6 Consumer Expectations Reliable & Quality PowerFaster Fault RemovalConsumer RelationshipEasy Mechanism of Attribute ChangeQuick Grievance RedressalCorrect BillingPaymentsConvenienceEasy New ConnectionTransparent MetersReadingWe Interact, We Listen, We Learn, We Act….
7 GLOBALIZATION COMPETE or PERISH Cut-Throat competition Pressure on BottomlinesCostreductionkey forsurvivalPoweramajorinputAre INDIAN INDUSTRIES prepared for GLOBAL COMPETITION?
8 RELIABLE AND GOOD QUALITY POWER NOW INDUSTRY DEMANDSRELIABLE AND GOOD QUALITY POWERATAFFORDABLE COSTTO REMAINGLOBALLY COMPETITIVE INDUSTRIAL ENVIRONMENT & CLAIM CARBON CREDITS WITH LOWERED GHG EMISSIONS
10 POWER is definitely the KEY DRIVER of the economy POWER is definitely the KEY DRIVER of the economy. THE INDUSTRIAL POLICY will prove to be effective, only if, there is good power availability. The Sector will not only draw investment but also provide employment to many and further durability to the economy.
22 ISSUES IN OPEN ACCESS IMPLEMENTATION ACROSS VARIOUS STATES OF INDIA
23 CONTENTS OPEN ACCESS ISSUES IN Delhi Uttar Pradesh Maharashtra Himachal PradeshUttarakhandRajasthanHaryanaPunjabGujaratMadhya Pradesh
24 To create a market for supply by competing generators and encourage investments in generation Open access in transmission will promote competition and will lead to availability of cheaper reliable power supplyTo ensure that consumers receive adequate supply while at the same time distribution licensee improves its performanceOptimum Utilization of Transmission networkCreation of an all-India market
25 ISSUES IN OPEN ACCESS IMPLEMENTATION DISCOMS are misinterpreting the Regulations/order of DERCNot allowing OA consumer for partial drawl from the licensee.Mis-interpretation of RegulationsState is imposing compulsory obligation on all Open Access consumers to bid for all 24 hours of the day.Compulsory ObligationExtreme high additional surcharge of Rs. 3/kWh for all 24 hrs for the months from August to November.This was the suo motu determination of additional surcharge by DERC.High Additional Surcharge
27 ISSUES IN OPEN ACCESS IMPLEMENTATION Hon'able UPERC has notified the open access regulations in 2009 but till now inter-state open access in UP has not been started.SLDC’s contention is that they are not equipped with inter-state ABT accounting and hence, open access cannot be allowed in UP.Implementation of inter-state open access in the state
29 ISSUES IN OPEN ACCESS IMPLEMENTATION Open Access consumer is denied Open Access permission by MSEDCL and the matter approached before MERC for seeking directions of Commission in this matter.Hon'able MERC decided that there is operational difficulty in granting open access to consumer and hence, the decision of MSEDCL is not a contravention to any of the Regulations/ provisions of the Act.Discriminatory denial of Open Access to OA ConsumersNon cleared OA power on Exchange platform will not be allowed to draw from the licensee despite the consumer is adhering to its contract demand.Surrender of Contract Demand
30 High Cross-subsidy Surcharge CONTINUEDRange of Cross-subsidy Surcharge for expressed feeder is ( ) Rs./KWh & ( ) Rs./KWh for non-expressed feeders in Maharashtra for 33 KV & 66 KV & above users, due to which OA consumers are unable to make any profit through Exchange.High Cross-subsidy SurchargeIndustrialists in the state are completely dismayed by the decision of MERC to turn down applications of several industries seeking permission to buy power from Indian Electricity Exchange (IEX).Twenty-nine industries had filed petitions in MERC either seeking OA or complaining about MSEDCL's unwillingness to grant the same. All of them have been rejected.Maharashtra Electricity Regulatory Commission refuses open access to industries TNN | Apr 15, 2014, AM IST
32 ISSUES IN OPEN ACCESS IMPLEMENTATION Earlier HPSEB used to ask daily scheduling from OA consumers of his drawl from OA & HPSEB and levies UI penalty even on the deviation from HPSEB drawl.Now, HPSLDC is working on the revised procedures for STOA and they are supposed to remove the scheduling obligation from OA consumers regarding the drawl from HPSEB.Daily Scheduling to HPSEB & levying of UI chargesAdvance security is been incorporated by the Open Access consumers of the state.Advance Security
34 ISSUES IN OPEN ACCESS IMPLEMENTATION Bill settlement of inter-state open access transactions are not automated and also not systemised.Consumer has to take initiative from its own side for the settlement of its open access billing.Commercial Settlement of OA transactionsPresently OA consumers of Uttarakhand are having TOD metering at their premises which records the reading of each 30min.Now, without replacing those meters, UPCL has directed OA consumers to sign the agreement for complying all the provisions of the Deviation & Settlement Regulations and in case of non-compliance, NOC will not be issued to OA consumer.Applicability of Deviation & Settlement Regulations
36 ISSUES IN OPEN ACCESS IMPLEMENTATION DISCOMS of Rajasthan are not paying UI deviation charges to the open access consumers of Rajasthan during their under drawl in inter-state open access transactions.Hon'able RERC has notified the open access regulations which allows to implement UI mechanism during deviation in inter-state open access schedule but DISCOMS and SLDC are not implementing it properly and OA consumers are denied of UI Settlement.UI refund settlement
37 Security from OA consumers CONTINUEDAs per RERC regulations, open access consumers of Rajasthan are required to maintain a security equivalent to 3 months average billing towards wheeling and cross subsidy charges which is in addition to the 2months security of their average billing which consumers are maintaining with the DISCOMS in the normal course and hence, consumers are maintaining security in excess of what is desired under the RERC Regulations.A clarification petition has to be filed before RERC seeking interpretation of the RERC Regulations and the amount to be maintained with the DISCOMS as a security.Security from OA consumers
38 Sudden with holding of tested meters CONTINUED15 Consumers Open access consumers are maintaining with the DISCOMS in the normal course and hence, consumers are maintaining security in excess of what is desired under the RERC Regulations.A clarification petition has to be filed before RERC seeking interpretation of the RERC Regulations and the amount to be maintained with the DISCOMS as a security.Sudden with holding of tested meters
40 ISSUES IN OPEN ACCESS IMPLEMENTATION Hon'able HERC directed to DISCOMS in its order dated to refund the UI compensation to all OA consumers from August 2010 till date but still same has not been processed to most of the OA consumers.UI SettlementNon cleared OA power on Exchange platform will not be allowed to draw from the licensee despite the consumer is adhering to its contract demand. When Exchange gives the final cleared schedule around 3pm, then how can a consumer provide its final OA schedule at 10:00 am?Daily scheduling of open access power at 10:00 am
41 ISSUES IN OPEN ACCESS IMPLEMENTATION HERC through its amendment dated on Open Access Regulations, notified that PLEC would also be applicable on open access consumers for their drawal during peak hours.OA consumers have to pay PLEC charges when their drawal exceed 20% of their sanctioned contract demand during the peak hours.When OA consumers are drawing their power through open access mode, there should not be any peak load charges to be levied on OA consumers.Levying of PLEC (Peak Load Exemption Charge) on OA consumer
43 ISSUES IN OPEN ACCESS IMPLEMENTATION PSERC has imposed high cross subsidy surcharge (Rs.1.07/kwh) and wheeling charges (Rs.1.19/kwh) on OA consumers. Even as per the last amendment of Open Access regulations, PSERC also made wheeling charges to be applicable on consumers connected with transmission system of the state by making it applicable also on 132KV and 220KV connected consumers.High Cross-subsidy Surcharge & Wheeling Charges
44 ISSUES IN OPEN ACCESS IMPLEMENTATION Conflict among Applicability of Deviation & Settlement Regulations and Open Access Regulations in regard to implementation of deviation mechanism for inter-state open access transactions in the state of Punjab. As per PSERC OA Regulations, consumer will be paid during underdrawal at the rate whichever is lower among: - applicable lowest tariff for consumer category/ UI rate/ PX rate. While as per CERC Regulation, if underdrawal exceeds beyond 12% of the schedule, UI will not be paid to OA consumer. So, if they wish to implement CERC Deviation Settlement Regulations they first have to amend their own regulation and only then CERC Deviation Settlement Regulation can be implemented in Punjab.Deviation & Settlement Regulation
46 ISSUES IN OPEN ACCESS IMPLEMENTATION Gujarat banned the open access to consumers of DGVCL & MGVCL quoting the reason of transmission constraint in upstream due to rise in system load demand.GETCO had disallowed around 125 industrial units in south and central Gujarat from purchasing power in the open market.“Gradually some of the smaller and medium units have been closing down due to being denied cheaper power”.Cos move GERC against denial of open access Business Standard Vinay Umarji | Ahmedabad April 16, 2014 GERC finalised the additional surcharge of Rs. 0.42/KWh through its order dated to be applicable on open access consumers.Additional Surcharge imposed
47 ISSUES IN OPEN ACCESS IMPLEMENTATION Gujarat banned the open access to consumers of DGVCL & MGVCL quoting the reason of transmission constraint in upstream due to rise in system load demand.PGVCL also banned open access to 126 companies quoting the reason of transmission constraint in upstream due to rise in system load demand. Vide CE SLDC Gujarat letter Dt. 18/03/2014.Open Access banned
48 ISSUES IN OPEN ACCESS IMPLEMENTATION GERC finalised the additional surcharge of Rs. 0.42/KWh through its order dated to be applicable on open access consumers.Additional Surcharge imposed
49 Huge penalties even for occasional deviations. During any block of time actual power drawn is 12% or less of the scheduled power, consent granted for open access shall be withdrawn with immediate effect.PGVCL has issued a warning on under drawl more than 12 % of scheduled power vide his letter Dt. 26th March’14 issued by Addl. C.E. (R & C) Rajkot
50 Our ConcernOur Electrical/ Electronic equipments are very sophisticated and any voltage dip above 15% and for more than 120milli seconds trips the Electrical drives, causing stoppage of the complete equipment. The Voltage dips are coming from GETCO.We have many times requested to PGVCL as well as to GETCO to look into the matter but nothing could be done.Restarting of complete machine takes more than 30 minutes.
51 Our ConcernUnder above conditions, it is not possible to eliminate under drawls in the 15Minutes block time.PGVCL does not compensate even when GETCO supply fails due to their reason.In the past there was a Power Failure from GETCO for about 5Hours, but PGVCL refused to entertain it.
52 One has to draw 1.0 MW of power during all the time blocks. As per PGVCL, No Open Access Transactions are allowed below 1.0 MWIndirectly they have banned Open access to the companies having consumptions less than 1MW despite of having CD 1MW or above.
53 Our ConcernSTU charges are varying, till date it is in the range of Rs.4154/MW/Day to Rs. 4391/MW/Day, how is it being calculated?SLDC Gujarat has increased the STU charges from Rs.743/MW/Day to Rs.2970/MW/Day vide their NOC issued to ISC for the month of Apr’14.
54 Our ConcernElectricity Duty is being charged on PGVCL “Total Consumption Charges” even on Open Access purchased units.Where as it should be on the landed cost of Open Access units.PGVCL is putting all the efforts to discourage / ban the use of Open Access.
56 ISSUES IN OPEN ACCESS IMPLEMENTATION Karnataka, has restricted power sales within the boundaries of the State, and hence curbing the choice of power generators to sell power to consumers outside the State.This decision to disallow sale of electricity through open access could negatively impact operations many Generators .Karnataka’s move to curb open access in power to hit industry: CII- NEW DELHI, APRIL 15: 2014
58 ISSUES IN OPEN ACCESS IMPLEMENTATION Karnataka, has restricted power sales within the boundaries of the State, and hence curbing the choice of power generators to sell power to consumers outside the State.This decision to disallow sale of electricity through open access could negatively impact operations many Generators .Karnataka’s move to curb open access in power to hit industry: CII- NEW DELHI, APRIL 15: 2014
59 Open Access Charges in States (HT Power) Cross SubsidySTU ChargesSTU LossesWheeling ChargesWheeling lossesGujarat0.450.0304.56%0.1210%Maharashtra2.30 to 2.750.434.19%0.609%M.P1.210.063.16%0.185.15%Chhattisgarh1.530.234.40%0.226%Punjab1.070.272.50%1.196.03%Rajasthan0.3684.20%0.3212.60%Haryana0.530.190.700.00%Uttarakhand0.400.1251.85%0.3017.00%Tamil Nadu0.00.0823.52%0.17