Open Access In Interstate Transmission system Principal Regulation 2008( 25th Jan’2008) Amendment Regulation 2009(20th May’2009) Order-Removal of difficulties,(28th June,2011) Order-Amendment to CTU procedure 28th Oct,2009 P. S.Das, Ch.Manager ERLDC, POSOCO 4/24/2017 ERLDC: POSOCO

Contents Markets & Evolution-Overview Definitions Legal provisions Regulations 2-28 & CTU procedures Sample calculations- STOA Losses & charges Typical State OA procedures Contents 4/24/2017 ERLDC: POSOCO

Evolution of Power Market in India Capacity Market Ancillary Market PX 2008 Open Access 2004 ABT 2002-03 IEGC Feb.’2000

Merging of markets along with synchronization of regions INDIA 3,287,263 sq. km area More than 1 Billion people (2001 census) Installed Capacity of 141.08 GW (Jan-08) August 2006 North synchronized With Central Grid March 2003 West synchronized With East & Northeast NEW Grid South Grid October 1991 East and Northeast synchronized Central Grid North East West Merging of markets along with synchronization of regions Northeast South Five Regional Grids Five Frequencies

Present Market at a Glance Short Term Open Access Medium Term Market Long Term Market Bilateral Transaction Contingency Transaction Collective Transaction Day Ahead Transaction 12-25 Yr 3months -3Years 3 month ahead Day Ahead ahead After Clearance of PX On the day of operation Term ahead Schedules Balancing Market ( UI ) ( Real Time Operation )

DEFINITION OF “OPEN ACCESS” IN THE ELECTRICITY ACT, 2003 . “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”. Section 2(47) of Electricity Act 2003

LEGAL FRAMEWORK [SECTION-9(2)] 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

Legal Framework(Sections 38/39/40/42) CTU / STU/ Distribution licensee / Transmission licensee-functions & duties 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 (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:. CTU can not engage in generation/trading. STU can not engage in trading Transmission Licensee can not engage in trading

Regulation 2: Definitions “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 a specified point of drawl for a fixed or varying quantum of power (MW) for any time period during a month “collective transaction” means a set of transactions discovered in power exchange through anonymous, simultaneous competitive bidding by buyers and sellers; “regional entity” means a person whose metering and energy accounting is done at the regional level; “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;

Regulation 2: Definitions….contd “short-term customer” means a person who has availed or intends to avail short term open access “short-term open access” means open access for a period up to one (1)month at one time “regional entity” means a person whose metering and energy accounting is done at the regional level; Short term market means a market with contracts for a period not exceeding one year from :: Power markets 2010 Regs Short term access applications allowed upto 3 months in advance considering visibility & ATC/TTC issues.

Regulation 2: Definitions….contd “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; “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; “time block” means 15 minutes time period specified in the Grid Code for the purposes of scheduling and despatch; and

Regulation 3: Scope 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. 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 inherent design margins; margins available due to variation in power flows; and Margins available due to in-built spare transmission capacity created to cater to future load growth or generation addition.

Regulation 4: Detailed Procedure 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

Regulation 5: Nodal Agency 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.

NODAL AGENCY For Short-Term Customers CTU PROCEDURES NODAL AGENCY For Short-Term Customers RLDC of the Region in which the drawal point is located. For Long & Medium Term Customers Central Transmission Utility (CTU), if its system is used Transmission Licensee/ STU of the region in which the drawl point is located when CTU system is not involved.

Regulation 6: Submission of STOA Application A short-term customer or the power exchange (on behalf of buyers and sellers) intending to avail of STOA for use of the transmission lines or associated facilities for such lines on the ISTS, shall make an application to the nodal agency 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. The application for a collective transaction shall contain the requisite details in accordance with the detailed procedure.

GENERAL CONDITIONS/APPLICATION SUBMISSION CTU PROCEDURES As per OA regulations Dtd. 25/01/08 w.e.f 01/04/08 & OA Amendment Regulations Dtd. 20/05/09 & as per order-amendment to CTU procedure Dtd.28/10/09 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. Application to be submitted to:: Nodal RLDC where point of drawal is situated & also to all RLDCs involved in the transaction Application Contents Details:: Buyer / Seller / Point of injection/ point of drawal / Contracted power at supplier interface/ date/ time period (as per (Format-I-Application for scheduling) alongwith application fee/SLDC concurrance

Regulation 7: Application Fee An application made for each bilateral transaction or the collective transaction shall be accompanied by a non-refundable fee of Rupees five thousand (` 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.

Regulation 8: Concurrence of SLDC for bilateral and collective transactions When a Proposed bilateral transaction has a State utility or an intra-State entity as a buyer or a seller concurrence of the SLDC shall be obtained in advance and submitted along with the application to the nodal agency in the form as in the detailed procedure. 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 SLDC in the form as in the detailed procedure, specifying the MW up to which the entity may submit a buy or sell bid in a power exchange.

Regulation 8: Concurrence of SLDC for bilateral and collective transactions…..contd 3(a) For obtaining concurrence or ‘no objection’ or prior standing clearance : Application before the SLDC Acknowledgement receipt of the application, either by e-mail or fax, or any other recognised mode , within twenty four hours At the time of submission in case submitted in person 3(b) SLDC shall verify the following, namely- existence of infrastructure necessary for time-block-wise energy metering and accounting in accordance with the provisions of the Grid Code in force, and availability of surplus transmission capacity in the State network. 3(c) SLDC to concur ‘no objection’ / prior standing clearance Within three (3) working days if infrastructure exists Within seven (7) working days for a first time STOA Customer Within two (2) working days for a defective/incomplete application

Regulation 8: Concurrence of SLDC for bilateral and collective transactions…..contd In case of SLDCs refusal ( Application is in order) To be communicated, within the period of three (3) working days or seven (7) working days Reasons for such refusal: In case of no Communication by SLDC STOA shall be deemed to have been granted: In case of deemed STOA grant by SLDC the applicant while making application shall submit to the nodal agency an affidavit (in the format provided in the detailed procedure), duly notarised, declaring that – (a) the SLDC has failed to convey any deficiency or defect in the application or its refusal or concurrence or ‘no objection’ or prior standing clearance

Regulation 8: Concurrence of SLDC for bilateral and collective transactions…..contd (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 SLDC 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 SLDC, or any other evidence in support of delivery of the application.

SUBMISSION OF APPLICATION CTU PROCEDURES SUBMISSION OF APPLICATION SLDC concurrance Concerned SLDCs concurrence in advance (Format - II-Concurrance from SLDC) In case of deemed concurrance the applicant alongwith the application shall submit duly notarized affidavit (Format-IIA-Affidavit-Deemed concurrance from SLDC RLDC concurrance - Bilateral Transaction having a State Utility or an intra-state Entity as a Buyer/Seller in other region:: concurrence of the concerned Regional Load Despatch Centre(s). - Nodal applications to be considered first before giving other concurrance - Reasons for refusal

SUBMISSION OF APPLICATION CTU PROCEDURES SUBMISSION OF APPLICATION Affidavit for deemed SLDC concurrance: (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(3/7days) (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 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.”

Categories & Time Line For Open Access DL-10 DL-5 DL DL+5 DOP-4 DOP Adv Application for M1 DOP-1 FCFS CONTINGENCY Adv Application for M2, Approvals for M1 Adv Application for M3, Approvals for M2 Approvals for M3 Day Ahead / PX LEGEND: DOP : Day of Operation DL : Last day of M0

Regulation 9: Procedure for Advance Scheduling for bilateral transactions

ADVANCE SCHEDULING Advance Scheduling – 3 months in advance Separate Application – Month wise - each transaction Time Line for submission Last date for submission ( -10 / -5 / 0 days prior to end of current month MO – for transaction in M1, M2, M3) Cut-off time of application: 17:30 Hrs. of last day (Day 0) Request for concurrence (RLDC) – by 12:00 Hrs.(Day 1) (Format- III) Concurrence - by 20:00 Hrs (Day 1) Congestion Information to Applicant – 12:00 Hrs (Day 2)-Format-IV(Congestion information-Advance scheduling) Revised Request/re-routing – 11:00 HRs. (Day3)-Format-V-Request for revision due to congestion) E-bidding – in case of Congestion (Day 4) Acceptance/Refusal of Scheduling Request – (Day5)-Format-VI-Acceptance for scheduling

Application for advance scheduling M1 M0 M2 M3 Application Separate application shall be made for each month, and for each transaction.

Time Line for Advance Scheduling 10 5 5 ` Last Day for submission of Applications for transactions in M1, M2, M3 Processing time for RLDCs

Regulation 10 Congestion Management : e- Bidding Procedure Invitation of Bids from the concerned applicant period of congestion RTS/IR corridor expected to get over stressed Only Registered Users User ID & Password Electronic submission – website of CTU Bid Closing time as specified Single Price Bid No Modification/withdrawal once submitted Bid Price – In addition to Open Access Transmission charges - Multiples of Rs. 10/ MWh . ( Min. Rs. 10/MWh) Mandatory - Non-participation – Rejection of Application Acceptance - Decreasing order of Price Quoted Equal Price Bids – Pro-rata Applicant getting approval < request  Charges as quoted Applicant getting approval=request  Charges as paid by last applicant getting approval = request

Regulation 11,12,&13 Procedure for FCFS, Day ahead & Contingency bilateral transactions

“FIRST-COME-FIRST-SERVED”(FCFS) Scope FCFS shall be considered only when transactions are commencing & terminating in the same calender month. Separate Application for each month To be submitted 4 days prior to date of Scheduling Processing time – 3 days on FCFS basis Applications received during last 10 / 5 days of month of M0 for M1/M2 would be considered only after complete processing of Advance transactions for M1 & M2 Application Received upto 1730 hrs in a day to be processed together – same priority Application Received after 17:30 Hrs. - to be considered as received next day Congestion Management – pro-rata

Application for FCFS scheduling M1 17:30 Hrs M0 M2 M3 D-04 D-03 D0 Application Processing time Separate application shall be made for each transaction.

Regulation 12: DAY-AHEAD Applications received within 3 days prior to the day of Scheduling and up to 15:00 Hrs. of the day immediately preceding the day of scheduling shall be treated as same priority Processing only after processing of the Collective Transactions of the Power Exchange (s) Congestion Management – Pro-rata

Application for Day ahead scheduling M1 M0 M2 M3 D-03 D0 Application Processing time Approval after Collective Separate application for each transaction.

Regulation 13: CONTINGENCY Buying Utility/Trader on its behalf to make an Application to the Nodal RLDC To be considered after 1500 hrs of the day immediately preceding the day of scheduling In case of intra-day/same day – scheduling from 6th time block Congestion Management – Pro-rata

Regulation 14: Revision of Schedule Only in case of “Advance Scheduling” or “First-Cum-First Served basis” Accepted schedule for Day-Ahead & Contingency transaction shall not be revised or cancelled except for tripping of generators > 100MW as per Cl.6.5.19 of IEGC. Revision w.e.f 4th time block of intimation to RLDC Generator to furnish expected restoration time from which original schedules would become effective. For period of revision/cancellation upto two days:: Original transmission/operating charges For period of revision/cancellation > two days:: Transmission Charges and Operating Charges for the period beyond two (2) days shall be payable as per the revised accepted schedule and for the first two (2) days as per the original schedule. Margin Available – released for scheduling of eligible Open Access Transactions

EXAMPLE OF DOWNWARD REVISION

Regulation 15:: CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS Transmission constraint or to maintain grid security Curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security Curtailment priority :: STOA(bilat)Collective(PX)MTOALTA In case of reallocation of GOI share leading to corridor constraints Rerouting allowed without curtailment of existing transactions Pro-rata refund of Transmission Charges No revision of operating charges

Bilateral, intra-regional 80 Bilateral , Between adjacent regions 160 Regulation 16: Transmission Charges [repealed by 19(1) of Regulations on sharing of iSTS charges-2010] Type of Transaction Rs./ MWh Bilateral, intra-regional 80 Bilateral , Between adjacent regions 160 Bilateral, wheeling through one or more regions 240 Collective 100 (per each point of injection and each point of drawal)

Transmission Charges …. contd 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 specifie 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 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.

Application of POC methodology for STOA transactions

Calculation of Nodal POCs Input Network Parameters Load & Generation Data Load Flow Studies Converged Network Network Reduction Reduced Network Software for PoC Charge & Loss Computation Line wise YTC Output Nodal PoC Charges and LAF

Application of POC Transmission Charge methodology for STOA transactions Nodal POCs zoned to form Zonal POC for each Control area Slabbing done to fall into either high, Average or Low slab For New Grid: High  Rs. 1,00,000/Mw/month Average  Rs. 85,000/MW/Month Low Rs.70,000//MW/Month Converted to High  14paise/unit Average  12 paise/unit Low  10paise/unit Hence STOA rates applicable are Rs.140/MWH, Rs.120/MWh, Rs.100/MWh for High, average, Low slab respectively For SR Grid : Slab rates are Rs. 150/MWh, 130/MWh, 110/MWH for High, Average, Low slabs respectively Total No. of combinations possible(not permutations as order does not matter) : NC2 + N = N(N+1)/2 [considering N additional cases for same POC injection/withdrawal rates] Thus increase in total number of stamp rates for various transactions have risen from 3 to 21

Application of POC Transmission Charge methodology for STOA transactions Transmission charges payable by Entity X injecting 100MW RTC power to Entity Y Assume X falls in high injection slab in NEW Grid while Y fall in low withdrawal slab in SR Grid Hence POC injection for X  Rs 140/MWH Withdrawal POC for Y  Rs.110/MWh Transmission charges payable for injection would be : = 2400MWh x 140 Transmission charges payable for withdrawal would be: = 2400MWh X 110 Total charges payable by Trader to Nodal RLDC: = 2400*(140+110) Rs. STU charges would be payable in addition

Regulation 16: Transmission Charge as per POC regulations

Regulation 16: Transmission Charge as per POC regulations

Regulation 16: Transmission Charge as per POC regulations

Regulation 16: Transmission Charge as per POC regulations

Regulation 17: Operating Charges Bilateral Transaction Rs.2000/- per day or part of the day/transaction /RLDC Rs.2000/- per day or part of the day/transaction /SLDC Collective Transaction Rs.5000/- per day or part of the day/state to NLDC Rs.2000/- per day or part of the day/transaction for each SLDCs involved NLDC to share operating charges with each RLDC NLDC keeps Rs.2000/- and Rs.3000/- divided amongst 5 RLDCS @ Rs.600/RLDC Clubbing of buyers & sellers within a state Each group be considered as single entity for Operating charges and for scheduling by NLDC Each point of drawal & injection shall be counted separately for the purpose of intra-state transmission charges

Regulation 18: Payment of transmission charges and operating charges Bilateral transaction: the applicant to deposit with the nodal agency transmission charges and operating charges within three (3) working days of grant of acceptance 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 the transmission charges for use of State network and operating charges for SLDC shall be settled directly by the power exchange with respective SLDC.

Regulation 19: Default in payment of STOA charges Default in payment of the application fee or specified charges : charges the nodal agency may 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 The person committing default in payment Shall pay simple interest at the rate of 0.04% for each day of default.

DEFAULT IN PAYMENT OF OPEN ACCESS CHARGES – Additional Pts CTU PROCEDURES DEFAULT IN PAYMENT OF OPEN ACCESS CHARGES – Additional Pts Cheque has been dishonored No cheque payment - next three (3) months Payment to be made by electronic transfer/demand draft

INCORPORATION IN DAILY SCHEDULES CTU PROCEDURES INCORPORATION IN DAILY SCHEDULES Incorporation in Daily Schedules of the Regional Entities Average energy losses - estimated on weekly basis and converted to Tier I, II, III slabs RLDCs – ISTS (Inter State Control area) SLDC – (Intra-State/Control area) Resolution of 0.01 MW at each State/inter-Regional boundaries. Losses on the system to be compensated by Drawing utility (net drawal schedule after deducting losses) till 30th Sep,2011 W.e.f 1st October,2011 losses to apportioned to both buyers & sellers

COMMERCIAL CONDITIONS (SUMMARY) CTU PROCEDURES COMMERCIAL CONDITIONS (SUMMARY) All Payment related to Open Access Charges Payment to be made by Applicant to the Nodal RLDC within three working days from the date of acceptance Payment as per MWh contract value Application Fee:: (Rs. 5000/-) to Nodal RLDC Along with application (for Advance/FCFS transaction) With in 3 working days ( for same day or next day transaction) from the date of application submission. Operating charges:: Rs. 2000/- per day for each RLDCs/SLDCs involved and Rs.5000/- per day per entity for collective

COMMERCIAL CONDITIONS (SUMMARY)CTD.. CTU PROCEDURES COMMERCIAL CONDITIONS (SUMMARY)CTD.. If State utility is Buyer/Seller, Transmission Charges shall not include the charges for that State network and the Operating Charges for that State Load Dispatch Center. A certificate in this regard from the concerned STU(s)/SLDCs shall be submitted by the Applicant The transaction wise payment details shall be submitted as per enclosed format[FORMAT-VII: “Details of Payment”].

Regulation 20:: Unscheduled Inter- change (UI) Charges All transactions for State utilities and for intra-State entities scheduled by the nodal agencies shall be accounted for and included in the respective day-ahead net interchange schedules of the concerned regional entity issued by the RLDC 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. 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 State’s composite dues to the regional UI pool account.

Regulation 20:: Unscheduled Inter- change (UI) Charges 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 SLDC and covered in the intra-State UI accounting scheme. 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. No charges, other than those specified under these regulations shall be payable by any person granted short-term open access under these regulations.

Regulation 21: Reactive Energy Charges No separate reactive energy charge accounting for STOA 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 State’s composite dues to the regional reactive charge account in accordance with the provisions of the Grid Code. The reactive energy drawals and injections by the intra-State entities shall be governed by the regulations applicable within the State concerned.

Regulation22: Special Energy Meters 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. 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 Chapter–6 of the Grid Code. Special Energy Meters shall always be maintained in good condition. 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.

Regulation23:: Transmission losses 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. 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. 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.

Regulation23:: Transmission losses- Amendment of procedures by CTU Nodal POC losses found from Webnetuse software Zoning done to form loss for each scheduling entity 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 classified as Tier-I , II , II according to Low, Average or High slab.

Loss calculation-Amended CTU loss procedures If W current week, loss of week W-1 is estimated & applied for week W+1 If a = losses as per SEM data for W-1 losses for Tier I, II, III slabs would be Low(Tier-I) = [a/2-0.3]% Average(Tier-II)= a/2 High(Tier-III) = [a/2+0.3]% E.g. estimated loss for w-1 for ER = 3.90% Low(Tier-I) = 1.65% Average(Tier-II)= 1.95% High(Tier-III) =2.25% The Tier-I, II, II slabs are fixed as per studies & are constant for the review period are as below  Similiarly injection/withdrawal losses for all other regions are calculated

CERC Approved Results – Loss slabs

CERC Approved Results – Loss slabs

CERC Approved Results – Loss slabs

Regulation 24::Compliance of Grid Code The buyers and sellers of energy shall comply with the provisions of the Grid Code in force from time to time.

Regulation 25: Collection and Disbursement of Transmission Charges and Operating Charges(previous) 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 SLDC in the case of the collective transaction Operating/Transmission charges for SLDCs/STUs to be settled directly by PX with the concerned SLDC/STU 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 25% of the Tr. Charge to the CTU Intra-regional bilateral transaction: 75% of the transmission charges to the region concerned. bilateral transaction between adjacent regions: 37.5% of the transmission charges for each region. 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.

Reg.25(previous)…Ctd 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- Central Transmission Utility: 25% Long-term customers of the region of point of injection or drawal, as the case may be, is situated: 75% The transmission charges shall be disbursed to the long-term customers inproportion to the monthly transmission charges payable by them. The transmission charges for use of State network shall be disbursed to the State Transmission Utility concerned. 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 LoadDespatch Centre.”

Collection and Disbursement of Transmission Charges and Operating Charges (amended vide CERC order Dtd. 28th June,2011) The transmission charges and operating charges payable by the persons allowed short-term 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. 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.

Collection and Disbursement of Transmission Charges and Operating Charges (amended vide CERC order Dtd. 28th June,2011) 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% The transmission charges for use of State network shall be disbursed to the State Transmission Utility concerned. 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 Despatch Centre.”

Billing, Collection & Disbursement Procedures Approved by CERC Vide order dtd.29th April,2011 – Para &(3) b & c 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.

Billing, Collection & Disbursement Procedures Approved by CERC Vide order dtd.29th April,2011 – Para &(3) b & c Provided that this adjustment shall not be done for collective transaction and bilateral transactions done through portfolio trader. 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.

BCD Procedures-Amendment order Dtd.15th June,2011 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.”

DISBURSAL OF PAYMENT – Additional Pts CTU PROCEDURES DISBURSAL OF PAYMENT – Additional Pts Nodal RLDC :: Reconcile the Open Access Charges collected for previous month & disburse the Transmission/Operating Charges Transmission Charges and Operating Charges – for State System Concerned STUs/SLDCs Refunds due to curtailment/revision in previous month 15th day of the current month No responsibilty for payment dishonour: Disbursement only to extent of receipt

Short-Term Open Access transaction by embedded utilities EXAMPLE From Short-Term Open Access transaction by embedded utilities EXAMPLE From : TATA Steel , DVC To : NDPL Discom, Delhi Quantum : 100 MW Path : ER – WR - NR Source : SAIL

Loss calculation Methodology (upto 30th Sep,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% 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]. 97MW DVC BDY   95.55MW REGIONAL BDY 100MW CONTRACT TATA STEEL BDY   ER   93.64MW DTL BDY TATA STEEL NDPL WR   NR   92.24MW NDPL BDY

Loss calculation Methodology (w.e.f 1st October,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% 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]. 101.52MW DVC BDY   100MW CONTRACT 104.66MW TATA STEEL BDY   ER   98MW DTL BDY TATA STEEL NDPL WR   NR   96.53MW NDPL BDY

STOA charges calculation Methodology:: Tata Steel-DVC-ER-WR-NR-DTL-NDPL Contract value  100MW RTC power x 5 days  12000MWh(total contracted energy) Transaction  Tata steel- DVC - ER – WR – NR – DTL- NDPL DVC injection POC  14p/unit  Rs.140/MWh Delhi withdrawal POC  10p/unit  Rs.100/MWh DVC STU transmission charges = 80 x 12000   DVC injection POC transmission charges = 140 x 12000   DTL STU transmission charges = 41.85 x 12000 Delhi withdrawal POC transmission charges = 100 x 12000   NRLDC operating charges = 2000 x 5 ER   DVC SLDC operating charges = 2000 x 5   TATA STEEL NDPL DTL SLDC operating charges = 2000 x 5 ERLDC operating charges = 2000 x 5   WR   Upto 30th Sep,2011 Contract value at sellers’ periphery. No change in calculations 100MW CONTRACT VALUE NR   WRLDC operating charges = 2000 x 5   ALL OF ABOVE + NON REFUNDABLE APPLICATION FEES  Rs.5000/-

Sample bill for the transaction

Regulation 25A:: STOA Not To Be Granted 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 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

Regulation 26::Redressal Mechanism All disputes arising under these regulations shall be decided by the Commission based on an application made by the person aggrieved.

GENERAL CONDITIONS CTU PROCEDURES Entities which are making Application for the first time must submit the “One- Time” information as per enclosed format (FORMAT-VIII: “Registration Form) to the concerned nodal RLDC. Application - through Post / fax Any amendment/modification fresh Application Applications not accorded the Acceptance: stand disposed off with suitable intimation to the concerned Applicant(s) All costs/expenses/charges associated with the Application, including Bank Draft, shall be borne by the Applicant. Incomplete / vague Application summarily rejected No charges payable for a transaction shall be adjusted by against any other payments/charges. 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 Applicant shall keep each of the SLDCs/ RLDCs indemnified

Regulation 27:: Information System–NLDC & RLDCs 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”: These regulations; The detailed procedure 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 short-term open access granted (start date 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

Regulation 27A::Information System– SLDCs 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 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). (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.]

Regulation 28 ::Savings and Repeal The provisions of the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall not apply to the short-term open access] customers whose applications are processed under these regulations. 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. The provisions relating to short-term open access as contained in the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall stand repealed on 1.4.2008.

OA FROM STATES’ PERSPECTIVE

FOR(Forum of Regulators) website  www.forumofregulators.gov.in Aspects to be covered FOR(Forum of Regulators) website  www.forumofregulators.gov.in Model Terms & conditions for Intra State OA Regulations released by FOR on Sep’2010 Topics to be discussed to be limited to following aspects: Connectivity Eligibility for OA Categories for OA Open Access Charges applicable Limited STOA customer Sample OA charges calculations

Connectivity Only a consumer having load of 10 MW and above or a Generating Station having capacity of 10 MW and above shall be eligible to obtain connectivity to the intra-State transmission system, unless already connected, and shall apply for connectivity, in accordance with the provisions in this chapter Generating Station having installed capacity less than 10 MW shall be eligible to obtain connectivity to the Distribution system and shall apply for connectivity as per the provisions of these regulations, unless already connected, in accordance with the provisions in this chapter.

Eligibility for OA Licensees, generating companies, captive generating plants and consumers shall be eligible for open access to the intra-State transmission system of the State Transmission Utility or any transmission licensee on payment of transmission and other charges as may be determined by the Commission Licensees, generating stations, captive generating plants and consumers shall be eligible for open access to distribution system of a distribution licensee on payment of the wheeling and other charges as may be determined by the Commission Open access shall be permissible to the consumers seeking open access capacity upto which SERC has introduced open access and are connected through an independent feeder emanating from a substation of licensee or industrial feeder provided that all the consumers on such industrial feeder opt for open access and having simultaneous schedule of drawal under such open access:

Eligibility for OA Provided that the 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 Provided further that duties of the distribution licensee with respect to such open access consumers shall be of a common carrier providing non-discriminatory open access as per section 42(3) of the Act A person having been declared insolvent or bankrupt or having outstanding dues against him for more than two months billing of distribution/transmission licensee at the time of application shall not be eligible for open access.

Categories for OA customers 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 The period of Access for categorization of LT cusyomers is not yet uniform across States e.g for WB >= 15 Yrs, Orissa >=25Yrs, Jharkhand >=10years

OA charges-Transmission charges Inter State charges as applicable Intra-State charges calculated as follows: Transmission Charges = ATC/(PLST 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 Transmission charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher. For Open Access for a part of a day, the transmission charges shall be payable on pro-rata basis: Where a dedicated transmission system used for open access has been constructed for exclusive use of an open access customer, the transmission charges for such dedicated system shall be worked out by transmission licensee for their respective systems and got approved by the Commission and shall be borne entirely by such open access customer till such time the surplus capacity is allotted and used for by other persons or purposes.

OA charges-Scheduling & System Operation charges Intra-State charges for above other than Inter-State as decided by CERC as follows: Long-term access and medium-term open access SLDC charges determined by the Commission under sub-section (3) of section 32 of the Act Short-term open access  A composite operating charge @ 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. The operating charge includes fee for scheduling and system operation, energy accounting, fee for affecting revisions in schedule on bonafide grounds and collection and disbursement of charges.

OA charges-Wheeling Charges Wheeling Charges = (ARR – PPC – TC) /(PLSD X365) (in Rs./MW-Day) 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 Provided that Wheeling charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher. For Access for a part of a day, the wheeling charges shall be payable on prorata basis:

OA charges-Wheeling Charges Provided further that where a dedicated distribution system used for open access has been constructed for exclusive use of an open access customer, the wheeling charges for such dedicated system shall be worked out by distribution licensee for their respective systems and got approved by the Commission and shall be borne entirely by such open access customer till such time the surplus capacity is allotted and used for by other persons or purposes; Provided also that an open access customer connected to the STU system shall be liable to pay the wheeling charges determined under this regulation, if such customer was paying wheeling charges directly or indirectly before availing open access. In case an Open Access customer continues to pay the fixed charge and such fixed charge can be attributed to wheeling/distribution network related cost, partly or fully, SERC may provide for adjustment of such fixed charges against the wheeling charges determined as above

OA charges-Cross Subsidy Surcharge If open access facility is availed of by a subsidising consumer of a distribution licensee of the State, then such consumer, in addition to transmission and/or wheeling charges, shall pay cross subsidy surcharge determined by the Commission. Cross subsidy surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access consumers based on the actual energy drawn during the month through open access. The amount of surcharge shall be paid to the distribution licensee of the area of supply from whom the consumer was availing supply before seeking open access. Cross Subsidy Surcharge formula: S = T – [ C (1+ L / 100) + D ] 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 L is the system Losses for the applicable voltage level, expressed as a percentage Provided that in case the above formula gives negative value of surcharge, the same shall be zero:

OA charges-Cross Subsidy Surcharge Provided further that the Commission may fix a lower surcharge in the situation of shortages and load shedding by the distribution licensee: Provided also that such cross subsidy surcharge shall not be levied in case distribution access is provided to a person who has established a captive generation plant for carrying the electricity to the destination of his own use. Cross subsidy surcharge so determined by the Commission shall be reduced by 20% every year at a linear rate, taking the year in which the Commission has allowed open access to a category of consumers as the first year. e.g. Cross subsidy surcharge of 1 Rs./ kWh determined in the first year will be 80 Paise/kWh in second year and 60 paise/ kWh in third year and so on: Provided that in case power supply position or the consumer load seeking open access changes substantially, the Commission may review the Cross Subsidy Surcharge as and when required Provided further that the revised cross subsidy surcharge so determined by the Commission in subsequent years shall be applicable only to the new Open Access applicants.

OA charges-Additional surcharge 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. However,the fixed costs related to network assets would be recovered through wheeling charges. The distribution licensee shall submit to the Commission on six monthly basis, a detailed calculation statement of fixed cost which the licensee is incurring towards his obligation to supply. The Commission shall scrutinize the statement of calculation of fixed cost submitted by the distribution licensee and obtain objections, if any, and determine the amount of additional surcharge: Provided that any additional surcharge so determined by the Commission shall be applicable only to the new open access customers. Additional surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access consumers based on the actual energy drawn during the month through open access: Provided that such additional surcharges shall not be levied in case distribution access is provided to a person who has established a captive generation plant for carrying the electricity to the destination of his own use

OA charges-Standby charges In cases of outages of generator supplying to open access customer under open access, standby arrangements should be provided by the distribution licensee 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 and the licensee shall be entitled to collect tariff under Temporary rate of charge for that category of consumer in the prevailing rate schedule subject to the condition that such tariff shall not exceed the highest consumer retail tariff in the prevailing rate schedule: Provided that 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: Provided further that 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: Provided also that open access customers would have the option to arrange stand-by power from any other source.

OA charges-Imbalance Charges In case of deviation by open access consumers 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 charges as specified by the Central Commission shall be applicable). In case of underdrawal 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. Deviations between the schedule and the actual injection/drawal in respect of open access consumers with load of 10 MW and above and the Generating Stations irrespective of the capacity, shall be settled based on the composite accounts for imbalance transactions issued by SLDC on a weekly cycle based on net metering in accordance with the charges specified by the State Commission. Where the imbalance charges are not specified by State commission UI charges specified by the Central Commission to be used.

OA charges-Imbalance Charges Payment of imbalance charges shall have a high priority and the concerned constituents (including the licensees or the open access customers as the case may be) shall pay the indicated amounts within 10 (ten) days of the issue of the statement, into a State imbalance pool account operated by the SLDC. Recipient would then be paid out from the State imbalance pool account, within three (3) working days. If payments against the above imbalance charges are delayed by more than two days, i.e., beyond twelve (12) days from the date of issue of statement, the defaulting party shall have to pay simple interest @ 0.04% for each day of delay. The interest so collected shall be paid to the person who had to receive the amount, payment of which got delayed. Persistent payment defaults, if any, shall be reported by the SLDC to the Commission, for initiating remedial action.

OA charges- Reactive Energy charges In respect of open access consumer having a load of 10 MW or above, the payment for the reactive energy charges by open access consumers shall be in accordance with provisions stipulated in the State Grid Code. Where the reactive energy charges are not specified by the State Commission, charges as per provisions stipulated in the IEGC shall be applicable In respect of open access consumers of load less than 10 MW, reactive energy charges shall be calculated on Power Factor basis as specified by the Commission.

OA charges- Limited STOA customer Subject to the provisions of these regulations, any consumer of the distribution licensee having contracted load upto which open access has been allowed by the Commission and connected through an independent feeder emanating from a grid sub-station of licensee or industrial feeder provided that all the consumers on such industrial feeder, may apply for Limited short-term open access and having simultaneous schedule of drawal under such open access. Subject to the provisions of these regulations, in case of any Limited short-term open access consumer, the minimum schedule for drawl of power through open access in each time slot during the day shall not be less than maximum demand recorded during previous month or 80% of its contracted load whichever is higher. “Time slot” means each 30 minutes time block which is the minimum period for which the Time-of-day meter is capable of integrating the maximum demand.

OA charges- Limited STOA customer Limited short-term open access consumers shall be exempted from payment of transmission charges, wheeling charges, cross subsidy surcharge and additional surcharge. However, they shall continue to pay other charges namely energy charge, demand/fixed charge, minimum consumption guarantee etc., applicable to them as per the rate schedule in the tariff order: Provided that energy charges shall be payable as per balance energy/consumption calculated over & above the contracted load X No. of Hrs of OA availed Limited short-term open access consumers shall also be liable to pay composite operating charges @ Rs.2,000/- per day or part of the day for each transaction to the SLDC or as determined by the Commission from time to time. Inter-State charges if applicable additionally payable Special conditions for Imbalance settlement Nodal agency  SLDC

State OA charges- Sample calculations for Transmission charges only

State OA charges- Sample calculations for Transmission charges only

QUESTIONS? psdas_psd@yahoo.com