1. Open Access

2. DEFINITION OF “OPEN ACCESS” IN THE ELECTRICITY ACT, 2003 “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”

3. INTRODUCTION Open Access is necessary for utilization of short time surpluses. Open Access will also create options for distribution companies to buy power. Open Access will provide means to the traders/buyers/sellers. Non- discriminatory / Transparent Process Freedom to buy/sell power Efficient Market Mechanism to address supply / demand mismatches Encourage investment in Transmission

4. Legal Framework SECTION 38: (CTU Function) CTU to provide open access to Licensee or Generating Company on payment of transmission charge Any consumer when open access is provided by State Commission on payment of surcharge in addition to transmission charges. Surcharge shall be for meeting cross subsidy, and to be progressively reduced and eliminated. Surcharge not payable in case of captive generation and Distribution Companies. CTU can not engage in generation and trading

5. Legal Framework Sections 39, 40 and 41 Similar provisions for STU and Transmission Licensee. STU can not engage in trading. Transmission Licensee can not engage in trading Section 42 State Commission to provide Open Access to all consumers who required supply more than 1 MW in 5 years.

7. Agencies involved in Short-Term Open Access Transaction RLDC (s) SLDC (s) CTU STU (s) Buyer Seller Trader

8. Open Access – CERC Regulations, 2008

9. CERC Open Access Regulations, 2008 3. Subject to any other regulations specified by the Commission, the long-term customer shall have first priority for using the inter-State transmission system for the designated use. These Regulations shall apply for utilization of surplus capacity available thereafter on the inter-State transmission system by virtue of- (a) Inherent design margins; (b) Margins available due to variations in power flows; (c ) Margins available due to in-built spare transmission capacity created to cater to future load growth or generation addition:

10. CERC Open Access Regulations, 2008 Effective 01.04.2008 Regulations cover only Short-term Open Access Transactions categorized as Bilateral and Collective (through PX) Earlier Products of Short-Term retained under Bilateral Transactions Nodal Agency –Bilateral : RLDCs –Collective : NLDC

11. Both Buyers and Sellers of Collective transactions to bear transmission charges and absorb transmission losses Inter-Regional links -No Separate treatment. Emphasis on “Scheduling” rather than “Reservation” SLDC consent mandated along with application In case of Congestion – e-Bidding without Price Cap Exit Option provided with payment of up to 5 days open access charges. Moving towards empowerment of SLDCs Open Access in ISTS: CERC OA Regulations 2008

12. Open Access in ISTS Products – Short term Access - Advance - First Come First Serve - Day ahead - Contingency CERC OA Regulations 2008 Provisions relating to Long Term as per the Open Access Regulations, 2004 to continue, till CERC further notifies. Long term Access

13. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) S. No. Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations (w.e.f. 01.04.2005 to 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 1.Open Access Duration - Up to One year maximum - single application possible Open Access Duration - Up to Three Months max. - single application possible Open Access Duration Bilateral -Up to 3 months -separate application for each month Collective: -Only Day ahead 2. ST Rate - in Rs/MW/Day - Min. Charges for one day ST Rate - in Rs./MW/Day -Charges as per continuous block of up to 6 hours, 12 hours, and more than 12 hours Rate -in Rs/MWh - Based on Scheduled Energy rather than reservation of transmission capacity

14. S. No. Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations (w.e.f. 01.04.2005 to 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 3. Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 25% of Long Term Charges Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter-Regional - 50% of Long Term Charges Transmission Charges: Bilateral: -Rs.30/MWh – intra- regional -Rs.60/MWh – Between adjacent regions -Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal 4. Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 3000/day for each SLDC involved c. Handling &Service Charges - 2% of total charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 1000/day for each RLDC involved c. Handling & Service Charges – Nil Operating Charges Bilateral: a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 2000/day for each RLDC and SLDC involved c. Handling & Service Charges -Nil Collective Transactions: a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 5000/day to NLDC for each State involved ; -NLDC to Share with RLDCs Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008)

15. S. No. Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations (w.e.f. 01.04.2005 to 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 5.OA Application types : - Advance OA Application types : - Advance -FCFS -Day Ahead -Same Day OA Application types : - Advance -FCFS -Day Ahead -Contingency 6. Time FrameTime Frame : 20 th of the month Time Frame : -10days

16. ER-NR NER-ER WR-NR SR-WR SR-ER EASTERN REGION SOUTHERN REGION WESTERN REGION NORTHERN REGION NORTH- EASTERN REGION STOA RATES 2004 AND 2005 AND 2008 ER-WR 700.91 313.93 649.86 339.98 919.71 1462.44 881.49 967.58 233.32 460.41 270.49 614.15 434.42 516.03 359.68 2433.39 1128.39 447.73 1795.11 859.05 433.09 200420052008 Scheduling Charges (Rs/Day) RLDCs SLDCs3000 1000 2000 Handling Charges2%NIL Transmission Charges: Bilateral: Rs.30/MWh – intra- regional Rs.60/MWh – Between adjacent regions Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal STOA CASECASE

17. Procedure for Scheduling of Open Access ( Bilateral Transaction)

18. SUBMISSION OF APPLICATION Nodal Agency – RLDC where point of drawal is situated Application Contents –Details -Buyer /Seller /Point of injection/point of drawal/Contracted power at supplier interface/date/time period Application Fee (Rs. 5000/-) –Along with application –With in 3 working days ( for same day or next day transaction) Endorsement –Concerned SLDCs

19. CONCURRENCE OF GRID OPERATORS Available Transfer Capability SLDC – ( congestion in intra-State TS) – concurrence -along with Application RLDC - ( congestion in Regional TS) –To be obtained by Nodal RLDCs Refusals /Curtailed Concurrence – Reasons to be mentioned in writing

20. 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 M0 – for transaction in M1, M2, M3) –Cut-off time : 17:30 Hrs. of last day (Day 0) –Request for concurrence (RLDC) – by 12:00 Hr. next day (Day 1) –Concurrence - by 20:00 Hrs (Day 1) –Congestion Information to Applicant – next day 12:00 Hrs (Day 2) –Revised Request – next day 11:00 HRs. (Day3) –E-bidding – in case of Congestion (next day) (Day 4) –Acceptance/Refusal of Scheduling Request – (Day 5)

21. Time Line for Advance Scheduling M0 M1 M2M3 5105 Last Day for submission of Applications for transactions in M1, M2, M3 Processing time for RLDCs

22. e-Bidding Procedure Invitation of Bids – period of congestion –RTS/IR corridor – overstressed 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 Part Acceptance – Price as quoted by the bidder Full Acceptance – Price quoted by last bidder getting full acceptance

23. “FIRST-COME-FIRST-SERVED” BASIS Scope –Current Month – Next Month ( during last 10 days of end of current month) Separate Application for each month To be submitted 4 days prior to date of Scheduling Processing time – 3 days Processed on FCFS basis Application Received in a day to be processed together – same priority Application Received after 17:30 Hrs. - next day Congestion Management – pro-rata

24. DAY-AHEAD BILATERAL TRANSACTION 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 having been received together for processing and shall have same priority. Processing only after processing of the Collective Transactions of the Power Exchange (s). Congestion Management – Pro-rata

25. SCHEDULING OF BILATERAL TRANSACTION IN A CONTINGENCY Only Buying Utility 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 – scheduling from 6 th time block Congestion Management – Pro-rata

26. INCORPORATION IN DAILY SCHEDULES RLDCs to incorporate in Daily Schedules of the Regional Entities Average energy losses -estimated on weekly basis –RLDCs – ISTS –SLDC – intra-State TS resolution of 0.01 MW at each State/inter- Regional boundaries. ramp-up –at the time of commencement of the transaction ramp-down –at the time of termination of the transaction

27. REVISON OF SCHEDULE Only in case of “Advance Scheduling” or “First-Cum-First Served basis” minimum five (5) days notice Transmission Charges and Operating Charges for 5 days Margin Available – could be utilized for scheduling of other Open Access Transactions

28. Example: Say an Applicant has been scheduled for 10 days from 21st day of a month to 30th day of a month for 100 MW on round the clock basis (i.e. for 2400 MWh per day). If this Applicant, on or before 15th day of that month, submits request for revision of schedule to 50MW on round the clock basis (i.e. 1200 MWh per day), the revised schedule will get implemented from the beginning of the transactions (i.e. 21st day of the month). The Applicant shall pay the Transmission Charges for 2400 MWh per day for the period from 21st to 25th day of the month. Whereas for the period from 26th day to 30th day of the month, Transmission Charges shall be payable for 1200MWh per day. However, if the Applicant requests for such revision on 17th day of the month, his request will be implemented from 23rd day of the month. He shall pay Transmission charges for 2400 MWh per day for 5 days i.e. from 23rd to 27th day of the month and for the remaining period he shall pay the Transmission Charges based on 1200MWh per day.

29. CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS Allocation/Reallocation of ISGS power Transmission constraint or to maintain grid security curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security Open Access Bilateral Transactions would generally be curtailed first followed by the Collective Transactions Rerouting allowed without curtailment Pro-rata refund of Transmission Charges

30. COMMERCIAL CONDITIONS All Payment related to Open Access Charges – by Applicant to the Nodal RLDC –within three working days from the date of acceptance Application Fees (as per Para 7 of Regulation) –non-refundable fee of Rupees five thousand (Rs.5000/-) only Transmission charges (Para 16 of Regulation) –Intra-region (Rs.30/MWh) –Adjacent Region (Rs. 60/MWh) –Wheeling (Rs.90/MWh) –STS charges – as specified by respective SERCs or Rs. 30/MWh Operating charges (as per Para 17 of Regulation) –Rs. 2000/- per day each RLDCs/SLDCs involved

31. DEFAULT IN PAYMENT OF OPEN ACCESS CHARGES Nodal RLDC, at its discretion –may not schedule the transaction or –may cancel the scheduling of already scheduled transaction or –may not entertain any Application of such Applicant in future until such time the default is cured. simple interest at the rate of 0.04 % for each day of default from the Due Date of Payment Cheque has been dishonored –No cheque payment - next three (3) months

32. DISBURSAL OF PAYMENT Reconcile the Open Access Charges –10th day of the current month Transmission Charges and Operating Charges – for State System –Concerned STUs/SLDCs For ISTS –25% to be retained by CTU – 75% to be utilized for reduction of Transmission charges of Long Term customers Refund due to curtailment –15th day of the current month

33. GENERAL CONDITIONS “One- Time” information as per enclosed format Application - through Post/fax Any amendment/modification –fresh Application Applications not been accorded the Acceptance –stand disposed off with suitable intimation to the concerned Applicant(s) incomplete/vague Application –summarily rejected 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

35. 2850 MW IR Links – Till 2007 – 08 8650 MW 1300MW 2500MW 1200 MW 2200 MW 36,547 MW 17,159 40,280 MW 39,592 MW 2506 1000 MW Till 2007 – 08 IR Capacity = 19,700 MW Name of the LinkCapacity (MW) East-North Dehri-Sahupuri 220kV S/c150 Sasaram HVDC back-to-back500 Muzaffarpur-Gorakhpur 400kV D/c (Quad)2000 Bihar Sharif(ER)-Balia 400kV D/c (Quad)2000 Patna-Balia 400kV D/c (Quad)2000 Sub-Total6650 East-West Budhipadar-Korba 220kV T/c450 Rourkela-Raipur 400kV D/c1200 Sub-Total1650 West-North Vindhyachal HVDC back-to-back500 Existing 220kV AC Lines200 Gwalior-Agra 765kV S/c1500 Sub-Total2200 East-South Gazuwaka HVDC back-to-back1000 Existing 220kV AC Lines200 Talcher-Kolar HVDC bipole (Enhanced)2500 Sub-Total3700 West-South Chandrapur HVDC back-to-back1000 Existing 220kV AC Lines300 Sub-Total1300 East-North East Bongaigaon-Siliguri 400kV D/c800 Birpara-Salakati 220kV D/c200 Sub-Total1000 Total16500

36. EASTERN REGION SOUTHERN REGION WESTERN REGION NORTHERN REGION NORTH- EASTERN REGION ALL INDIA ATC ER ATC = 800 MW ATC = 750 MW ATC = 950 MW ATC = 1375 MW ATC = 1395 MW ATC = 474 MW ATC =226 MW ATC = 920 MW ATC = 900 MW (Figure shown are for April-2008) What Is ATC

37. All India basis

40. UI vs STOA market (All regions) 5% UI market 3% STOA market 100% power market 92% long term market

41. Open Access Applications Processed (Since Beginning) > 20,000 No. Volume (Approved Energy) (Since Beginning) > 90BUs Applications Approved > 95 % –Refusal/Non-consent by SLDCs > 3 - 4% –Refusal due to system constraints < 0.5 %

42. Open Access Transactions between extreme corners of the country RGCCPP ( Kayamkulam) to PSEB Arunachal Pradesh(NER) to PSEB TNEB to J&K Large number of Captive Generating plants used STOA and helped in enhancing the power availability in grid. Ugar Sugars (KAR) - JAIPUR (RAJASTHAN) Godavari Sugars (KAR) - MSEDCL NCS Sugar(ANDHARA) – GUVNL Indorama ( MAH) – APPCC ( ANDHRA)

43. Open Access Even costly power was harnessed to meet the high demand RGCCPP ( Kayamkulam) (NAPTHA) to PSEB BSES(KERALA) (DIESEL) to NDMC (DELHI) Diversity being gainfully utilised by Market players under STOA Delhi/TNEB Export in night ; Import during evening peak ANDHRA Export during evening peak ; Import in night Generators PLF has also increased. Kayamkulam GPS - (From 57 % in 2006-07 to 82 % in 2007-08- 82%)

44. Open Access- Way Ahead… Presently CERC has allowed only Day ahead Market At present CERC has allowed only National level operated Power exchanges. In due course if need arises Regional level operated exchanges will come. In power exchanges, as per CERC norms the price discovery is through Double sided closed auction. Collective transaction means a set of transactions discovered in power exchange through anonymous, simultaneous competitive bidding by buyers and sellers For Power Exchange transactions the Nodal agency will be National Load Despatch Centre (NLDC).

45. Open Access- Way Ahead… The ATC declaration is to be done by NLDC on its web site every day. Depending on the corridor availabilities the solution is to be found out and the allowed trades will be intimated to NLDC. If there is no congestion NLDC will accept the trades and issue the schedules to the power exchange and the same will be implemented in RLDC schedules. In Power Exchange transactions both buyer and seller have to pay the Transmission and operating charges separately. The transmission losses also have to be borne by the buyer and seller separately.

46. Short-Term Open Access transaction by Captive Power Plants A typical example: From : SAIL Durgapur Steel Plant (DVC), To: SAIL Bhilai Steel Plant (CSEB) Quantum: 20 MW Source : SAIL

47. Network Involved

48. Transmission Losses

49. Transmission and System Operation Charges

53. <--Introduction of Day-Ahead Product from May,2005

54. INTER REGIONAL Vs INTRA REGIONAL ENERGY APPROVED (ALL INDIA)

56. Trade under Short-Term Open Access Actual Upto Jan.,’08 Energy –26 BUs No. - 7289

57. Energy Traded in STOA per Transaction (2006-07)

60. Approved Active

61. Typical Approvals- Captive Power Plants Captive Power PlantQuantum( MW) Eastern Region NBVL(OPTCL)27 SAIL-DSP(DVC)20 TISCO(DVC)60 Bhushan Steel25 J.P Cement (Rewa)5 Western Region Indo Rama synthetics22 PSKL10-30 Southern Region Renuka Sugar25 Vishwanath Sugar7.5 Godavari Sugar25 Ugar Sugar25 Jindal Steel200 Nav Bharat50 NCS Sugar13

62. Typical Refusals- Captive Power Plants Captive PlantDrawee UtilityQuantum (MW) Refusal by SLDCs MMS Steel & Power [SR]BSES Rajdhani 7Tamilnadu Tata Sponge Iron Ltd. [ER]Noida Power Co. 12Orissa Renuka Sugars Ltd [SR]Punjab 5Karnataka DCM Shreeram [NR]Chandigarh 25Rajasthan Neelachal Ispat Nigam[ER]Haryana 10Orissa Vishwanath Sugar [SR]Gujarat 7.5Karnataka Ugar Sugar Works [SR]Gujarat 25Karnataka Real Ispat & Power Ltd.HPSEB 12CSEB Nav Bharat Ventures [ER]MP 27Orissa

63. Typical Reasons for Refusal Transmission Charges Cross-subsidy surcharge Stand by charge PPAs Telemetry Metering Scheduling Balancing Mechanism Consent by STU/DISCOM Functional Autonomy of SLDC