1. AN OVERVIEW OF AN OVERVIEW OF SOUTHERN REGION SOUTHERN REGION POWER SYSTEM POWER SYSTEM ADDITIONAL GENERAL MANAGER SRLDC, BANGALORE

2. LINKS INDIAN POWERGRIDS POWER SECTOR REFORMS POWER SECTOR DEVELOPMENT ROLES OF ORGANISATIONS RLDC MANAGEMENT INDIAN POWER TRANSMISSION DEVELOMENT OF SOUTHERN REGION OPEN ACCESS

3. INDIAN POWER GRIDS SOUTHERNREGION (29,000 MW ) NATIONAL GRID NORTHERNREGION (29,000 MW).. SG.. SG WESTERN REGION (31,500 MW) EASTERN REGION (16,000 MW) (16,000 MW) NORTH- EASTERN REGION (2500 MW) SYNCHRONOUSLY LINKED INSTALLED CAP :50,000 MW, LENGTH : 2500 Kms.. SG.. SG.. SG INSTALLED CAPACITY : 1,08,000 MW PEAK DEMAND: 82,000 MW TOTAL STATE GRIDS (SG) : 33 BACK

4. INDIAN POWER SECTOR PRIOR TO REFORMS  Structure  SEBs vertically integrated: Generation, Transmission and Distribution under one umbrella.  Administrative Mechanism  Power sector administrated by GoI, REBs & SEBs  Planning & project approval through GoI/CEA  Tariff setting of central sector utilities by GoI/CEA  Licensing function by the state Govts  Grid operation by RLDCs

5.  In 1991, private sector participation in generation allowed  In 1998, Central Electricity Regulatory Commission (CERC) for the centre and State Electricity Regulatory Commissions (SERC) for the states setup  In 1998, Transmission recognized as a distinct activity Private sector participation in transmission also allowed Private sector participation in transmission also allowed POWERGRID notified as Central Transmission Utility (CTU) POWERGRID notified as Central Transmission Utility (CTU) State Govt. to notify State Transmission Utility (STU) State Govt. to notify State Transmission Utility (STU)  In 1991, private sector participation in generation allowed  In 1998, Central Electricity Regulatory Commission (CERC) for the centre and State Electricity Regulatory Commissions (SERC) for the states setup  In 1998, Transmission recognized as a distinct activity Private sector participation in transmission also allowed Private sector participation in transmission also allowed POWERGRID notified as Central Transmission Utility (CTU) POWERGRID notified as Central Transmission Utility (CTU) State Govt. to notify State Transmission Utility (STU) State Govt. to notify State Transmission Utility (STU) POWER SECTOR REFORMS

6.  Un-bundling & corporatisation of SEBs to make separate corporations for Generation, Transmission and distribution for better accountability  Formation of Power Trading Corporation (PTC) to facilitate trading of power especially providing payment security to IPPs  In Distribution sector, Accelerated Power Development Reform Program (APDRP) undertaken for upgrading of sub-transmission and distribution network  Indian Electricity Act,2003 promulgated, consol ding previous Acts and more POWER SECTOR REFORMS CONTD  BACK

7. POWER SECTOR DEVELOPMENT 1950’s1970’s1990’s STATE Province REGIONAL NATIONAL Constitution of CEA as NATIONAL PLANNER CEA to concur power projects Constitution of Vertically integrated SEBs for development on state level Constitution of CEA as NATIONAL PLANNER CEA to concur power projects Constitution of Vertically integrated SEBs for development on state level Development on Regional basis Constitution of REBs for regional grid operation Central Gen. cos. Constituted to develop big project on regional basis Development on Regional basis Constitution of REBs for regional grid operation Central Gen. cos. Constituted to develop big project on regional basis Formation of CTU CTU assigned the role of Grid operation (TSO) Formation of Regulatory bodies CERC & SERC Formation of CTU CTU assigned the role of Grid operation (TSO) Formation of Regulatory bodies CERC & SERC

8. CENTRAL GEN Cos./ IPPs POWERGRID CTU & Grid Operator ( RLDCs) CTU & Grid Operator ( RLDCs) CEA Central Govt State Govts STUs TRANSMISSION LICENCEES INDIAN POWER SECTOR – CENTRAL LEVEL Regulator(CERC)

9. GENERATING COS. STUs/ Grid Operator ( SLDCs) STATE GOVTs. Regulator(SERC) DISCOMs CENTRAL GOVTs. INDIAN POWER SECTOR – STATE LEVEL BACK

10. FUNCTIONS OF VARIOUS PLAYERS Central Government  Central Government  To prepare & publish National Electricity Policy and Tariff Policy in consultation with State Govts. and CEA for development of power system based on optimal utilisation of resources  Formulate a National Policy, in consultation with State Govts. and state commissions, for rural electrification  Central govt. to establish an Appellate Tribunal

11.  Appellate Tribunal  To hear appeals against the orders of the adjudicating officer or the appropriate commission.  Appellate Tribunals to have all powers of civil court  Appeal against Judgment of Appellate tribunal only in Supreme court FUNCTIONS OF VARIOUS PLAYERS CONTD 

12. Central Electricity Authority (CEA)  Central Electricity Authority (CEA)  To prepare National electricity plan in accordance with the National electricity policy of Central Govt. and notify the same  Specify technical standard for construction, operation & maintenance of electrical plants, electric lines and connectivity to the grid  Advice the appropriate Govt./Commission on all technical matters related to Generation, transmission and distribution FUNCTIONS OF VARIOUS PLAYERS CONTD 

13.  Central Electricity Regulatory Commission (CERC)  To regulate tariff of central generating companies  To determine the tariff & regulate inter-state transmission of electricity  To issue licensees to function as transmission licensees (other than CTU) and electricity trader with respect to inter- state operation  Aid & Advice the Central Govt. for formulation of National electricity policy & Tariff policy.  To specify the Grid Code  Develop appropriate policies & procedures for Environmental regulation of the power sector FUNCTIONS OF VARIOUS PLAYERS CONTD 

14.  Central Transmission Utility (CTU)  Discharge all functions of planning & co-ordination for inter-state transmission system with state transmission utilities, Central Govt., State Govt., Generating companies, Authority, Licensees etc  To ensure development of an efficient, coordinated and economical system of inter-state transmission lines for smooth flow of electricity from generating stations to load centers  To exercise supervision & control over the inter-state transmission system  To ensure integrated operation of the regional grids through RLDCs FUNCTIONS OF VARIOUS PLAYERS CONTD 

15.  State Electricity Regulatory Commission (SERC)  To determine the tariff for electricity within the state  To regulate operation of power system within the state  Issue licensees for Transmission, distribution & trading of electricity within the state  To specify State Grid Code consistent with Grid Code  Advice state Govt. on matters like promotion of competition, efficiency, investment and economy in the electrical industry FUNCTIONS OF VARIOUS PLAYERS CONTD 

16.  Regional Load Despatch Center (RLDC)  Apex body to ensure integrated operation of the power system in the region  Give directions and exercise supervision and control which is required for integrated operation to achieve maximum economy and efficiency  Scheduling/Re-scheduling of generation and contingency analysis  System restoration following Grid disturbances  Metering & Data collection  Compiling & furnishing data pertaining to system operation FUNCTIONS OF VARIOUS PLAYERS BACK

17. RLDC ’ s MANAGEMENT Territorial Jurisdiction: Five Regions In Country: NorthernNorthern SouthernSouthern EasternEastern WesternWestern North – EasternNorth – Eastern

18. SYSTEM OPERATION HIERARCHY

19. RLDC ’ s MANAGEMENT Operating Agency: -A Govt. Company or any Authority or Corporation established under Central Act. -Presently responsibility entrusted to : Central Transmission Utility - POWERGRID

20. RLDC ’ s MANAGEMENT Challenges: Frequent Grid Disturbances / BlackoutsFrequent Grid Disturbances / Blackouts Wide Frequency / Voltage excursionsWide Frequency / Voltage excursions Transmission BottlenecksTransmission Bottlenecks Sub-Optimal OperationSub-Optimal Operation Stressed Equipments and OperatorsStressed Equipments and Operators

21. RLDC ’ s MANAGEMENT RLDC Responsibilities: -Efficient, Economical and Integrated transmission and supply of Electricity -Co-ordination of facilities for inter-state, regional and inter-regional generation and transmission of electricity -Apex body to ensure integrated operation of Power System in the concerned region

22. RLDC ’ s MANAGEMENT Co-ordination Functions: - Merit Order Operation - Resource Scheduling - Facilitating inter-state and inter-regional transactions - Transmission corridor usage allocation and loss optimization - Scheduling Co-ordination - Keeping accounts of electricity transmitted through regional grid

23. RLDC ’ s MANAGEMENT Real Time Functions: - System security and integrity - Facilitating inter-state and inter-regional spot trading - Load-Generation balance and maintenance of system parameters - State estimation and contingency evaluation - System contingency handling and revival

24. RLDC ’ s MANAGEMENT Real Time Operation : Strengths Simple, but effective toolsSimple, but effective tools Holistic approach rather than relying only on elaborate codified proceduresHolistic approach rather than relying only on elaborate codified procedures Co-operative CultureCo-operative Culture Real Time Operation stands on two firm footings Real Time Operation stands on two firm footings IEGC – THE INDIAN ELECTRICITY GRID CODE IEGC – THE INDIAN ELECTRICITY GRID CODE ABT – AVAILABILITY BASED TARIFF ABT – AVAILABILITY BASED TARIFF

25. INDIAN ELECTRICITY GRID CODE (IEGC) SIMPLE, COMPREHENSIVE AND EFFECTIVESIMPLE, COMPREHENSIVE AND EFFECTIVE ADAPTIVE TO GRID REQUIREMENTSADAPTIVE TO GRID REQUIREMENTS CLARITY IN ROLES OF STAKE HOLDERSCLARITY IN ROLES OF STAKE HOLDERS Encompasses: Encompasses: -Planning Code for Inter State Transmission -Connection Conditions -Operating Code for Regional Grids -Scheduling and Dispatch Code -Management of Indian Electricity Grid Code RLDC’s MANAGEMENT

26. Availability Based Tariff A Rational Tariff StructureA Rational Tariff Structure Complements Grid ReliabilityComplements Grid Reliability Encourage Those Who Help The Grid and Discourage Those Who Undermine ReliabilityEncourage Those Who Help The Grid and Discourage Those Who Undermine Reliability Simple and EffectiveSimple and Effective Scientific Settlement System on Weekly BasisScientific Settlement System on Weekly Basis RLDC’s MANAGEMENT

27. Availability Based Tariff : Price Mechanism Fixed Cost: Plant Availability Variable Cost:Schedule Energy Deviation:Unscheduled Interchange (UI) Attracting frequency Linked Charges

28. FREQUENCY vs UI PRICE 0 28 56 84 112 140 168 196 224 252 280 308 336 364 392 420 448 51 50.950.850.750.650.550.450.350.250.1 50 49.949.849.749.649.549.449.349.249.1 49 48.948.848.748.648.5 FREQUENCY PAISE/UNIT 49 HZ 50.5 HZ 49.5 HZ 50 HZ 49.5 HZ CORRESPONDS TO RS.2.80 UI PRICE AND FREQUENCY

29. The Power Of UI: Linked To Frequency –Linked To Frequency – –Collectively Controlled, Democratically Stabilized –Known Online To All - Transparency Simple – No Elaborate Calculation RequiredSimple – No Elaborate Calculation Required No Fear Of Price RiggingNo Fear Of Price Rigging No Need For NegotiatingNo Need For Negotiating Promotes DisciplinePromotes Discipline Strong Nash EquilibriumStrong Nash Equilibrium Dovetails With Loose Power Pools PhilosophyDovetails With Loose Power Pools Philosophy Platform For A POWER MARKETPlatform For A POWER MARKET RLDC’s MANAGEMENT

30. THE POWER OF UI (Contd.): UI Vector Sends The Signals ForUI Vector Sends The Signals For –Optimization In The Control Area –Realistic Load-Generation Planning –Trade, Bilateral and Contracts Indian Equivalent of The Spot and Balancing MarketIndian Equivalent of The Spot and Balancing Market RLDC’s MANAGEMENT BACK

31. SOUTHERN REGION WESTERN REGION EASTERN REGION NORTHERN REGION NORTH- EASTERN REGION INSTALLED CAPACITY:109,300 MW INSTALLED CAPACITY:29,400 MW INSTALLED CAPACITY:31680 MW INSTALLED CAPACITY:29430 MW INSTALLED CAPACITY:16700 MW INSTALLED CAPACITY:2300 MW

32. SOUTHERN REGION WESTERN REGION EASTERN REGION NORTHERN REGION NORTH- EASTERN REGION ‘ELECTRICAL’ REGIONS 1 2 3

33. HVDC STATION KOLAR (KARNATAKA ) TALCHER ORISSA ) INTER REGIONAL LINKS RAIPUR ROURKELA TOTAL TRANSFER CAPABILITY ON INTER REGIONAL HVDC 4500 MW

34. 765 KV RING MAIN SYSTEM BACK

35. THE FIRST POWER STATION IN SOUTH ASIA- SIVANSAMUDRA 1902

36. EVOLUTION: DID YOU KNOW? 1172 1902: ASIA’S FIRST HYDRO GENERATING STATION AT SHIVANSAMUDRA-42 MW SIVANSAMUDRA WAS CONNECTED TO KGF BY A 78.5 KV D/C LINE. POWER WAS DELIVERED AT 25 HZ!!! KGF SIVA A 78.5 KV D/C LINE WAS ALSO LAID BETWEEN SIVANSAMUDRA AND MYSORE. A FREQUENCY CONVERTER AT MYSORE DELIVERED 50 HZ! MYSORE

37. EVOLUTION: YEAR-1975 KOLHAPUR BELGAUM BANGALORE HUBLI SHARAVATHY MANGALORE MYSORE SHIMOGA SHARAVATHY-1964-1035 MW MUNIRABAD-1962-27 MW TB DAM-1955-14.4 MW BHADRA-1962-39.2 MW SIVA-1902-42 MW SHIMSHA-1940-17.2 MW MGHE-1947-120 MW

38. PRE EIGHTIESPRE EIGHTIES  States used to operate independently with their own internal generation. own internal generation.  There are few 220 KV lines across the states and also used only on emergency and occasionally to meet the need.  Result  No optimization in generation  No integrated operation.  No merit-order in generation

39. EARLY EIGHTIESEARLY EIGHTIES  Central generating stations came up  Regional grids started taking shape  Tussle due to uneven comparison between tariffs of Central and SEBs ’ stations (total cost vs. variable cost)  States demanded backing down of Central generation  Central stations reluctant to back down  Result  High frequency in off-peak hours  Also, low frequency during peak load hours, due to SEBs ’ unchecked over drawals.  No merit-order in generation

40. 1990: K.P.Rao Committee Recognized the problem, but could not agree on/recommend a solution. on/recommend a solution. 1993-94: A structured study by N/s. ECC, USA, funded by ADB, sponsored by WB as a covenant of loans to POWERGRID Availability Tariff Availability Tariff 1995-98: NTF/RTFs, formed for AT implementation, bogged down in unending discussions. 1998 : CERC Has been formed by an act of Parliament act of Parliament

41. 1999 : Matter transferred to CERC: Hearings etc., 2000 : CERC Order, but stayed due to petitions : Notification of IEGC by CERC : Notification of IEGC by CERC 2000-02 : Problems of regional grid operation continued. Many intractable commercial disputes also arose. 2002-03 : AT implemented ultimately, as there was no other solution: was no other solution: WR – 01.07.02; NR – 01.12.02; WR – 01.07.02; NR – 01.12.02; SR – 01.01.03; ER – 01.04.03; SR – 01.01.03; ER – 01.04.03; NER: 01.11.03; NER: 01.11.03;

42. INSTALLED CAPACITY OF SOUTHERN REGION IN MW 29400 MW HYDRO THERMAL WIND IPP NUCLEAR GAS

43. SOUTHERN REGION INSTALLED CAPACITY: 29400 MW MAX DEMAND MET:20428 MW KARNATAKA MAX DEMAND MET 4805 MW INSTALLED CAPACITY 5041 MW DAILY CONSUMPTION 79 MU ANDHRAPRADESH MAX DEMAND MET 7143 MW 9065 MW INSTALLED CAPACITY DAILY CONSUMPTION 130 MU TAMILNADU MAX DEMAND MET 7138 MW 6890 MW INSTALLED CAPACITY DAILY CONSUMPTION 125 MU KERALA MAX DEMAND MET 2348 MW 2602MW INSTALLED CAPACITY DAILY CONSUMPTION 35 MU

44. SR GRID MAP KHAMMAM VIJAYAWADA NAGARJUNASAGAR VISAKHAPATNAM (POWERGRID) HYDERABAD RAICHUR GOOTY HOODY SALEM UDUMALPET TRICHUR MADURAI TRICHY MADRAS NEYVELI CUDDAPAH DAVANAGERE KAIGA 115 317 RSTPP BHADRAVATI 130x2 164x2 182 151 181 173 302 308 172 277 279 155 178x2 PONDICHERY BANGALORE SIRSI MUNIRABAD P P P P P P P P P P P P P P P N KOLAR PALLOM KAYANKULAM EDAMON TALCHER JEYPORE 63 187 2x78 2x221 54 HOSUR KADRA KODASAALY Nagjhari 1 120 60 MAPS P SSLMM MMDP THIRUVANATHAPURAM ALMATHI NELLORE 400 KV LINE PRESENTLY OPERATED AT 220 KV NELAMANGALA KURNOOL GAZUWAKA(AP) SIMHADRI NTPC HIRIYUR 189 195 267x2 258 242 98 175 179 127 130x2 221x2 146x2 52x2 197x2 301x2 8x4 15x2 300 28 330 3500 MW TRANSFER CAPABILITY ON HVDC ABOUT 38000 CKM OF 400/220 KV TRANSMISSION

45. ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME.ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME. –TRANSPARENCY. –SYNERGY IN OPERATION. –NO “ PASSING THE BUCK ” APPROACH. QUANTUM LEAP IN VISIBILITY TO OPERATOR.QUANTUM LEAP IN VISIBILITY TO OPERATOR. –INCREASED CONFIDENCE. –FOCUS ON SECURITY AND ECONOMY. –INCRESED SCOPE FOR TRANSACTIONS WITH OTHER REGIONS PREMPTIVE, DYNAMIC “ EARLY WARNING ” SYSTEMS.PREMPTIVE, DYNAMIC “ EARLY WARNING ” SYSTEMS. GRID LESS VULNERABLE TO DISTURBANCES.GRID LESS VULNERABLE TO DISTURBANCES. ACCURATE AND EASY ANALYSIS OF GRID INCIDENTSACCURATE AND EASY ANALYSIS OF GRID INCIDENTS FASTER RESTORATION AFTER PERTURBATIONFASTER RESTORATION AFTER PERTURBATION BACK

46. “ OPEN ACCESS ” Enabling of non-discriminatory sale/purchase of electric power/energy between two parties utilizing the system of an in- between (third) party, and not blocking it on unreasonable grounds ELECTRICITY ACT 2003 “ ‘Open Access’ means the non-discriminatory provision for use of transmission line or distribution system or associated facilities with such line or system by any licensee or consumer or a person engaged in generation in accordance with the regulation specified by the appropriate Commission.”

47. THE TRADING FRAME WORK CTU – INTER REGION CTU_WEST CTU_SOUTH CTU_NORTH CTU_EAST CTU_NE STU

48. ELECTRICITY ACT 2003 PART -II (23) "electricity" means electrical energy- (a) generated, transmitted, supplied or traded for any purpose; or (b) used for any purpose except the transmission of a message; (71) "trading" means purchase of electricity for resale thereof and the expression "trade" shall be construed accordingly PART-IV 14. The Appropriate Commission may, on application made to it under section 15, grant any person license to any person - (a) to transmit electricity as a transmission licensee; or (b) to distribute electricity as a distribution licensee; or (c) to undertake trading in electricity as an electricity trader, in any area which may be specified in the license:

49. PART-VI, ELECTRICITY ACT 2003 Provisions with respect to electricity traders 52. (1) Without prejudice to the provisions contained in clause (c) of section 12, the Appropriate Commission may, specify the technical requirement, capital adequacy requirement and credit worthiness for being an electricity trader. (2) Every electricity trader shall discharge such duties, in relation to supply and trading in electricity, as may be specified by the Appropriate Commission.

50. PART-X- ELECTRICITY ACT 2003 79. (1) The Central Commission shall discharge the following functions, namely:- (e) to issue licenses to persons to function as transmission licensee and electricity trader with respect to their inter-State operations.

51. “ OPEN ACCESS ” Catagoresiation Of Open Access Customers Short Term - Upto one year Short Term - Upto one year Long term - Five years or more Long term - Five years or more All Open Access Customers to be abide by IEGC.

52. “ OPEN ACCESS ” Nodal agency Nodal agency Short Term Customers - Short Term Customers - RLDC of the Region in which the drawal point is located RLDC of the Region in which the drawal point is located Long term Customers - Long term Customers - Central Transmission Utility Central Transmission Utility

53. “ OPEN ACCESS ” Processing of Application Processing of Application Short Term Customers - Short Term Customers - Nodal RLDC to interact with concerned RLDCs/SLDCs to process the same in a specified time period. Applicant has to furnish point of injection/drawal, MW etc. Long term Customers - Long term Customers - CTU to carry out studies in consultation with RLDC/STU. Suggest augmentation/strengthening required, if any CTU to carry out studies in consultation with RLDC/STU. Suggest augmentation/strengthening required, if any

54. “ OPEN ACCESS ” Transmission Pricing Transmission Pricing Regional Postage stamp as per CERC ’ s notification dated 26.03.01 to be followed Regional Postage stamp as per CERC ’ s notification dated 26.03.01 to be followed Utility importing power to pay wheeling charges in respect of 1. Exporting region 2. Inter regional assets 3. Importing region 4. Intervening state utility, if any ( No charges payable to intervening region) ( No charges payable to intervening region)

55. “ OPEN ACCESS ” Energy Metering SEMs to be installed by direct customers and if required by embedded customers. SEMs to be installed by direct customers and if required by embedded customers. SEMs to meet RLDC/CTU requirements and shall be open for inspection/testing by CTU/RLDC. SEMs to meet RLDC/CTU requirements and shall be open for inspection/testing by CTU/RLDC.

56. “ OPEN ACCESS ” Energy Accounting Active Energy Active Energy UI Pricing mechanism applied to inter state transactions of Open Access Customers UI Pricing mechanism applied to inter state transactions of Open Access Customers UI bills shall be raised to SEB/STUs Segregation of UI charges among DISCOMS as well as embedded Open Access Customers to be done by the SEB/STU UI bills shall be raised to SEB/STUs Segregation of UI charges among DISCOMS as well as embedded Open Access Customers to be done by the SEB/STU Reactive Energy Reactive Energy CERC ’ s scheme to be applied CERC ’ s scheme to be applied

57. “ OPEN ACCESS ” Energy Losses Existing methodology as per 4.9 of CERC ’ s notification dated 26.03.01 to be continued I.e Transmission losses ( and not incremental loss) to be shared by Open Access Customers Existing methodology as per 4.9 of CERC ’ s notification dated 26.03.01 to be continued I.e Transmission losses ( and not incremental loss) to be shared by Open Access Customersas per 4.9 of CERC ’ s notification as per 4.9 of CERC ’ s notification

58. “ OPEN ACCESS ” Scheduling and System Operation Charges Short term open access customers has to pay to the concerned RLDC and SLDC Scheduling and System operation Charges : Rs. 3000/- per day or part of day For Each Revision : Rs. 2000/-

59. “ OPEN ACCESS ” Existing bilateral transactions to be given priority in allotment to be given priority in allotment customers to apply a fresh within 30 days customers to apply a fresh within 30 days Curtailment Prirority Original beneficiaries to receive similar treatment as for Long Term Open Access Customers. In case of transmission constraint Short Term Customers to be curtailed first. Within a category of service curtailment on pro rata basis

60. “ OPEN ACCESS ” Time-schedule for Processing Application S.No. Duration of service Max. Processing time 1. 1. Short-Term Service Up to One day One day Up to one week Three days Up to one month Seven days Up to one year Thirty days 2. Long-Term Service Five years or more Ninety days

62. 4.9 Wheeling Charges for inter-state transmission : 4.9.1 Wheeling on POWERGRID/Licensee ’ s system: 4.9.1.1 In case of inter-regional transmission of power through the transmission system belonging to POWERGRID or any Licensee, the total monthly charges payable to them by the importing, exporting and intermediary regions (if any) shall remain the same

63. 4.9.1.2 Till introduction of ABT, the sharing of monthly transmission charges shall be in proportion to energy drawal. In case of importing region, the monthly transmission charges payable to POWERGRID/Licensee shall be shared in proportion to energy drawal as per Regional Energy Accounting including energy drawn from exporting region. In case of exporting region,the monthly transmission charges payable to POWERGRID/Licensee shall be shared by its constituents and beneficiaries (importing utilities) outside the region in proportion to energy drawal as per Regional Energy Accounting. Subsequent to introduction of ABT, sharing of the monthly transmission charges shall be on the basis of capacity allocation and contracted power. No transmission charges shall, however, be payable by the importing utility for utilisation of POWERGRID/Licensee system in intermediary region(s). 4.9.1.3 The transmission losses shall be payable for utilisation of the POWERGRID/Licensee's system. 4.9.1 Wheeling on POWERGRID/Licensee ’ s system:

64. 4.9.2 Wheeling through SEB/State Utility system: 4.9.2.1 In case of wheeling of power through SEB/state utility system, the importing utility and the wheeling utility shall endeavor to mutually agree on wheeling charges as well as transmission losses. In such cases, approval of the Commission shall not be required. However, the wheeling utility shall not deny use of its system merely on the basis of non-agreement on wheeling charges.

65. 4.9.2 Wheeling through SEB/State Utility system: 4.9.2.2 If the parties are not able to agree on the wheeling charges, the Contract Path method shall be used for calculation of wheeling charges. Monthly transmission charges of this path would be payable in proportion to contracted power vis- à -vis SIL of the lines in the contracted path. The monthly transmission charges for the contract path shall be calculated as per the provisions of this notification.

66. 4.9.2 Wheeling through SEB/State Utility system: 4.9.2.3 In case, wheeling utility makes some special arrangement (such as backing down cheaper generation) to facilitate exchange, the verifiable opportunity cost or the charges calculated as per contract path method, which ever is higher, shall be payable to the wheeling utility. In any case, the wheeling charges shall not exceed the charges corresponding to a new transmission line of adequate capacity along the contracted path. The Member Secretary, REB of the region in which wheeling utility is located, shall calculate wheeling charges by applying the principles enumerated above.

67. 4.9.2 Wheeling through SEB/State Utility system: 4.9.2.4 The incremental transmission losses on account of wheeling shall be payable in kind i.e. the transmission losses shall be compensated by an equivalent amount of energy charged to the importing utility. In case of non-agreement on the issue of transmission losses, the studies to determine incremental transmission losses in the wheeling utility system shall also be carried out by the Member Secretary of the region concerned.

68. 4.9.2 Wheeling through SEB/State Utility system: 4.9.2.5 The Commission may be approached in case of disagreement with the decision of Member Secretary, REB. Pending the final order of the Commission, decision of the Member Secretary, REB shall be implemented on provisional basis.. BACK