Conn, Lta, Mtoa, Stoa

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================
SHORT TERM OPEN ACCESS AND GRANT OF CONNECTIVITY, LONG TERM ACCESS, MEDIUM TERM OPEN ACCESS -MARKET EVOLUTION -PRESENT REGULATIONS & PROCEDURES
POWER SYSTEM OPERATION CORPORATION ERLDC ::KOLKATA
================================================================================== ERLDC::POSOCO
ABBREVIATIONS
ER NER WR NR CERC SERC MOP NEP NTP FCFS SOR TSA BCD RSA PX FSAS VCAS PFCAS NCAS RTC Eastern Region North Eastern Region Western Region Northern Region Central Electricity Regulatory Commission State Electricity Regulatory Commission Ministry of Power National Electricity Policy National Tariff Policy First Come First Served Statement of Reasons Transmission Service Agreement Billing Collection and Disbursement procedures Revenue Sharing Agreement Power Exchange Frequency Support Ancillary Services Voltage Control Ancillary Services Power Flow Control Ancillary Services Network Control Ancillary Services Round The Clock
================================================================================== ERLDC::POSOCO
TABLE OF CONTENTS
Chapter/ Para No. Ch.1 1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.3 1.4.4 1.5 1.6 Ch.2 2.1 2.2 2.3 2.4 2.5 2.6 Ch.3 3.1 3.2 Contents Evolution of the Regional Grids and Power Markets Evolution of the Regional Grids Evolution of the Indian Power Market Legal framework for Open Access setup as per IE Act 2003 Development of Short Term Open Access subsequent to impetus by IE Act,2003 Step leading to release of Open Access Regulations,2004 Open Access Regulations,2004 Amendment prior to release of Open Access Regulations 2008 Release of Open Access Regulations 2008 & subsequent Amendments Present Market Structure Share of different segments in the Electricity Power Market Short Term Open Access Rgulations,2008(consolidated) with amendments vide CTU procedures and explanatory memorandum CERC Open Access in Inter-State Regulations 2008(consolidated with incorporation of all amendments till date) Important addendums extracted from the Bilateral procedures Various formats under the Bilateral procedures Explanatory memorandums to the Regulations and procedures with examples Application of POC methodology for STOA transactions Examples of POC charges & losses calculations Grant of Connectivity, Long Term, Medium term Open Access Regulations and procedures Evolution of the concept of Connectivity, Long Term, Medium term Open Access CERC(Grant of connectivity, Long Term and medium term Access in ISTS & Related matters) Regulations 2009(consolidated with all amendments till date) Important addendums to the Regulations vide CTU procedures Page No. 1 1 1 9 12 12 12 14 16 17 17 19 19 35 42 49 50 54 59 59 59
3.3
74
================================================================================== ERLDC::POSOCO
Chapter-1 Evolution of the Regional Grids and Power Markets

1.1] Evolution of Regional Grids Prior to 1991 Regional Grids were running in a desynchronized manner. The integration of Regional Grids were done gradually with first synchronization being the Eastern and North Eastern Grids in 1991. Subsequently, ER and NER were synchronized with WR to form the Central Grid in March,2003. The Central Grid was synchronized with NR on August,2006 to form the North-Central Grid comprising of North Eastern, Eastern, Western and Northern regions. Finally, synchronization of Southern Grid with the North-Central Grid is tentatively planned on 2013. Integration of SR with rest of the Regions would lead to formation of a combined All India Grid. Parallely, synchronization of the Indian Grid with Power Grids of other countries is already in progress. The Indian Grid is already connected with Bhutan and Nepal Grids. While for Bhutan, part of the Grid remains synchronized with Indian Grid, power exchange with Nepal takes place in radial mode. The evolution of Indian Power Grid is represented diagrammatically below:
March 2003 West synchronized With East & Northeast
Five Isolated regional Grids
October 1991 East and Northeast synchronized
August 2006 North synchronized With Central Grid
Beyond 2013 All India Grid & SARC Grid
1.2] Evolution of the Indian Power Market Alongwith the regional Grids the power markets also evolved parallely. The legal provisions for the regulation of tariffs of power utilities can be traced to the Indian Electricity Act 1910 (IE Act). The first attempt to closely regulate monopolistic power utilities by defining the basis on which tariffs could be charged was made in the Electricity (Supply) Act, 1948 (E(S) Act). At the time there were two types of entities in the power sector; Licensees under the IE Act and State Electricity Boards (SEBs) created by the E (S) Act. However, in keeping with perception of the times and considering the fragmented nature of regional grids proper methodologies for open access and electricity trading were not in place. The regional Grids were running in an isolated fashion and there was little transnational exchange of power other than between ER and rest of regions. In this era, ER was the exporter of power to other regions as WR, NR, SR in radial mode. With NER synchronized exchanges of power took place. However the exchanges with WR, NR, SR were in radial mode and the quantum were not very high. The first thrust to formation of Organized markets was put in form of the Electricity Regulatory Commissions Act,1998 which led to formation of the CERC and the SERCs. The ERC Act of 1998 enjoins the CERC to
================================================================================== ERLDC::POSOCO
promote competition, efficiency and economy in the electricity industry. It also requires that the CERC will aid and advise the central government in the formulation of tariff policy, which shall be fair to the consumers and facilitate mobilisation of adequate resources for the power sector. The markets got a further boost in 2003 with the enactment of the Indian Electricity Act 2003. To compliment the same, ER and WR grids were also synchronized in 2003. When NR grid was synchronized with the Central Grid in 2006, and the inter-regional capacities were further enhanced, the power market gradually took the forward leap. Transactions of wheeling nature got introduced and diversity of Indian Grid was effectively utilized. India has a skewed concentration of resources. While the coal belt is concentrated around, Jharkhand, Chattisgarh, M.P., hydro resources are concentrated in the North in the Himalayan region and Lignite in South. The resources in terms of Wind energy is also concentrated in Tamil Nadu, Karnataka, A.P in South and Gujarat, Maharashtra in West. Further hydro is seasonal in nature and wind generation may vary significantly. The demand of various States in the various regions also are seasonal and have their own characteristics. The skewed nature of availability of generation resources and demand requirements, make Open access of transmission system all the more necessary. This requirement also needs to put in place an well developed power market to meet availability and demand. Enactment of the Electricity Act, 2003 (hereinafter referred to as The Act) has opened up hitherto constrained electricity market which was characterized by long term PPAs and inability of Distribution Companies & consumers to have a choice of suppliers. Besides, de-licensing generation and removing controls on captive generation, the provision regarding availability of non-discriminatory open access in transmission from the very beginning and distribution in phased manner is the core of the Act. This creates enabling environment for competition among generators/traders to choose their customers and vice versa. The Act has also introduced the concept of multiple distribution distribution licensees in a distribution area. In summary the Act has not only attempted to open up the markets by providing non-discriminatory Open Access but has also tried to remove monopoly, oligopoly which are the constraints to a competitive power market. In compliance with section3 of the Act, the MOP notified the National Electricity Policy on 12th February,2005. Subsequently, the National Tariff Policy was notified in 2006. The aims and objectives of NEP were: Access to Electricity - Available for all households in next five years Availability of Power - Demand to be fully met by 2012. Energy and peaking shortages to be overcome and adequate spinning reserve to be available. Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates. Per capita availability of electricity to be increased to over 1000 units by 2012. Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012. Financial Turnaround and Commercial Viability of Electricity Sector. Protection of consumers interests.
================================================================================== ERLDC::POSOCO
Section 3 (4) of the Act requires the Central Electricity Authority (CEA) to frame a National Electricity Plan once in five years and revise the same from time to time in accordance with the National Electricity Policy. Also, section 73 (a) provides that formulation of short-term and perspective plans for development of the electricity system and coordinating the activities of various planning agencies for the optimal utilization of resources to subserve the interests of the national economy shall be one of the functions of the CEA. The National Electricity Plan would be for a short-term framework of five years while giving a 15 year perspective and would include: Short-term and long term demand forecast for different regions; Suggested areas/locations for capacity additions in generation and transmission keeping in view the economics of generation and transmission, losses in the system, load centre requirements, grid stability, security of supply, quality of power including voltage profile etc. and environmental considerations including rehabilitation and resettlement; Integration of such possible locations with transmission system and development of national grid including type of transmission systems and requirement of redundancies; and Different technologies available for efficient generation, transmission and distribution. Fuel choices based on economy, energy security and environmental considerations. The policy seeks to address the following issues: Rural Electrification Generation Transmission Distribution Recovery of Cost of services & Targeted Subsidies. Technology Development and Research and Development (R&D) Competition aimed at Consumer Benefits Financing Power Sector Programmes Including Private Sector Participation. Energy Conservation Environmental Issues Training and Human Resource Development Cogeneration and Non-Conventional Energy Sources Protection of Consumer interests and Quality Standards Subsequently, the NTP was notified on 6th January,2006. The objectives of this tariff policy are to: (a) Ensure availability of electricity to consumers at reasonable and competitive rates; (b) Ensure financial viability of the sector and attract investments; (c) Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimise perceptions of regulatory risks; (d) Promote competition, efficiency in operations and improvement in quality of supply. The NTP while specifying the generic tariff approach for Generation, Transmission and Distribution specifically had the following observations w.r.t the issue of Transmission tariffing and loss allocation.
================================================================================== ERLDC::POSOCO
7.1(1) A suitable transmission tariff framework for all inter-State transmission, including transmission of electricity across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-state transmission, needs to be implemented with the objective of promoting effective utilization of all assets across the country and accelerated development of new transmission capacities that are required. (2) The National Electricity Policy mandates that the national tariff framework implemented should be sensitive to distance, direction and related to quantum of power flow. This would be developed by CERC taking into consideration the advice of the CEA. Such tariff mechanism should be implemented by 1st April 2006. (3)Transmission charges, under this framework, can be determined on MW per circuit kilometer basis, zonal postage stamp basis, or some other pragmatic variant, the ultimate objective being to get the transmission system users to share the total transmission cost in proportion to their respective utilization of the transmission system. The overall tariff framework should be such as not to inhibit planned development/augmentation of the transmission system, but should discourage non-optimal transmission investment. (4) In view of the approach laid down by the NEP, prior agreement with the beneficiaries would not be a pre-condition for network expansion. CTU/STU should undertake network expansion after identifying the requirements in consonance with the National Electricity Plan and in consultation with stakeholders, and taking up the execution after due regulatory approvals. (5) The Central Commission would establish, within a period of one year, norms for capital and operating costs, operating standards and performance indicators for transmission lines at different voltage levels. Appropriate baseline studies may be commissioned to arrive at these norms. (6) Investment by transmission developer other than CTU/STU would be invited through competitive bids. The Central Government will issue guidelines in three months for bidding process for developing transmission capacities. The tariff of the projects to be developed by CTU/STU after the period of five years or when the Regulatory Commission is satisfied that the situation is right to introduce such competition (as referred to in para 5.1) would also be determined on the basis of competitive bidding. (7) After the implementation of the proposed framework for the inter-State transmission ,a similar approach should be implemented by SERCs in next two years for the intra-State transmission, duly considering factors like voltage, distance, direction and quantum of flow. (8) Metering compatible with the requirements of the proposed transmission tariff framework should be established on priority basis. The metering should be compatible with ABT requirements, which would also facilitate implementation of Time of Day (ToD) tariffs. 7.2 Approach to transmission loss allocation (1) Transactions should be charged on the basis of average losses arrived at after appropriately considering the distance and directional sensitivity, as applicable to relevant voltage level, on the transmission system. Based on the methodology laid down by the CERC
================================================================================== ERLDC::POSOCO
in this regard for inter- state transmission, the Forum of Regulators may evolve a similar approach for intra-state transmission. The loss framework should ensure that the loss compensation is reasonable and linked to applicable technical loss benchmarks. The benchmarks may be determined by the Appropriate Commission after considering advice of CEA. It would be desirable to move to a system of loss compensation based on incremental losses as present deficiencies in transmission capacities are overcome through network expansion. (2) The Appropriate Commission may require necessary studies to be conducted to establish the allowable level of system loss for the network configuration, and the capital expenditure required to augment the transmission system and reduce system losses. Since additional flows above a level of line loading leads to significantly higher losses, CTU/STU should ensure upgrading of transmission systems to avoid the situations of overloading. The Appropriate Commission should permit adequate capital investments in new assets for upgrading the transmission system. The Ancillary services market are expected to open up in the near future. Petition for FSAS has already been filed by NLDC. Other ancillary services as VCAS, PFCAS which are clubbed under the broad category of services called NCAS, are also expected in future. A third category of ancillary services called SRAS, capable of providing support during blackstart are also planned. The road further ahead may comprise of introduction of the Derivatives markets and Capacity markets. The evolution and future development of Indian Power markets is depicted diagrammatically below:
CAPACITY MARKETS
DERIVATIVES MARKETS
ANCILLARY SERVICES
FUTURE
IEGC Feb.2000
ABT 20022003
OPEN ACCESS 2004
POWER EXCHANGES 2008
================================================================================== ERLDC::POSOCO
1.3] Legal Framework for Open Access set up as per IE Act 2003 : Definition of Open Access [Section 2(47)the Act] : 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; Definition of Open Access as per CERC(Open Access in Inter State Transmission) Regulations,2008: open access customer means a person who has availed or intends to avail of open access under these regulations and includes a short-term transmission customer as defined in any other regulations, specified by the Commission or a generating company (including captive generating plant) or a licensee or a consumer permitted by the State Commission to receive supply of electricity from a person other than distribution licensee of his area of supply, or a State Government entity authorized to sell or purchase electricity; Definition of STOA as per IEGC,2010: Short-term Open Access means open access for a period up to one (1) month at one time; However, STOA applications are allowed upto a period 3 months in advance considering visibility issues including appropriate issual of TTC/ATC margins. Section 9(2) of the Act regarding Captive generation states: 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: The following sections of the Act state that one amongst the important functions to be discharged by CTUs and STUs and one amongst the important duties of the transmission licensees would be Section 38(2) of the Act(CTU and functions) & Section 39(2) of the Act(STU and functions) & Section 40(c) of the Act(Duties of transmission licensees): 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
================================================================================== ERLDC::POSOCO
(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: Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy: Provided further that such surcharge and cross subsidies shall be progressively reduced in the manner as may be specified by the Central Commission: Provided also that the manner of payment and utilisation of the surcharge shall be specified by the Central Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use. Section regarding Duties of distribution licensees and open Access states that: (1) It shall be the duty of a distribution licensee to develop and maintain an efficient, coordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act. (2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints: Provided that such open access shall be allowed on payment of a surcharge in addition to the charges for wheeling as may be determined by the State Commission: Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee : Provided also that such surcharge and cross subsidies shall be progressively reduced in the manner as may be specified by the State Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use: Provided also that the State Commission shall, not later than five years from the date of commencement of the Electricity (Amendment) Act, 2003, by regulations, provide such open access to all consumers who require a supply of electricity where the maximum power to be made available at any time exceeds one megawatt. (3) Where any person, whose premises are situated within the area of supply of a distribution licensee, (not being a local authority engaged in the business of distribution of electricity before the appointed date) requires a supply of electricity from a generating company or any licensee other than such distribution licensee, such person may, by notice, require the distribution licensee for wheeling such electricity in accordance with regulations
================================================================================== ERLDC::POSOCO
10
made by the State Commission and the duties of the distribution licensee with respect to such supply shall be of a common carrier providing non-discriminatory open access . (4) Where the State Commission permits a consumer or class of consumers to receive supply of electricity from a person other than the distribution licensee of his area of supply, such consumer shall be liable to pay an additional surcharge on the charges of wheeling, as may be specified by the State Commission, to meet the fixed cost of such distribution licensee arising out of his obligation to supply. (5) Every distribution licensee shall, within six months from the appointed date or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance with the guidelines as may be specified by the State Commission. (6) Any consumer, who is aggrieved by non-redressal of his grievances under sub-section (5), may make a representation for the redressal of his grievance to an authority to be known as Ombudsman to be appointed or designated by the State Commission. (7) The Ombudsman shall settle the grievance of the consumer within such time and in such manner as may be specified by the State Commission. (8) The provisions of sub-sections (5),(6) and (7) shall be without prejudice to right which the consumer may have apart from the rights conferred upon him by those sub-sections. Section 49 of the Act states regarding agreement for purchase or sale of electricity under Open Access: Where the Appropriate Commission has allowed open access to certain consumers under section 42, such consumers, notwithstanding the provisions contained in clause (d) of subsection (1) of section 62, may enter into an agreement with any person for supply or purchase of electricity on such terms and conditions (including tariff) as may be agreed upon by them. Wherein the clause 62(1) of the Act states that: (1) The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for (a) supply of electricity by a generating company to a distribution licensee: Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity; (b) transmission of electricity ; (c) wheeling of electricity; (d) retail sale of electricity: Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity.
================================================================================== ERLDC::POSOCO
11
Section 86(1)(a) of the Act regarding functions of the State commission states the following regarding tariff determinations functions of the State commission: 1) The State Commission shall discharge the following functions, namely: (a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Provided that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers; 1.4] Development of Short Term Open Access subsequent to impetus by the IE Act 2003 1.4.1]Steps leading to release of Open Access regulations 2004 Release of concept paper on Open Access in Inter-State transmission by CERC on August,2003 Order on Open Access after hearing on concept paper [petition No.48/2003] Dtd.14th November,2003 Draft open access regulations on December 2003 Open Access th regulations 2004 notified on 30 January,2004 CERC clarification on Open Access regulations, 2004 1.4.2] Open Access Regulations 2004 The regulations covered both Long Term and medium Term Open access and defined mainly the following aspects for availing Open Access: Scope of application of the Open Access regulations Categorization of Open Access regulations Long Term Open Access customers ( 25 years or more) Short Term Open Access customers (upto 1 year) Criteria for allowing transmission access Criteria for reservation/allotment of transmission capacity Nodal Agency Procedures for grant of Long term Access to Open Access customer BPTA to be entered into by Long term customer with transmission licensee Exit for LT customer Procedure for Short-Term Open Access Customer Release of reserved transmission capacity in case of Non-Utilisation by short-term Customer Methodology for treatment for existing transactions Transmission charges The charges payable by a short-term customer were defined to be as follows:
================================================================================== ERLDC::POSOCO
12
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 allowed by the Appropriate Commission. Av_CAP means the average capacity in MW served by the transmission system of the transmission licensee in the last 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. The minimum transmission charges payable by a short-term customer shall be for one day and in multiple of whole number of days thereafter. Non-availability of TSC for the transmission system shall not be reason for delay in providing transmission access. In the exceptional circumstances, if 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. Every transmission licensee shall declare rate in Rs per MW per day and this rate 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. 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. Time-schedule for Processing Application Priority of curtailment Other commercial conditions Scheduling & system operation charges for both RLDcs & SLDCs (Rs.3000/day/transaction or part of day) Unscheduled Interchange (UI) charges Reactive Energy Charges Special Energy Meters
================================================================================== ERLDC::POSOCO
13
Compliance of Grid code by all Open Access customers Energy losses Collection Disbursement of charges Information System Redressal Mechanism Coordination 1.4.3] Amendments prior to release of Open Access Regulations, 2008 CERC clarification on th OA regulations, 2004 Dtd 20 May, 2004 wherein the concept of internalisation of STU was clarified: It is, therefore, clarified that in case the transmission system owned by State Electricity Board or State Transmission Utility is internalised, the transmission charges under Regulation 16 and the scheduling and system operation charges payable under clause (i) of Regulation 17, to be collected by the nodal RLDC, shall not include the charges for the transmission system owned by the State Electricity Board or the State Transmission Utility and the State Load Despatch Centre charges. Petition No. 39/2004 th Dtd. 27 May, 2004, regarding review of certain provisions of CERC(Open Access in ISTS regulations), 2004 Staff paper on th amendment to OA regulations, 2004 Dtd. 10 December, 2004 CERC (Open Acess in Inter State Transmission)(First Amedment) Regulations 2005 introduced newer concepts in the following areas: Concept of reduction/cancellation of ST transactions in case of re-allocation of GOI share in a transmission path leading to congestion Processing of applications upto 3 months in advance Introduction of Categorization of transactions into Advance, FCFS, Day Ahead, Same Day Introduction of concept of bidding in congested corridors Application fees made Rs.5000/- per transaction Directions on bidding procedure in case of congestion and
================================================================================== ERLDC::POSOCO
14
Changes in procedures in case of non-utilization of reserved corridor by ST customer Change in Operating charges to Rs.3000/- and Rs.1000/- per transaction/day or part of day for RLDCS and SLDCs Transmission charges: (a) Intra-regional system ST_RATE = 0.25 x [TSC/ Av_CAP]/ 365 (b) Inter-regional system ST_RATE = 0.50 [ TSC/ CIR]/365 Where: ST_RATE is the rate for short-term customer in Rs per MW per day. [ST_RATE shall be calculated and applied for each regional transmission system, inter-regional transmission link, and transmission system of the State Transmission Utility or any other transmission licensee forming part of the inter-state transmission system] "TSC" means the annual transmission charges or annual revenue requirement on account of the transmission system for the previous financial year as determined by the Appropriate Commission. "Av_CAP" means the average capacity in MW served by the intra-regional 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 long-term transactions handled by the system of the transmission licensee. CIR means the transmission capacity of the inter-regional system The transmission charges payable by a short-term customer in case of uncongested transmission corridor shall be levied as under, namely :(a) Up to 6 hours in a day in one block : 1/4th of ST_RATE (b) More than 6 hours and up to 12 hours in a day in one block : 1/2 of ST_RATE (c) More than 12 hours and upto 24 hours in a day in one block : equal to ST _ RATE Non-determination of annual transmission charges for the transmission system shall not be a ground for delay in providing short-term access and where annual transmission charges for any transmission licensee are not determined under the Act, ST _ RATE applicable for the system owned by the Central Transmission Utility of the region in which the system of transmission licensee is situate, shall be applied for determination of the charges for the short-term customer.
================================================================================== ERLDC::POSOCO
15
Every transmission licensee shall declare ST _ RATE, which shall remain fixed for a period of one year. If the transmission system belongs to the Central Transmission Utility or State Transmission Utility, 25% of the charges collected from the short-term customer for use of its intra-regional transmission system and 12.5% of the charges collected from the short-term customers for use of its inter-regional system shall be retained by the Central Transmission Utility or State Transmission Utility and the remaining part of these charges shall be adjusted towards reduction in the transmission charges payable by the longterm customers. Open access charges specified in this regulation shall not be applicable for the inter-state transmission system in North-Eastern Region. The charges for use of the inter-state transmission in this region shall be regulated under the separate orders of the Commission issued from time to time. Time schedules for Application processing revised for Short customers in form of reduction of number of categories vis-vis their processing time Introduction of refunds in case of curtailment of more than 50% Special energy meters :: The Special Energy Meters shall be installed by the Central Transmission Utility for and at the cost of the direct customers and by the concerned State Transmission Utility for and at the cost of the embedded customers CERC(Open Access in Inter State Transmission)(Amendment) Regulations, 2006 Staff paper on common platform for Electricity trading Dtd. June,2006 Draft Open Access in Inter State Transmission Regulations, 2008 1.4.4] Release of Open Access regulations, 2008 and subsequent amendments CERC(Open Access in th Inter State Transmission Regulations), 2008 Dtd. 25 January, 2008 effective from 1st April, 2008 CERC(Open Access in Inter State Transmission regulations)(Amendment) Regulations 2009 Dtd. 20th May,2009 Corrigendum to the th 2009 amendments Dtd. 10 June,2009 Order approving th amendment to CTU procedures(Bilateral & Collective) Dtd. 28 October, 2009
================================================================================== ERLDC::POSOCO
16
Amendments to Open Access regulations & procedures vide CERC(Sharing of ISTS charges & losses),2010 regulations & subsequent amendments Removal of difficulties th order Dtd.4 April,2011 Order on approval of th BCD TSA & RSA procedures of CTU Dtd.29 April,2011 Order on removal of nd difficulties Dtd. 2 June,2011 Order on th modifications to CTU procedures on BCD, TSA & RSA Dtd. 15 June,2011 Order on POC Slab nd rates Dtd.22 June,2011 Order on removal of difficulties w.r.t Open Access on implementation of CERC(Sharing of ISTS charges & losses),2010 Dtd.28th June,2010 Order on removal fo th difficulties Dtd. 29 June,2011 Order on approved th results Dtd. 29 June,2011 Order approving th procedures of POSOCO on computation of POC losses Dtd.30 June,2011 Order approving procedure of POSOCO on scheduling of Bilateral & collective transactions Dtd. 30th June,2011
1.5] Present market structure The present market structure is depicted below:
================================================================================== ERLDC::POSOCO
17
1.6] Share of different segments in the electricity power market The present average share( for F.Y 2010-11) of different segments in terms of LT, STOA, PX and UI(balancing market) is depicted below:
From the above it can be seen that size of the Long Term market comprising of GOI allocations and Long Term PPAS amount to 90% of market share and dominate the market. The short term market excluding the UI(Balancing market) amounts to 7%. The Bilateral transaction market and the balancing UI market are comparable in size. The market captured by Power Exchanges is still relatively small. However, it needs to be noted that UI needs to be perceived more as a disciplinary measure and balancing mechanism in case of contingencies instead of viewing it as a normal market also taking into consideration the fact that UI exchanges are not based on contracts. Further breakup of the short term market(F.Y.2010-11 average) is depicted below:
================================================================================== ERLDC::POSOCO
18
From the above it can be seen that UI exchanges are significant as compared to the short term market as a whole. STOA contracts through traders form a dominant part of the short term market occupying 34% share. Transactions through Power Exchanges and directly between DISCOMs are comparable.
Chapter-2
================================================================================== ERLDC::POSOCO
19
Short Term Open Access Regulations,2008(Consolidated) with addendums vide CTU procedures & Explanatory memorandums
2.1] CERC Open Access in Inter State Regulations 2008(Consolidated with incorporation of all amendments uptil date) # Indicates modifications/addendums vide amendments These regulations shall apply to the applications made for grant of 1[short term open access] for energy transfer schedules commencing on or after 1.4.2008 for use of the transmission lines or associated facilities with such lines on the inter- State transmission system. Definitions 2. (1) In these regulations, unless the context otherwise requires: (a) Act means the Electricity Act, 2003 (36 of 2003); (b) 2[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 aspecified point of drawl for a fixed or varying quantum of power (MW) for any time period during a month;] (c) collective transaction means a set of transactions discovered in power exchange through anonymous, simultaneous competitive bidding by buyers and sellers; (d) Commission means the Central Electricity Regulatory Commission referred to in Section 76 of the Act; (e) day means a day starting at 00.00 hours and ending at 24.00 hours; (f) 3[detailed procedure means the procedure issued under regulation 4;] (g) Grid Code means the Grid Code specified by the Commission under Clause (h) of sub-section (1) of Section 79 of the Act; (h) 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; (i)4 [long-term customer means a person granted long-term access for use of the inter-State transmission system.] 5[(i-a) medium-term customer means a person granted medium-term open access for use of the inter-State transmission system.] (j) month means a calendar month as per the British calendar; (k) nodal agency means the nodal agency defined in Regulation 5 of these regulations; (l) 6 Definition of Open Access customer[Omitted] (m) power exchange means the power exchange established with the prior approval of the Commission; (n)regional entity means a person whose metering and energy accounting is done at the regional level;
================================================================================== ERLDC::POSOCO
20
7[(n-a) short-term open access means open access for a period up to one (1) month at one time.] 8[(n-b) short-term customer means a person who has availed or intends to avail short term open access.] (o) State Commission means the State Electricity Regulatory Commission constituted under Section 82 of the Act and includes the Joint Commission constituted under Section 83 thereof; (p) 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; (q) 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; (r) time block means 15 minutes time period specified in the Grid Code for the purposes of scheduling and despatch; and (s) working day means a day on which banks are open for business; (2) Words and expressions used in these regulations and not defined herein 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. Scope 3. 9[(1) 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. (2) 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(a) inherent design margins; (b) margins available due to variation in power flows; and (c) Margins available due to in-built spare transmission capacity created to cater to future load growth or generation addition.] Detailed Procedure 4. 10[ 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.] Nodal Agency
================================================================================== ERLDC::POSOCO
21
5. 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. Submission of 11[Short-term Open Access] Application 6. (1) An 12[short-term customer] or the power exchange (on behalf of buyers and sellers) intending to avail of 13[short-term open access] for use of the transmission lines or associated facilities for such lines on the inter-State transmission system, shall make an application to the nodal agency in accordance with these regulations. (2) 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. (3) The application for a collective transaction shall contain the requisite details in accordance with the detailed procedure. Application Fee 7. 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 on the day immediately following the day of the application may be deposited within three working days of submission of the application. Concurrence of State Load Despatch Centre for bilateral and collective transactions 8. (1) Wherever the proposed bilateral transaction has a State utility or an intra-State entity as a buyer or a seller, concurrence of the State Load Despatch Centre shall be obtained in advance and submitted along with the application to the nodal agency. The concurrence of the State Load Despatch Centre shall be in such form as may be provided in the detailed procedure. (2) 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 State Load Despatch Centre in such form as may be prescribed in the detailed procedure, specifying the MW up to which the entity may submit a buy or sell bid in a power exchange. (3) 14[(a) For obtaining concurrence or no objection or prior standing clearance an application shall be made before the State Load Despatch Centre who shall, acknowledge receipt of the application, either by e-mail or fax, or any other usually recognised mode of communication, within twenty four hours from the time of receipt of the application: Provided that where the application has been submitted in person, the acknowledgement shall be provided at the time of submission of the application.
================================================================================== ERLDC::POSOCO
22
(b) While processing the application for concurrence or no objection or prior standing clearance, as the case may be, the State Load Despatch Centre 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. (c) Where existence of necessary infrastructure and availability of surplus transmission capacity in the State network has been established, the State Load Despatch Centre shall convey its concurrence or no objection or prior standing clearance, as the case may be, to the applicant by e-mail or fax, in addition to any other usually recognised mode of communication, within three (3) working days of receipt of the application: Provided that when short-term open access has been applied for the first time by any person, the buyer or the seller, the State Load Despatch Centre shall convey to the applicant such concurrence or no objection or prior standing clearance, as the case may be, within seven (7) working days of receipt of the application by e-mail or fax, in addition to any other usually recognised mode of communication.] 15[(3A) In case the State Load Despatch Centre finds that the application for concurrence or no objection or prior standing clearance, as the case may be, is or defective in any respect, it shall communicate the deficiency or defect to the applicant by e-mail or fax, in addition to any other usually recognised mode of communication, within two (2) working days of receipt of the application: Provided that in cases where the State Load Despatch Centre has communicated any deficiency or defect in the application, the date of receipt of application shall be the date on which the application has been received duly completed, after removing the deficiency or rectifying the defects, as the case may be.] (4) 16[In case the application has been found to be in order but the State Load Despatch Centre refuses to give concurrence or no objection or prior standing clearance as the case may be, on the grounds of non-existence of necessary infrastructure or unavailability of surplus transmission capacity in the State network, such refusal shall be communicated to the applicant by e-mail or fax, in addition to any other usually recognized mode of communication, within the period of three (3) working days or seven (7) working days, as the case may be, from the date of receipt of the application, specified under clause (3), along with reasons for such refusal: Provided that where the State Load Despatch Centre has not communicated any deficiency or defect in the application within two (2) days from the date of receipt of application or refusal or concurrence or no objection or prior standing clearance, as the case may be, within the specified period of three (3) working days or seven (7) working days, as
================================================================================== ERLDC::POSOCO
23
applicable, from the date of receipt of the application, concurrence or no objection or prior standing clearance, as the case may be, shall be deemed to have been granted: Provided further that where concurrence or no objection or prior standing clearance, as the case may be, is deemed to have been granted by the State Load Despatch Centre, the applicant while making application 17[] shall submit to the nodal agency an affidavit (in the format provided in the detailed procedure), duly notarised, declaring that (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, (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 State Load Despatch Centre 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.] Procedure for Advance Scheduling for bilateral transactions 9. (1) An application for advance scheduling for a bilateral transaction may be submitted to the nodal agency up to the fourth month, the month in which an application is made being the first month: Provided that separate application shall be made for each month, and for each transaction. (2) (a) An application for inter-State scheduling during the fourth month shall be made up to the last day of the first month. (b) All applications received shall be taken up together for consideration. (c) The nodal agency shall convey its acceptance or otherwise to the applicant latest by the fifth day of the second month. (3) (a) An application for inter-State scheduling during the third month shall be made up to five (5) days prior to the close of the first month. (b) All applications received shall be taken up together for consideration. (c) The nodal agency shall convey its acceptance or otherwise to the applicant latest by the close of the first month: Provided that while accepting the application, 18[short-term open access] granted to any person prior thereto shall not be withdrawn. (4) (a) An application for inter-State scheduling in the second month shall be made with the nodal agency up to ten (10) days prior to the close of the first month. (b) All applications shall be taken up together for consideration.
================================================================================== ERLDC::POSOCO
24
(c) The nodal agency shall convey its acceptance or otherwise to the applicant five days prior to the last day of the first month: Provided that while accepting the application, 19[short-term open access] granted to any person prior thereto shall not be withdrawn. (5) Wherever the nodal agency rejects an application, it shall convey its reasons to the applicant in writing. Congestion management 10. Where in the opinion of the nodal agency, grant of all applications at a particular stage of advance scheduling is likely to cause congestion in one or more of the transmission corridors to be used, it shall conduct electronic bidding for grant of 20[short-term open access] for the available surplus transmission capacity among the applicants at that stage, in accordance with the detailed procedure: Provided that if any person does not participate in the bidding process he shall be deemed to have withdrawn his application. Procedure for scheduling of bilateral transactions on first-come-first served basis 11. (1) The applications for grant of 21[short-term open access] for the second month, received after the date specified in clause (4) of Regulation 9 and the applications for grant of 22[short-term open-access] during the first month shall be considered on first-come-firstserved basis, and such transactions shall be scheduled subject to availability of the required transmission capacity: Provided that such applications shall reach the nodal agency at least four (4) days in advance of the date of the bilateral transaction: Provided further that separate application shall be made for each transaction. (2) All these applications shall be processed and decided within three (3) days of their receipt. Procedure for scheduling for day-ahead transactions 12. All applications for bilateral transactions received within three days prior to the date of scheduling and up to 1500 hrs of the day immediately preceding the date of scheduling shall be clubbed and treated at par, and shall be processed after processing of the applications for collective transactions received till 1500 hrs. Illustration: An application for scheduling a transaction on 25th day of a month, shall be processed on first-come-first-served basis only if such application is received till 21st day of that month. If the application is received on 22nd day or 23rd day or up to 1500 hrs on 24th day, it shall be treated only after processing of the applications for collective transactions received up to 1500 hrs on 24th day for scheduling on 25th day. Procedure for scheduling of transactions in a contingency 13 23[ In the event of a contingency, the buyer or on its behalf, a trader may locate, and the power exchange may offer its platform to locate, a source of power to meet shortterm
================================================================================== ERLDC::POSOCO
25
contingency requirements even after the cut-off time of 1500 hrs of the preceding day and apply to the nodal agency for short-term open access and scheduling and in that event, the nodal agency shall endeavour to accommodate the request as soon as may be and to the extent practically feasible, in accordance with the detailed procedure.] Revision of Schedule 14. 24[(1) The short-term open access schedules accepted by the nodal agency in advance or on first-come-first-served basis may be cancelled or revised downwards on an application to that effect made to the nodal agency by the short term customer: Provided that such cancellation or downward revision of the short-term open access schedules shall not be effective before expiry of a minimum period of two (2) days: Provided further that the day on which notice for cancellation or downward revision of schedule is served on the nodal agency and the day from which such cancellation or downward revision is to be implemented, shall be excluded for computing the period of two (2) days. (2) The person seeking cancellation or downward revision of short-term open access schedule shall pay the transmission charges for the first two (2) days of the period for which the cancellation or downward revision of schedule, as the case may be, has been sought, in accordance with the schedule originally approved by the nodal agency, and thereafter in accordance with the revised schedule prepared by the nodal agency during the period of such cancellation or downward revision. (3) In case of cancellation, operating charges specified under regulation 17 shall be payable for two (2) days or the period of cancellation in days, whichever is less. Note: The provisions of this regulation shall also be applicable to the short-term customers granted short-term open access prior to 15.6.2009.] Curtailment in case of transmission constraints 15. 25[(1) The Regional Load Despatch Centre may curtail power flow on any transmission corridor by cancelling or re-scheduling any transaction, if in its opinion cancellation or curtailment of any such transaction is likely to relieve the transmission constraint on the corridor or to improve grid security: Provided that subject to provisions of the Grid Code, while cancellation or curtailment of any transaction, among short-term, medium-term and long-term transactions, short-term transactions shall be cancelled or curtailed first, followed by medium -term and thereafter long termtransactions: Provided further that while cancelling or curtailing any short-term transaction, bilateral transactions shall be cancelled or curtailed first followed by collective transactions.] (2) In case of inter-regional bilateral transactions, approved schedule may be revised or cancelled by the Regional Load Despatch Centre, if the Central Government allocates power from a central generating station in one region to a person in the other region and such allocation, in the opinion of the Regional Load Despatch Centre, cannot otherwise be
================================================================================== ERLDC::POSOCO
26
implemented because of congestion in inter-regional link. The intimation about such revision or cancellation shall, as soon as possible, be conveyed to the affected 26[short-term customer]s. (3) In case of curtailment of the approved schedule by the Regional Load Despatch Centre, transmission charges shall be payable pro-rata in accordance with the curtailed schedule: Provided that operating charges shall not be revised in case of curtailment.
26A
16.Transmission Charges
(Para.16(1) & (2) on Transmission charges REPEALED vide CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent amendments 16. 27[(1) In case of bilateral transactions, the transmission charges at the rate specified hereunder shall be payable by the short-term customer for the energy approved for transmission at the point or points of injection: Type of Transaction Transmission charges(Total)(Rs./MWh) (a) Bilateral, intra-regional 80 (b) Bilateral, between adjacent regions 160 (c) Bilateral, wheeling through one or more intervening regions 240 (2) In case of the collective transactions, transmission charges at the rate of Rs. 100/MWh for energy approved for transmission separately for each point of injection and for each point of drawal, shall be payable. (Cl.16(3) not repealed & applicable as per CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent amendments 16.(3) 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 specified under clauses (1) and (2): 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 28[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.]
26ATransmission
Charges(As per CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent amendments)
================================================================================== ERLDC::POSOCO
27
Quotations from CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent amendments related to amendments to Open Access Regulations,2008: 5. Mechanism to share ISTS charges (4) The Point of Connection transmission charges shall be computed in terms of Rupees per MegaWatt per month. The amount to be recovered from any Designated ISTS Customer towards ISTS charges shall be computed on a monthly basis as per these regulations. The Point of Connection transmission charges for short term open access transactions shall be in terms of Rupees per MegaWatt per hour and shall be applicable for the duration of short term open access approved by the RLDC/NLDC. 11. Billing (9) The governance of the Short Term Open Access Transactions shall be as per the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2008 and as amended by the Commission from time to time with the exception that the Transmission Charges for Short Term Open Access Transactions shall be the Zonal Point of Connection charges as determined by these regulations. 19. Savings & Repeal (1) Save as otherwise provided in these regulations, Regulation 33 of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009, Regulation 16(1) and 16(2) of the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2008 are hereby repealed. (2) Not withstanding such repeal, anything done or any action taken or purported to have been done or taken under the repealed regulations shall be deemed to have been done or taken under these regulations. AS per CERC order on removal of difficulties Dtd. 29th June,2011: 4. Clauses (1) and (2) of Regulation 16 of Open Access Regulations have been repealed by clause (1) of Regulation 19 of Sharing Regulations. Consequently, the provisions of Sharing Regulations including the removal of difficulty orders issued by the Commission will be applicable for deciding the rates for transmission charges for bilateral and collective transactions through short term open access.
26A corrections inserted vide CERC CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent amendments Operating Charges 17. (1) Operating charges at the rate of Rs. 2,000 /- per day or part of the day for each bilateral transaction for each of the Regional Load Despatch Centre involved and at the rate
================================================================================== ERLDC::POSOCO
28
of Rs.2,000 /- per day or part of the day for each State Load Despatch Centre involved shall be payable by the applicant. (2) In case of the collective transaction, operating charges shall be payable by the power exchange @ Rs.5000/- per day to the National Load Despatch Centre for each State involved and Rs.2,000 /- per day for the State Load Despatch Centre involved for each point of transaction. (3) National Load Despatch Centre shall share the operating charges with the Regional Load Despatch Centres in such manner as may be decided by the Central Transmission Utility. (4) All buyers within a State shall be clubbed together and all sellers within a State shall be clubbed together by the power exchange (with necessary coordination with the State Load Despatch Centre) and each of the groups shall be counted as a single entity by National Load Despatch Centre for levy of operating charges and for scheduling: Provided that for levy of operating charges for State Load Despatch Centre and levy of the intra-State transmission charges, each point of injection or drawal in the State network shall be counted separately. Note 1 The operating charges include fee for scheduling, system operation and collection and disbursement of charges. Note 2 The operating charges collected by the nodal agency shall be in addition to the fees and charges specified by the Commission under sub-section (4) of Section 28 of the Act. Payment of transmission charges and operating charges 18. In case of the bilateral transaction, the applicant shall deposit with the nodal agency transmission charges and operating charges within three (3) working days of grant of application and in case of 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: Provided that in case of the collective transactions, the transmission charges for use of State network and operating charges for State Load Despatch Centre shall be settled directly by the power exchange with respective State Load Despatch Centre. Default in payment of 29[short-term open access] charges 19. (1) In case of default in payment of the application fee or the charges specified under these regulations, the nodal agency may, in its discretion, 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. (2) Notwithstanding the above, the person committing default in payment shall pay simple interest at the rate of 0.04% for each day of default. Unscheduled Inter-change (UI) Charges
================================================================================== ERLDC::POSOCO
29
20. (1) All transactions for State utilities and for intra-State entities scheduled by the nodal agency under these regulations, shall be accounted for and included in the respective dayahead net interchange schedules of the concerned regional entity issued by the Regional Load Despatch Centre. (2) 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. (3) 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 States composite dues to the regional UI pool account. (4) 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 State Load Despatch Centre and covered in the intra-State UI accounting scheme. (5) 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. (6) 30[No charges, other than those specified under these regulations shall be payable by any person granted short-term open access under these regulations.] Reactive Energy Charges 21. (1) No separate reactive energy charge accounting for 31[short-term open access] 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 States composite dues to the regional reactive charge account in accordance with the provisions of the Grid Code. (2) The reactive energy drawals and injections by the intra-State entities shall be governed by the regulations applicable within the State concerned. Special Energy Meters 22. (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 Chapter6 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.
================================================================================== ERLDC::POSOCO
30
Transmission losses 23. (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. Compliance of Grid Code 24. The buyers and sellers of energy shall comply with the provisions of the Grid Code in force from time to time. Collection and Disbursement of Transmission Charges and Operating Charges Paras 25 (1,2,3,4,5) are REPEALED as per CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent amendments 25. 32[(1) 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 State Load Despatch Centre in the case of the collective transaction. (2) 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 the long-term customers after disbursing 25% of such transmission charges to the Central Transmission Utility in the following manner; (a) In case of intra-regional bilateral transaction: 75% of the transmission charges to the region concerned. (b) In case of bilateral transaction between adjacent regions: 37.5% of the transmission charges for each region. (c) In case of bilateral transaction through one or more intervening regions: 25% of the transmission charges for each of importing and exporting each region and remaining 25% of the transmission charges to be allocated equally among all intervening regions. (3) The transmission charges collected for use of the transmission system other than State network for a collective transaction for each point of injection and each point of drawal shall be disbursed by the nodal agency in the following manner, namely(a) Central Transmission Utility: 25% (b) Long-term customers of the region of point of injection or drawal, as the case may be, is situate: 75% (4) The transmission charges shall be disbursed to the long-term customers in proportion to the monthly transmission charges payable by them.
================================================================================== ERLDC::POSOCO
31
(5) The transmission charges for use of State network shall be disbursed to the State Transmission Utility concerned. (6) In case 33[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 Load Despatch Centre.] Amendment as per Removal of difficulties w.r.t Open Access Dtd. 28th June,2011: 10. On account of the change in the philosophy of determination of transmission charges from postage stamp method to the Point of Connection charges method and consequential financial adjustment as required under Sharing Regulation, difficulties have arisen for collection and disbursement of the short term open access charges. In exercise of our power under Regulation 21 (3) of the Sharing Regulations, we direct that pending appropriate amendment to the Open Access Regulations, the collection and disbursement of the short term open access charges will be governed as per the following provisions: (1) The transmission charges and operating charges payable by the persons allowed shortterm 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. (2) 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. (4) The transmission charges collected for use of the transmission system other than State network for a bilateral or collective transaction for each point of injection and each point of drawal shall be disbursed by the CTU after adjusting against the charges for Long Term Access without identified beneficiaries in the same region in accordance with detailed procedure for Billing, Collection and Disbursement in the following manner, namely(a) Central Transmission Utility: 25% (b) Long-term customers of the synchronously connected grid: 75% (4) The transmission charges for use of State network shall be disbursed to the State Transmission Utility concerned. (5) 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 Load Dispatch Centre. Modifications as perpara 7.3(b) & (c) of BCD procedures:
================================================================================== ERLDC::POSOCO
32
(b) 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. Provided that this adjustment shall not be done for collective transaction and bilateral transactions done through portfolio trader. (c) 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. Further modifications as per amendment to BCD procedures Dtd. 15th June,2011: 9. Para 7.3 (b) of the Procedure has further been modified through para 7 of the order of the Commission dated 15.6.2011 which is reproduced below: (b) 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. 34[Short-term Open Access Not To Be Granted 25A. 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
================================================================================== ERLDC::POSOCO
33
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 .] Redressal Mechanism 26. 35[All disputes arising under these regulations shall be decided by the Commission based on an application made by the person aggrieved.] 36[Information System National Load Despatch Centre and Regional Load Despatch Centres] 27. 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 procedure; (c) 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; (ii) Period of the 37[short-term open access] granted (start date and end date); (iii) Point or points of injection; (iv) Point or points of drawal; (v) Transmission systems used (in terms of regions and States); (vi) Accepted schedule (MW) with start time and end time; Note The status report shall be updated daily. (d) Information regarding usage of the inter-regional links. (e) The information regarding average regional energy losses for the previous 52 weeks. (f) Transmission charges and applicable transmission losses for various State networks as informed by the State utilities concerned. (g) The list of 38[short-term open access] applications for advance scheduling received as the nodal agency which have not been accepted, along with reasons for denial, to be displayed till one month after the scheduling period. 39[Information System State Load Despatch Centres 27A. 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
================================================================================== ERLDC::POSOCO
34
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). Note The status report shall be updated daily. (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.] Savings and Repeal 28. (1) The provisions of the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall not apply to the 40[short-term open access] customers whose applications are processed under these regulations. (2) 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. (3) The provisions relating to short-term open access as contained in the Central Electricity Regulatory Commission (Open Access in inter-StateTransmission) Regulations, 2004 shall stand repealed on 1.4.2008 The Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2008 were published in Part III, Section 4 No. 10 of the Gazette of India (Extraordinary) dated 7.2.2008 and amended vide Central Electricity Regulatory Commission (Open Access in inter-State Transmission)(Amendment) Regulations, 2009 published in Part III, Section 4 No. 86 of the Gazette of India (Extraordinary) dated 29.5.2009 and Corrigendum dated 10.6.2009 All clauses tagged with numbers are either Inserted/substituted vide Central Electricity Regulatory Commission (Open Access in inter-State Transmission) (Amendment) Regulations 2009, published in the Gazette of India (Extraordinary) Part III, Section 4 (No.86) on 29.5.2009 unless where specifically mentioned otherwise 2.2] Important Addendums extracted from the procedures:
================================================================================== ERLDC::POSOCO
35
PROCEDURE FOR ADVANCE SCHEDULING OF BILATERAL TRANSACTION 2 Submission of Application 2.1 Before issuing approval, 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, 2007. A declaration to this effect will also be submitted by the new regional entities along-with application. The application submitted by new regional entities would be processed only 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 that the applicant has undertaken to abide by the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007. A declaration to this effect will also be submitted by the new regional entities along-with application. Methodology for Advance scheduling 5.1. An Application for Advance Scheduling for a Bilateral Transaction may be submitted to the nodal RLDC up to the fourth month, considering the month in which an Application is made being the first month. 5.2. A separate Application shall be made for each month and for each transaction in a month in a suitable cover marked Application for Short-Term Open Access - Advance Scheduling for - <<Month-Years name>>. 5.3. (a) An Application for inter-State scheduling during the fourth month shall be made up to the last day of the first month. (b) An Application for inter-State scheduling during the third month shall be made up to the five (5) days prior to the close of the first month. (c) An Application for inter-State scheduling in the second month shall be made up to the ten (10) days prior to the close of the first month. 5.4. All the Applications received up to 17:30 Hrs on the last day as mentioned above shall be taken up together for consideration. Applications received after prescribed time shall not be considered. 5.5. While processing the Applications, the Nodal RLDC shall seek the concurrence of each of the other RLDCs involved in the transaction by 12:00 Hrs. on next day of the applicable last date for submission of Application. 5.6. The other RLDCs shall give their concurrence/denial latest by 20:00 Hrs on the same day on which request for concurrence is sent by the nodal RLDC. 5.7. In case of perceived congestion in transmission corridor, nodal RLDC on next day (i.e. 2nd day after the applicable last date for submission of Application) will inform the concerned applicant(s) as per enclosed format [FORMAT-IV: Congestion Information================================================================================== ERLDC::POSOCO
36
Advance Scheduling] latest by 12:00 Hrs. By next day (i.e.; 3rd day after applicable last date for submission of Application) latest by 11:00 Hrs, the Applicants must inform the nodal RLDC as per enclosed format [FORMAT-V: Request for Revision of Schedule- Due to Congestion], the reduced request for Scheduling during the period of Congestion or opt for Scheduling only for the duration when no congestion is anticipated or opt for Scheduling through the alternate route. In case of non-receipt of revised request in time, it shall be presumed that the Applicant is not interested in revising it and nodal RLDC shall process the Application accordingly. 5.8. In case, the nodal RLDC still anticipates Congestion, it may invite electronic bids for advance scheduling on 4th day after applicable last date for submission of Application. 5.9. The nodal RLDC shall convey its acceptance or otherwise to the Applicant in five days from the last date of submission, as per enclosed format [FORMATVI: Acceptance for Scheduling]. In case, the nodal RLDC rejects an application ,it shall convey its reasons to the Applicant in writing 6. e-BIDDING PROCEDURE. 6.1. Bids shall be invited, from the concerned Applicants, for only such period during which congestion is expected to occur and for the Regional transmission system or inter-Regional corridor, whichever is expected to get over stressed. 6.2. The decision of the nodal RLDC in respect of an expected congestion shall be final and binding. 6.3. Any Applicant intending to participate in bidding for Short-Term Open Access shall register and obtain the User ID and initial Password in advance from the RLDC for its Authorized User(s). The Registered Users will be issued a system generated User ID and initial Password by RLDC to enable them to submit their Bid electronically. Upon receipt of the User Id and initial password, the User shall immediately change the password. It shall be the responsibility of such Applicant to maintain its confidentiality/security and to prevent its misuse. 6.4. The Applicants shall submit their Bid electronically through the web site of the CTU/ RLDCs. Only the Applicants, through their Registered Users, shall be entitled to submit a Bid. 6.5. The Bids shall be accepted up to the bid closing time as indicated on the website of CTU/RLDCs, designated for e-bidding. Modification / amendment to a bid, once submitted, including submission of a second or subsequent bid by an Applicant, shall not be entertained. During the bidding period, the bidder cannot view the bids submitted by bidders except his own. 6.6. In case the Applicant does not participate in the e-bidding process, his Application shall be considered as withdrawn. 6.7. Bidding process and the Approval of the Schedules of the bidders shall be as per following:
================================================================================== ERLDC::POSOCO
37
The bid price shall be in addition to the Transmission Charges for the Inter-State Transmission System for Bilateral Transactions as specified in the Para 16 of the Regulations. The Bidder shall quote price in terms of Rs./MWh in multiples of 10. The minimum price a bidder may quote is Rs. 10/MWh. Approval of Short-Term Open Access for Advance Scheduling will be accorded in the decreasing order of price quoted. Procedure for Scheduling of Bilateral Transaction Page 6 of 13 In case of equal price quoted by two or more successful bidders, the approval for scheduling shall be made pro-rata to the scheduling request sought by them. The Applicant, which gets approval for scheduling less than the scheduling request sought by him, shall pay the charges quoted by him. The Applicant getting approval for scheduling equal to the scheduling request sought by him shall pay the charges quoted by the last Applicant getting approval of its full scheduling request. 7. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION ON FIRST-COME-FIRST-SERVED BASIS 7.1. An Application shall be submitted to the nodal RLDC in a cover marked Application for scheduling on - First-come-first-served basis. 7.2. Application received under the following categories shall be treated as First-ComeFirst-Served application:i. Application received under First Come First Served category for Short-Term Open Access shall be considered only when transactions are commencing and terminating in the same calendar month. ii. Application for scheduling a Bilateral Transaction which is commencing in the same month in which Application is made, provided that such Application is received at least four (4) days in advance from the date of commencement of the Bilateral Transaction. All such Application shall be processed and decided within three days of their receipt. iii. Application received during the last ten (10) days of the first month, for scheduling of transactions in the second month. However,Applications received up to five (5) days prior to the end of the month shall be processed only after completing the process for Advance Scheduling of Bilateral Transactions for the second month. 7.3 All Applications received by the Nodal RLDC in a day up to 17:30 hrs shall be considered together for processing and shall have same priority. Applications received by the nodal RLDC after 17:30 hrs of a day shall be treated as having been received on next day. 7.4 Pro-rata scheduling acceptance shall be given in case scheduling requests of the Applicants is for more than the margins available. 8. PROCEDURE FOR SCHEDULING OF DAY-AHEAD BILATERAL TRANSACTION
================================================================================== ERLDC::POSOCO
38
8.1. Applications received within three days prior to the date of scheduling and up to 15:00 Hrs. of the day immediately proceeding the day of scheduling shall be treated as having been received together for processing and shall have same priority. 8.2. Applications for Day Ahead transactions shall be processed only after processing of the Collective Transactions of the Power Exchange(s). 8.3. Pro-rata scheduling acceptance shall be given in case scheduling requests of the Applicants is for more than the margins available. 9. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION IN A CONTINGENCY 9.1. In the event of a contingency, the buyer or in its behalf, a trader may locate, and the power exchange may offer its platform to locate, a source of power to meet short-term contingency requirement and make an Application to the Nodal RLDC. 9.2. Nodal RLDC shall accept such Application only after 1500 hrs of the day immediately preceding the day of scheduling. 9.3. Nodal RLDC shall take steps to incorporate such Bilateral Transactions in Day Ahead schedules/Same -Day schedules, as the case may be. In case of Same Day, the transaction shall be scheduled from the 6th time block, counting the block in which acceptance is accorded as the first time block. 9.4. Applications received by 1800 Hrs under the contingency category for scheduling of bilateral transactions on the next day shall be taken up together for processing. Applications received after 1800 Hrs under the contingency category for scheduling of bilateral transactions on the next day and those applications received on the same day shall be processed on a first come first serve basis. 9.5. Pro-rata scheduling acceptance shall be given in case scheduling requests of the Applicants is for more than the margins available. 10. INCORPORATION OF BILATERAL TRANSACTIONS IN DAILY SCHEDULES BY THE RLDCs 10.4. While finalizing the net drawl schedule / net injection schedule of Entities, each transaction will have a resolution of 0.01 MW at each State/inter-Regional boundaries. 11. REVISON OF SCHEDULE 11.1. The Short-Term Open Access Schedules accepted by the Nodal RLDCs in case of Advance Scheduling or First-Cum-First Served basis may be cancelled or revised downwards by the Applicant by giving minimum two (2) days notice. The notice period shall be excluding the day on which notice is served and the day from which revised schedules are to be implemented. 11.2. The accepted schedules for Day-Ahead transactions and transactions in a Contingency shall not be revised or cancelled. 11.3 Example of downward revision:
================================================================================== ERLDC::POSOCO
39
Say an Applicant has been scheduled for 10 days from 21st day of a month to 30th day of a month for 100 MW on round the clock basis (i.e. for 2400 MWh per day). If this Applicant, on or before 18th day of that month, submits request for revision of schedule to 50MW on round the clock basis (i.e. 1200 MWh per day), the revised schedule will get implemented from the beginning of the transactions (i.e. 21st day of the month). The Applicant shall pay the Transmission Charges for 2400 MWh per day for the period from 21st to 22nd day of the month. Whereas for the period from 23rd day to 30th day of the month, Transmission Charges shall be payable for 1200MWh per day. However, if the Applicant requests for such revision on 20th day of the month, his request will be implemented from 23rd day of the month. He shall pay Transmission charges for 2400 MWh per day for 2 days i.e. from 23rd to 24th day of the month and for the remaining period he shall pay the Transmission Charges based on 1200MWh per day. A detailed example of downward revision is depicted in Sec.2.4 11.4. The margins becoming available as a result of such revision or cancellation shall be available for scheduling to any other Applicant in accordance with relevant provisions of Regulations on Open Access. 12. CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS 12.1. Bilateral Transactions shall be reduced or cancelled by the Regional Load Despatch Centre, if the Central Government allocates power from the Central Generating Station or Stations in a Region to a person in another Region and such allocation, in the opinion of the Regional Load Despatch Centre, cannot otherwise be implemented due to Congestion in the inter-Regional corridor. In the event of reduction or cancellation of already accepted schedules of Bilateral Transactions, the Applicant shall be suitably intimated by the RLDC. 12.2. When because of transmission constraint or to maintain grid security as decided by RLDC, it becomes necessary to curtail power flow on a transmission corridor, the transactions already scheduled, would be curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security. Subject to the provisions of the Grid Code, while cancellation or curtailment of any transaction, among short-term, medium term and long-term transactions, short-term transactions shall be cancelled or curtailed first, followed by medium term and thereafter long-term transactions. Short-Term Open Access Bilateral Transactions would be curtailed first followed by the Collective Transactions. 12.3. In case of transmission constraint or otherwise when Long Term Customers power from one Region to another needs to be re-routed through the third Procedure for Scheduling of Bilateral Transaction Page 10 of 13 Region, RLDC shall allow such re-routing to the extent of the surplus margin available without curtailing the existing Long-Term, Medium Term and Short-Term Open Access transactions. 12.4. In case of curtailment of the accepted schedules for any particular day for the reasons of transmission constraints or due to allocation of power from Central Generating Station from one Region to the person in other Region, the Transmission Charges for that day shall
================================================================================== ERLDC::POSOCO
40
be payable on pro-rata basis in accordance with the transactions finally scheduled. Provided that the Operating Charges shall not be revised in case of curtailment. 13. COMMERCIAL CONDITIONS FOR BILATERAL TRANSACTION The following commercial conditions shall apply for the Bilateral Transaction: 13.1. TERMS OF PAYMENT 13.1.1. All payments associated with Bilateral Transaction shall be made by the Applicant to the Nodal RLDC. 13.1.2. The Applicant shall make the following payment to the Nodal RLDC within three working days from the date of acceptance of Bilateral Transactions. The charges for scheduling of Bilateral Transactions will be worked out on the basis of total MWh approved at the point of injection. a) Application Fees (as per Para 7 of Regulation) An Application made for each Bilateral Transaction shall be accompanied by a nonrefundable fee of Rupees five thousand (Rs.5000/-) only. Provided that the fee for Bilateral Transaction on the day of the Application or on the day immediately following the day of the Application may be deposited within three working days of submission of the Application. b) Transmission charges Full amount for the entire period of Bilateral Transaction, in respect of the following: 1. Regional Transmission systems involved 2. STU/SEB/transmission licensees involved c) Operating charges (as per Regulation 17) Operating Charges at the rate of Rs.2000/- per day or part of the day of each for the entire period of Bilateral Transaction in respect of the following: 1. Each RLDC involved 2. Each SLDC involved Transmission charges shall be applicable as per the rate specified under Central Electricity Regulatory Commission(Sharing of Inter State Transmission Charges and Losses) Regulations 2010 and relevant CERC orders. The methodology of application of transmission charges are detailed in Section 2.5 13.1.4. The Transmission charges for the use of the State network shall be in Rs/MWh, as determined by the respective State Commission and the same shall be intimated to RLDCs by concerned STU. Provided that in case the State Commission has not determined the Transmission charges in Rs./MWh (or the STU has not intimated the charges in Rs./MWh), the charges for use of the respective State network shall be payable at the rate of Rs.80/MWh for the energy approved 13.1.5. In case a State utility is the Buyer/Seller, the Operating Charges and the Transmission Charges shall not include the charges for that State network and the Operating Charges for
================================================================================== ERLDC::POSOCO
41
that State Load Dispatch Center. A certificate in this regard from the concerned STU(s)/SLDCs shall be submitted by the Applicant. 14. DEFAULT IN PAYMENT OF SHORT-TERM OPEN ACCESS CHARGES 14.1. In case of default in payment of the Application fee or the charges specified under the Regulations specified by CERC, the nodal RLDC, at its discretion may not schedule the transaction or may cancel the scheduling of already scheduled transaction or may not entertain any Application of such Applicant in future until such time the default is cured. 14.2. The Applicant committing default in payment shall pay the simple interest at the rate of 0.04 % for each day of default from the Due Date of Payment. 14.3. In case a payment made by the Applicant through cheque has been dishonored, the Applicant shall immediately pay the amount due by demand draft or electronic transfer and no further cheque payment will be accepted from that Applicant for next three (3) months. 15. DISBURSAL OF PAYMENT 15.2. The Transmission Charges for use of State network and Operating Charges for SLDCs shall be disbursed to the State Transmission Utility/SLDC concerned, after receiving the same from the Applicants. 15.4. Transmission charges collected by the Nodal RLDC for use of the transmission system other than that of the State network shall be transferred to the CTU for disbursement in accordance with the Approved Detailed Procedure for Billing, Collection and Disbursement under Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations 2010 andrelevant CERC orders. [The methodology for the same has been detailed in the consolidated regulations] 15.5. In case of refunds arising due to curtailment/revision of transactions during the previous month, the same shall also be disbursed to the concerned Applicants by 15th day of the current month. 15.6. Nodal RLDC does not have any responsibility towards non-payment as well as dishonoring of cheque(s) submitted by the Applicants. The amounts actually collected by RLDCs shall only be disbursed. 16. GENERAL CONDITIONS 16.1. The Entities which are making Application for the first time or intend to make, must submit the One- Time information as per enclosed format. [FORMATVIII: Registration Form] to the concerned nodal RLDC. In case of any change in the existing information, the same shall be intimated to the concerned nodal RLDC. 16.2. The Application for Bilateral Transactions can be submitted through Post/fax. 16.3. Any amendment/modification to an existing Application, except for reasons specifically mentioned in the Procedure, shall be treated as a fresh Application.
================================================================================== ERLDC::POSOCO
42
16.4. The Applications of the Applicants, who have not been accorded the Acceptance for Scheduling of Bilateral Transactions, shall stand disposed off with suitable intimation to the concerned Applicant(s). 16.5. All costs/expenses/charges associated with the Application, including Bank Draft, shall be borne by the Applicant. 16.6. An incomplete/vague Application, and an Application not found to be in conformity with these Procedures and Regulations, shall be summarily rejected. 16.7. None of charges payable by Applicant(s) and/or any other Entities involved in the transaction shall be adjusted by them against any other payments/charges. 16.8. 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.
2.3] Various formats under STOA procedures The various formats(eight Nos.) under the bilateral procedures are depicted below:
================================================================================== ERLDC::POSOCO
43
Format II A
Affidavit by Applicant in case of non-concurrance by SLDCs
================================================================================== ERLDC::POSOCO
44
================================================================================== ERLDC::POSOCO
45
================================================================================== ERLDC::POSOCO
46
================================================================================== ERLDC::POSOCO
47
================================================================================== ERLDC::POSOCO
48
================================================================================== ERLDC::POSOCO
49
2.4] Explanatory memorandum to the Regulations & procedures with examples: The categories and applicable timelines for the same are indicated below:
================================================================================== ERLDC::POSOCO
50
Example- Calculation of MWh in case of downward revision R0 REVISION 0 R1 REVISION1 App. Date application Date Scheduled MWh scheduled Billed MWh Billed [The calculation methodology is explained in the consolidated regulations]
INITIAL APPLICATION R0 From date 20-Mar-11 To Date 31-Mar-11 From time To Time 00:00 24:00 MW MWh
Operating charges
100 28800.00 Scheduled MWh 28800.00 Billed MW h 28800.00 12 days
R1 From date 20-Mar-11
APPLICATION FOR REVISION ON 17TH March App. Date : 17th From time To Time MW MWh To Date 31-Mar-11 00:00 24:00
50 14400.00 Scheduled MWh 14400.00 Billed MW h 16800.00 Operating charges 12 days additional charge =(100-50)*24*2 for 20th & 21st March 2400.00 APPLICATION FOR REVISION ON 2OTH March App. Date : 20th To Date From time To Time MW MWh 22-Mar-11 31-03-2011 00:00 24:00 00:00 24:00
R1 From date 20-Mar-11 23-03-2011
100 7200.00 50 10800.00 Scheduled MWh 18000.00 Billed MW h 20400.00 Operating charges 12 days additional charge =(100-50)*24*2 for 23rd & 24th March 2400.00
2.5] Application of POC transmission charges methodology for STOA transactions

================================================================================== ERLDC::POSOCO
51
Calculation of Nodal POCs
Nodal POCs are zoned to form zonal POCs applicable to various entities to be scheduled. For transaction from an area X to area Y the transmission charges applicable would be = contracted MWh x (POC injection of X + POC withdrawal of Y). STU charges if applicable would be payable extra. The POCS are slabbed to fall into High, Average and Low categories. Slab rates tableSlab NEW Grid SR Grid POC charges POC charges POC charges POC charges (Rs./MW/Month) (paise/unit) (Rs./MW/Month) (paise/unit) High 1,00,000 14 1,10,000 15 Average 85,000 12 95,000 13 Low 70,000 10 80,000 11 Previous to implementation of CERC(Sharing of ISTS charges & Losses),2010 Regulations there were only three stamp rates viz, 80, 160, 240 Rs/MWh. With above stamp rates effective from 01.07.2011 there are a total of 6 POC rates with combinations of any two from thses six rates possible. Again we can also have pairing of same POC rates. Accordingly, total No. of combinations possible(not permutations as order does not matter) : N C2 + N = N(N+1)/2 [considering N additional cases for same POC injection/withdrawal rates] Thus increase in total number of possible stamp rates for various transactions have risen from 3 to 21.
================================================================================== ERLDC::POSOCO
52
Samples of approved POC charges results for NEW Grid and SR Grid are given below:
================================================================================== ERLDC::POSOCO
53
2.6] Application of POC losses methodology for STOA transactions: Nodal POC losses are obtained from Webnetuse software. Subsequently, zoning is done to obtain zonal losses for each entity to be scheduled. The POC losses are applied as follows: 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 decimals After 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 are classified as Tier-I , II , III according to Low, Average or High slab. Example of loss table as uploaded to websites:
================================================================================== ERLDC::POSOCO
54
Similiarly slabs for all other regions would also be indicated. 2.6] Examples of POC charges & losses calculation
Path followed for the contract: Tata Steel DVC ER WR NR DTL NDPL
================================================================================== ERLDC::POSOCO
55
Details of charges payable for the contract:
================================================================================== ERLDC::POSOCO
56
Format of Acceptance:
FORMAT - VI OPEN ACCESS (BILATERAL TRANSACTION) - ACCEPTANCE FOR SCHEDULING Nodal RLDC : NRLDC Acceptance No. : ERLDC/BILAT/2011-12/ Ref : Original Application No. : 1 Name of applicant : 556 F Date Date : : 06-09-2011 06-09-2011 ER0000TPTC
TPTCL/OA/2011-12/3072
TPTCL
Registration Code :
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) : NIL 5 Open Access Scheduling Accepted : Date Hours From To From To 00:00 24:00
Schedule (MW) Requested Accepted 100 100
Route ER , WR, NR
Mwh 12000 0 0 0 0 0 12000.00
15-Jun-2011 19-Jun-2011
Total Mwh 6 Bidding Details : Date Transmission System From To From Hours To
Applicable Bid Rate ( Rs. / Mwh )
7 Payment Schedule : i) Transmission Charges Transmission System (a) Intra-State STU / DVC STU / Delhi (b) Inter-State(POC)
POC DVC injection POC Delhi Withdrawal
Payment Due Date : Rate (Rs./Mwh) 80 41.85 140 100 Mwh 12000 12000 12000 12000 Total of (i) :
10-09-2011
Total ( Rs ) 960000 502200 1680000 1200000 0 4342200.0 Total ( Rs ) 10000 10000 10000 10000 0 40000 5000 4387200
Bidding ii) Operating Charges SLDC, DVC SLDC DELHI ERLDC NRLDC Rate (Rs./ Day) 2000 2000 2000 2000 Number of Days 5 5 5 5
Total of (ii) : iii) Non Refundable application fee ( if not paid earlier ) Grand Total ( I + ii + iii ) 8 A curtailed acceptance is being granted on account of Nil 9 This acceptance is subject to provisioning of CERC (Open Access in inter-State Transmission) Regulations,2008. POSOCO Portion : 25000
OTHERS :
4362200
To: 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
Signature Name Designation
: : :
================================================================================== ERLDC::POSOCO
57
Calculation of Losses: Methodology of loss calculation(Upto 30th September,2011)

Contract value 100MW Transaction 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%
97MW DVC BDY 100MW CONTRACT TATA STEEL BDY ER 95.55MW REGIONAL BDY 93.64MW DTL BDY TATA STEEL
WR
NDPL NR
RLDCs need to show schedules only upto requisite control area periphery Hence 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].
92.24MW NDPL BDY
Methodology of Loss calculation(W.e.f 1st September, 2011)

Contract value 100MW Transaction 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%
101.52MW DVC BDY 104.66MW TATA STEEL BDY TATA STEEL ER 98MW DTL BDY 100MW CONTRACT
WR
NDPL NR
96.53MW NDPL BDY
RLDCs need to show schedules only upto requisite control area periphery Hence 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].
================================================================================== ERLDC::POSOCO
58
N.B States would need to adjust for intra-state losses by applying STU losses as applicable vide SERC orders to arrive at schedules for embedded customers. RLDCs to show schedules upto entity periphery only
================================================================================== ERLDC::POSOCO
59
Chapter-3 Grant of Connectivity, Long Term and medium Term Open Access Regulations and procedures
3.1] Evolution of the concept of Connectivity, Long Term and medium Term Open Access The Open Access regulations, 2004 first introduced the concept of Long Term open Access. At that time there were a limited number of IPPs in operation and market was mostly dominated by power plants under CPSE and State Govt. undertakings. Subsequently, various amendments have been carried out to the above regulations. Parallely a large number of IPPs under private sector had also started coming up with targeted PPAs to load centers in NR and WR. Further, certain IPPs came up with the concept of merchant Capacity wherein the capacity was not tied to any PPAs. Similiarly, some IPPs were desirous of selling for time durations less than the time stipulated for LT PPAs. These IPPs targeted to change their customers within a period of even less than a year under PPAs. Again the number of such IPPs planning to come up were increasing at a remarkable rate. Some IPPs wanted to trade their merchant capacity under Short Term and even UI. With the introduction of PXs the merchant capacity had another alternate route. Recently, even Central Sector plants with part merchant capacity amounting to 15% are coming up e.g. FSTPP-Stage-III. Again these plants desired to connect mostly to ISTS systems for more flexibility and ease of trading their power at profitable rates. Connectivity at any ISTS point needs study in terms of increased Short circuit MVA levels at the point of connectivity and its vicinity and there is also a need to also check that proper connectivity standards are followed in terms of equipment, protection, metering, etc. Thus all these led to huge difficulties in integration of the IPPs and plants with merchant capacities. It was realized that a more streamlined procedure for handling of Open Access for these power plants were required. This lead to the need for a proper procedure for Grant of connectivity and Long Term access. It was also realized that another category of Access between Long Term and short Term was required. This led to conceptualization of the CERC(Grant of connectivity, Long Term , Medium Term Open Access) regulations, 2009 and also introduction of the concept of Medium Term open Access. 3.2] CERC(Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations,2009[Consolidated with all amndments uptil date] 2. Definitions (1) In these regulations, unless the context otherwise requires: (a) Act means the Electricity Act, 2003 (36 of 2003); (b) Applicant means
================================================================================== ERLDC::POSOCO
60
(i) a Generating station of installed capacity 250 MW and above, including a captive generating plant of exportable capacity of 250 MW and above or a bulk consumer in respect of grant of connectivity and Sub clause 2(1) (b)(i) was substituted vide amendment Dtd. 3rd September,2010 as follows: (i) The following in respect grant of connectivity: (a) A generating station with installed capacity of 250 MW and above, including a captive generating plant of exportable capacity of 250 MW and above or; (b) A Hydro Generating station or generating station using renewable source of energy, of installed capacity between 50 MW and 250 MW. (c) One of the Hydro Generating stations or generating stations using renewable sources of energy, individually having less than 50 MW installed capacity, but collectively having an aggregate installed capacity of 50MW and above, and acting on behalf of all these generating stations, and seeking connection from CTU at a single connection point at the pooling sub-station under CTU, termed as the lead generator, or; (d) A bulk consumer. (ii) a generating station including a captive generating plant, a consumer, an Electricity Trader or a distribution licensee, in respect of long-term access or medium-term open access , as the case may be; (c) Bulk consumer means in respect of connectivity, any consumer who intends to avail supply of a minimum load of 100 MW from the Inter-State Transmission System; (d) Commission means the Central Electricity Regulatory Commission referred to in subsection (1) of section 76 of the Act; (e) Connectivity for a generating station, including a captive generating plant, a bulk consumer or an inter-State transmission licensee means the state of getting connected to the inter-State transmission system; (f) consumer means any consumer eligible to avail open access as specified by the State Commission under sub-section (2) of section 42 of the Act; (g) day means the day starting at 00.00 hours and ending at 24.00 hours; (h) detailed procedure means the procedure issued by the Central Transmission Utility as referred to in regulation 6 hereof; (i) Grid Code means the Grid Code specified by the Commission under Clause (h) of subsection (1) of section 79 of the Act; (j) intra-State entity means a person whose metering and energy accounting are done by the State Load Despatch Centre or by any other authorized State utility; (k) interface meters means interface meters installed in accordance with the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, specified by the Central Electricity Authority and amended from time to time; (l) long-term access means the right to use the inter-State transmission system for a period exceeding 12 years but not exceeding 25 years;
================================================================================== ERLDC::POSOCO
61
(m) long-term customer means a person who has been granted long-term access and includes a person who has been allocated central sector generation that is electricity supply from a generating station owned or controlled by the Central Government; (n) medium-term open access means the right to use the inter- State transmission system for a period exceeding 3 months but not exceeding 3 years; (o) medium-term customer means a person who has been granted medium-term open access; (p) month means a calendar month as per the British calendar; (q) nodal agency means the Central Transmission Utility referred to in regulation 4 hereof; (r) regional entity means a person whose metering and energy accounting are done at the regional level; (s) short-term open access has the meaning ascribed thereto in the Central Electricity Regulatory Commission (Open Access in inter- State Transmission) Regulations, 2008; (t) State Commission means the State Electricity Regulatory Commission constituted under section 82 of the Act and includes the Joint Commission constituted under section 83 thereof; (u) State network means the intra-State transmission system owned by the State Transmission Utility, transmission licensee or the network of any other person who has been granted licence by the State Commission to establish or operate distribution lines within the State; (v) Stranded transmission capacity means the transmission capacity in the inter-State transmission system which is likely to remain unutilized due to relinquishment of access rights by a long-term customer in accordance with regulation 16. (2) Words and expressions used in these regulations and not defined but defined in the Act or the Grid Code or any other regulations specified by the Commission shall, unless the context otherwise requires, have the meanings assigned to them under the Act or the Grid Code or other regulations specified by the Commission, as the case may be. GENERAL PROVISIONS 3. Scope These regulations, after they come into force, shall apply to the grant of connectivity, longterm access and medium-term open access, in respect of inter-State transmission system: Provided that a generating station, including captive generating plant or a bulk consumer, seeking connectivity to the inter-State transmission system cannot apply for long-term access or medium-term open access without applying for connectivity: Provided further that a person may apply for connectivity and long-term access or mediumterm open access simultaneously. 4. Nodal Agency The nodal agency for grant of connectivity, long-term access and mediumterm open access to the inter-State transmission system shall be the Central Transmission Utility. 5. Filing of Application
================================================================================== ERLDC::POSOCO
62
Applications for grant of connectivity or long-term access or medium-term open access shall be made to the nodal agency: Provided that an application for connectivity is not required to be made by any transmission licensee, since transmission system planning is carried out in a coordinated manner by the Central Transmission Utility and the Central Electricity Authority; Provided, however, that an inter-State transmission licensee other than Central Transmission Utility, nevertheless, shall sign a connection agreement with the Central Transmission Utility, as provided for in Clause (5) of regulation 8 of these Regulations. 6. Application fee The application referred to in regulation 5 shall be accompanied by a nonrefundable application fee specified hereunder, payable in the name and in the manner to be laid down by the Central Transmission Utility in the detailed procedure:
7. Timeframe for processing of application
CONNECTIVITY 8. Grant of Connectivity (1) The application for connectivity shall contain details such as, proposed geographical location of the applicant, quantum of power to be interchanged that is the quantum of
================================================================================== ERLDC::POSOCO
63
power to be injected in the case of a generating station including a captive generating plant and quantum of power to be drawn in the case of a bulk consumer, with the inter-State transmission system and such other details as may be laid down by the Central Transmission Utility in the detailed procedure: Provided that in cases where once an application has been filed and thereafter there has been any material change in the location of the applicant or change, by more than 100 MW in the quantum of power to be interchanged with the inter-State transmission system, the applicant shall make a fresh application, which shall be considered in accordance with these regulations. Cl.8(1) substituted vide amendment Dtd. 3rd September,2010 (1) The application for connectivity shall contain details such as, proposed geographical location of the applicant, quantum of power to be interchanged, that is the quantum of power to be injected in the case of a generating station including a captive generating plant and quantum of power to be drawn in the case of a bulk consumer, with the inter-State transmission system and such other details as may be laid down by the Central Transmission Utility in the detailed procedure; Provided that where after filing of an application, there has been any material change in the location of the applicant or change in the quantum of power to be interchanged with the inter-State transmission system, by more than 100 MW in the case of applicant defined under Regulation 2(1) (b)(i) (a) and 40% of the Installed capacity in the case of applicant defined under Regulation 2(1) (b) (i) (b) and 40% of the aggregate Installed capacity in the case of applicant defined under Regulation 2(1) (b)(i) (c), such an applicant shall make a fresh application, which shall be considered in accordance with these regulations. Provided further that the application by the applicant defined under Regulation 2(1) (b)(i) (c) shall be considered by CTU only if all the generators, whose aggregate capacity is connected at the single connection point, formalize a written agreement among themselves that the lead generator shall act on behalf of all the generators to undertake all operational and commercial responsibilities for all the collective generators connected at that point in following the provisions of the Indian Electricity Grid Code and all other Regulations of the Commission, such as grid security, scheduling and dispatch, collection and payment/ adjustment of Transmission charges, UI charges, congestion and other charges, etc., and submit a copy of the agreement to the CTU, with the application of connectivity, along with a copy to the respective RLDC in whose control area it is located. Provided further that the CTU shall suitably incorporate the requirement of formal agreement amongst such generators in the detailed procedure and Connection Agreement signed with such lead generator. (2) On receipt of the application, the nodal agency shall, in consultation and through coordination with other agencies involved in inter-State transmission system to be used, including State Transmission Utility, if the State network is likely to be used, process the application and carry out the necessary interconnection study as specified in the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007.
================================================================================== ERLDC::POSOCO
64
(3). While granting connectivity, the nodal agency shall specify the name of the sub-station or pooling station or switchyard where connectivity is to be granted. In case connectivity is to be granted by looping-in and looping-out of an existing or proposed line, the nodal agency shall specify the point of connection and name of the line at which connectivity is to be granted. The nodal agency shall indicate the broad design features of the dedicated transmission line and the timeframe for completion of the dedicated transmission line. (4) The applicant and all Inter-State Transmission Licensees including the Central Transmission Utility shall comply with the provisions of Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007. (5) The applicant or inter-State transmission licensee, as the case may be, shall sign a connection agreement with the Central Transmission Utility or inter-State transmission licensee owning the sub-station or pooling station or switchyard or the transmission line as identified by the nodal agency where connectivity is being granted: Provided that in case connectivity of a generating station, including captive generating plant or bulk consumer is granted to the inter-State transmission system of an inter-State transmission licensee other than the Central Transmission Utility, a tripartite agreement as provided in the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007 shall be signed between the applicant, the Central Transmission Utility and such inter-State transmission licensee. (6) The grant of connectivity shall not entitle an applicant to interchange any power with the grid unless it obtains long-term access, medium-term open access or short-term open access. (7) A generating station, including captive generating plant which has been granted connectivity to the grid shall be allowed to undertake testing including full load testing by injecting its infirm power into the grid before being put into commercial operation, even before availing any type of open access, after obtaining permission of the concerned Regional Load Despatch Centre, which shall keep grid security in view while granting such permission. This infirm power from a generating station or a unit thereof, other than those based on non-conventional energy sources, the tariff of which is determined by the Commission, will be governed by the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009. The power injected into the grid from other generating stations as a result of this testing shall also be charged at UI rates. (8) An applicant may be required by the Central Transmission Utility to construct a dedicated line to the point of connection to enable connectivity to the grid: Provided that a thermal generating station of 500 MW and above and a hydro generating station of 250 MW and above, other than a captive generating plant, shall not be required to construct a dedicated line to the point of connection and such stations shall be taken into account for coordinated transmission planning by the Central Transmission Utility and Central Electricity Authority. Cl.8(8) substituted vide amendment Dtd. 3rd September,2010
================================================================================== ERLDC::POSOCO
65
Provided that a thermal generating station of 500 MW and above and a hydro generating station or a generating station using renewable sources of energy of capacity of 250 MW and above, other than a captive generating plant, shall not be required to construct a dedicated transmission line to the point of connection and such station shall be taken into account for coordinated transmission planning by the Central Transmission utility and Central Electricity Authority. LONG-TERM AND MEDIUM-TERM OPEN ACCESS 9. Criteria for granting long-term access or medium-term open access (1) Before awarding long-term access, the Central Transmission Utility shall have due regard to the augmentation of inter-State transmission system proposed under the plans made by the Central Electricity Authority. (2) Medium-term open access shall be granted if the resultant power flow can be accommodated in the existing transmission system or the transmission system under execution: Provided that no augmentation shall be carried out to the transmission system for the sole purpose of granting medium-term open access: Provided further that construction of a dedicated transmission line shall not be construed as augmentation of the transmission system for the purpose of this regulation. 10. Relative priority (1) Applications for long-term access or medium-term open access shall be processed on first-come-first-served basis separately for each of the aforesaid types of access: Provided that applications received during a month shall be construed to have arrived concurrently; Provided further that while processing applications for medium-term open access received during a month, the application seeking access for a longer term shall have higher priority; Provided also that in the case of applications for long-term access requiring planning or augmentation of transmission system, such planning or augmentation, as the case may be, shall be considered on 30th of June and 31st of December in each year in order to develop a coordinated transmission plan, in accordance with the perspective transmission plans developed by the Central Electricity Authority under section 73 of the Act; Provided also that if an intra-State entity is applying for long-term access or medium-term open access, concurrence of the State Load Despatch Centre shall be obtained in advance and submitted along with the application to the nodal agency. The concurrence of the State Load Despatch Centre shall be in such form as may be provided in the detailed procedure. (2) Where necessary infrastructure required for energy metering and time-blockwise accounting already exists and required transmission capacity in the State network is available, the State Load Despatch Centre shall convey its concurrence to the applicant within ten working days of receipt of the application. (3) In case SLDC decides not to give concurrence, the same shall be communicated to the applicant in writing, giving the reason for refusal within the above stipulated period. 11. Interface Meters
================================================================================== ERLDC::POSOCO
66
(1) Interface meters shall be installed (a) by the Central Transmission Utility for and at the cost of the regional entities; and (b) by the State Transmission Utility for and at the cost of the State entities. (2) Interface meters for the regional entities shall be open for inspection by any person authorized by the Central Transmission Utility and the Regional Load Despatch Centre. (3) Interface meters for the intra-State entities shall be open for inspection by any person authorized by the State Transmission Utility or the State Load Despatch Centre. LONG-TERM ACCESS 12. Application for long-term access (1) The application for grant of long-term access shall contain details such as name of the entity or entities to whom electricity is proposed to be supplied or from whom electricity is proposed to be procured along with the quantum of power and such other details as may be laid down by the Central Transmission Utility in the detailed procedure: Provided that in the case where augmentation of transmission system is required for granting open access, if the quantum of power has not been firmed up in respect of the person to whom electricity is to be supplied or the source from which electricity is to be procured, the applicant shall indicate the quantum of power along with name of the region(s) in which this electricity is proposed to be interchanged using the inter-State transmission system; Provided further that in case augmentation of transmission system is required, the applicant shall have to bear the transmission charges for the same as per these regulations, even if the source of supply or off-take is not identified; Provided also that the exact source of supply or destination of off-take, as the case may be, shall have to be firmed up and accordingly notified to the nodal agency at least 3 years prior to the intended date of availing long-term access, or such time period estimated by Central Transmission Utility for augmentation of the transmission system, whichever is lesser, to facilitate such augmentation; Provided also that in cases where there is any material change in location of the applicant or change by more than 100 MW in the quantum of power to be interchanged using the interState transmission system or change in the region from which electricity is to be procured or to which supplied, a fresh application shall be made, which shall be considered in accordance with these regulations. (2) The applicant shall submit any other information sought by the nodal agency including the basis for assessment of power to be interchanged using the inter-State transmission system and power to be transmitted to or from various entities or regions to enable the nodal agency to plan the inter-State transmission system in a holistic manner. (3) The application shall be accompanied by a bank guarantee of Rs 10,000/- (ten thousand) per MW of the total power to be transmitted. The bank guarantee shall be in favour of the nodal agency, in the manner laid down under the detailed procedure.
================================================================================== ERLDC::POSOCO
67
(4) The bank guarantee of Rs. 10,000 /- (ten thousand) per MW shall be kept valid and subsisting till the execution of the long-term access agreement, in the case when augmentation of transmission system is required, and till operationalization of long-term access when augmentation of transmission system is not required. (5) The bank guarantee may be encashed by the nodal agency, if the application is withdrawn by the applicant or the long-term access rights are relinquished prior to the operationalisation of such rights when augmentation of transmission system is not required. (6) The aforesaid bank guarantee will stand discharged with the submission of bank guarantee required to be given by the applicant to the Central Transmission Utility during construction phase when augmentation of transmission system is required, in accordance with the provisions in the detailed procedure. 13. System Studies by the Nodal Agency (1) On receipt of the application, the nodal agency shall, in consultation and through coordination with other agencies involved in inter-State transmission system to be used, including State Transmission Utility, if the State network is likely to be used, process the application and carry out the necessary system studies as expeditiously as possible so as to ensure that the decision to grant long-term access is arrived at within the timeframe specified in regulation 7: Provided that in case the nodal agency faces any difficulty in the process of consultation or coordination, it may approach the Commission for appropriate directions. (2) Based on the system studies, the nodal agency shall specify the inter- State transmission system that would be required to give long-term access. In case augmentation to the existing inter-State transmission system is required, the same will be intimated to the applicant. (3) The Empowered Committee established in accordance with the Tariff based Competitive-bidding Guidelines for Transmission Service issued by the Central Government, may identify one or more elements needed for augmentation of inter-State transmission system to be developed through tariff based competitive bidding: Provided that the agency identified to construct one or more elements needed for augmentation of the inter-State transmission system for long-term access shall be eligible for grant of transmission licence in accordance with the regulations specified by the Commission from time to time and the guidelines for competitive bidding for transmission issued by the Central Government. 14. Communication of Estimate of Transmission Charges, etc. While granting long-term access, the nodal agency shall communicate to the applicant, the date from which long-term access shall be granted and an estimate of the transmission charges likely to be payable based on the prevailing costs, prices and methodology of sharing of transmission charges specified by the Commission.
================================================================================== ERLDC::POSOCO
68
15. Execution of Long-term Access Agreement The applicant shall sign an agreement for long-term access with the Central Transmission Utility in case long-term access is granted by the Central Transmission Utility, in accordance with the provision as may be made in the detailed procedure. While seeking long-term access to an inter-State transmission licensee, other than the Central Transmission Utility, the applicant shall sign a tripartite long-term access agreement with the Central Transmission Utility and the inter-State transmission licensee. The longterm access agreement shall contain the date of commencement of long-term access, the point of injection of power into the grid and point of drawal from the grid and the details of dedicated transmission lines, if any, required. In case augmentation of transmission system is required, the long-term access agreement shall contain the time line for construction of the facilities of the applicant and the transmission licensee, the bank guarantee required to be given by the applicant and other details in accordance with the detailed procedure. 16. Information to RLDC and SLDC Immediately after grant of long-term access, the nodal agency shall inform the Regional Load Despatch Centres and the State Load Despatch Centres concerned so that they can consider the same while processing requests for grant of short-term open access, received under Central Electricity Regulatory Commission (Open Access in inter-State transmission) Regulations, 2008 as amended from time to time. 17. Renewal of Term for Long-term access On the expiry of the period of long-term access, the long-term access shall stand extended on a written request provided by the long-term customer in this regard to the Central Transmission Utility mentioning the period for extension that is required: Provided that such a written request shall be submitted by the longterm customer to the Central Transmission Utility at least six months prior to the date of expiry of the long-term access; Provided further that in case no written request is received from the long-term customer within the timeline specified above, the said long-term access shall stand withdrawn. 18. Relinquishment of access rights (1) A long-term customer may relinquish the long-term access rights fully or partly before the expiry of the full term of long-term access, by making payment of compensation for stranded capacity as follows:(a) Long-term customer who has availed access rights for at least 12 years (i) Notice of one (1) year If such a customer submits an application to the Central Transmission Utility at least 1 (one) year prior to the date from which such customer desires to relinquish the access rights, there shall be no charges. (ii) Notice of less than one (1) year If such a customer submits an application to the Central Transmission Utility at any time lesser than a period of 1 (one) year prior to the date from
================================================================================== ERLDC::POSOCO
69
which such customer desires to relinquish the access rights, such customer shall pay an amount equal to 66% of the estimated transmission charges (net present value) for the stranded transmission capacity for the period falling short of a notice period of one (1) year. (b) Long-term customer who has not availed access rights for at least 12 (twelve) years such customer shall pay an amount equal to 66% of the estimated transmission charges (net present value) for the stranded transmission capacity for the period falling short of 12 (twelve) years of access rights: Provided that such a customer shall submit an application to the Central Transmission Utility at least 1 (one) year prior to the date from which such customer desires to relinquish the access rights; Provided further that in case a customer submits an application for relinquishment of longterm access rights at any time at a notice period of less than one year, then such customer shall pay an amount equal to 66% of the estimated transmission charges (net present value) for the period falling short of a notice period of one (1) year, in addition to 66% of the estimated transmission charges (net present value) for the stranded transmission capacity for the period falling short of 12 (twelve) years of access rights. (2) The discount rate that shall be applicable for computing the net present value as referred to in sub-clause (a) and (b) of clause (1) above shall be the discount rate to be used for bid evaluation in the Commissions Notification issued from time to time in accordance with the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees issued by the Ministry of Power. (3) The compensation paid by the long-term customer for the stranded transmission capacity shall be used for reducing transmission charges payable by other long-term customers and medium-term customers in the year in which such compensation payment is due in the ratio of transmission charges payable for that year by such longterm customers and medium-term customers. MEDIUM-TERM OPEN ACCESS 19. Application for Medium-term Open Access (1) The application for grant of medium-term open access shall contain such details as may be laid down under the detailed procedure and shall, in particular, include the point of injection into the grid, point of drawal from the grid and the quantum of power for which medium-term open access has been applied for. (2) The start date of the medium-term open access shall not be earlier than 5 months and not later than 1 year from the last day of the month in which application has been made. 20. System Studies by the Nodal Agency On receipt of the application, the nodal agency shall, in consultation and through coordination with other agencies involved in inter-State transmission system to be used, including State Transmission Utility, if the State network is likely to be used, process the application and carry out the necessary system studies as expeditiously as possible so as to
================================================================================== ERLDC::POSOCO
70
ensure that the decision to grant or refuse medium-term open access is made within the timeframe specified in regulation 7: Provided that in case the nodal agency faces any difficulty in the process of consultation or coordination, it may approach the Commission for appropriate directions. 21. Grant of Medium-term Open Access (1) On being satisfied that the requirements specified under clause (2) of regulation 9 are met, the nodal agency shall grant medium-term open access for the period stated in the application: Provided that for reasons to be stated in writing, the nodal agency may grant medium-term open access for a period less than that sought for by the applicant; Provided further that the applicant shall sign an agreement for mediumterm open access with the Central Transmission Utility in case medium-term open access is granted by the Central Transmission Utility, in accordance with the provision as may be made in the detailed procedure. While seeking medium-term open access to an inter-State transmission licensee, other than the Central Transmission Utility, the applicant shall sign a tripartite mediumterm open access agreement with the Central Transmission Utility and the interState transmission licensee. The mediumterm open access agreement shall contain the date of commencement and end of medium-term open access, the point of injection of power into the grid and point of drawal from the grid, the details of dedicated transmission lines required, if any, the bank guarantee required to be given by the applicant and other details in accordance with the detailed procedure. (2) Immediately after grant of medium-term open access, the nodal agency shall inform the Regional Load Despatch Centres and the State Load Despatch Centres concerned so that they can consider the same while processing requests for short- term open access received under Central Electricity Regulatory Commission (Open Access in inter-State transmission) Regulations, 2008 as amended from time to time. 22. Execution of Dedicated Transmission Line Medium-term customer may arrange for execution of the dedicated transmission line at its own risk and cost before the start date of the mediumterm open access. 23. No overriding preference On the expiry of period of the medium-term open access, the medium-term customer shall not be entitled to any overriding preference for renewal of the term. 24. Exit option for medium-term customers A medium-term customer may relinquish rights, fully or partly, by giving at least 30 days prior notice to the nodal agency: Provided that the medium-term customer relinquishing its rights shall pay applicable transmission charges for the period of relinquishment or 30 days which ever is lesser.
================================================================================== ERLDC::POSOCO
71
CONDITIONS OF LONG-TERM ACCESS AND MEDIUM-TERM OPEN ACCESS 25. Curtailment (1) When for the reason of transmission constraints or in the interest of grid security, it becomes necessary to curtail power flow on a transmission corridor, the transactions already scheduled may be curtailed by the Regional Load Despatch Centre. (2) Subject to provisions of the Grid Code and any other regulation specified by the Commission, the short-term customer shall be curtailed first followed by the medium-term customers, which shall be followed by the longterm customers and amongst the customers of a particular category, curtailment shall be carried out on pro rata basis. 26. Transmission Charges The transmission charges for use of the inter-State transmission system shall be recovered from the long-term customers and the medium-term customers in accordance with terms and conditions of tariff specified by the Commission from time to time: Provided that if the State network is also being used in the access as a part of inter-State transmission system for the conveyance of electricity across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-State transmission of electricity, recovery of charges for such State network and terms and conditions thereof shall be in accordance with the regulation as may be specified by the Commission under section 36 of the Act for intervening transmission facilities, if such charges and terms and conditions cannot be mutually agreed upon by the licensees; Provided that any disagreement on transmission charges for such State network as specified above, shall not be the sole reason for denying access and either party may approach the Commission for determination of transmission charges for such State network. 27. Detailed Procedure (1) Subject to the provisions of these regulations, the Central Transmission Utility shall submit the detailed procedure to the Commission for approval within 60 days of notification of these regulations in the Official Gazette: Provided that prior to submitting the detailed procedure to the Commission for approval, the Central Transmission Utility shall make the same available to the public and invite comments by putting the draft detailed procedure on its website and giving a period of one month to submit comments; Provided further that while submitting the detailed procedure to the Commission, the Central Transmission Utility shall submit a statement indicating as to which of the comments of stakeholders have not been accepted by it along with reasons thereof. (2) The detailed procedure submitted by the Central Transmission Utility shall, in particular, include (a) The proforma for the connection agreement, referred to in clause (5) of regulation 8 above. (b) The proforma for the long-term access agreement referred to in regulation 15 above:
================================================================================== ERLDC::POSOCO
72
Provided that the Transmission Service Agreement issued by the Central Government as part of standard bid documents for competitive bidding for transmission in accordance with section 63 of the Act shall be a part of this Agreement along with necessary changes; Provided further that in case transmission system augmentation is undertaken through the process of competitive bidding in accordance with section 63 of the Act, the Transmission Service Agreement enclosed as part of bid documents shall be used as a part of the proforma agreement to be entered into between the applicant and the Central Transmission Utility for long-term access. (c) The time line for phasing of construction/modification of the transmission elements by the Central Transmission Utility/transmission licensee, as the case may be, and the coming up of generation facilities or facilities of bulk consumer, as the case may be, so as to match the completion times of the two; Provided that the time period for construction of the transmission elements shall be consistent with the timeline for completion of project included as Annexure-II to the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009. (d) Aspects such as payment security mechanism and bank guarantee during the period of construction and operation: Provided that the bank guarantee during construction phase shall not exceed Rs. 5 lakh per MW of the total power to be transmitted by that applicant through inter-State transmission system. (e) The proforma for the medium-term open access: agreement, referred to in the second proviso to clause (1) of regulation 21 above. (f) Provisions for collection of the transmission charges for inter- State transmission system from the long-term customers or medium-term customers, as the case may be, by the transmission licensee or the Central Transmission Utility as and when so designated in accordance with the first proviso to clause (1) of regulation 29 hereof and disbursement to the Central Transmission Utility and/or the transmission licensees as the case may be. 28. Fees and charges for the Regional Load Despatch Centre and the State Load Despatch Centre (1) The fees and charges for the Regional Load Despatch Centre including charges for the Unified Load Despatch and Communication Scheme shall be payable by the long-term customer and medium-term customer as may be specified by the Commission. (2) The fees and charges for the State Load Despatch Centre shall be payable as applicable. 29. Payment of transmission charges and Fees and Charges for the Regional Load Despatch Centre (1) The transmission charges in respect of the long-term customer and medium-term customer shall be payable directly to the transmission licensee: Provided that the Central Transmission Utility may be designated by the Commission as the agency for the purpose of collecting and disbursing the transmission charges for inter-State transmission system;
================================================================================== ERLDC::POSOCO
73
Provided further that when the Central Transmission Utility is so designated as the agency as aforesaid, the transmission charges shall be paid to it; Provided also that the Central Transmission Utility shall enter into agreements with the long-term customers and medium-term customers for collection of transmission charges and with the transmission licensees whose inter-State transmission system is being used, for disbursement of transmission charges as received, pro rata to the transmission charges payable to the transmission licensees and to the Central Transmission Utility; Provided also that the Central Transmission Utility shall be entitled to reimbursement of reasonable costs incurred by it in collecting the transmission charges of the other transmission licensees, as approved by the Commission. (2) The fees and charges for Regional Load Despatch Centres (including the charges for Unified Load Despatch Scheme) and State Load Despatch Centres shall be payable by the long-term customer and medium-term customer directly to the Regional Load Despatch Centre or the State Load Despatch Centre concerned. 30. Unscheduled Inter-change (UI) Charges (1) Scheduling of all transactions pursuant to grant of long-term access and medium-term open access shall be carried out on day-ahead basis in accordance with the Grid Code. (2) Based on net metering on the periphery of each regional entity, composite accounts for Unscheduled Interchanges shall be issued for each regional entity on a weekly cycle: Provided that Unscheduled Inter-changes accounting for intra-State entities shall not be carried out at the regional level. (3) The State utility designated for the purpose of collection or disbursement of the Unscheduled Interchanges charges from or to the intra- State entities shall be responsible for timely payment of the States composite dues to the regional Unscheduled Interchanges Pool Account Fund. (4) 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 State Load Despatch Centre and covered in the intra-State Unscheduled Interchanges accounting scheme. (5) Unless specified otherwise by the State Commission concerned, the Unscheduled Interchanges rate for intra-State entity shall be 105% (for overdrawals or under generation) and 95% (for under-drawals or over generation) of the Unscheduled Interchanges rate at the periphery of regional entity. 31. Transmission Losses The buyers of electricity shall bear apportioned losses in the transmission system as estimated by the Regional Power Committee. 32. Redressal Mechanism All disputes arising out of or under these regulations shall be decided by the Commission on an application made in this behalf by the person aggrieved. INFORMATION SYSTEM
================================================================================== ERLDC::POSOCO
74
33. Information System The nodal agency shall post the following documents / information on its website in a separate web-page titled Long-term access and Medium-term open access information: (a) These regulations; (b) Detailed procedure; (c) List of applications, separately, for long-term access and medium-term open access received by the nodal agency along with necessary details. (d) Separate lists for long-term access and medium-term open access granted, indicating(i) Name of customers; (ii) Period of the access granted (start date and end date); (iii) Point or points of injection; (iv) Point or points of drawal; (v) Transmission systems used (in terms of regions and States); (vi) Capacity (MW) for which access has been granted. (e) List of applications where approval for connectivity or long-term access or medium-term open access, as the case may be, has not been granted along with reasons thereof. Provided further that it shall be a constant endeavour of the nodal agency to take steps in accordance with the requirements herein to provide as much information suo motu to the public at regular intervals through various means of communications, including internet, so that information is disseminated widely and in such form and manner which is easily accessible to the public. MISCELLANEOUS 34. Repeal and Savings (1) On commencement of these regulations, Regulation No.s 4(1)(a), 4(ii), 5(i), 6(i), 7, 8(i), 9, 10, 11, 12, 16(i), 18, as far as it applies to long-term customers, and 31(i) of the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004, shall stand repealed. (2) Notwithstanding anything contained in clause (1), long-term access granted in accordance with the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall continue to be valid till the expiry of the term of longterm access. 3.3] Important Addendum to the regulations vide CTU procedures The detailed procedures including formats for Grant of connectivity , Long Term access and medium Term open Access are available at CTU website www.powergridindia.com . Some of the relevant extracts are detailed below: Procedure for Grant of connectivity to ISTS
================================================================================== ERLDC::POSOCO
75
1.4 The applicant (Generator/bulk consumer) already connected to grid (regional or state grid) or for which connectivity is already granted under the present arrangement, shall not be allowed to apply for additional connectivity for the same capacity. In case of extension of capacity of generator or bulk consumer, however, it shall be required to make application for connectivity as per the provisions of these procedures. 1.5 The nodal agency for grant of Connectivity, Long-term access and Medium-term open access to the inter-state transmission system shall be the CTU i.e. Power Grid Corporation of India Limited (POWERGRID). 1.6 Applicant granted Connectivity will be required to sign Connection Agreement with CTU prior to the physical inter-connection. In case the connectivity is granted to the ISTS of an inter-State transmission licensee other than the CTU, a tripartite Procedure for making application for Grant of Connectivity in ISTS agreement shall be signed between the applicant, the Central Transmission Utility and such inter-State transmission licensee, in line with the provisions of the Regulations. After signing of the Agreement, Nodal Agency will provide a copy of the same to concerned SLDC/RLDC. 2. INFORMATION REQUIRED TO BE SUBMITTED WITH THE APPLICATION FOR CONNECTIVITY BY GENERATING STATION 2.1 In order to assess preparedness of applicant making application for the connectivity to the ISTS, an applicant is required to submit along with its application, documents in support of having initiated specific actions for project preparatory activities in respect of matters mentioned in (i) to (v) below. i) Site identification and land acquisition: The applicant shall inform land required for the generation project along with extent to which the same have been acquired and taken possession of. The Requirement of land would be considered as indicated in the proposal filed with the competent authority for seeking environmental clearance. In case of land to be acquired under the Land Acquisition Act 1894, the applicant shall submit copy of notification issued for such land under Section 4 of the Land Acquisition Act 1894. In all other cases, the applicant shall furnish documentary evidence in the form of certificate by concerned and competent revenue / registration authority for the acquisition / ownership / vesting of the land. ii) Environmental clearance for the power station: The applicant shall have to inform status on submission of requisite proposal, for the environmental clearance, to the concerned administrative authority (first level submission). iii) Forest Clearance (if applicable) for the land for the power station: The applicant shall have to inform status on submission of requisite proposal, for the forest clearance, to the concerned administrative authority (first level submission). iv) Fuel Arrangements: Details on fuel arrangements shall have to be informed for the quantity of fuel required to generate power from the power station for the total Procedure for making application for Grant of Connectivity in ISTS installed capacity intended for connectivity.
================================================================================== ERLDC::POSOCO
76
v) Water linkage: The applicant shall inform the status of approval from the concerned state irrigation department or any other relevant authority for the quantity of water required for the power station. These evidences shall be supported by a sworn in affidavit by the generation project developer as per the format given at FORMAT-CON-1. 3. SUBMISSION OF APPLICATION 3.5 All applications received during the month shall be treated to have been made concurrently. 5. GRANT OF CONNECTIVITY 5.1 On receipt of the application, the CTU shall, in consultation and through coordination with other agencies involved in inter-state transmission system to be used, including State Transmission Utility, if the State network is likely to be used, process the application and carry out the necessary inter-connection study as specified in the Central Electricity (Technical Standards for Connectivity to the Grid) Regulations, 2007. 5.2 The intimation for grant of connectivity shall be communicated to the applicant within 60 days from last day of the month in which the application has been received as per FORMAT-CON-3. 5.3 Applicant given intimation for Connectivity to the grid shall have to furnish additional details to CTU for signing of Connection Agreement as per format given at FORMAT-CON4, These details are to be furnished to CTU at least 2 (two) years prior to physical interconnection, unless otherwise indicated by CTU. The Applicants are, however advised to furnish such details as early as possible for enabling them have lead time for any type of access. 5.4 The CTU will process the above information and will intimate the Connection details as per format given at FORMAT-CON-5. Pursuant to such Connection details, the applicant shall have to sign Connection Agreement with CTU prior to the physical inter-connection as per format given at FORMAT-CON-6. In case the connectivity is granted to the ISTS of an interState transmission licensee other than the CTU, a tripartite agreement shall be signed between the applicant, the Central Transmission Utility and such inter-State transmission licensee, in line with the provisions of the Regulations. After signing of the Agreement, Nodal Agency will provide a copy of the same to concerned SLDC/RLDC. 6. INTERCHANGE OF POWER WITH THE ISTS 6.3. The Generating Station including Captive Generating Station shall submit likely date of synchronization, likely quantum and period of injection of infirm power before being put into commercial operation to the SLDC and RLDC concerned at least one month in advance. 7. CONSTRUCTION OF DEDICATED TRANSMISSION SYSTEM 7.1. An applicant may be required by the CTU to construct a dedicated system to the point of connection to enable connectivity to the grid which shall be owned, operated and maintained by the applicant. 7.2. However, a thermal generating station of 500 MW and above and a hydro generating station or a generating station using renewable sources of Energy of 250 MW and above,
================================================================================== ERLDC::POSOCO
77
other than a captive generating plant, shall not be required to construct a dedicated line to the point of connection and such stations shall be taken into account for coordinated transmission planning by the CTU and CEA. 7.3. In all the cases where dedicated transmission system up to point of connection is to be undertaken by CTU / Inter-State Transmission licensee, the applicant after grant of connectivity shall sign transmission agreement as per the format given at FORMAT-CON-8 within one month of the grant of connectivity. Further applicant shall furnish Bank Guarantee (BG) for the amount EITHER (a) at the rate of Rs. 2.5 lakhs/MW (or such amount as amended from time to time, with the approval of the Commission)) if the connectivity requires transmission lines upto 20 kms OR (b) at the rate of Rs. 5 lakhs/MW (or amount as amended from time to time in the Regulations if the connectivity requires transmission lines more than 20 kms. The BG as per format given at FORMAT-CON-7 should be made in favour of CTU / Transmission licensee within one month of signing of transmission agreement with validity upto commissioning of above transmission system. In case application for Grant of Connectivity and Grant of Long Term Access are made concurrently or after a time gap, then the requirement of submission of above BG should be read in conjunction with the clause for Bank Guarantee of Rs. 5 lakhs per MW for construction/augmentation of transmission system under Procedure for Grant of Long Term Access. In such cases the total BG required to be submitted for both the construction of dedicated line as well as for augmentation of transmission system together, at any time, shall not exceed Rs. 5 Lakhs per MW. . The time frame for commissioning of above dedicated transmission system from the signing of BPTA would be 9 months plus the time lines as specified by CERC in tariff Procedure for making application for Grant of Connectivity in ISTS regulations or actual date of commissioning desired by the applicant and agreed to by the CTU, whichever is earlier. 7.4. If dedicated line is to be constructed and terminated by the applicant as per the Connection Agreement, the modifications at the connection point required to be under taken by CTU would be undertaken on deposit of estimated cost by applicant. In this case there shall be no requirement of BG. 7.5. Provided further that if the dedicated transmission system is also used by any other user(s) at a later date, then the transmission charges for above dedicated transmission system would be shared in proportion to the quantum of power injected by respective user into the grid, as per the system in vogue at that time. There are eight formats from CON1 to CON8 related to procedure for application, affidavits and Grant of connectivity. The same are available at website www.powergridindia.com Procedure for application for grant of MTOA to ISTS 9.3. The nodal agency for grant of MTOA shall be the CTU i.e. Power Grid Corporation of India Ltd.
================================================================================== ERLDC::POSOCO
78
The start date of MTOA can be any day of the month however, it shall not be earlier than 5 months and later than 1 year from the last day of the month in which application has been made . 9.4. MTOA is the right to use the ISTS for any period exceeding three months but not exceeding three years and shall be provided on the basis of availability of transmission capacity in the existing transmission system or transmission system under execution and likely to be available from the intended date of MTOA. In case of delay in commissioning of transmission system under execution considered for such grant, which was beyond the control of the CTU, then date of commencement of MTOA shall be extended upto the date of commercial operation of the above system.. 9.5. No augmentation of transmission system is envisaged for granting MTOA. Construction of dedicated transmission line shall not be construed as augmentation of the transmission system. 9.6. After receipt of application, any change either in timeframe, drawl/injection point or increase in quantum of power shall require submission of a fresh application and the already made application shall stand disposed off and its application fees forfeited. A power transaction involving combination of both multiple injections and one drawl point in case the MTOA is sought by a single bulk consumer shall not require filing of separate applications. 10. APPLICANTS FOR MTOA Application for MTOA can be made by a generating station including a captive generating plant, a consumer, an Electricity Trader or a distribution licensee, a State Government owning some quantum of power (like free power given to the State Government in which the hydro station is located, equity power given to a State for allowing a power station to be set up in the State), who desires to utilize ISTS for Inter state transfer of power, provided the power station from which the power is being sourced or the load, as the case may be, is already connected to the grid, whether the State grid or the inter-State grid, or is likely to get connected to the grid before the intended start date of MTOA. Documentary evidence needs to be submitted for establishing the condition of connectivity. Note: (i) consumer means any consumer eligible to avail open access as specified by the State Commission under sub-section (2) of section 42 of the Act. (ii) If the Applicant is an Electricity Trader, it must have a valid trading license as per CERC (Procedure, Terms and Conditions for grant of Trading License and Related matter) Regulations, 2009 and subsequent amendments thereof. The Trader must have a valid contract for buying and selling of at least the same quantum of power and period of time for which Medium-term Open Access has been applied for. (iii) There should exist required facility for metering and energy accounting at the point of injection and point of drawal., (iv) The trader shall submit a copy of valid trading license
================================================================================== ERLDC::POSOCO
79
(v) All applicants shall submit an affidavit stating that they have a valid contract along with a copy of the contract. 10.1. A generating station, including captive generating plant or a bulk consumer, seeking MTOA to the inter-State transmission system cannot apply for medium-term open access without applying for connectivity, in case it is not already connected to the grid. It may, however, apply for connectivity and medium-term open access simultaneously. The interconnection, as finalized by CTU, however, should be available from the intended start date of MTOA, for which documentary evidence w.r.t. the condition of connectivity has to be submitted. Medium-term customer may arrange for execution of the dedicated transmission line at its own risk and cost before the start date of the MTOA. 11. INFORMATION / DATA TO BE FURNISHED ALONG WITH THE APPLICATION 11.1. The information in the application shall be supported by a sworn in affidavit by the applicant as per the format given at FORMAT-MTOA-1. 11.2. The application for MTOA shall be made as per the enclosed application format (FORMAT-MTOA-2) and shall include details like quantum of power to be injected at the suppliers point, details of injection & drawl points, time period from and upto which access is required, the source of power, clearance from respective SLDCs for intra state entities etc. and other details as sought in the application format. 12. CONCURRENCE FROM SLDC / SLDCS 12.1. If a State Utility or an intra state entity is applying for MTOA, concurrence of the concerned State Load Dispatch Centres, both from injection and drawl point SLDCs is to be submitted along with the application in the enclosed format (FORMAT-MTOA-3). 12.2. Where necessary infrastructure required for energy metering and time- block-wise accounting already exists and required transmission capacity in the State network is available, and the applicant has a valid PPA for buying or selling power for the same quantum for which MTOA is sought, then the SLDC shall convey its concurrence to the applicant in writing within 10 (ten) working days of receipt of the application. 12.3. In case SLDC decides not to give concurrence, the same shall be communicated to the applicant in writing, giving the reason for refusal within 10 (ten) working days of receipt of the application.. 14.1. The start date of MTOA shall not be earlier than 5 months and later than 1 year from the last day of the month in which application has been made. 14.2. All applications shall be processed on first-come-first-served basis provided that the applications received during a month shall be construed to have come together on the last day of the month. For all the applications received during a month (1st month), CTU shall carry out the studies and circulate the results to the concerned STUs / RLDCs for seeking their comments by 15th day of the 2nd month. The comments on the studies shall be received upto 25th of the 2nd month. After reviewing the comments, the decision on grant of MTOA shall be intimated to the applicant as well as to concerned RLDCs/STUs by the 10th day of the 3rd month. The intimation shall be provisional and shall be applicable only after signing of necessary agreements and submission of requisite BG
================================================================================== ERLDC::POSOCO
80
14.3. Provided that while processing applications for MTOA received during a month, those seeking access for a longer time shall have a higher priority. 15. APPLICATION 15.1. Documents to be submitted alongwith the application: Duly filled in Application in specified format. Incomplete application shall be rejected. Proof of payment of Application fee Concurrence from SLDC / SLDCs as applicable. PPA or Sale-purchase agreement of power In case of generating station or consumer not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA 16. GRANT OF MTOA 16.1. The CTU shall notify the following on 31st day of March of each year: Total Transfer Capability (TTC) for 4 (four) years i.e. on 31st March, 2010, TTC shall be declared for period 1st April, 2011 to 31st Mar 2015. This may be revised by CTU due to change in anticipated network topology or change of anticipated generation or load at any of the nodes, giving reasons for such change. Transmission Reliability Margin considered along with basis. Available Transfer Capability (ATC) for MTOA will be worked out after allowing the already approved applications for Long-term access, Medium Term Open Access and Transmission reliability margin. The grant of MTOA shall be subject to ATC. 9.b. After the grant of MTOA, the applicant shall sign the agreement for sharing the transmission charges within 30 days of grant of MTOA, which will form a part of the mediumterm open access agreement (FORMAT-MTOA-5). The MTOA Agreement shall contain the quantum of power, date of commencement and end of medium-term open access, the point of injection of power into the grid and point of drawl from the grid, the details of dedicated transmission lines required, if any, and the bank guarantee required to be given by the applicant. c. After signing of the MTOA agreement, the applicant shall submit a Bank Guarantee (BG) to CTU/Transmission Licensee equivalent to estimated transmission charges of two months within 30 days from the grant of MTOA. The estimated average transmission charges would be reviewed every six months/MTOA period whichever is less and accordingly the amount of Bank Guarantee would be enhanced/reduced by Medium-term customers. d. The agreement for MTOA is to be signed by the applicant with the Central Transmission Utility in case medium-term open access is granted by the Central Transmission Utility. While seeking medium-term open access to an inter-State transmission licensee, other than the Central Transmission Utility, the applicant shall sign a tripartite MTOA agreement with the Central Transmission Utility and the inter-State transmission licensee. e. In case the MTOA agreement has not been signed or requisite bank guarantee has not been submitted by the applicant within the stipulated period, the grant of MTOA shall be
================================================================================== ERLDC::POSOCO
81
cancelled by the CTU and the same shall be informed to Applicant, concerned SLDCs/RLDCs and STUs. f. Immediately after grant of medium-term open access, the nodal agency shall inform the RLDCs and SLDCs concerned so that they can consider the same while processing requests for short- term open access received under Central Electricity Regulatory Commission (Open Access in inter-State transmission) Regulations, 2008 as amended from time to time. g. On the expiry of period of the medium-term open access, the medium-term customer shall not be entitled to any overriding preference for renewal of the term. 17. SCHEDULING OF MEDIUM TERM OPEN ACCESS TRANSACTION The scheduling jurisdiction and procedure, curtailment and revision of schedule of MTOA transactions, metering, energy accounting and accounting of (Unscheduled Interchange) UI charges shall be as per the Regulations and the Indian Electricity Grid Code, as amended from time to time. While scheduling on day-ahead basis, long-term access customers would have the highest priority, followed by medium term customers and then followed by shortterm customers. a. Underutilization of transmission capacity In case it is observed by RLDCs that the MTOA customer request for scheduling is consistently (for more than 5 days) lower than the capacity granted by the Nodal Agency (i.e.; CTU), RLDC may issue a notice to such MTOA customer asking the reasons for such under-utilization. The MTOA customer shall furnish the reasons for such under-utilization and will provide such details like the reduced requirement, likely period, etc. by the following day. The un-utilized transfer capability will then be released for scheduling of Short-term open access transaction. b. No refund of transmission charges shall be made due to above curtailment. 18. TRANSMISSION CHARGES 18.1. The transmission charges for use of the ISTS shall be recovered from the medium-term customers in accordance with terms and conditions of tariff specified by the Commission from time to time and the Regulations. If the State network is also being used in the access, recovery of charges for such State network and terms and conditions thereof, shall be in accordance with the regulation and as may be specified by the State Commission under Section 36 of the Act, if such charges and terms & conditions cannot be mutually agreed. 18.2. The transmission charges for inter-State transmission system shall be paid directly to the Central Transmission Utility or the inter-State transmission licensee as the case may be. 18.3. In case CTU is designated by CERC as the agency for the purpose of collecting and disbursing the transmission charges for inter-state transmission charges, CTU shall enter into agreements with the MTOA customers for collection of the charges and with the transmission licensees whose inter-state transmission system is being used, for disbursement of transmission charges as received, pro rata to the transmission charges payable to the transmission licensees and to the CTU. The Central Transmission Utility shall be entitled to administrative charge tfor this work as approved by the Commission.
================================================================================== ERLDC::POSOCO
82
18.4. For payment of monthly transmission charges, irrevocable revolving LC through a scheduled commercial bank in favour of Power Grid Corporation of India Ltd. equivalent to 105% of the average monthly transmission charges shall be opened by MTOA applicant 15 days before the commencement date of MTOA. LC should remain valid upto one month after MTOA period. Further the bank guarantee equivalent to 2 (two) months estimated average monthly billing would also be required to be furnished in favour of Power Grid Corporation of India Ltd, which would be in place 3 (three) months prior to the date of scheduled commencement of MTOA with validity upto 1 (one) month after the expiry of MTOA period. 18.5. The fees and charges for the Regional Load Despatch Centre including charges for the Unified Load Despatch and Communication Centre shall be payable by the medium-term customer directly to the Regional Load Despatch Centre or the State Load Despatch Centre concerned. 19. ENCASHMENT / DISCHARGE OF BANK GUARANTEE 19.1. The Bank Guarantee will be encashed in case the applicant defaults on payment of transmission charges. The Bank Guarantee shall be recouped and remain valid upto one month after MTOA period. 19.2. In case any request for downsizing the power transfer is received after signing of the BPTA and submission of Bank Guarantee, any adjustment of Bank Guarantee shall be carried out after expiry of the MTOA term. 20. EXIT/ DOWNSIZING 20.1. A customer who has been granted MTOA, may relinquish rights, fully or partly, by giving at least 30 days prior notice to the nodal agency, provided that the medium-term customer relinquishing its rights shall pay applicable transmission charges for the quantum of relinquishment, for the period of relinquishment or 30 days which ever is lesser. Further, the above compensation paid by medium-term customer shall be used for reducing transmission charges payable by other long-term customers and medium-term customers in the year in which such compensation payment is due in the ratio of transmission charges payable for that year by such long term customers and medium-term customers. 20.2. Once downsizing request has been accepted by CTU, an intimation of MTOA for the reduced power shall be issued and the same shall be informed to Applicant, concerned SLDCs/RLDCs and STUs. Any increase thereafter, either in timeframe or quantum shall require submission of a fresh application. There are five formats MTOA1 to MTOA5 for application and approval of MTOA by CTU. Procedure for grant of Long Term Access 22.4. Application for LTA can be made by a Generating station including a captive generating plant, a consumer, an electricity trader or distribution licensee, a State Government owning some quantum of power (like free power given to the State Government in which the hydro station is located, equity power given to a State for allowing a power station to be set up in the State). However the power station from which the power is being sourced or the load,
================================================================================== ERLDC::POSOCO
83
as the case may be, should (i) already be connected to grid, whether the State grid or the inter-State grid, or (ii) have already been granted permission for connectivity to the grid or (iii) have already applied for connectivity to the grid or (iv) be making application for connectivity to the grid simultaneously with this application in line with the Regulations. Note: (i) consumer means any consumer eligible to avail open access as specified by the State Commission under sub-section (2) of section 42 of the Act. (ii) If the Applicant is an Electricity Trader, it must have a valid trading license as per CERC (Procedure, Terms and Conditions for grant of Trading License and Related matter) Regulations, 2009 and subsequent amendments thereof. The Trader must have a valid contract(or PPA) for buying and selling of at least the same quantum of power and period of time for which Long-term Access has been applied for. (iii) The tradershall submit a copy of valid trading license (iv) All applicants shall submit an affidavit stating that they have a valid contract along with a copy of the contract. 22.5. LTA can be availed for any period between 12 years to 25 years and might require construction of new transmission capacities. 22.6. In line with para-12 and para-33(d) of the Regulations, LTA shall be granted for a given capacity from defined point of injection to a defined point of drawl. Accordingly, in the application for LTA, the applicant shall be required to indicate location of the load point on the grid of the entity or entities to whom electricity is proposed to be supplied and the location of the source point on the grid of the entity from whom electricity is proposed to be sourced, along with the quantum of power to be transferred. 22.7. (i) In case, however, entity or entities to whom electricity is proposed to be supplied or from whom electricity is proposed to be procured along with the quantum of power have not been firmed up at the time of application, the applicant shall indicate the target region(s) along with quantum of power to be supplied to the region(s). (ii) In such cases, the applicant shall have to firm up exact source of supply or destination, as the case may be, at least 3 years prior to the intended date of availing long term access at least for a capacity equivalent to 50% of the quantum of power for which LTA has been sought for through signing of PPA with such grid connected entity(ies)/ State Utilities. (iii) The augmentation of the transmission system as identified for grant of LTA shall be undertaken only after fulfillment of above condition. In case a common system augmentation/strengthening has been identified for more than one generator, then the above condition of signing of PPA for at least 50% of LTA sought for, with the grid connected entity(ies)/ State Utilities, shall have to be met by all the generators. (iv) In the event of failure of any generator meeting above condition of 3 years prior to the intended date of availing long term access, the implementation of augmentation/strengthening of system shall be undertaken in due consideration of the same and if necessary with the approval of CERC for the same.
================================================================================== ERLDC::POSOCO
84
(v) For the balance capacity (not exceeding 50% of LTA sought for) for which exact source of supply or destination could not be firmed up on long-term basis, the augmentation/system strengthening further from the target region shall be taken up only after identification of exact source/destination. CTU shall be allowed up to 3 years time for such augmentation/system strengthening from the target region to the exact source/destination. During such period the applicant shall be liable to pay the transmission charges up to the target region. (vi) Payment of such transmission charges for the balance capacity for which exact source on long term basis is not known, shall not entitle the applicant any right over the transmission system up to the target region and CTU may release this balance transmission capacity up to target region for short-term open access or the medium term open access till the applicant firms up source/destination on long-term basis and its operationalisation. (vi) However, applicant may seek short-term open access or the medium term open access separately till such time it gets long-term access for the balance capacity as any other shortterm open access customer or the medium term open access customer. Note: LTA applicant shall keep in view that it takes about 9 months for pre-investment activities and in addition construction time for the transmission project as given in the CERC (Terms and Conditions of Tariff)Regulations, 2009. Therefore, Applicant should expedite the finalization the beneficiaries and intimate to CTU. The date of commencement of LTA shall be applicable from at least 3 years and 9 months (9 months time required for project preparation and investment approval) from firming up beneficiaries and signing of BPTA with them. 23. SUBMISSION OF APPLICATION 23.1. The LTA applicant (hereinafter referred to as applicant) intending to avail LTA in ISTS shall make an application in prescribed format [FORMAT-LTA-2] to the Nodal Agency(CTU) i.e, POWERGRID in a sealed envelope marked Application for grant of long-term access in ISTS, alongwith a prescribed format [FORMAT-LTA-1] of affidavit duly attested by notary. 23.2. In case of generator or consumer, along with the application of LTA, the applicant shall submit the details of approved connectivity of the generator or consumer with grid point(s) or furnish the information about the connectivity application already submitted to the nodal agency. 23.3. In case an intra-State entity is applying for LTA, concurrence of concerned State Transmission Utilities of states having injection and drawl points shall be obtained in advance in the prescribed format [FORMAT-LTA-3] and attached with the application. 23.5. Application shall also be accompanied by a bank guarantee of Rs. 10,000/- (Rupees ten thousand only) per MW of the total power to be transmitted. The bank guarantee shall be in favour of Power Grid Corporation of India Ltd. The bank guarantee of Rs. 10,000/- (Rupees ten thousand only) per MW shall initially be valid for one year and shall be revalidated, if required, till the execution of the long-term access agreement (in case when augmentation of transmission system is required) or till operationalisation of long-term access (in cases when augmentation of transmission system
================================================================================== ERLDC::POSOCO
85
is not required) as per format given at FORMAT-LTA-4. The aforesaid bank guarantee will stand discharged with operationalization of long-term open access, when augmentation of transmission system is not required or the submission of appropriate bank guarantee required to be given by the applicant to the CTU during construction phase when augmentation of transmission system is required , as the case may be. The bank guarantee may be encashed by the nodal agency, (i) if the application is withdrawn by the applicant or (ii) the long-term access rights are relinquished prior to the operationalisation of such longterm access when augmentation of transmission system is not required. (iii) If the applicant fails to sign the Long Term Access Agreement with CTU or a tripartite agreement with CTU and transmission licensee, as the case may be, and fails to furnish appropriate BG for construction phase, within stipulated time as indicated in the intimation letter. (iv) If the applicant fails to revalidate the earlier furnished BG at least 30 days prior to its expiry. (v) If the applicant fails to firm up beneficiaries in terms of clause 22.7, 3 years prior to intended date of Long Term Access. Genuine requests for extension of time shall be suitably accommodated on merit upon furnishing of documentary evidence(s). 24. PROCESSING OF APPLICATIONS 24.1. Assessing the adequacy of transmission capacity/system strengthening requirement 24.1.1. The applications shall be processed on first-come-first-served basis. The applications received during a month and upto the last day of the month shall be construed to have arrived concurrently. In case of applications received by post, the date of receipt of application at POWERGRID office shall be considered as the date of application. 24.1.2. The nodal agency i.e, POWERGRID shall carry out system studies in ISTS to examine the adequacy of the transmission system corresponding to the time frame of commencement of long-term access to effect the desired transaction of power on long-term basis, using the Available Transfer Capability (ATC). i. The study may reveal that: a) Transmission system commissioned / planned in the time frame of desired long-term access is adequate and separate system strengthening is not required for effecting desired long-term access. In such cases the nodal agency shall prepare proposal for grant of longterm access and forward the same to respective constituents of concerned region(s), CEA and the applicant. This proposal shall be discussed and formalized in the regional transmission planning forum and RPC of the concerned region(s). The intimation for grant of LTA as per the provisions of Regulations shall be communicated to the applicant and RLDC/NLDC within 120 days from the date of application as per the Regulations with copy to all the constituent States of the region(s) involved, transmission licensee (if any), concerned RPC(s) and CEA.
================================================================================== ERLDC::POSOCO
86
b) There is a constraint in transmission system expected to be available by the time frame of commencement of desired long-term access and system strengthening is necessary for effecting desired transaction. The nodal agency shall carry out studies to identify system strengthening in accordance with the perspective plans made by the CEA covering all aspects of IEGC. Such transmission system augmentation planning shall be considered on 30th of June and 31st of December in each year in order to develop a coordinated transmission plan. The applications received during 1st half of the calendar year shall be considered together by 30th June and finalized by 31st Dec of the same calendar year. Similarly application received during the 2nd half of the calendar year shall be considered together by 31st December and finalized by 30th June of the next calendar year. The intimation for grant of LTA as per the provisions of Regulations shall be communicated to the applicant and RLDC/NLDC with copy to all the constituent States of the region(s) involved, transmission licensee (if any), concerned RPC(s) and CEA. If there is more than one application for long-term access in the same complex in similar time frame, the nodal agency shall undertake joint studies and prepare a consolidated proposal for transmission system strengthening. ii. While granting long-term access in ISTS, the nodal agency shall communicate to the applicant, the date from which long-term access is granted and an estimate of the transmission charges likely to be payable based on the prevailing costs, prices and methodology of sharing of transmission charges specified by CERC. The time frame of the construction of the facilities of the applicant and the CTU shall be clearly laid out, so as to match the two as closely as possible, for optimum utilization of resources. b. Confirmation of reservation of transmission capacity i. Where system strengthening is not required (i) The nodal agency shall confirm grant of long-term access on format [FORMAT-LTA-5] within 120 days from the month in which application was received with direction to the applicant to enter into Bulk Power Transmission Agreement (BPTA) with POWERGRID within thirty days. (ii) The applicant shall sign a long-term access agreement (FORMAT-LTA-6A) with POWERGRID. In case transmission system of inter-State transmission licensee other than CTU is used, the applicant shall sign a tripartite long-term access agreement with POWERGRID and inter-State transmission licensee. ii. Where system strengthening is involved (i) The nodal agency shall carry out system studies and identify the system strengthening requirement including transmission voltage level, conductor configuration, broad cost estimates, expected commissioning schedule etc. in consultation with CEA and respective regional constituents. (ii) The nodal agency shall intimate grant of long-term access on format [FORMAT-LTA-5] indicating identified system strengthening with direction to the applicant to enter into Longterm access agreement Bulk Power Transmission Agreement (BPTA) with CTU within thirty days.
================================================================================== ERLDC::POSOCO
87
(iii) The applicant shall sign a long-term access agreement with POWERGRID. In case transmission system of inter-State transmission licensee other than CTU is used, the applicant shall sign a tripartite long-term access agreement with POWERGRID and the interState transmission licensee. (iv) The nodal agency may change system strengthening requirements identified for a particular applicant project on the basis of any subsequent study carried out on its own motion or on another application for LTA, with the purpose of optimum utilization of the transmission system or to conserve limited right-of-way, and in such event, the changes carried out by the nodal agency shall be intimated to the applicant, or any other person associated with the LTA. Provided that the optimized system shall not work to the disadvantage of the applicant. (v) Applicant shall submit construction phase bank guarantee of Rs. 5 lakh per MW for the quantum of long-term access sought. In case application for Grant of Connectivity and Grant of Long Term Access are made concurrently or after a time gap, and construction of dedicated line is not required to be constructed by the applicant but by the CTU/inter-State transmission licensee(for a thermal generating station of 500 MW and above and a hydro generating station of 250 MW and above, other than a captive generating plant), as per provisions of the Regulations, then the total BG required to be submitted for both the construction of dedicated line as well as for augmentation of transmission system shall together, at any time, not exceed Rs. 5 Lakhs per MW. (vi) In case of applicants who have already firmed up the entity or entities to whom electricity is proposed to be supplied or from whom electricity is proposed to be procured for the entire quantum of power for which LTA has been sought through signing of PPA or, in the case of Inter-State Generating Stations owned by the Central Government or Ultra Mega Power Projects coming up through the initiative of the Central Government, allocation of power to various beneficiaries as notified by it, then the applicant shall not be required to submit Bank Guarantee(BG) with the application form or the Construction Stage BG. In such cases, however, the augmentation of the transmission system as identified for grant of LTA shall be undertaken only after agreement of the beneficiaries in Standing Committee on Power System Planning/Regional Power Committee for bearing its transmission charges. The applicant shall submit a copy of PPA or notification made by Govt. of India, whichever is applicable. The long-term access agreement, may, in such cases be directly signed by the beneficiaries with the CTU or tripartite agreement with the CTU and ISTS, as the case may be. 25. BULK POWER TRANSMISSION AGREEMENT (BPTA)/TSA)(Transmission Service Agreement) 25.1. Bulk Power Transmission Agreement (BPTA)/TSA shall be signed by the applicant with POWERGRID(ii). The applicant shall sign a tripartite long-term access agreement with POWERGRID and inter-State transmission licensee, in case long-term access to an interState transmission system belonging to a inter-State transmission licensee other than CTU is
================================================================================== ERLDC::POSOCO
88
granted. This agreement shall be signed within time communicated to the customer under sub-clause 4.1(i) or under sub-clause 4.2(ii). 25.2. For execution of work where system strengthening is involved, the parties should note the following: (i) The implementation of respective system strengthening works shall be taken up by POWERGRID/concerned licensee/applicant/any other agency identified by the Empowered committee after signing of BPTA for timely commissioning and operation as per provision of BPTA. (ii) The applicant/concerned licensee shall furnish progress of implementation of the respective generation project/system strengthening scheme, as applicable on quarterly basis to the nodal agency. Any other necessary execution or submission of information as per provisions of BPTA shall also be complied. In case POWERGRID is executing the works, POWERGRID shall inform the applicant of the progress being made for system strengthening. (iii) The applicant/concerned licensee shall inform, in writing, at least ninety days ahead of scheduled date of commissioning and commercial operationalisation of their generation project/system strengthening scheme, as applicable to POWERGRID with copy to RLDC/NLDC and other concerned/affected persons. (iv) Based on information received above, the nodal agency shall confirm the applicant and concerned licensees at least sixty days ahead of scheduled date of commencement of longterm transaction and direct the applicant to: a) Establish adequate payment security within fifteen days; and b) Submit a request for scheduling of transaction to RLDC/NLDC within fifteen days. (v) Whenever any equipment and/or drawing are proposed to be changed, then the applicant or licensee shall intimate necessary changes to the nodal agency. When changes are implemented, revised single line diagram shall be submitted by the applicant or licensee to the nodal agency. 27. TRANSMISSION SYSTEM CONSTRAINTS 27.2. In case of curtailment of capacity by RLDC/NLDC, transmission charges payable shall remain unaffected. 28. Renewal of Term for Long-term access 28.1. On the expiry of the period of long-term access, the long-term access shall stand extended on a written request provided by the long-term customer in this regard to the Central Transmission Utility mentioning the period for extension that is required. 28.2. Further, such a written request shall be submitted by the long term customer to the Central Transmission Utility at least six months prior to the date of expiry of the long-term access. In case no written request is received from the long-term customer within the timeline specified above, the said long-term access shall stand withdrawn. 31. TREATMENT OF PRESENT LONG TERM OPEN ACCESS APPLICATIONS ALREADY MADE TO CTU
================================================================================== ERLDC::POSOCO
89
31.1. In line with the repealed regulations of Central Electricity Regulatory Commission (Open Access in Inter-state Transmission) Regulations, 2004, CTU has received numerous applications for Long Term Open Access. 1. Long Term Open Access Application where no system strengthening is required: (i) The Long term open access already granted and have become operational shall continue to remain valid till the expiry of long term access. (ii) The Long term open access already granted and BPTA has been signed but yet to become operational shall continue to remain valid till the expiry of long term access. (iii) The Long term open access already granted and BPTA is yet to be signed shall have the option either to continue with the provisions of Regulations 2004 or to adopt the new Regulations, 2009. In such cases, if applicant opts for continuing with provisions of earlier regulation then he shall have to abide by clauses pertaining to Exit option, Early Relinquishment of Access Rights, Construction of dedicated line etc of the earlier Regulation, 2004 only. Further, the applicant shall have to sign BPTA within 3 months. However, in case applicant opts for adoption of provisions of new regulation, 2009 then he shall have to give declaration to this effect complying with provisions of the new regulation (without Application fees) within 3 months from approval of these procedures. In the event of failure to respond by applicant, in either of the cases, the already granted LTOA shall stand cancelled and they would be required to apply afresh as per the provision of the new Regulations, 2009. 2. Long Term Open Access Application where system strengthening is required: A large number of LTOA applications were found to require strengthening of transmission system to enable transfer of power to the target/intended beneficiaries indicated by the applicants in their applications. Such transmission system strengthening was evolved after detailed studies in consultation with CEA, constituents of concerned regions and the applicants. The implementation of finalized transmission system require many preinvestment project preparation activities like survey, land identification, preparation of DPR including cost estimates, tendering activity like issuance of NIT, opening/evaluation of bids etc. These project prepration activities require substantial time For large number of IPPs coming in different area like Orissa, Sikkim, Chattisgarh, Andhra Pradesh, Tamil Nadu, POWERGRID have initiated such activities after grant of LTOA/finalization of transmission system so as to get lead time To enable unhindered development of transmission system necessary for LTOA projects, POWERGRID have gone ahead with such activities with the tentative/target beneficiaries given by the LTOA applicants. Further, to ensure seriousness of IP developers for POWERGRID to undertake initial activities, POWERGRID have initiated the draft Long term Agreement, pending its finalization by CERC, incorporating provisions for furnishing BG by the applicants. However, now before initiating physical implementation and making actual investment it is necessary that firm beneficiaries are identified by the IPP developers so that POWERGRID may sign BPTA with the beneficiary States and take investment decisions. Accordingly,
================================================================================== ERLDC::POSOCO
90
applications for which LTOA applications where strengthening of transmission system is envisaged are proposed to be treated in the following manner: (i) The Long term open access already granted and BPTA has been initialed between generation developers and POWERGRID, like Orissa, or yet to be signed/initialed and become operational, shall have to inform firm beneficiaries in terms of para 22.7 of the detailed procedure atleast 3(three) years prior to the commencement date of open access. If applicant is already completed this time-period, then he shall have to firm up and inform firm beneficiaries in terms of para 22.7 of the detailed procedure alongwith the supporting documents (as explained in the detailed procedure for long term access) within 6 (Six) months of approval of detailed procedure by CERC. (ii) The Long term open access already granted and BPTA is yet to be signed/initialed, applicant shall have to inform firm beneficiaries in terms of para 22.7 of the detailed procedure atleast 3(three) years prior to the commencement date of open access. If applicant is already within this time-period then he shall have to firm up and inform firm beneficiaries in terms of para 22.7 of the detailed procedure alongwith the supporting documents as explained in the detailed procedure for long term access within 6(Six) months of approval of detailed procedure by CERC. (iii) Applications which are under process and who have already given the consultancy charges for evolution of transmission system strengthening shall be required to apply afresh without giving the application fees and clearly indicating the quantum of power for connectivity and/or for Long Term Access separately. They shall however, not be required to furnish application Bank Guarantee of Rs. 10,000/- per MW for the quantum of power for which Long term Access has been sought. However, they shall also be required to submit the various documents as prescribed in the detailed procedure for connectivity/Long term Access. (iv) Applications which are under process and for which the consultancy charges for evolution of transmission system strengthening have not been either paid to or demanded by POWERGRID shall have to apply afresh as per the detailed procedure for connectivity/LTA. *************
================================================================================== ERLDC::POSOCO
91

Conn, Lta, Mtoa, Stoa

Uploaded by

Copyright:

Available Formats

Conn, Lta, Mtoa, Stoa

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Conn, Lta, Mtoa, Stoa

Uploaded by

Copyright:

Available Formats

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

POWER SYSTEM OPERATION CORPORATION ERLDC ::KOLKATA

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

Chapter-1 Evolution of the Regional Grids and Power Markets

Five Isolated regional Grids

October 1991 East and Northeast synchronized

August 2006 North synchronized With Central Grid

Beyond 2013 All India Grid & SARC Grid

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

OPEN ACCESS 2004

POWER EXCHANGES 2008

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

Affidavit by Applicant in case of non-concurrance by SLDCs

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11 ==================================================================================