OPEN ACCESS IN INTER STATE TRANSMISSION 29 TH MARCH TH MARCH 2004

Gazette Notification of Open Access in inter state transmission systemGazette Notification of Open Access in inter state transmission system Reservation of Short term customers to be done on first cum first serve basis upto the dateReservation of Short term customers to be done on first cum first serve basis upto the date RLDCs to post the information on the website RLDCs to post the information on the website RLDCs to formulate a detailed proceedure for reservation of transmission capacityRLDCs to formulate a detailed proceedure for reservation of transmission capacity including bidding procedure for short term customersincluding bidding procedure for short term customers Various commercial conditions for facilitating open access shall be standaradised by CTU/RLDCVarious commercial conditions for facilitating open access shall be standaradised by CTU/RLDC RLDC to give notice to existing bilateral traders for submission of application for grantRLDC to give notice to existing bilateral traders for submission of application for grant of access to transmission systemof access to transmission system Bidding for reservation of transmission capacityBidding for reservation of transmission capacity SLDCs to post the information on web siteSLDCs to post the information on web site Gazette Notification of Open Access in inter state transmission system 06-Feb-04 Receipt of application from the sellers/buyers/traders of the existing transactions 05-May-04 Open access for the existing sellers/buyers/traders starts as per CERC norm 20-May-04 Open access for the new transactions will start from the date of issue of guidelines by CTU Reservation of existing buyers/sellers/traders will be done on first cum first serve basis upto 19-May-04 RLDCs to post the information on the website 07-Mar-04 SLDCs to post the information on web site 04-Aug-04 TIMEFRAME FOR OPEN ACCESS

Direct customer - A person directly connected to the system owned or operated by the Central Transmission Utility Embedded customer A person who is not a direct customer A person who is not a direct customer Existing beneficiary A person having firm allocation from a central power generating station on the date of coming into force of these regulations and who has entered into Bulk Power Transmission Agreement with the Central Transmission Utility

Open access customer A consumer permitted by the State Commission to receive supply of electricity from a person other than distribution licensee of his area of supply, and the expression includes a generating company and a licensee, who has availed of or intends to avail of open access Transmission Customer Any person, including open access customer using transmission system of a transmission licensee

OPEN ACCESS IN INTER-STATE TRANSMISSION Categorization of Transmission customers long term customers => 25 years short term customers. <= 1 year Access to Transmission System long term customers - transmission planning criteria short term customers - availability of transmission capacity Allotment priority of long term customers shall be higher than that of short term customers

NODAL AGENCY Long term access - Central Transmission Utility or TS provider in whose system the drawal point is located. Short term access - RLDC of the Region where the drawal of electricity is situated.

Procedure for Long Term Access Application to be submitted to CTU (Nodal Agency) Application to be submitted to CTU (Nodal Agency) Details of Capacity needed, points of injection and drawal, duration, peak load, average load etc to be specified. Details of Capacity needed, points of injection and drawal, duration, peak load, average load etc to be specified. Non refundable fee of Rs.One Lakh. Non refundable fee of Rs.One Lakh. CTU to opine whether open access can be allowed with/without system augmentation CTU to opine whether open access can be allowed with/without system augmentation If system augmentation is not required – Intimate OA customer the start date If system augmentation is not required – Intimate OA customer the start date If system augmentation is required – Details to be given to OA customer within 90 days of receipt of application. If system augmentation is required – Details to be given to OA customer within 90 days of receipt of application. All long term customers should enter into BPTA with Transmission licensee. All long term customers should enter into BPTA with Transmission licensee.

Procedure for Short Term Access Application to be submitted to RLDC (Nodal Agency) Application to be submitted to RLDC (Nodal Agency) Details of reservation needed, points of injection and drawal, duration. Details of reservation needed, points of injection and drawal, duration. Non refundable fee of Rs.5000/-. Non refundable fee of Rs.5000/-. This fee shall not be adjusted towards RLDC fees. This fee shall not be adjusted towards RLDC fees.

Time-schedule for Processing Short Term Customer Application Up to One day 12 hours Up to one week Two days Up to one month Seven days Up to one year Thirty days

Payments to be made by a Short term customer a) Transmission charges i) Each STU/SEB/transmission licensee involved. ii) Each Regional transmission system involved iii) Inter-regional transmission system involved. iii) Inter-regional transmission system involved. b) Scheduling and system operation charges. i) Each SLDC involved. ii) Each RLDC involved. c) Handling and service charges. Full amount 2% of {(a) + (b)}above. d) Non refundable fee : Rs. 5,000/-

Procedure for Bidding RLDC concerned shall invite bids if transmission capacity reservation sought by short term customer is more than the availability in a particular transmission corridor The floor price of the bids for short term customer shall be about 1/4 th rate chargeable from long term customer and will be in Rupees per MW per day. If customer gets the quantum of power he has bid for – he has to pay the price quoted by ‘last’ customer. If customer gets a quantum lesser than that he has bid for – he gets to pay his bid price

PROCEDURE FOR CURTAILEMENT In case of transmission constraint, if curtailment is necessary then, In case of transmission constraint, if curtailment is necessary then, Short term customers first Short term customers first Long term customers next Long term customers next Within the category, OA customers have OA customers have curtailment on pro rata basis

Revenue from Short term Open access customers 25% of the revenue received from short term customer to be retained by Transmission licensee for system Augmentation works. :- Signal for transmission addition Balance 75% shall be used for reduction of transmission charges for existing long term customers.

Transmission Charges In an Un-congested corridor – Short term customers pay ¼ of Charges applicable to Long- Term customers In an Un-congested corridor – Short term customers pay ¼ of Charges applicable to Long- Term customers Annual Transmission charges of previous financial year to be used – Rs/MW/Day. Annual Transmission charges of previous financial year to be used – Rs/MW/Day. Minimum transmission charges will be for ONE day and in multiples thereof. Minimum transmission charges will be for ONE day and in multiples thereof. This price will also serve as the floor price in case bidding has to be done. This price will also serve as the floor price in case bidding has to be done. With bidding, transmission charges of power flowing on a corridor can have multiple prices. With bidding, transmission charges of power flowing on a corridor can have multiple prices.

OPEN ACCESS IN INTER-STATE TRANSMISSION Any mismatch between schedule and actual drawals at the drawal point and at the injection point shall be met from the grid and its price shall be governed by the frequency linked unscheduled energy inter-change pricing mechanism already applicable to inter-State transaction under the ABT. Any mismatch between schedule and actual drawals at the drawal point and at the injection point shall be met from the grid and its price shall be governed by the frequency linked unscheduled energy inter-change pricing mechanism already applicable to inter-State transaction under the ABT. All customers directly connected to POWERGRID network shall have to pay reactive energy charges calculated as per the existing scheme. All customers directly connected to POWERGRID network shall have to pay reactive energy charges calculated as per the existing scheme. All transmission customers directly connected to POWERGRID network shall be required to install special energy meters capable of time differentiated measurement of active energy and voltage differentiating measurement of reactive energy. All transmission customers directly connected to POWERGRID network shall be required to install special energy meters capable of time differentiated measurement of active energy and voltage differentiating measurement of reactive energy.

OPEN ACCESS IN INTER-STATE TRANSMISSION All users shall pay average energy loss in the transmission system as estimated by the State and Regional Load Dispatch Centre concerned. The energy loss shall be adjusted in kind i.e. average loss in transmission shall be compensated by additional injection at the injection point. All users shall pay average energy loss in the transmission system as estimated by the State and Regional Load Dispatch Centre concerned. The energy loss shall be adjusted in kind i.e. average loss in transmission shall be compensated by additional injection at the injection point. Any complaint regarding delays, discrimination and lack of information in the matter of open access in inter-state transmission shall be directed to the Member Secretary of Regional Electricity Board of the Region. Any unresolved problem or dispute could be referred to the Commission. Any complaint regarding delays, discrimination and lack of information in the matter of open access in inter-state transmission shall be directed to the Member Secretary of Regional Electricity Board of the Region. Any unresolved problem or dispute could be referred to the Commission.

KSEB SR ER DVC JEYPORE-GAJUWAKA HVDC CASE : 1 DIRECT CUSTOMER TRANSACTION DVC - KSEB 0000 HRS – 2400 HRS 100MW AT DRAWAL POINT for 30 days

INJECTION POINT : DVC state periphery DRAWAL POINT : KSEB state periphery INTERVENING REGION : Nil TRANSMISSION CHARGES : (in Rs.) ER : ER_ST_Rate X 100 X30 GAJUWAKA HVDC : Jey_Gaju_ST_RateX100X30 SR : SR_ST_Rate x100X30 SCHEDULING CHARGES : (in Rs.) ERLDC : 3000X30 SRLDC : 3000X30 TRANSMISSION LOSS : Say SR (3%) and ER (3.5%) Injection at ER- SR Periphery : 103 MW Injection at DVC Periphery : MW

KSEB (D1) SR ER WBSEB (G1) JEYPORE-GAJUWAKA HVDC CASE : 2 EMBEDDED CUSTOMER TRANSACTION WBSEB(G1) - KSEB (D1) 0000 HRS – 2400 HRS 100MW AT DRAWAL POINT for 30 days

INJECTION POINT : G1 in WBSEB state periphery DRAWAL POINT : D1 in KSEB state periphery INTERVENING REGION : Nil TRANSMISSION CHARGES : (in Rs.) WBSEB: WBSEB_ST_RateX100X30 ER: ER_ST_Rate X 100 X30 GAJUWAKA HVDC : Jey_Gaju_ST_RateX100X30 SR : SR_ST_Rate x100X30 KSEB : KSEB_ST_RateX100X30 SCHEDULING CHARGES : (in Rs.) WBSEBLDC : 3000X30 ERLDC : 3000X30 SRLDC : 3000X30 KSEBLDC : 3000X30 TRANSMISSION LOSS : Say WBSEB (5%) SR (3%) and ER (3.5%) KSEB(5%) Injection at KSEB State’s Periphery : 105 MW Injection at ER- SR Periphery : MW Injection at WBSEB State Periphery : MW Injection at WBSEB(G1) State Periphery : MW

A TYPICAL VALUES OF ST_RATE ERTS SYSTEM: 349 RS per MW per day SRTS SYSTEM: 682 RS per MW per day JEYPORE- GAJUWAKAHVDC : 1582 RS per MW per day

INFORMATION SYSTEM SEPARATE WEB PAGE TITLED :- ‘OPEN ACCESS INFORMATION’ SEPARATE WEB PAGE TITLED :- ‘OPEN ACCESS INFORMATION’ FLOOR RATE IN RS/MW/DAY FLOOR RATE IN RS/MW/DAY CURRENT STATUS OF LONG TERM AND SHORT CUSTOMERS LIST OF PAST SHORT TERM CUSTOMERS, INFORMATION OF POWER FLOW ON INTER-REGIONAL LINK INFORMATION REGARDING AVERAGE ENERGY LOSSES DURING THE PREVIOUS WEEKS/MONTHS. STATUS REPORT ON SHORT TERM CUSTOMERS

APKARKERTNPONDY Total UI exported(-) / Imported(+) in MUs Total amount paid in Crores Rs Average rate of UI in paise/unit SUMMARY OF UI – 63 WKS (FROM 01/JAN/03 TO 14/MAR/04)

UI IN SR (FROM 01/01/03 TO 29/02/04) TOTAL UI TURNOVER : MU TOTAL UI TURNOVER : MU TOTAL UI AMOUNT DISBURSED:- 623 CR TOTAL UI AMOUNT DISBURSED:- 623 CR INTER REGIONAL UI: MU -125 MU INTER REGIONAL UI: MU -125 MU AVG WEEKLY TRANSACTION:- 57 MU AVG WEEKLY TRANSACTION:- 57 MU AVG WEEKLY UI AMT DISBURSED:- 10 CR AVG WEEKLY UI AMT DISBURSED:- 10 CR AVG RATE OF EXPORT TO WR IN PS/U AVG RATE OF EXPORT TO WR IN PS/U 145 PS/U( PS/U( PS/U( PS/U(49.5 AMT RECD FROM WR:- 15 CRORES AMT RECD FROM WR:- 15 CRORES AVG RATE OF IMPORT FROM ER IN PS/U AVG RATE OF IMPORT FROM ER IN PS/U 142 PS/U (49.99 ER 142 PS/U (49.99 ER

WR – SR IRE A/C (FROM 01/01/03 TO 29/02/04) ( a ) SREB IRE A/C: 182 Million Rs. ( b ) WREB IRE A/C: 142 Million Rs. 50% of ( a ) + ( b ) to SR Constituents : 162 Million Rs. Actual Accrued in SREB IRE A/C: 146 Million Rs. Credit given to SR Constituents In Trans. Charges: 143 Million Rs. Balance credit to be given to Trans. Charges to SR Const.: 19 Million Rs. Balance Yet to be received by SREB IRE A/C from NLCMINES- UI: 36 Million Rs.

Benefit of WR–SR UI (FROM 01/01/03 TO 14/03/04) NET UI Transaction between SR & WR: 1 MU Average Rate for SR for export: 248Ps. Average Rate for SR for Import: 145Ps. Net amount accrued in IRE A/C: 25 Cr. Benefit for SR Constituents towards Transmission charges: 12.5 Cr.

ER- SR UI Amount generated due to SR-ER Amount generated due to SR-ER UI Differential: 3.9 Million Rs. UI Differential: 3.9 Million Rs. Actual accrued due to SR-ER Actual accrued due to SR-ER UI differential: 3.1 Million Rs. UI differential: 3.1 Million Rs. Balance to be received Balance to be received from NLCMINES- UI : 0.8 Million Rs. from NLCMINES- UI : 0.8 Million Rs. At Present ER UI is calculated on ER Frequency Only. Now ERLDC Proposes the UI calculation should be made as per WR-SR Philosophy. Present mechanism will not provide incentive to ER constituents to give UI power to SR Constituents.

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A TYPICAL CALCULATION FOR THE SHORT TERM CUSTOMER FOR THE TRANSACTION OF DTL – KSEB OF GEL CHARGE DTLNRNR-ERERER-SRSRKSEBTOTAL SCHEDULING AND SYS OPN TRANSMISSI ON CHARGES RS/MW/DAY MW FLOW AT PERIPHERY AVG TRANS LOSS (%)