Open Access

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”

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

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

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.

STOA LTOA

OA Regulations 2004

STOA-bilateral

STOA-collective

OA Regulations 2008

Connectivity LTOA

OA Regulations 2010

MTOA

Evolution of Open Access Regulations

Duration of STOA,MTOA and LTA

STOA

3 months

LTA

12 years-25 years

MTOA3 months-3 years

MTOA

STOA- as per short term surpluses / margins in Tr. SystemMTOA – without transmission augmentationLTA – With / Without transmission augmentation

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:

CERC Open Access Regulations, 2008

• Effective 01.04.2008

• Amended in 01.05.2009

• 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 : Drawing RLDC

– Collective : NLDC

• Collective transactions : Both Buyers and Sellers of 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 for Advance Reservation, e-Bidding without Price Cap

• Exit Option provided with payment of up to 2 days open access charges.

Open Access in ISTS:CERC OA Regulations 2008

Open Access in ISTS

• Products –

Short term Access

- Advance

- First Come First Serve

- Day ahead

- Contingency

CERC OA Regulations 2008

Sl. No.

Type of ApplicationDeadline for applying

OA required

for *

Deadline for issue of approval by Nodal RLDC

1Advance Application

10 days prior to close of Month-1

M2 25th of M1

5days close of Month-1 M3 Last day of M1

Last day of Month-1 M4 5th of M2

2First Come First Serve

FCFS for the same month M1

3 days before start of transaction

FCFS 4 days before commencement

M2 28th of M1

3 Day Ahead

Day Ahead (Day-1 or 1500 hrs. of Day-3)

D4On D3After receipt of Power Exchange schedules for D-4

4 ContingencyAfter 15hrs on Day-3 or 1.5 hours before start of OA

D4Within 6 blocks before start of OA

Time lines for various Categories of Applications

* M-1 : Month-1 (Current month), M-2- Next month and so on, D-1 Day-1 and so on

Time Line for Advance, FCFS, DA and Contingency Applications

M2 M3 M4

251500hrs 5

Last Day for submission of Applications for transactions in M2, M3, M4

Processing time for RLDCs

M1D-1D-2D-3 D0

1.5hrs

Deadline for submission of DA Applications for transactions on D0

Deadline for submission of Contingency Applications for transactions during D0

20

REVISON OF SCHEDULE

• Only in case of “Advance Scheduling” or “First-Cum-First Served basis”

• minimum five (2) days notice (5days in 2008 Regn)

• Transmission Charges and Operating Charges for 2 days (5days in 2008 Regn)

• Margin Available – could be utilized for scheduling of other Open Access Transactions

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• refund of Transmission Charges for unused capacity

COMMERCIAL CONDITIONS • All Payment related to Open Access ST Charges

– by Applicant to the Nodal RLDC – within three working days from the date of acceptance

• Energy charges to be settled among the parties• Losses adjusted in kind• 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.80/MWh)– Adjacent Region (Rs. 160/MWh)– Wheeling (Rs.240/MWh)– STU charges – as specified by respective SERCs or Rs. 80/MWh

• Operating charges (as per Para 17 of Regulation) – Rs. 2000/- per day each RLDCs/SLDCs involved

DISBURSAL OF PAYMENT

• Disburse the Open Access Charges – 10th day of the next month

• Transmission Charges and Operating Charges – for State System– Concerned STUs/SLDCs

• Refund due to curtailment– 15th day of the next month

• Reconcile the Open Access Charges

STOA – SUCCESS STORY

• Developed in consultation with all stakeholders

• Applications Processed (Since Beginning) > 60,000 No.

• Volume (Approved Energy) (Since Beginning) > 190BUs

• Applications Approved > 95 %

– Refusal/Non-consent by SLDCs > 3 - 4 %

– Refusal due to system constraints < 0.5 %

STOA – SUCCESS STORY

• Robust Financial Settlement System

• Near Dispute free implementation

• Logistics/infrastructure -In-house

• Confidence Building & Dissemination of knowledge

ST charges under OA

• w.e.f 01.01.11, ST charges as per Point of Connection charge

• Both seller and buyer to bear losses in kind as per the applicable Zonal losses