1. Computation of tariff under open access for bulk customer in a state
POSOCO, ERLDC

2. System Operator Training
Acknowledgement
FOR Secretariat
Detailed inputs regarding Model Terms and Conditions for Intra State Open Access
Case Studies for calculation of Open Access Charges
Power Exchanges
System Operator Training

3. System Operator Training
Presentation Outline
Introduction
Model Terms and Conditions of Intra-State Open Access Regulations, September 2010
Case Studies
Issues in Intra – State Open Access
System Operator Training

4. System Operator Training
Introduction
System Operator Training

5. DEFINITION Electricity Act 2003: Open Access is defined as
“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.” 5

6. EA 2003: Provisions for Grant Of Open Access
Section 38(2)(d): CTU and functions
Section 39(2)(d): STU and functions
Section 40(c): Duties of Transmission Licensees
Section 42(2): Duties of Distribution Licensees and Open Access

7. EA 2003: Provisions for Grant Of Open Access
Section 42(2) Distribution Licensee
(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 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.

8. National Electricity Policy, 2005 – Section 5.4.5
The Electricity Act 2003 enables competing generating companies and trading licensees, besides the area distribution licensees, to sell electricity to consumers when open access in distribution is introduced by the State Electricity Regulatory Commissions. As required by the Act, the SERCs shall notify regulations by June 2005 that would enable open access to distribution networks in terms of sub-section 2 of section 42 which stipulates that such open access would be allowed, …. ……Section 49 of the Act provides that such consumers who have been allowed open access under section 42 may enter into agreement with any person for supply of electricity on such terms and conditions, including tariff, as may be agreed upon by them. ……. While making regulations for open access in distribution, the SERCs will also determine wheeling charges and cross-subsidy surcharge as required under section 42 of the Act.
System Operator Training

9. System Operator Training
Tariff Policy
Section 6.3: Harnessing Captive Generation
Wheeling charges and other terms and conditions for implementation should be determined in advance by the respective State Commission, duly ensuring that the charges are reasonable and fair.
Grid connected captive plants could also supply power to non-captive users connected to the grid through available transmission facilities based on negotiated tariffs. Such sale of electricity would be subject to relevant regulations for open access
Section 6.4:
Non-Conventional Energy Sources, including co-generation
Section 8.5:
Calculation of Cross Subsidy Surcharge and Additional Surcharge for Open Access
System Operator Training

10. Status of Open Access Implementation (source: FOR)
S. No.
SERC
Notification of OA Regulations
Determination of Surcharge
Determination of Wheeling Charges
Determination of Transmission Charges 1
APERC
Yes 2
AERC 3
BERC 4
CSERC 5
DERC 6
GERC 7
HERC No 8
HPERC 9
J&KSERC 10
JSERC 11
KERC 12
KSERC 13
MPERC NA 14
MERC 15
MsERC 16
OERC 17
PSERC 18
RERC 19
TNERC 20
TERC 21
UPERC 22
UERC
Case to case basis 23
WBERC 24
JERC-M&M 25
JERC-Uts
TOTAL 10

11. System Operator Training
Model Terms and Conditions of Intra-State Open Access Regulations, September 2010
Forum of Regulators
System Operator Training

12. System Operator Training
Contents
Preliminary
Connectivity
General Provisions for Open Access
Application Procedure and Approval
Open Access Charges
Scheduling, Metering, Revision and Losses
Imbalance and Reactive Energy Charges
Commercial Matters
Limited Short Term Open Access
Information System
Open Access to Generator Connected to Distribution System
Miscellaneous
System Operator Training

13. Definition of Open Access, OA Customer
“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 generating company in accordance with these regulations and includes long term access, medium-term open access and short-term open access. "Open access customer" means a consumer, trader, distribution licensee or a generating company who has been granted open access under these regulations.
System Operator Training

14. Categories of Open Access Consumers
The application procedure, application fee and the time frame of processing request by eligible consumers seeking Open Access shall be based on the following criteria
(1) System to which connected
(a) Intra-State transmission system
(b) Distribution system
(2) Inter-se location of drawal and injection points
(a) Both within the same distribution system
(b) within the State but in different distribution systems
(c) In different States
(3) Duration of Open Access
(a) Long term access
(b) Medium-term open access
(c) Short-term open access
System Operator Training

15. Categories of Open Access Consumers
STU
DISCOM
Intra-State
Inter-State
STOA
MTOA
LTA
RLDC
CTU
SLDC
(within DISCOM)
Any OA
Connection Point
Location of drawal Point
Period of OA
Nodal Agency
20/04/2011

16. Eligibility for Open Access
Open access shall be permissible to the customers seeking for open access capacity upto which SERC has introduced open access and
connected through an independent feeder emanating from a grid substation of licensee or
industrial feeder provided that all the customers on such industrial feeder opt for open access and having simultaneous schedule of drawal under such open access.
Consumers who are not on independent feeders, shall be allowed open access subject to the condition
that they agree to rostering restrictions imposed by utility on the feeders serving them.

17. Application procedure and approval (1)
Consumer connected to Distribution System
Regulation 12
Period
Inter-se location of drawal and injection point
Nodal agency
Application fee (Rs.)
Documents to accompany the application
Time frame for disposal of application (days from the receipt of application)
Short -Term Open Access
Both within the same Distribution licensee
Concerned Distribution Licensee
2000
Proof of payment of Application fee,
7 working days in case STOA applied for first time.
3 working days on subsequent STOA applications.
Both within the same State but in areas of different Distribution Licensees
SLDC
5000
Proof of payment of Application fee, Consent from concerned Distribution licensees
Injection point in the intra-State transmission system within the State
Consent from concerned Distribution licensee, Proof of payment of Application fee,
In different States
RLDC of the region where consumer is located
Consent from concerned SLDCs and Distribution licensees as applicable, Proof of payment of Application fee,
As per Central Commission’s Regulation
20/04/2011

18. Application procedure and approval (2)
Consumer connected to Distribution System
Regulation 12
Period
Inter-se location of drawal and injection point
Nodal agency
Application fee (Rs.)
Documents to accompany the application
Time frame for disposal of application (days from the receipt of application)
Medium-Term Open Access
Both within the same Distribution licensee
Concerned Distribution Licensee
50000
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA 20
Both within the same State but different Distribution Licensees
STU
100000
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA, consent from concerned distribution licensees 40
Injection point in the intra-State transmission system within the State
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA, Consent from concerned Distribution licensees
In different States
CTU
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA, Consent from concerned SLDCs and Distribution licensees as applicable
As per Central Commission’s Regulation
20/04/2011

19. Application procedure and approval (3)
Consumer connected to Distribution System
Regulation 12
Period
Inter-se location of drawal and injection point
Nodal agency
Application fee (Rs.)
Documents to accompany the application
Time frame for disposal of application (days from the receipt of application)
Long-Term Access
Both within the same Distribution licensee
Concerned Distribution Licensee
50000
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of LTA 20
Both within the same State but different Distribution Licensees
STU
100000
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of LTA, consent from concerned distribution licensees
120 days where augmentation of transmission system is not required
150 days, where augmentation of transmission system is required.
Injection point in the intra-State transmission system within the State
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of LTA, Consent from concerned Distribution licensee
In different States
CTU
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of LTA, Consent from concerned SLDCs and Distribution licensees as applicable
As per Central Commission’s Regulation
20/04/2011

20. Application procedure and approval (4)
Consumer connected to Intra-State Transmission System
Regulation 12
Period
Inter-se location of drawal and injection point
Nodal agency
Application fee (Rs.)
Documents to accompany the application
Time frame for disposal of application (days from the receipt of application)
Short -Term Open Access
Both within the same State (in the intra-State transmission system)
SLDC
5000
Proof of payment of Application fee,
7 working days in case STOA applied for first time.
3 working days on subsequent STOA applications.
Injection point in the distribution system within the State
Consent from concerned Distribution licensee, Proof of payment of Application fee,
In different States
RLDC of the region where consumer is located
Consent from concerned SLDCs and Distribution licensee as applicable, Proof of payment of Application fee,
As per Central Commission’s Regulation
20/04/2011

21. Application procedure and approval (5)
Consumer connected to Intra-State Transmission System
Regulation 12
Period
Inter-se location of drawal and injection point
Nodal agency
Application fee (Rs.)
Documents to accompany the application
Time frame for disposal of application (days from the receipt of application)
Medium-Term Open Access
Both within the same State (in the intra-State transmission system)
STU
100000
Proof of payment of Application fee, 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 20
Injection point in the distribution system within the State
Proof of payment of Application fee, 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, Consent from concerned Distribution licensee
In different States
CTU
Proof of payment of Application fee, 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, Consent from concerned SLDCs and Distribution licensee as applicable
As per Central Commission’s Regulation
20/04/2011

22. Application procedure and approval (6)
Consumer connected to Intra-State Transmission System
Regulation 12
Period
Inter-se location of drawal and injection point
Nodal agency
Application fee (Rs.)
Documents to accompany the application
Time frame for disposal of application (days from the receipt of application)
Long-Term Access
Both within the same State (in the intra-State transmission system)
STU
200000
Proof of payment of Application fee, Bank Guarantee, 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 LTA
120 days where augmentation of transmission system is not required.
150 days, where augmentation of transmission system is required.
Injection point in the distribution system within the State
Proof of payment of Application fee, Bank Guarantee, 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 LTA, Consent from concerned Distribution licensee
In different States
CTU
Proof of payment of Application fee, Bank Guarantee, 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 LTA, Consent from concerned STU and Distribution licensee as applicable
As per Central Commission’s Regulation
20/04/2011

23. Charges Payable for Open Access
Transmission charges
Scheduling and system operation charges payable to State Load Dispatch Centre (SLDC)
Wheeling charges
Cross subsidy surcharge
Additional Surcharge
Standby charges
Imbalance and Reactive Energy Charges (as applicable)

24. Transmission charges Inter State – As per CERC Regulations
Intra-State :
Transmission charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher.
Transmission Charges = ATC/(PLS T X365) (in Rs./MW-day)
Where,
ATC= Annual Transmission Charges determined by the Commission for the State transmission system for the concerned year.
PLST= Peak load projected to be served by the State transmission system in concerned year.
For Open Access for a part of a day, the transmission charges shall be payable on pro-rata basis

25. Scheduling and system operation charges payable to State Load Despatch Centre (SLDC)
In respect of inter-State open access
Long term access or Medium term open access
RLDC fees and charges as specified by the Central Commission.
SLDC fees and charges as specified by the Commission under sub-section (3) of section 32 of the Act.
Short-term open access
RLDC and SLDC charges as specified by the Central Commission.
In respect of intra-State open access
A composite operating Rs.2,000/- per day or part of the day shall be payable by a short-term open access customer for each transaction to the SLDC or as determined by the Commission from time to time.

26. Wheeling charges
Wheeling charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher.
Wheeling Charges = (ARR – PPC – TC) /(PLSD X365)
(in Rs./MW-Day)
Where,
ARR=Annual Revenue Requirement of the distribution licensee in the concerned year
PPC=Total Power Purchase Cost of distribution licensee in the concerned year
TC =Total transmission charges paid by distribution licensee for State and Inter-State transmission system for the concerned year
PLSD=Total Peak load projected to be served by the concerned distribution system in the concerned year
For Open Access for a part of a day, the wheeling charges shall be payable on pro-rata basis

27. Possible Scenario
This section elaborates various scenarios of location of open access generators and their consumers and the consequent applicability of transmission and wheeling charges. The scenarios and the applicability of charges shall be as below
Scenario 1: Generator is connected to Transmission network (EHT voltages), while the consumer is connected to the distribution network (33kV and below) of Distribution Licensee: The scenario shall attract both transmission and wheeling charges since power required by the open access consumer will flow downstream from the transmission network through distribution network up to the consumer’s connection.
Scenario 2: Generator is connected to distribution network (33kV or below) of Distribution Licensee, while the consumer is connected to the transmission network (132kV or above): In this scenario, the consumer’s requirement will be met by power flow over transmission network alone. The power generated by the open access generator will be locally consumed within the Discom and will not flow upstream to the open access consumer. Hence, such transactions shall attract only the transmission charges.

28. Possible Scenario
Scenario 3: Both Generator and consumer are connected to the transmission network (132kV or above): Only transmission charges shall apply, since there is no usage of distribution network.
Scenario 4: Both generator and consumer are connected to the distribution system of any of the Distribution Licensee: The power generated by the open access generator will be consumed within the Discoms under the conditions of uniform retail tariff throughout the state and hence it will contribute to meeting the demand of the open access consumer. Therefore, there is no additional usage of transmission network in this transaction. Hence, such transactions shall attract only the wheeling charges.

29. System Operator Training
Possible Scenarios
Scenario
Connectivity of Generator
Connectivity of Consumer
Applicable Charges 1
Transmission System
Distribution System
Transmission +
Wheeling 2
Transmission 3 4
Source: MPERC Order on Determination of Wheeling Charges and Cross Subsidy Charges (SMP 101/10)
System Operator Training

30. Cross subsidy surcharge (1/2)
Cross subsidy Surcharge to be levied on open access customers as determined by the Commission keeping in view the loss of cross-subsidy from these customers opting to take supply from a person other than the incumbent distribution licensee.
Further submitted that the methodology has been prescribed in the National Electricity Policy

31. Cross subsidy surcharge (1/2)
Surcharge should be computed by the Tariff Policy formula.
S= T- [C (1+L/100)+D]
Where
S is the surcharge
T is the Tariff payable by the relevant category of consumers;
C is the Weighted average cost of power purchase of top 5% at the margin excluding liquid fuel based generation and renewable power
D is the Wheeling charge in per kWh basis
(to be derived from the wheeling charge in Rs./MW-Day referred to in Regulation 22 )
L is the system Losses for the applicable voltage level, expressed as a Percentage

32. Cross subsidy surcharge (2/2)
In case the formula gives negative value of surcharge, the same shall be zero.
The Commission may fix a lower surcharge in the situation of shortages and load shedding by the distribution licensee.
Cross subsidy surcharge so determined by the Commission shall be reduced by 20% every year at a linear rate.
In case power supply position or the consumer load seeking open access changes drastically, the Commission may review the Cross Subsidy Surcharge as and when required.
In order to ensure regulatory certainty to a open access consumer applicant, any change in cross-subsidy surcharge level should be made applicable only to the new applicants and the open access already sanctioned should not be disturbed.

33. Additional Surcharge
The open access customer shall also be liable to pay additional surcharge on charges of wheeling, in addition to wheeling charges and surcharge, to meet the fixed cost of the distribution licensee arising out of his obligation to supply as provided under sub-section (4) of section 42 of the Act in case open access is sought for receiving supply from a source other than the distribution licensee of his area of supply.
This additional surcharge shall become applicable only if the obligation of the Licensee in terms of power purchase commitments has been and continues to be stranded or there is an unavoidable obligation and incidence to bear fixed costs consequent to such a contract.
Any additional surcharge so determined by the Commission shall be applicable only to the new Open Access applicants.

34. Standby Charges 5.1 Proposal of the Commission
Commission has proposed tariff applicable to the category of consumer for providing standby arrangements by the licensee for open access consumer. In cases where temporary rate of charge is not available for that consumer category
in case of outages of generation open access, standby arrangements should be provided by licensee on payment of tariff applicable to that category. But in the Tariff Policy it is clearly spelt out that stand by arrangements should be provided by licensee on payment of tariff for temporary connection to that consumer category as specified by the appropriate Commission.
Commission decides that the average rate (including both fixed and energy charges) shall be payable by consumers in the tariff category applicable to them as standby charges

35. Standby Charges
Standby arrangements in cases of outages of generator supplying to open access customer under open access.
Standby arrangements for a maximum period of 42 days in a year, subject to the load shedding as is applicable to the embedded consumer of the licensee
Standby charges at the temporary rate of charge for that category of consumer subject to the condition that such tariff shall not exceed the highest consumer retail tariff.
In cases where temporary rate of charge is not available for that consumer category,
the standby arrangements shall be provided by the distribution licensee for a maximum of 42 days in a year and on payment of fixed charges of 42 days and energy charges for that category of consumer in the prevailing rate schedule.
In case of stand by arrangements sought by continuous process industries, the licensee shall charge on the basis of actual costs involved in arranging power.
Open Access customers would have the option to arrange stand-by power from any other source.

36. Imbalance settlement With load of less than 10 MW
The difference between the applicable sanctioned Open Access load and the actual drawal shall be accounted through the Time of Day (ToD) Meters on monthly basis and settled at the rate of the imbalance charge as determined by the Commission (where imbalance charge has not been determined by the Commission, UI rate as determined by the Central Commission shall be applicable).
In case of under drawal as a result of non availability of the distribution system or unscheduled load shedding, the open access consumer shall be compensated by the distribution licensee at the average power purchase cost of the distribution licensee.
With load of 10 MW and above
Settled based on the composite accounts for imbalance transactions issued by SLDC on a weekly cycle based on net metering in accordance with the rates specified by the Commission.

37. Commercial Matters (1/3)
Billing, collection and disbursement
Inter-State transactions:
Short-term Open Access
for use of CTU and STU systems as per CERC Regulations
for use of distribution system open access customer shall pay the charges payable to the distribution licensee within 3 days from the grant of the short-term open access by the nodal agency.
Long-term access and medium- term open access
Billing, collection and disbursement of charges payable to RLDC as per CERC Regulations.
Bills towards the charges payable to SLDC shall be raised by the STU/SLDC directly to the open access customer connected to STU and to the distribution licensee in respect of the customers connected to the distribution system.
Distribution licensee shall raise the bill with the open access customer connected to it within 3 days of receipt of bill from SLDC.
Open access customer connected to the distribution licensee shall pay the charges within five days of receipt of bill from distribution licensee.
The distribution licensee shall disburse the amount payable to STU/SLDC on a monthly basis.
Open access customer connected to the STU shall pay the bills within five working days of receipt of the bill.

38. Commercial Matters (2/3)
Intra-State transactions:
Short-term Open Access
The short-term open access customer shall deposit with SLDC the transmission charges and operating charges within 3 working days of grant of the short- term open access by SLDC.
In addition to the above, the short-term open access customer connected to distribution system of a distribution licensee shall also pay to SLDC, the charges payable to the distribution licensee within 3 days from the grant of the short-term open access by the nodal agency. Such charges would be disbursed to the distribution licensee on a weekly basis.
Long-term and Medium-Term open access
SLDC, transmission licensees and distribution licensee, where applicable, shall communicate to STU the details of the bills due to them by the 3rd day of the succeeding calendar month.
STU shall separately indicate the above charges and raise the bill with the open access customer, together with the charges receivable by it, if any, before the 5th day of the above month. The open access customer shall pay the charges within 7 days from the date of receipt of the bill. STU shall disburse the charges payable to SLDC, transmission licensee and distribution licensee on a monthly basis.

39. Commercial Matters (3/3)
Late payment surcharge
Delayed in payment by a open access customer beyond the due date, a late payment surcharge at the rate of 1.25% per month shall be levied.
 Payment Security Mechanism
In case of long-term access and medium-term open access, the applicant for open access will open an irrevocable Letter of Credit (LC) in favour of the agency responsible for collection of various charges for the estimated amount of various charges for a period of two months.

40. System Operator Training
Case Studies
System Operator Training

41. Sample Surcharge calculation for FY 2010-11
S. No.
State
Tariff range (Average billing rate)
Average Cost of Supply
power Purchase cost of top 5%
Wheeling loss (%)
Wheeling charges
Surcharge (As per Tariff policy)
Median (Surcharge) T
ACS C L D
S1=T-[C* (1+L)+D]
Rs./Unit %
Minimum
Maximum 1
Bihar
3.52
5.05
4.96
2.91
8.00%
0.32
0.06
1.59
0.85 2
Chhattisgarh
2.53
4.55
3.04
2.93
6.00%
0.17
-0.75
1.27
0.59 3
Gujarat (UGVCL)
4.88
5.31
3.41
3.05
10.01%
0.13
1.40
1.82
1.61 4
Haryana
3.5
4.15
4.93
3.10
0.3
-0.09
0.56
0.38 5
Himachal Pradesh
3.47
5.2
4.42
4.24
9.12%
1.01
-2.17
-0.43
-1.62 6
Karnataka (BESCOM)
5.37
7.09
4.66
5.06
2.99%
0.10
1.78
0.95 7
Madhya Pradesh (East)
3.86 10
4.05
3.23
4.90%
0.49
-0.31
5.83
1.03 8
Maharashtra (MSEDCL-33KV)
5.23
8.43
4.38
4.69
0.04
0.22
3.42
1.91 9
Punjab
4.3
5.12
3.87
10.00%
0.70
-1.41
-0.59
-1.33
Uttarakhand
4.17
4.18
3.68
5.02
19.00%
0.39 to 0.05
-2.20
-1.85
20/04/2011

42. LT & ST Transmission charge calculations
WBSETCL(F.Y )
Revenue Recoverable through Tariff Rs Lakhs
Average System Demand on the basis of average of the daily peak  MW
LT charges 
Rs lakh / ( x12) = Rs. 1,33,329/MW/month
Rate for short-term users
Rs. (1,33,329 x 0.25)/30
= Rs./MW/day
RLDCS Rs.80/MWH as not declared in Rs./MWH format
System Operator Training

43. LT & ST Transmission charge calculations
OPTCL(F.Y )
Net Annual Revenue Requirement (Rs. cr.) 572.50
Power flow (equivalent of MU) in MW 2612MW
Long term Open Access Charges in terms of Rs./MW/Day 6005 rounded to 6000/- OR Rs.250/MWh
Short term Open Access Charges in terms of Rs./MW/Day 1500 OR Rs.62.5/MWh
RLDCsinitially Rs.62.5 MWH as declared by OERC
Rs.80/MWH taken In view of revocation of above & declaration in Rs/MW/day format
System Operator Training

44. LT & ST Transmission charge calculations
DTL (F.Y )
Annual Transmission Service Charges
(Rs. crore)
Average Transmission Capacity Served in MW
 2716
ST_Rate 0.25*398.24* /2716/365
 (Rs./MW/Day)
ST_RateRs 41.85/MWh
System Operator Training

45. Calculation for open access charges – Gujarat (1)
Short Term Open Access
Particular
Value
Net value
Unit
 Formulae
Contracted Capacity 5 MW A
Total Consumption in a Month(Units) -
Kwh
B=Ax10^3x30x24
Cross Subsidy Surcharge
0.51 Rs./unit
Rs.
C=Bx0..51
Units at T>D grossing up wheeling loss
10.01%
D=A/( %)
Wheeling Charges
Rs./unit
539260
E=Dx.1348
Units at G>T grossing up Transmission loss
4.20%
F=D/(1-4.20%)
Transmission Charges
603 Rs./MW/Day
90450
G=A*603*30
Operating Charge (SLDC Charges)
2000 per day
60000
H=2000x30
OA Application Registration Fee  
5000 I
Net Open Access Charge
J=C+E+G+H+I
Effective Open Access Charge(per Unit)
 Rs./Unit
0.70
K=J/B

46. Calculation for open access charges – Gujarat (2)
Long-Term Open Access
Particular
Value
Net value
Unit
 Formulae
Contracted Capacity 5 MW A
Total Consumption in a Month(Units) -
Kwh
B=Ax10^3x30x24
Cross Subsidy Surcharge
0.51 Rs./unit
Rs.
C=Bx0..51
Units at T>D grossing up wheeling loss
10.01%
D=A/( %)
Wheeling Charges
Rs./unit
539260
E=Dx.1348
Units at G>T grossing up Transmission loss
4.20%
F=D/(1-4.20%)
Transmission Charges
2410 Rs./MW/Day
361500
G=A*2410*30
Operating Charge (SLDC Charges)
2000 per day
60000
H=2000x30
OA Application Registration Fee  
5000 I
Net Open Access Charge
J=C+E+G+H+I
Effective Open Access Charge(per Unit)
 Rs./Unit
0.78
K=J/B

47. Calculation for open access charges-Haryana
Particular
Value
Net value
Unit
 Formulae
Contracted Capacity 5 MW A
Total Consumption in a Month(Units) -
Kwh
B=Ax10^3x30x24
Cross Subsidy Surcharge
0.72 Rs./unit
Rs.
C=Bx0.72
Units at T>D grossing up wheeling loss
6.00%
D=A/(1-6%)
Wheeling Charges
0.26 Rs./unit
995745
E=Dx.26
Units at G>T grossing up Transmission loss
2.10%
F=D/(1-2.10%)
Transmission Charges
0.28 Rs./unit
G=F x .28
Operating Charge (SLDC Charges)
2000 per day
60000
H=2000x30
OA Application Registration Fee  
5000 I
Net Open Access Charge
J=C+E+G+H+I
Effective Open Access Charge(per Unit)
 Rs./Unit
1.32
K=J/B
20/04/2011

48. Typical Example for Power Exchange Trades (1)
System Operator Training

49. Typical Example for Power Exchange Trades (2)
System Operator Training

50. Issues in Intra State Open Access
System Operator Training

51. Open Access in Inter-State Transmission : Key Success Factors
Control area demarcation & boundary metering
Robust transmission system
Assessment of Transfer Capability
Balancing mechanism
Methodology for transmission charge sharing
Treatment of transmission losses
Streamlined scheduling and settlement mechanism
Transparency and non-discriminatory implementation
Compliance
Dispute redressal mechanism
Congestion management

52. Calculation of Cross Subsidy Surcharge
The formula uses the weighted average cost of power purchase of top 5 % as a factor and this leads to a negative cross subsidy surcharge in certain cases
Allowing consumers to migrate to open access increases the burden of the DISCOM
The calculation of the cross subsidy surcharge is being done with reference to the average cost of supply instead of the cost of serving the consumer. As a consequence, there is an under-recovery and the concerned utility is under-compensated.
A trajectory for continuous reduction of the cross subsidy surcharge has to be identified and implemented by the States.
System Operator Training

53. System Operator Training
Standby Charges
The various provisions of Act and Policies mandate the DISCOM of providing standby to OA customers.
Unfair on behalf of DISCOMs to keep non open access consumers in dark and provide standby without levying reasonable charges for the standby supply arrangements.
As per the latest FOR guidelines, demand charges for standby supply can be charged for 42 days in a year.
However, some of the States raised the issue that standby charges should be payable for the entire 365 days.
Solution ?
Purchase from market
Enter into a PPA
System Operator Training

54. Dilemma in Planning for Procurement
Some States have an ambitious plan of achieve load shedding free power supply in the State by ….
Planned for power procurement by entering in Long term Contracts or through competitive bidding routes.
In case the bulk consumers are allowed to migrate to open access, then, this additional capacity being procured may result in stranded assets.
DISCOMs would be left with burden of fixed charges of Long Term PPAs entered into, to the extent of migrated load resulting in increase in Supply related costs.
Possible Solution
A vibrant market working in the country
In case a particular State becomes surplus, the surplus as and when available can be sold in the market.
System Operator Training

55. Development of Intra State Transmission & Distribution Network
Open access presupposes the existence of a robust transmission or distribution network.
Many of the States are experiencing a high load growth and commensurate augmentation of the transmission and distribution infrastructure inside the States needs urgent attention to accommodate open access transactions.
System Operator Training

56. Mechanism for Handling Imbalances
Availability Based Tariff has been implemented at the inter-State level
Implementation of the ABT Mechanism at inter-State level has been one of the crucial touchstones for the success story of open access at the inter-state level.
A similar commercial mechanism needs to be implemented at the intra-State level
Should also include a mechanism for handling imbalances.
System Operator Training

57. Procedural Issues including Metering, Settlement and Accounting Issues
Clear procedures including the timelines for approval/clearance of open access needs to be clearly defined by the States.
In order to avoid flip-flop situation, the need for a minimum time period for availing open access was also felt.
Metering, Settlement and Accounting Systems need to be established and streamlined.
System Operator Training

58. Procedural Clarity Imbalance settlement Metering Arrangements
Treatment of under-drawal and over-drawl by Open Access Consumer
Metering Arrangements
ToD meter or SEM
Meter specifications
Costs involved
Billing Arrangements
Procedure for billing
Entities responsible for billing for wheeling, energy component etc.
Manner of payment of bills

59. System Operator Training
Breach of PPAs
Breaching an already existing PPA to sell power in the open market.
Honouring contracts is important
Need to initiate necessary safeguards for this.
Interplay of the prices in the market also leading to a possibility of gaming.
System Operator Training

60. Interpretation of Section 11, EA 2003
“Direction to generating companies 11. The Appropriate Government may specify that a generating company shall, in extraordinary circumstances operate and maintain any generating station in accordance with the directions of that Government. Explanation. - For the purposes of this section, the expression “extraordinary circumstances” means circumstances arising out of threat to security of the State, public order or a natural calamity or such other circumstances arising in the public interest. The Appropriate Commission may offset the adverse financial impact of the directions referred to in sub-section (1) on any generating company in such manner as it considers appropriate”
System Operator Training

61. Need for Rationalization of OA Charges
Several charges levied for Open access in distribution.
Charges are high in many States.
Charges need rationalization and alignment with Tariff Policy formulation
FOR has already recommended the principles for cross subsidy surcharge should be as per the Tariff Policy.
Charges should be such that it facilitates open access and does not restrict it. 61

62. Open Access Charges vis a vis Tariff
S. No.
State
Net Open Access Charges (Rs/Kwh)
Net cost of power from Open Access (Rs./kWh)**
Tariff (Discom)*
(Rs./kWh) 1
Assam
2.94
6.94
3.25 2
Chhattisgarh (Short term)
1.00
5.00
3.38 3
Haryana
1.03
5.03
4.57 4
Himachal Pradesh
1.32
5.32
3.04 5
Karnataka (BESCOM) - ST
4.15 6
Maharashtra (MSEDCL area)
0.84
4.84
4.53 7
Orissa ( WESCO)
1.81
5.81
2.91 8
Punjab ( short term)
0.61
4.61
5.09 9
Rajasthan
0.97
4.97
3.98 10
Uttar Pradesh ( short term)
0.66
4.66
4.29 11
Madhya Pradesh 12
Uttarakhand ( Long term)
1.47
5.47
3.9 13
Gujarat
1.34
5.34
7.39 14
West Bengal - short term
2.81
6.81
3.95 15
Tamil Nadu
2.47
6.47
3.96 16
Delhi
1.93
5.93
4.05 17
Andhra Pradesh
3.49 18
Kerala
2.38
6.38
3.94 19
Bihar ( HTS)
2.56
6.56
4.35 20
Jharkhand
1.44
5.44
4.48
*Tariff for an embedded consumer of 5MW at 11 KV (33 KV in some cases).
** Effective Open Access Charges for consumer of 5 MW at 11 KV (33 KV in some cases) in addition with a assumption of power purchase cost of 4 Rs./KwH. 62

63. Open Access Charges vis a vis Tariff
*Tariff for an embedded consumer of 5MW at 11 KV (33 KV in some cases).
** Effective Open Access Charges for consumer of 5MW at 11 KV (33 KV in some cases) in addition with a assumption of power purchase cost of 4 Rs./Kwh.

64. System Operator Training
Cross Subsidy Surcharge in Different States
Source:
Forum of Regulators
System Operator Training

65. State Load Despatch Centers (SLDC)
Section 32(1), Electricity Act 2003:
“The State Load Despatch Centre shall be the apex body to ensure integrated operation of the power system in a State”

66. Functions of SLDC
Section 32 (2), EA 2003: The State Load Despatch Centre shall - (a) be responsible for optimum scheduling and despatch of electricity within a State, in accordance with the contracts entered into withthe licensees or the generating companies operating in that State; (b) monitor grid operations; (c) keep accounts of the quantity of electricity transmitted through the State grid; (d) exercise supervision and control over the intra-state transmission system; and (e) be responsible for carrying out real time operations for grid control and despatch of electricity within the State through secure and economic operation of the State grid in accordance with the Grid Standards and the State Grid Code

67. Ring Fencing of Load Despatch Centers …
LDCs to be ring fenced suitably to ensure their functional autonomy.
ERCs to recognize three distinct revenue streams for making LDCs financially self reliant.
Fees and charges for system operation
Tariff for decision support system and IT infrastructure.
Operating charges for scheduling, metering and settlement.
Introduction of system of certification of system operators by an independent central body.
Proper compensation structure for LDCs to attract and retain best talent

68. FOR Recommendations: Way Forward
Rationalization of various open access charges including surcharge
Uniform standby arrangement for back-up supply to make open access a reality
Monitoring of open access transactions by the State Commission
Display of illustrative examples of charges for open access to help the potential consumer take an informed decision on the open access option.
System Operator Training
System Operator Training

69. Salient Features of REC Mechanism
Participation
Voluntary
REC Denomination
1 MWh
Validity
365 Days after issuance
Categories
Solar REC 2. Non-Solar REC
Trading Platform
Power Exchanges only
Banking
Not Allowed
Borrowing
Transfer Type
Single transfer only , repeated trade of the same certificate is not possible
Price Discovery Mechanism
Closed Double-sided Auction
Trading Calendar
Last Wednesday of the month (T day)
Trading Period
hrs (T day)
Market Clearing
1700 hrs(T day)
Financial Settlement
Buyers pay upfront (T day) and Sellers receive on (T+1 day)

71. Thank You