open access. definition of “open access” in the electricity act, 2003 “the non-discriminatory...

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.

Agencies involved in Short-Term Open Access Transaction

• RLDC (s)

• SLDC (s)

• CTU

• STU (s)

• Buyer

• Seller

• Trader

Open Access – CERC Regulations, 2008

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

• 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

• 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 2 days open access charges.

• Moving towards empowerment of SLDCs

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

Provisions relating to Long Term as per the Open Access Regulations, 2004 to continue, till CERC further notifies.

Long term Access

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

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





c. Handling & Service Charges

– Nil

Operating Charges

Bilateral:



– Rs. 2000/day for each RLDC and SLDC involved

c. Handling & Service Charges -Nil

Collective Transactions:



– Rs. 5000/day to NLDC for each State involved ; -NLDC to Share with RLDCs



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 Frame Time Frame :20th of the month

Time Frame :

-10days

ER-NR

NER-ER

WR-NR

SR-WRSR-ER

EASTERN REGION

SOUTHERN REGION

WESTERNREGION

NORTHERN REGION

NORTH-EASTERN REGION

STOA RATES

2004 AND 2005 AND 2008

ER-WR

700.91

313.93

649.86

339.98

919.71

1462.44881.4

9

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

2004 2005 2008

Scheduling Charges (Rs/Day)

RLDCs

SLDCs 3000

3000

3000

1000

2000

2000

Handling Charges 2% NIL NIL

Transmission Charges: Bilateral: Rs.30/MWh – intra- regionalRs.60/MWh – Between adjacent regionsRs90/MWh – Wheeling through one or more regionCollective Transactions (Px):-Rs. 30/MWh for each point of injection and drawal

STOA CASE

STOA CASE

APTRANSCO to MPSEB

100 MW for One day from 0000 to 0600 hrs.

APTRANSCO - MPSEB THROUGH NVVNL (0000 HRS – 0600 HRS) 100 MW AT INJECTION POINT

INJECTING UTILITY APTRANSCO

CUSTOMER: NVVNL

DRAWEE UTILITY MPSEB

CAPACITY APPROVED 100 MW

DAILY PERIOD 0000-0600HRS

AP

WR GRID

MP

HVDC BACK TO BACK AT

BHADRWATHI IN WR

INTERVENING REGIONAL LINK

1. SR-WR

TRADER: NVVNL


EXPORT AT AP 100 MW

AT SR PERIPHERY 96.9 MW

MP RECIEVES 93.0 MW

LOSSES IN SR 3.12%

LOSSES IN WR 4%

TOTAL LOSSES FOR

TRANSACTION 7.0 MW

AP

WR GRID

MP


BHADRWATHI IN WR

CT

U


APPLICATION PROCESSING FEE

Rs 5000 PER TRANSACTION

TRANSMISSION CHARGES PER MW PER DAY

1. Rs 700.91 FOR CTU-SR

2. Rs 881.49 FOR SR-WR LINK

3. Rs 339.98 FOR CTU-WR

TOTAL TRANSMISSION CHARGE

PER UNIT 34.53Ps/.

SCHEDULING CHARGES PER DAY

1. Rs 3000 FOR SRLDC

2. Rs 3000 FOR WRLDC

AP

WR GRID

MP


BHADRWATHI IN WR

Payments as per Regulation 2004 of CERC




TRANSMISSION CHARGES PER MW PER DAY

1. Rs 700.91 FOR CTU-SR

2. Rs 881.49 FOR SR-WR LINK

3. Rs 339.98 FOR CTU-WR


PER UNIT 13.52Ps/.




AP

WR GRID

MP


BHADRWATHI IN WR

Payments as per Regulation 2004 Amendment 2005) of CERC




TRANSMISSION CHARGES

1. Rs 60 /MWH FOR WHEELING


PER UNIT 7.83Ps/.




AP

WR GRID

MP


BHADRWATHI IN WR

Payments as per Regulation 2008 of CERC


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)

Total STOA Charges Paisa/Unit

34.53


13.52


7.83

Procedure for Scheduling of Open Access (Bilateral Transaction)

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

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

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)

Time Line for Advance Scheduling

M0 M1 M2 M3510 5

Last Day for submission of Applications for transactions in M1, M2, M3

Processing time for RLDCs

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

“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

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

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 6th time block

• Congestion Management – Pro-rata

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

REVISON OF SCHEDULE

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

• minimum five (2) days notice

• Transmission Charges and Operating Charges for 2 days

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

Example:• Approved transaction : 1st to 30th of a month

• schedule :100 MW : 0000-2400 (2400 MWh/ day)

• Revision Request submitted on 12th • Requested schedule : 15th to 30th 50MW (1200

MWh/day)

• Revised from : 15th to 30th

• Charges : 2400 MWh/ day for 15th &16th

1200 MWh/day from 17th to 30th

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

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.80/MWh)– Adjacent Region (Rs. 160/MWh)– More than two regions (Rs.240/MWh)– STS 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

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

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

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

2850 MW2850 MW

IR Links – Till 2007 – 08

8650 MW8650 MW

1300MW1300MW

2500MW2500MW

1200 MW1200 MW

2200 MW2200 MW

36,547 MW

17,159

40,280 MW

39,592 MW

2506

1000 MW1000 MW

Till 2007 – 08 Till 2007 – 08 IR Capacity = IR Capacity = 19,700 MW19,700 MW

Name of the Link Capacity (MW)

East-North

Dehri-Sahupuri 220kV S/c 150

Sasaram HVDC back-to-back 500

Muzaffarpur-Gorakhpur 400kV D/c (Quad) 2000

Bihar Sharif(ER)-Balia 400kV D/c (Quad) 2000

Patna-Balia 400kV D/c (Quad) 2000

Sub-Total 6650

East-West

Budhipadar-Korba 220kV T/c 450

Rourkela-Raipur 400kV D/c 1200

Sub-Total 1650

West-North

Vindhyachal HVDC back-to-back 500

Existing 220kV AC Lines 200

Gwalior-Agra 765kV S/c 1500

Sub-Total 2200

East-South

Gazuwaka HVDC back-to-back 1000


Talcher-Kolar HVDC bipole (Enhanced) 2500

Sub-Total 3700

West-South

Chandrapur HVDC back-to-back 1000


Sub-Total 1300

East-North East

Bongaigaon-Siliguri 400kV D/c 800

Birpara-Salakati 220kV D/c 200

Sub-Total 1000

Total 16500

EASTERN REGION

SOUTHERN REGION

WESTERNREGION

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

ATC = 900 MW

(Figure shown are for April-2008)

What Is ATC

All India basis

778

3938

5933

9560

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

No.

Of

Tra

nsac

tion

s

2004-05 2005-06 2006-07 2007-08

YEAR

DETAILS OF TRADE UNDER SHORT TERM OPEN ACCESS

16.64 Bu

22.53 Bu

23.60 Bu

28.83 Bu

No. of Transactions

Energy in Billion Units

737

845886

0

100

200

300

400

500

600

700

800

900

No.

Of

Tra

nsa

ctio

ns

2005-06 2006-07 2007-08

YEAR

DETAILS OF ADVNCE AND FCFS APPROVED STOA TRANSACTIONS

19.79 Bu

18.49 Bu

23.46 Bu

No. of Transactions


All India basis

3201

5088

8674

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

No.

Of

Tra

nsac

tion

s

2005-06 2006-07 2007-08

YEAR

DETAILS OF DAY AHEAD AND SAME DAY APPROVED STOA TRANSACTIONS

2.74 Bu

5.11 Bu

6.37 Bu

No. of Transactions


All India basis

UI vs STOA market (All regions)

5% UI market

3% STOA market

100% power market

92% long term market

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 %

Open Access

• Transactions between extreme corners of the country

RGCCPP ( Kayamkulam) to PSEBArunachal Pradesh(NER) to PSEBTNEB 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) - MSEDCLNCS Sugar(ANDHARA) – GUVNL

Indorama ( MAH) – APPCC ( ANDHRA)

Open Access

• Even costly power was harnessed to meet the high demand

RGCCPP ( Kayamkulam) (NAPTHA) to PSEBBSES(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%)

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).

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.

SR

STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS150MW AT RGCCPP EXBUS POINT for 31 days

KE

RA

LA

INJECTING UTILITY RGCCPP,KSEB

TRADER: NVVNL

KAYAMKULAM RGCCPP NTPC)

DRAWEE UTILITY PSEB

CAPACITY APPROVED 150 MW

DAILY PERIOD 0000-2400 HRS

CUSTOMER: NVVNL

WR

NRPSEB

HVDC BACK TO BACK AT VINDHYACHAL IN WR

HVDC BACK TO BACK AT BHADRWATHI IN WR

INTERVENING REGION WR

INTERVENING REGIONAL LINK

SR-WR

WR-NRINTERVENING STATE TRANSMISSION UTILITY KSEB

SR


KE

RA

LA

KAYAMKULAM RGCCPP(NTPC)

WR

NRPSEB



EXPORT AT RGCCPP BUS 150 MW

PSEB RECIEVES 134.4 MW

AT KERALA PERIPHERY 148.9 MW

LOSSES IN KERALA 0.75%

LOSSES IN SR 3.12%

AT SR-WR PERIPHERY 144.3 MW

LOSSES IN WR 4.0%

AT WR-NR PERIPHERY 138.5 MW

LOSSES IN NR 3.0%

SR

KE

RA

LA

KAYAMKULAM RGCCPP(NTPC)

WR

NRPSEB





TRANSMISSION CHARGES PER MWHR

1. Rs 240 FOR Bilateral Wheeling

through one or more region

1. Rs 80 FOR KSEB




3. Rs 2000 FOR NRLDC

4. Rs 2000 FOR KSEB



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)


15.12


18.5


12.2

Back

open access. definition of “open access” in the electricity act, 2003 “the non-discriminatory...

Documents

cerc open access regulations

shortterm open access

days open access charges

transmission charges

transmission licensee

contingencycerc oa regulations

use of transmission

distribution system