
and scheduling and system operation charges, such as,
terms of payment, creditworthiness, indemnification,
and force measure conditions shall be standardised
within 60 days by the Central Transmission Utility for
long-term customers and by the Regional Load Despatch
Centre for the short-term customers.
Special Energy Meters
25. The Special Energy Meters shall be installed by the
direct customers and if required, also by the embedded
customers.
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Notes 26. The Special Energy Meters installed shall be capable of

__________________ time differentiated measurements (15 minutes) of active
__________________ energy and voltage differentiated measurement of
__________________ reactive energy as specified by the Central Transmission
__________________
Utility or the Regional Load Despatch Centre.
__________________ 27. The Special Energy Meters shall be always maintained
__________________ in good condition.
__________________
28. The Special Energy Meters for the direct customer shall
__________________
be open for inspection by any person authorised by the
__________________ Central Transmission Utility or the Regional Load
__________________ Despatch Centre.

Energy losses

29. The transmission customers shall bear average energy

losses in the transmission system as estimated by the
Regional Load Despatch Centre and the State Load
Despatch Centre concerned. The energy losses in the
transmission system shall be compensated by additional
injection at the injection point(s). The information
regarding average energy losses for the previous 52
weeks shall be posted on the website of the Regional
Load Despatch Centres and the State Load Despatch
Centres.

Compliance of Grid Code

30. The open access customers shall comply with the

provisions of the Grid Code in force from time to time.

Collection and Disbursement of charges

31. i. The transmission charges in respect of long-term

customers shall be payable directly to respective
transmission licensee;
ii. The transmission charges and the scheduling and
system operation charges in respect of short-term
customers shall be collected and disbursed by the
nodal Regional Load Despatch Centre. The nodal
Regional Load Despatch Centre may require the
transmission charges and scheduling and system
operation charges to be paid in advance for a
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UNIT 5 Non Discriminatory Open Access of Transmission 143
maximum period of one month, the detailed Notes
procedure for which shall be finalised jointly by the __________________
Regional Load Despatch Centres; __________________
__________________
iii. The short-term customers shall pay 2% of the billed
amount for transmission charges and scheduling and __________________

system operation charges as handling and service __________________

charges to the nodal Regional Load Despatch Centre __________________
and these charges shall not be adjusted against the __________________
Regional Load Despatch Centre fees and charges __________________
approved by the Commission; __________________

iv. The collection and disbursement of the unscheduled __________________

interchange charges and the reactive energy charges
shall be governed in accordance with the procedure
and methodology specified by the Commission from
time to time.

Information System

32. Each Regional Load Despatch Centre and State Load

Despatch Centre shall post following information on
their websites in a separate web-page titled "Open
access information" :

i. Floor rate in rupees per MW per day for the short-

term customers (ST_RATE) for each -

a. regional system,

b. inter-regional link, and

c. system of the State Transmission Utility or the

State Electricity Board or any other transmission
licensee with detailed calculations in support of
such rate in respect of all the transmission
licensees situate within the region or the State
concerned;

ii. A status report on the current short-term customers

indicating:-

a. Name of customer;
b. Period of the access granted (start date and end
date);
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Notes c. Point(s) of injection;

__________________
d. Point(s) of drawal;
__________________
__________________ e. Transmission systems used (in terms of region
__________________ and ownership);
__________________ f. Reserved transmission capacity; and
__________________
g. Applicable rate (Rs per MW per day).
__________________
__________________ Note
__________________
The status report shall be updated upon every change in
__________________
status.

iii. Month-wise and year-wise report on past short-term

customers indicating:

a. Name of the customer;

b. Period of the access granted (start date and end
date);
c. Point(s) of injection;
d. Point(s) of drawal;
e. Transmission systems used (on the basis of region
and ownership);
f. Reserved transmission capacity;
g. Applicable rate (Rs per MW per day); and
h. Actual load factor.

Note

All previous reports shall also be available in the web-

archives.

iv. Information regarding usage of the inter-regional

links and the links between the Central
Transmission Utility and state systems (in case of
the Regional Load Despatch Centre) and interstate
links (in case of State Load Despatch Centre)
indicating:
a. Time of updating;
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UNIT 5 Non Discriminatory Open Access of Transmission 145
b. Name of the link; Notes
__________________
c. Total transmission capacity of the link;
__________________
d. Scheduled capacity use (giving customer-wise __________________
break-up); and __________________

e. Current capacity of the link in use. __________________

__________________
Note
__________________
This information should be updated at least on hourly basis, __________________
and where ever feasible on 15 minute basis. __________________
__________________
v. The information regarding average energy losses for
the previous 52 weeks.

33. The publication of the web-based information system

shall commence within 30 days in case of the Regional
Load Despatch Centres and within 180 days in case of
the State Load Despatch Centres. Each transmission
licensee shall make available the above information to
the Regional Load Despatch Centre or State Load
Despatch Centre concerned.

34. All transmission licensees shall declare current long-

term customers using their system (including self-use
and use by unbundled agencies which were previously
integrated) with details there of either on their own
websites or on the website of the Regional Load
Despatch Centre or the State Load Despatch Centre
concerned, within 180 days.

Note

This list shall be updated as and when change in status takes

place.

Redressal Mechanism

35. All complaints regarding unfair practices, delays,

discrimination, lack of information, supply of wrong
information or any other matter related to open access
in interstate transmission shall be directed to the
Member Secretary, Regional Electricity Board or
Regional Power Committee, as the case may be, of the
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Notes region in which the authority against whom the

__________________ complaint is made, is located. The Member Secretary,
__________________ Regional Electricity Board or the Regional Power
__________________ Committee, as the case may be, shall investigate and
__________________
endeavour to resolve the grievance:
__________________ Provided that any matter which the Member Secretary,
__________________ Regional electricity Board or the Regional Power
__________________ Committee, as the case may be, is unable to resolve, shall
__________________ be reported to the Commission for a decision.
__________________ Coordination
__________________
36. The responsibilities assigned to the Regional Load
Despatch Centres of formulation of procedures,
guidelines and application forms under these
regulations shall be coordinated by the Central
Transmission Utility.

Definitions

In these regulations, unless the context otherwise requires,

a. "Act" means the Electricity Act, 2003 (36 of 2003);

b. "Allotted Transmission Capacity" means the

power transfer in MW between the specified
point(s) of injection and point(s) of drawal
allowed to a long-term customer on the interstate
transmission system under normal
circumstances and the expression "allotment of
transmission capacity" shall be construed
accordingly;

c. "Commission" means Central Electricity

Regulatory Commission referred to in Section 76
of the Act;

d. "Direct customer" means a person directly

connected to the system owned or operated by
the Central Transmission Utility;

e. "Embedded customer" means a person who is not

a direct customer;
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UNIT 5 Non Discriminatory Open Access of Transmission 147
f. "Existing beneficiary" means a person having Notes
firm allocation from a central power generating __________________
station on the date of coming into force of these __________________
regulations and who has entered into Bulk Power __________________
Transmission Agreement with the Central __________________
Transmission Utility;
__________________
g. "Grid Code" means the Grid Code specified by __________________
the Commission under Clause h. of sub-section __________________
(1) of Section 79 of the Act and includes the Indian __________________
Electricity Grid Code applicable on the date of __________________
commencement of these regulations;
__________________
h. "Nodal agency" means the nodal agency defined
in regulation 8 of these regulations;

i. "Open access customer" means a consumer

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

j. "Reserved Transmission Capacity" means the

power transfer in MW between the specified
point(s) of injection and point(s) of drawal
allowed to a short-term customer on the
transmission system depending on availability of
transmission capacity and the expression
"reservation of transmission capacity" shall be
construed accordingly;

k. "Transmission Customer" means any person,

including open access customer using
transmission system of a transmission licensee;

l. Words and expressions used and not defined in

these regulations but defined in the Act or the
Grid Code, shall have the meaning assigned to
them under the Act or the Grid Code, as the case
may be.