NEW TRENDS OF ELECTRICAL

POWER INDUSTRY
OPEN ACCESS & DEREGULATION of
POWER SECTOR
Ankit Anil Gupta
PRN 09020243008
Energy & Environment SIIB
Introduction to Electricity India
 Country’s power generation capacity approx reaching 161300 MW
 Peak Electricity Demand exceeds Supply by 13.3% and Base
Demand Load deficient by 11% approximately
 Over 60% of power from Thermal sources and around 22% by
Hydro Power Plants and remaining is contributed by the Nuclear
and the Renewable Sources of Energy
 India’s commercial energy supply needs to grow by about 12% -
15% per annum to sustain 9 % GDP growth (Sources: Infraline
Magazine)
 Various Programmes have been launched for increasing the
generating capacity
 Solar National Mission (NAPCC)
 Nuclear Mission 2020
 UMPP (Ultra Mega Power Plants Thermal Based
 Promotion for Biogas, Bag-gas, Wind and Tidal Sources for
power
 What is Open Access??
 Open Access is Provision in Electricity Act 2003 for Generator,
Distributor and for consumers (Power Trading)

 Defined under section 2 (47) Of Indian Electricity act-2003

 Open Access means 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
 Why Open Access??
• To remove the monopoly nature on Networks

• Introduction of competition by introducing various

private players and orthodox public sector company

• Open Access Regulation is for providing power

supply to one and all after completing the pre-
requisite of the regulation on non-discrimination
basis.

• Better Service quality in power sector (Good Quality

of Power)
 Sections in Open Access
Section number in Open Access Name of Section

Section 9 (2) Captive Generation

Section 38 (2) (d) Function of CTU

Section 39 (2) (d) Function of STU

Section 42 (2) Wheeling Charges

Section 42 (4) Additional Surcharges

 Charges in Open Access
1. Cross Subsidy Surcharge
2. Additional Surcharge
3. Transmission Charges
4. Wheeling Charges
5. Default Supply Charge
6. Balancing Market Charge
7. OA Application Charges
8. SLDC Charges
9. Reactive Energy Charges
Classification in Open Access
 Emerging Open Access Regulation
Contract Demand for the Consumer Date on which the Open Access will be
allowed under Sub Section (2) of Section
42 of the Act

Not less than 5 MVA Publication in the official Gazette

Document

Not Less than 2 MVA but Less than 5 MVA April 1, 2006

Less than 1 MVA April 1, 2007

 CERC Regulations for Short term
Open Access
Regulations Date. 30.01.04

• Charges applicable in time blocks - 25% up to 6 hrs, 50% for

6-12hrs,100% for 12-24 hrs
• Transmission charges @ 25% of previous year average, per
MW basis
• Charges applicable on MW basis for corridor booked
• RLDC charges @ Rs 3000 and SLDC charges @ Rs.1000 per
day
• Charges for interregional system revised to 50% of average
previous year long term charges
(Amendment date. 21.02.05 - effective from 1.04.05)

CERC discussion paper dt.13.02.07 proposing elimination of

short term open access charges
Cont..,
Regulation Dt. 25.01.08
• Transmission charges applicable for each Regional
system @ Rs. 30/MWH (revised to Rs. 80/MWH vide
amendment date. 20.05.09)
• No transmission charges applicable for inter-regional
system
• Operating Charges revised to Rs 2000 per day for each
RLDC/SLDC
• Applicant to obtain SLDC consent in advance
 Procedure for Scheduling of
Bilateral Transactions
(Issued by CTU on 28.01.2008)

• SLDC consent to be obtained for each specific transaction in

booking of open access, ‘first-come-first-serve booking’, day-
ahead scheduling etc.

• In case of transmission constraints, bilateral transactions

would generally be curtailed first followed by collective
transaction (Para 12.2)

• In case a State Utility is Buyer or Seller, the operating charges

and transmission charges shall not include the charges for
that state network (Para 13.1.4)

• Vertical disintegration of state utilities need to be recognized

 For Long Term and Medium term
Open Access in Inter State
Transmission
(Regulation Dated: 7.08.09)

• Open access , SLDC charges in line with long term open

access as notified from time to time

• Scheduling to be done on day ahead basis

• Medium Term Open Access introduced for period of 3 months

to 3 years

• Long term period reduced from 25 years to 12 years

 What is Deregulation in Power
Sector
• Deregulation in power sector is a process by which
government remove or reduce restriction on power
industry and invite private sector to invest in the
power industry.
• Power industry is undergoing restructuring
throughout the world. The traditional vertically
monopolistic structure has been deregulated and
replaced by Gencos, Transcos and Discos with
competition introduced to Gencos and Discos in
order to reach higher efficiency in electricity
production and utilization. A lot of power markets
have been established for the purpose.
 RESTRUCTURED SET UP OF
DEREGULATION
GENERATION DISTRIBUTION
COMPANY-1 COMPANY-1
GOVT.

OWNED
GENERATION
DISTRIBUTION
COMPANY-2
TRANSMISSIO COMPANY-2
N

GENERATION COMPANY DISTRIBUTION

COMPANY-3 COMPANY-3

INDEPENDENT POWER REGULATOR

 Deregulation Process
Generator Generators
and Utilities

Scheduling Power Exchange

Coordinator

Government/
Regulatory Commission

Transmission Utility Distribution

Energy Service Owner Company
Provider
 Effects of Deregulation
Monopolistic Competitive
Power Market Power Market

Cost reduction

Security problem due to the nonutility companies

Need of Actual Transfer Capability Analysis

Need of Exact Model of Power Systems

Under Deregulated Environment
•
Conclusion
Open access help in development of power market to renewable power ,
CPPs, Merchant Power Plants etc.
• Open Access charges / losses based on commercial principles to optimize
use of existing assets and to encourage investment.
• Power trading in India is in infant stage and has high potential for growth
• Open Access is a small step towards for power market with high growth
potential.
• Freedom to generators is an essential part of the process.
• Commercial mechanism for deviation in scheduling (settlement
mechanism) need to be introduced at all levels, including the consumers’
level.
• Electricity reform process in India is already in action although in a slow
Pace, several state electricity boards are being unbundled into three
separate corporations namely Gencos, Transcos and Discos.
• The distribution system is privatized for better efficiency in metering,
billing and revenue collection.
• The distribution company has option to purchase power from any
generation utility through the existing transmission network
• We can say that open access and de-regulation make the power system
more reliable, efficient and flexible.
THANK YOU