Open Access

In
Interstate Transmission system

Principal Regulation 2008( 25 th Jan’2008)

Amendment Regulation 2009(20 th May’2009)
Order-Removal of difficulties,(28 th June,2011)
Order-Amendment to CTU procedure 28 th Oct,2009
H K CHAWLA, DGM
NRLDC, POSOCO

03/18/19 NRLDC: POSOCO 1

 • Markets & Evolution-Overview

• Definitions
Contents

• Legal provisions

• Regulations 2-28 & CTU procedures

• Sample calculations- STOA Losses & charges

• Typical State OA procedures

03/18/19 ERLDC: POSOCO 2
Evolution of Power Market in India

Ancillary
Market

PX
2008
Open Access
2004
ABT
2002-03
IEGC
Feb.’2000
INDIA August 2006
3,287,263 sq. km area North synchronized
With Central Grid
More than 1 Billion people (2001 census)
Installed Capacity of March 2003
141.08 GW (Jan-08) West synchronized NEW Grid
With East & Northeast

South
October 1991 Grid
East and Northeast
synchronized
Central Grid

North
East
West
Northeast
South Merging of markets along with
Five Regional Grids
Five Frequencies
synchronization of regions
 Present Market at a Glance

Short Term Open Access

Medium
Long Term Term Bilateral Contingency
Market Collective Day Ahead
Market Transaction Transaction
Transaction Transaction
12-25 Yr 3months 3 month Day Ahead After On the day of
-3Years ahead ahead Clearance of operation
Term PX
ahead

Schedules

Balancing Market ( UI )
( Real Time Operation )
DEFINITION OF “OPEN ACCESS” IN THE
ELECTRICITY ACT, 2003

. “Open Access” means 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”.

• Section 2(47) of Electricity Act 2003

LEGAL FRAMEWORK [SECTION-9(2)]

• Every person, who has constructed a captive

generating plant and maintains and operates such
plant, shall have the right to open access for the
purposes of carrying electricity from his captive
generating plant to the destination of his use

• Provided that such open access shall be subject to

availability of adequate transmission facility and such
availability of transmission facility shall be
determined by the Central Transmission Utility or the
State Transmission Utility, as the case may be
Legal Framework(Sections 38/39/40/42)
CTU / STU/ Distribution licensee / Transmission
licensee-functions & duties

• To provide non-discriminatory open access to its

transmission system for use by-
(i) any licensee or generating company on payment of the
transmission charges; or
(ii) any consumer as and when such open access is provided by
the State Commission under sub-section (2) of section 42, on
payment of the transmission charges and a surcharge thereon, as
may be specified by the Central Commission:.

• CTU can not engage in generation/ trading.

• STU can not engage in trading
• Transmission Licensee can not engage in trading
Regulation 2: Definitions
• “bilateral transaction” means a transaction for exchange
of energy (MWh) between a specified buyer and a
specified seller, directly or through a trading licensee or
discovered at power exchange through anonymous
bidding, from a specified point of injection to a specified
point of drawl for a fixed or varying quantum of power
(MW) for any time period during a month

• “collective transaction” means a set of transactions

discovered in power exchange through anonymous,
simultaneous competitive bidding by buyers and sellers;

• “regional entity” means a person whose Scheduling

,metering and energy accounting is done at the regional
level;

• “intra-State entity” means a person whose metering and

energy accounting is done by the State Load Despatch
Centre or by any other authorized State utility;
Regulation 2: Definitions….contd
• “short-term customer” means a person who
has availed or intends to avail short term
open access

• “short-term open access” means open access

for a period up to one (1)month at one time

• “regional entity” means a person whose

metering and energy accounting is done at
the regional level;

• Short term access applications allowed upto 3

months in advance considering ATC/TTC
issues.
Regulation 2: Definitions….contd
• “State network” means network owned by the State
Transmission Utility, distribution licensee or any other
person granted licence by the State Commission to
construct, operate and maintain the transmission
system;

• “State utility” means a State Transmission Utility, or a

State Electricity Board,or Electricity Department of the
State, or a State Government organization authorized to
sell or purchase electricity on behalf of the State;

• “time block” means 15 minutes time period specified in

the Grid Code for the purposes of scheduling and
despatch; and
Regulation 3: Scope
• The long-term-customer and the medium-term
customer shall have priority over the short-term
customer for use of the inter-State transmission
system.

• The short-term customer shall be eligible for short-

term open access over the surplus capacity available
on the inter-State transmission system after use by the
long-term customer and the medium-term customer,
by virtue of
• inherent design margins;
• margins available due to variation in power flows; and
• Margins available due to in-built spare transmission
capacity created to cater to future load growth or
generation addition.
Regulation 4: Detailed Procedure
• Subject to the provisions of these regulations, the
Central Transmission Utility, till the Regional Load
Despatch Centre is operated by it and thereafter
the Government company or any authority or
corporation notified by the Central Government
under subsection (2) of Section 27 of the Act:
shall, after obtaining prior approval of the
Commission, issue the detailed procedure to
operationalise open access and on any residual
matter not covered under these regulations
Regulation 5: Nodal Agency

• The nodal agency for bilateral

transactions shall be the Regional Load
Despatch Centre of the region where
point of drawal of electricity is situated
and in case of the collective
transactions, the nodal agency shall be
the National Load Despatch Centre.
C
T
U NODAL AGENCY
P
• For Short-Term Customers
R – RLDC of the Region in which the drawal
O
C point is located.
E
D
U • For Long & Medium Term Customers
R
E – Central Transmission Utility (CTU), if its
S system is used
– Transmission Licensee/ STU of the region
in which the drawl point is located when
CTU system is not involved.
Regulation 6: Submission of STOA Application
• A short-term customer or the power exchange (on behalf of buyers and
sellers) intending to avail of STOA for use of the transmission lines or
associated facilities for such lines on the ISTS, shall make an
application to the nodal agency

• The application for a bilateral transaction shall contain the details,

such as
– names and location of supplier and buyer,
– contracted power (MW) to be scheduled and interface at which it is
referred to,
– point of injection,
– point of drawal,
– starting time block and date,
– ending time block and date, and
– such other information that may be required in the detailed
procedure.
• The application for a collective transaction shall contain the requisite
details in accordance with the detailed procedure.
GENERAL CONDITIONS/APPLICATION SUBMISSION
C • As per OA regulations Dtd. 25/01/08 w.e.f 01/04/08 &
T OA Amendment Regulations Dtd. 20/05/09 &
U as per order-amendment to CTU procedure Dtd.28/10/09

• RLDC will check if connectivity with CTU/ ISTS or STU system (as the
P case may be) is established, necessary metering,protection,
R communication are in place, transfer capability upto the CTU network for
O power flow of the quantum of injection/drawal applied for is available on
the date of application and whether the applicant has undertaken to abide
C by the Central Electricity Authority (Technical Standards for Connectivity
E to the Grid) Regulations, 2007.
D
U • Application to be submitted to::
– Nodal RLDC where point of drawal is situated
R
– & also to all RLDCs involved in the transaction
E
S • Application Contents
– Details:: Buyer / Seller / Point of injection/ point of drawal / Contracted
power at supplier interface/ date/ time period (as per (Format-I-
Application for scheduling) alongwith application fee/SLDC
concurrance
Regulation 7: Application Fee
• An application made for each bilateral
transaction or the collective transaction shall
be accompanied by a non-refundable fee of
Rupees five thousand (` 5000/-)only

• Provided that the fee for bilateral transaction

on the day of the application or may be
deposited within three working days of
submission of the application.
Regulation 8: Concurrence of SLDC for bilateral and
collective transactions
• When a Proposed bilateral transaction has a State
utility or an intra-State entity as a buyer or a seller
– concurrence of the SLDC shall be obtained in advance
and submitted along with the application to the nodal
agency in the form as in the detailed procedure.

• When a State utility or an intra-State entity proposes

to participate in trading through a power exchange,
it shall obtain
– a “no objection” or a prior standing clearance from the
SLDC in the form as in the detailed procedure, specifying
the MW up to which the entity may submit a buy or sell
bid in a power exchange.
Regulation 8: Concurrence of SLDC for bilateral and
collective transactions…..contd
3(a) For obtaining concurrence or ‘no objection’ or prior standing
clearance :
• Application before the SLDC
• SLDC to Acknowledge receipt of the application, either by e-
mail or fax, or any other recognised mode ,
• within twenty four hours
• From the time of receipt of the application.
3(b) SLDC shall verify the following, namely-
(i) existence of infrastructure necessary for time-block-wise
energy metering and accounting in accordance with the
provisions of the Grid Code in force, and
(ii) availability of surplus transmission capacity in the State
network.
3(c) SLDC to concur ‘no objection’ / prior standing clearance
• Within three (3) working days if infrastructure exists
• Within seven (7) working days for a first time STOA Customer
• Within two (2) working days for a defective/incomplete
application
Regulation 8: Concurrence of SLDC for bilateral and
collective transactions…..contd
• In case of SLDCs refusal ( When Application is in order)
– To be communicated, within the period of three (3) working
days or seven (7) working days(First Time)
– Reasons for such refusal:

• In case of no Communication by SLDC

– STOA shall be deemed to have been granted:

• In case of deemed STOA grant by SLDC

– the applicant while making application shall submit to the
nodal agency an affidavit (in the format provided in the
detailed procedure), duly notarised, declaring that –
• (a) the SLDC has failed to convey any deficiency or defect
in the application or its refusal or concurrence or ‘no
objection’ or prior standing clearance
Regulation 8: Concurrence of SLDC for bilateral and
collective transactions…..contd
• (b) necessary infrastructure for time-block-wise energy
metering and accounting in accordance with the
provisions of the Grid Code in force, is in place; and
enclosing with the affidavit –

– (i) a copy of the complete application after

removal of deficiency or rectification of defects,
if any communicated, made to the SLDC for
seeking concurrence or ‘no objection’ or prior
standing clearance, as the case may be, and

– (ii) a copy of the acknowledgement, if any, given

by the SLDC, or any other evidence in support
of delivery of the application.
C SUBMISSION OF APPLICATION
T
U • SLDC concurrance
– Concerned SLDCs concurrence in advance (Format - II-
P
R
Concurrance from SLDC)
O – In case of deemed concurrance the applicant alongwith
C the application shall submit duly notarized affidavit
E (Format-IIA-Affidavit-Deemed concurrance from SLDC
D
U • RLDC concurrance
R - Bilateral Transaction having a State Utility or an intra-state
E Entity as a Buyer/Seller in other region:: concurrence of
S the concerned Regional Load Despatch Centre(s).
- Nodal applications to be considered first before giving
other concurrance
- Reasons for refusal
C SUBMISSION OF APPLICATION
T
U • Affidavit for deemed SLDC concurrance:
• (a) the State Load Despatch Centre has failed to convey any
P
deficiency or defect in the application or its refusal or
R
concurrence or ‘no objection’ or prior standing clearance, as the
O case may be, within the specified time(3/7days)
C
E
D • (b) necessary infrastructure for time-block-wise energy metering
U and accounting in accordance with the provisions of the Grid
R Code in force, is in place; and enclosing with the affidavit –
E • (i) a copy of the complete application after removal of deficiency
S or rectification of defects, if any communicated for seeking
concurrence or ‘no objection’ or prior standing clearance, as the
case may be, and
• (ii) a copy of the acknowledgement, if any, given by the State
Load Despatch Centre, or any other evidence in support of
delivery of the application to the State Load Despatch Centre.”
 Categories & Time Line For Open Access
M0 M1 M2 M3

D L-10 D L-5 DL D L+ D OP-4 D OP

5

Adv D OP-1
Application for
M1 FCFS
CONTINGENCY
Adv Application
for M2,
Approvals for
M1

Adv Application
for M3,
Approvals for
M2

Approvals for
M3 Day Ahead / PX
LEGEND:
DOP
OP
: Day of Operation
DLL : Last day of M0
Regulation 9:
Procedure for Advance Scheduling
for bilateral transactions
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 MO – for transaction in M1, M2, M3)
– Cut-off time of application: 17:30 Hrs. of last day (Day 0)
– Request for concurrence (RLDC) – by 12:00 Hrs.(Day 1) (Format- III)
– Concurrence - by 20:00 Hrs (Day 1)
– Congestion Information to Applicant – 12:00 Hrs (Day 2)-Format-
IV(Congestion information-Advance scheduling)
– Revised Request/re-routing – 11:00 HRs. (Day3)-Format-V-Request
for revision due to congestion)
– E-bidding – in case of Congestion (Day 4)
– Acceptance/Refusal of Scheduling Request – (Day5)-Format-VI-
Acceptance for scheduling
Application for advance scheduling

M0 M1 M2 M3

Applicatio
Applicatio
nn

Separate application shall be made for each month,

and for each transaction.
Regulation 10 Congestion Management :
e- Bidding Procedure
• Invitation of Bids from the concerned applicant
– period of congestion
– RTS/IR corridor expected to get over stressed
• 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
• Applicant getting approval < request  Charges as quoted
• Applicant getting approval=request  Charges as paid by last
applicant getting approval = request
Regulation 11,12,&13
Procedure for FCFS, Day ahead &
Contingency bilateral transactions
“FIRST-COME-FIRST-SERVED”(FCFS)
• Scope
– FCFS shall be considered only when transactions are
commencing & terminating in the same calender month.
• Separate Application for each month
• To be submitted 4 days prior to date of Scheduling
• Processing time – 3 days on FCFS basis
• Applications received during last 10 / 5 days of month of M0 for M1
would be considered only after complete processing of Advance
transactions for M1
• Application Received upto 1730 hrs in a day to be processed together
– same priority
• Application Received after 17:30 Hrs. - to be considered as received
next day
• Congestion Management – pro-rata
Regulation 12: DAY-AHEAD
• 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 same priority

• Processing only after processing of the Collective

Transactions of the Power Exchange (s)

• Congestion Management – Pro-rata

Application for Day ahead scheduling
M1

M0 D -03 D0 M2 M3

Processing time
Application
Application
Approval after Collective

Separate application for each transaction.

Regulation 13: CONTINGENCY
• Buying Utility/Trader on its behalf to make an Application
to the Nodal RLDC

• To be considered after 1500 hrs of the day immediately

preceding the day of scheduling.All applications received
up to 18.00 Hrs shall be clubed together.

• In case of intra-day/same day –

scheduling from 6th time block

• Congestion Management – Pro-rata

Regulation 14: Revision of Schedule
• Only in case of “Advance Scheduling” or “First-Cum-First Served basis”

• Accepted schedule for Day-Ahead ,Contingency & Advance transactions shall be

revised or cancelled once in case of tripping of generators > 100MW as per Cl.6.5.19 of
IEGC.
• Revision w.e.f 4 th time block of intimation to RLDC
• Generator to furnish expected restoration time from which original schedules would
become effective.

• For period of revision/cancellation upto two days:: Original transmission/operating

charges

• For period of revision/cancellation > two days:: Transmission Charges and Operating
Charges for the period beyond two (2) days shall be payable as per the revised
accepted schedule and for the first two (2) days as per the original schedule .

• Margin Available – released for scheduling of eligible Open Access Transactions

EXAMPLE OF DOWNWARD REVISION
Regulation 15:: CURTAILMENT IN CASE OF
TRANSMISSION CONSTRAINTS
• Transmission constraint or to maintain grid security

• Curtailed in the manner, which in the opinion of RLDC, would relieve

transmission constraints/ enhance grid security

• Curtailment priority ::
STOA(bilat)Collective(PX)MTOALTA

• In case of reallocation of GOI share leading to corridor constraints

• Rerouting allowed without curtailment of existing transactions

• Pro-rata refund of Transmission Charges

• No revision of operating charges

Transmission Charges …. contd
• The intra-State entities shall pay the transmission charges for use of the
State network as fixed by the respective State Commission in addition to
the charges specifie

• Provided that in case the State Commission has not determined the
transmission charges, the charges for use of respective State network
shall be payable at the rate of Rs.80/MWh for the electricity transmitted:

• Provided further that non-fixation of the transmission charges by the

State Commission for use of the State network shall not be a ground for
refusal of short –term open access:

• Provided also that the transmission charges payable for use of the State
network shall be conveyed to the Regional Load Despatch Centre
concerned who shall display these rates on its web site:

• Provided also that the transmission charges payable for use of the State
network shall not be revised retrospectively.
Application of POC methodology
for STOA transactions
Calculation of Nodal POCs
Input Network Parameters
Load & Generation Data

Load Flow Studies

Converged Network

Network
Reduction

Reduced Network
Software for PoC
Line wise YTC Charge & Loss
Computation

Output Nodal PoC

Charges and
LAF
Application of POC Transmission Charge methodology
for STOA transactions
• Nodal POCs zoned to form Zonal POC for each Control area
• Slabbing done to fall into either high, Average or Low slab
For New Grid:
• High  Rs. 1,00,000/Mw/month Average  Rs. 85,000/MW/Month Low
Rs.70,000//MW/Month
• Converted to High  14paise/unit Average  12 paise/unit Low 
10paise/unit
• Hence STOA rates applicable are Rs.140/MWH, Rs.120/MWh,
Rs.100/MWh for High, average, Low slab respectively
For SR Grid :
• Slab rates are Rs. 150/MWh, 130/MWh, 110/MWH for High, Average, Low
slabs respectively
Application of POC Transmission Charge methodology
for STOA transactions
• Transmission charges payable by Entity X injecting 100MW RTC power to Entity Y
• Assume X falls in high injection slab in NEW Grid while Y fall in low withdrawal slab
in SR Grid

• Hence POC injection for X  Rs 140/MWH

• Withdrawal POC for Y  Rs.110/MWh

• Transmission charges payable for injection would be :

= 2400MWh x 140

• Transmission charges payable for withdrawal would be:

= 2400MWh X 110

• Total charges payable by Trader to Nodal RLDC:

= 2400*(140+110) Rs.

• STU charges would be payable in addition

Regulation 17: Operating Charges
• Bilateral Transaction
– Rs.2000/- per day or part of the day/transaction /RLDC
– Rs.2000/- per day or part of the day/transaction /SLDC

• Collective Transaction
– Rs.5000/- per day or part of the day/state to NLDC
– Rs.2000/- per day or part of the day/transaction for each
SLDCs involved
– NLDC to share operating charges with each RLDC
• NLDC keeps Rs.2000/- and Rs.3000/- divided amongst 5
RLDCS @ Rs.600/RLDC
– Clubbing of buyers & sellers within a state
– Each group be considered as single entity for Operating
charges and for scheduling by NLDC
– Each point of drawal & injection shall be counted separately for
the purpose of intra-state transmission charges
 Regulation 18: Payment of transmission charges
and operating charges
• Bilateral transaction:
– the applicant to deposit with the nodal agency
transmission charges and operating charges within
three (3) working days of grant of acceptance

• Collective transactions:
– the power exchange shall deposit with the nodal
agency these charges by the next working day falling
after the day on which its application was processed
– the transmission charges for use of State network
and operating charges for SLDC shall be settled
directly by the power exchange with respective
SLDC.
Regulation 19: Default in payment of STOA charges

• Default in payment of the application fee or

specified charges :
– charges the nodal agency may decide not to
schedule the transaction, or
– to cancel the scheduling of already scheduled
transaction or
– not to entertain any application of such persons in
future until such time the default is cured

• The person committing default in payment

– Shall pay simple interest at the rate of 0.04% for
each day of default.
C DEFAULT IN PAYMENT OF OPEN ACCESS
T
U CHARGES – Additional Pts

P
R •Cheque has been dishonored
O – No cheque payment - next three (3) months
C
E – Payment to be made by electronic
D transfer/demand draft
U
R
E
S
C
T
INCORPORATION IN DAILY SCHEDULES
U • Incorporation in Daily Schedules of the Regional Entities

P
• Average energy losses - estimated on weekly basis and
R converted to Tier I, II, III slabs
O
– RLDCs – ISTS (Inter State Control area)
C
E – SLDC – (Intra-State/Control area)
D
U • Resolution of 0.01 MW at each State/inter-Regional
R boundaries.
E
S • Losses on the system to be compensated by Drawing
utility (net drawal schedule after deducting losses) till
30th Sep,2011

• W.e.f 1st October,2011 losses to apportioned to both

buyers & sellers
C COMMERCIAL CONDITIONS (SUMMARY)
T
U • All Payment related to Open Access Charges
– Payment to be made by Applicant to the Nodal RLDC
P – within three working days from the date of
R acceptance
O – Payment as per MWh contract value
C
E
D
• Application Fee:: (Rs. 5000/-) to Nodal RLDC
U – Along with application (for Advance/FCFS
R transaction)
E – With in 3 working days ( for same day or next day
S transaction) from the date of application submission.

• Operating charges:: Rs. 2000/- per day for each

RLDCs/SLDCs involved and Rs.5000/- per day per entity
for collective
C
T COMMERCIAL CONDITIONS (SUMMARY)CTD..
U

P • If State utility is Buyer/Seller, Transmission Charges

R shall not include the charges for that State network
O and the Operating Charges for that State Load
C Dispatch Center. A certificate in this regard from the
E concerned STU(s)/SLDCs shall be submitted by the
D Applicant
U
R
E • The transaction wise payment details shall be
S submitted as per enclosed format[FORMAT-VII:
“Details of Payment”].
Regulation 20:: Unscheduled Inter- change (UI)
Charges

• All transactions for State utilities and for intra-State entities

scheduled by the nodal agencies shall be accounted for and
included in the respective day-ahead net interchange schedules of
the concerned regional entity issued by the RLDC

• Based on net metering on the periphery of each regional entity,

composite UI accounts shall be issued for each regional entity on a
weekly cycle and transaction-wise UI accounting, and UI accounting
for intra-State entities shall not be carried out at the regional level.

• The State utility designated for the purpose of collection /

disbursement of UI charges from / to intra-State entities shall be
responsible for timely payment of the State’s composite dues to the
regional UI pool account.
Regulation 20:: Unscheduled Inter- change (UI)
Charges

• Any mismatch between the scheduled and the actual drawal at

drawal points and scheduled and the actual injection at injection
points for the intra-State entities shall be determined by the
concerned SLDC and covered in the intra-State UI accounting
scheme.

• Unless specified otherwise by the concerned State Commission, UI

rate for intra-State entity shall be 105% (for over-drawals or under
generation) and 95% (for under-drawals or over generation) of UI
rate at the periphery of regional entity.

• No charges, other than those specified under these regulations

shall be payable by any person granted short-term open access
under these regulations.
Regulation 21: Reactive Energy Charges
• No separate reactive energy charge accounting for
STOA transactions shall be carried out at inter-State
level:
Provided that the State Utility designated for the
purpose shall be responsible for timely payment of
the State’s composite dues to the regional reactive
charge account in accordance with the provisions of
the Grid Code.

• The reactive energy drawals and injections by the

intra-State entities shall be governed by the
regulations applicable within the State concerned.
Regulation22: Special Energy Meters

1. Special Energy Meters shall be installed by the Central

Transmission Utility for and at the cost of the regional
entities and by the State Transmission Utility for and at the
cost of the intra-State entities.

2. Special Energy Meters installed shall be capable of time-

differentiated measurements for time block wise active
energy and voltage differentiated measurement of reactive
energy in accordance with Annexure – 2 to Chapter–6 of the
Grid Code.

3. Special Energy Meters shall always be maintained in good

condition.

4. Special Energy Meters for the regional entities shall be open

for inspection by any person authorized by the Central
Transmission Utility or the Regional Load Despatch Centre.
Regulation23:: Transmission losses
1. The buyers and sellers of the electricity shall absorb
apportioned energy losses in the transmission system as
estimated by the Regional Load Despatch Centre and the
State Load Despatch Centre concerned, and applied in
accordance with the detailed procedure.

2. The energy losses shall be accounted for by providing a

differential between schedules at the points of supply, inter-
utility transfer and drawal of electricity.

3. The applicable transmission losses for the regional

transmission system as well as for State network shall be
declared in advance and shall not be revised retrospectively.
Regulation23:: Transmission losses- Amendment of
procedures by CTU
• Nodal POC losses found from Webnetuse software
• Zoning done to form loss for each scheduling entity
• Assume POC injection loss of X = a% & POC withdrawal loss of B = y%
• For 100Mw injection transaction from X to Y:
Upto 30 th September,2011 losses to be absorbed by Buyers only
Point of contract  Sellers periphery
Injection schedule of X = -100Mw
Withdrawal schedule of Y = 100*(1-a/100)*(1-b/100) rounded off to 2
decimals
After 1 st October,2011 losses to be apportioned to both buyer & Seller 
Point of contract  Regional periphery where entity located
Injection schedule of X = -100/(1-a/100) rounded to 2 decimals
Withdrawal schedule of Y = 100*(1-b/100) rounded to 2 decimals

• Losses classified as Tier-I , II , II according to Low, Average or High slab.

Loss calculation-Amended CTU loss procedures
• If W current week, loss of week W-1 is estimated & applied for week W+1
• If a = losses as per SEM data for W-1 losses for Tier I, II, III slabs would be
Low(Tier-I) = [a/2-0.3]% Average(Tier-II)= a/2 High(Tier-III) =
[a/2+0.3]%
E.g. estimated loss for w-1 for NR = 3.90%
Low(Tier-I) = 1.65% Average(Tier-II)= 1.95% High(Tier-III) =2.25%

The Tier-I, II, II slabs are fixed as per studies & are constant for the review period
are as below 

• Similiarly injection/withdrawal losses for all other regions are calculated

• Regulation 24::Compliance of
Grid Code

– The buyers and sellers of energy shall

comply with the provisions of the Grid
Code in force from time to time.
Regulation 25: Collection and Disbursement of Transmission Charges
and Operating Charges(previous)
• The transmission charges and the operating charges payable by the
persons allowed short-term open access shall be collected and
disbursed by the nodal agency, except for transmission charges for
State network and operating charges for SLDC in the case of the
collective transaction
• Operating/Transmission charges for SLDCs/STUs to be settled directly
by PX with the concerned SLDC/STU

• The transmission charges collected by the nodal agency for use of the
transmission system other than State network, for a bilateral
transaction shall be directly disbursed to CTU.
 Reg.25(previous)…Ctd
• The operating charges including application
fees are deposited in LDC Development
Fund.

• The transmission charges for use of State

network shall be disbursed to the State
Transmission Utility concerned.

• In case a State utility is the short-term

customer, the operating charges and the
transmission charges collected by the nodal
agency shall not include the charges for use
of the State network and operating charges
for the State LoadDespatch Centre.”
Collection and Disbursement of Transmission Charges and Operating
Charges (amended vide CERC order Dtd. 28 th June,2011)
• The transmission charges and operating charges payable by the
persons allowed short-term open access shall be collected by the nodal
agency, except for transmission charges for state network and
operating charges for State Load Despatch Centre in the case of the
collective transaction.

• The transmission charges collected by the nodal agency for use of the
transmission system other than State network, for both bilateral and
collective transaction shall be given to the CTU for further
disbursement to long-term customers in accordance to Central
Electricity Regulatory Commission (Sharing of Inter State Transmission
Charges and Losses) Regulations, 2010, and the approved detailed
procedure there under for Billing, Collection and Disbursement.
Billing, Collection & Disbursement Procedures Approved by CERC
Vide order dtd.29 th April,2011 – Para &(3) b & c
• For STOA, DIC shall have to pay applicable transmission charges to
the RLDC/NLDC at the time of application. The payment made for the
STOA charges for varying quantum and varying duration with respect to
(i) bilateral transactions to the region of LTA granted and (ii) all
collective transactions, shall be credited to that DIC in the next month
billing subject to the upper limit of the amount paid as LTA charges
after accounting for the MTOA charges, if any, as per 7.2 (b) above,
provided that the STOA is in the direction of the targeted regions
mentioned in the LTA granted to the DIC by the CTU.

• If the STOA is other than the targeted regions mentioned in the LTA,
then such STOA, PoC charges shall not be adjusted against the LTA
granted by the CTU and a separate applicable PoC charges shall have
to be paid by the DIC.
Billing, Collection & Disbursement Procedures Approved by CERC
Vide order dtd.29 th April,2011 – Para &(3) b & c
• Provided that this adjustment shall not be done for collective
transaction and bilateral transactions done through portfolio trader.

• For STOA transactions not qualifying for aforementioned credit, the

STOA charges after disbursing 25% of such transmission charges to
the CTU in accordance with the CERC (Open Access) in inter-State
Transmission Regulation 2008 and amendment thereof, shall be
adjusted with respect to the paying DICs (for the respective applicable
month) by the next 30 days of receipt of such payments.
BCD Procedures-Amendment order Dtd.15 th June,2011
• For STOA, DIC shall have to pay applicable transmission charges to
the RLDC/NLDC at the time of application. The payment made for the
STOA charges for the quantum with respect to bilateral transactions
upto the LTA for the specific Region of LTA granted without identified
beneficiaries,, shall be credited to that DIC in the next month billing
after accounting for the MTOA charges, if any, as per 7.2 (b) above.

• Provided that the STOA is in the direction of the targeted regions

mentioned in the LTA granted to the DIC by the CTU. If the STOA is
other than the targeted regions mentioned in the LTA, then such STOA,
PoC charges shall not be adjusted against the LTA granted by the CTU
and a separate applicable PoC charges shall have to be paid by the
DIC.

• Provided that this adjustment shall not be done for bilateral

transactions done through portfolio trader.”
C DISBURSAL OF PAYMENT – Additional Pts
T
U
• Nodal RLDC :: Reconcile the Open Access Charges
collected for previous month & disburse the
P Transmission/Operating Charges
R • Transmission Charges and Operating Charges – for State
O System
C – Concerned STUs/SLDCs
E • Refunds due to curtailment/revision in previous month
D – 15th day of the current month
U •
No responsibilty for payment dishonour: Disbursement only
R to extent of receipt
E
S
Short-Term Open Access transaction
by embedded utilities

EXAMPLE

From : TATA Steel , DVC

To : NDPL Discom, Delhi
Quantum : 100 MW
Path : ER – WR - NR

Source : SAIL
Loss calculation Methodology (upto 30 th Sep,2011)
Contract value  100MW
Transaction  Tata steel- DVC - ER – WR – NR – DTL- NDPL
DVC STU loss  3% DVC Inj POC loss  1.5%
Delhi withdrawal POC loss  2% DTL STU loss  1.5% RLDCs need to
show schedules
only upto requisite
control area
97MW
95.55MW periphery
DVC BDY REGIONAL
100MW ER BDY Hence schedule
93.64MW
CONTRACT values only upto
TATA STEEL
DTL BDY DVC boundary &
BDY TATA DTL boundary need
STEEL
be shown by
RLDCs.
WR Accordingly, all
STU losses are not
NDPL required. [Values
NR
are shown for
understanding
only].
92.24MW

NDPL BDY
Loss calculation Methodology (w.e.f 1 st October,2011)
Contract value  100MW
Transaction  Tata steel- DVC - ER – WR – NR – DTL- NDPL
DVC STU loss  3% DVC Inj POC loss  1.5%
Delhi withdrawal POC loss  2% DTL STU loss  1.5% RLDCs need to
show schedules
only upto requisite
control area
101.52MW
100MW periphery
DVC BDY CONTRACT
104.66MW ER Hence schedule
98MW
TATA STEEL
values only upto
BDY
DTL BDY DVC boundary &
TATA DTL boundary need
STEEL
be shown by
RLDCs.
WR Accordingly, STU
losses are not
NDPL required w.e.f
NR
01/10/11 [Values
are shown for
understanding
96.53MW only].
NDPL BDY
STOA charges calculation Methodology:: Tata Steel-DVC-ER-WR-NR-DTL-
NDPL
Contract value  100MW RTC power x 5 days  12000MWh(total contracted energy)
Transaction  Tata steel- DVC - ER – WR – NR – DTL- NDPL
DVC injection POC  14p/unit  Rs.140/MWh
Delhi withdrawal POC  10p/unit  Rs.100/MWh

DVC STU
DVC injection DTL STU
transmission Delhi
POC transmission
charges = 80 x withdrawal NRLDC
transmission charges =
12000 ER POC operating
charges = 140 41.85 x
DVC SLDC transmission charges =
x 12000 12000
operating charges = 2000 x 5
charges = 100 x 12000
2000 x 5 TATA DTL SLDC
STEEL operating
ERLDC charges =
operating 2000 x 5
charges = WR
2000 x 5
100MW
Upto 30th
CONTRACT NDPL Sep,2011
NR
VALUE Contract value
at sellers’
WRLDC periphery. No
operating
charges = change in
ALL OF ABOVE
2000 x 5 calculations
+
NON REFUNDABLE APPLICATION FEES  Rs.5000/-
Sample bill for
the transaction
 Regulation 25A:: STOA Not To Be Granted

• When so directed by the Commission, the National Load

Despatch Centre or the Regional Load Despatch Centre,
as the case may be, shall not grant short-term open
access to the entities and associates of such entities,
– who consistently and willfully default in payment of
• Unscheduled Interchange charges,
• transmission charges,
• reactive energy charges,
• congestion charges and
• fee and charges for National Load Despatch Centre or
Regional Load Despatch Centre
• including the charges for the Unified Load Despatch and
Communication Scheme
Regulation 26::Redressal Mechanism

• All disputes arising under

these regulations shall be
decided by the Commission
based on an application made
by the person aggrieved.
C
T
GENERAL CONDITIONS
U • Entities which are making Application for the first time must
submit the “One- Time” information as per enclosed format
P (FORMAT-VIII: “Registration Form) to the concerned nodal
RLDC.
R • Application - through Post / fax
O
• Any amendment/modification
C
– fresh Application
E
• Applications not accorded the Acceptance:
D
– stand disposed off with suitable intimation to the concerned
U Applicant(s)
R • All costs/expenses/charges associated with the Application,
E including Bank Draft, shall be borne by the Applicant.
S • Incomplete / vague Application
– summarily rejected
• No charges payable for a transaction shall be adjusted by
against any other payments/charges.
• 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
Regulation 27:: Information System–NLDC &
RLDCs
National Load Despatch Centre and each Regional Load Despatch
Centre shall post the following information on their websites in a
separate web-page titled “Open access information”:
a) These regulations;
b) The detailed procedure
c) A list of bilateral transactions accepted by the nodal agency, to be displayed
till the end of the month in which transactions are scheduled, indicating :
(i) Name of customers;
(ii) Period of the short-term open access granted
(start date end date);
(iii) Point or points of injection;
(iv) Point or points of drawal;
(v) Transmission systems used (in terms of regions
and States);
(vi) Accepted schedule (MW) with start time and
end time
Regulation 27A::Information System– SLDCs
• Each State Load Despatch Centre, shall within 60 days of coming into force of these regulations,
develop its website and post the following information on separate web-page titled “information on
Inter-State Open Access”:
• (a) List of bilateral transactions for which concurrence has been granted and
list of entities to whom concurrence or “ no objection” or prior standing
clearance, as the case may be, has been granted till the end of the month in
which such concurrence or no objection or prior standing clearance has
been granted, indicating:
– (i) Name of customer;
– (ii) Period of concurrence or “no objection” or standing clearance, as the
– case may be, (start date and end date);
– (iii) Point or points of injection and drawal,; and
– (iv) Accepted schedule (MW).
• (b) Average transmission losses for the State network for the immediately
preceding 52 weeks;
• (c) Applicable transmission charges and transmission losses for the State
network;
• (d) List of applications where concurrence or “no objection” or standing
clearance , as the case may be, was not granted, along with reasons for
refusal, to be displayed till one month after the scheduling period given in
the application; and
• (e) A list of applications pending for decision.]
Regulation 28 ::Savings and Repeal
• The provisions of the Central Electricity Regulatory Commission
(Open Access in inter-State Transmission) Regulations, 2004 shall
not apply to the short-term open access] customers whose
applications are processed under these regulations.

• The provisions relating to long-term customers as contained in the

Central Electricity Regulatory Commission (Open Access in inter-
State Transmission) Regulations, 2004 shall continue to apply till
Commission notifies separate regulations covering aspects relating
to long-term customers.

• The provisions relating to short-term open access as contained in

the Central Electricity Regulatory Commission (Open Access in
inter-State Transmission) Regulations, 2004 shall stand repealed on
1.4.2008.
OA FROM STATES’ PERSPECTIVE
Aspects to be covered

• Model Terms & conditions for Intra State OA

Regulations released by FOR on Sep’2010
• Topics to be discussed to be limited to following
aspects:
– Connectivity
– Eligibility for OA
– Categories for OA
– Open Access Charges applicable
– Limited STOA customer
– Sample OA charges calculations
Connectivity
• Only a consumer having load of 10 MW and above or a
Generating Station having capacity of 10 MW and above shall
be eligible to obtain connectivity to the intra-State
transmission system, unless already connected, and shall
apply for connectivity, in accordance with the provisions in this
chapter

• Generating Station having installed capacity less than 10 MW

shall be eligible to obtain connectivity to the Distribution
system and shall apply for connectivity as per the provisions of
these regulations, unless already connected, in accordance
with the provisions in this chapter.
Eligibility for OA
• Licensees, generating companies, captive generating plants and
consumers shall be eligible for open access to the intra-State
transmission system of the State Transmission Utility or any
transmission licensee on payment of transmission and other charges
as may be determined by the Commission

• Licensees, generating stations, captive generating plants and

consumers shall be eligible for open access to distribution system of a
distribution licensee on payment of the wheeling and other charges as
may be determined by the Commission

• Open access shall be permissible to the consumers seeking open

access capacity upto which SERC has introduced open access and
are connected through an independent feeder emanating from a
substation of licensee or industrial feeder provided that all the
consumers on such industrial feeder opt for open access and having
simultaneous schedule of drawal under such open access:
Eligibility for OA
• Provided that the consumers who are not on independent
feeders, shall be allowed open access subject to the condition
that they agree to rostering restrictions imposed by utility on
the feeders serving them

• Provided further that duties of the distribution licensee with

respect to such open access consumers shall be of a common
carrier providing non-discriminatory open access as per
section 42(3) of the Act

• A person having been declared insolvent or bankrupt or having

outstanding dues against him for more than two months billing
of distribution/transmission licensee at the time of application
shall not be eligible for open access.
Categories for OA customers
• The application procedure, application fee and the time frame of processing
request by eligible consumers seeking Open Access shall be based on the
following criteria:

• (1) System to which connected

– (a) Intra-State transmission system
– (b) Distribution system
• (2) Inter-se location of drawal and injection points
– (a) Both within the same distribution system
– (b) within the State but in different distribution systems
– (c) In different States
• (3) Duration of Open Access
– (a) Long term access
– (b) Medium-term open access
– (c) Short-term open access

• The period of Access for categorization of LT cusyomers is not yet uniform across
States e.g for WB >= 15 Yrs, Orissa >=25Yrs, Jharkhand >=10years
OA charges-Transmission charges
• Inter State charges as applicable
• Intra-State charges calculated as follows:
Transmission Charges = ATC/(PLST X365) (in Rs./MW-day)
Where,
ATC= Annual Transmission Charges determined by the Commission
for the State transmission system for the concerned year.
PLST= Peak load projected to be served by the State transmission
system in concerned year
• Transmission charges shall be payable on the basis of contracted Capacity/
Scheduled Load or actual power flow whichever is higher.
• For Open Access for a part of a day, the transmission charges shall be
payable on pro-rata basis:
• Where a dedicated transmission system used for open access has been
constructed for exclusive use of an open access customer, the transmission
charges for such dedicated system shall be worked out by transmission
licensee for their respective systems and got approved by the Commission
and shall be borne entirely by such open access customer till such time the
surplus capacity is allotted and used for by other persons or purposes.
OA charges-Scheduling & System Operation charges
• Intra-State charges for above other than Inter-State as decided
by CERC as follows:
• Long-term access and medium-term open access
– SLDC charges determined by the Commission under sub-
section (3) of section 32 of the Act

• Short-term open access 

– A composite operating charge @ Rs.2,000/- per day or part
of the day shall be payable by a short-term open access
customer for each transaction to the SLDC or as
determined by the Commission from time to time.
– The operating charge includes fee for scheduling and
system operation, energy accounting, fee for affecting
revisions in schedule on bonafide grounds and collection
and disbursement of charges.
OA charges-Wheeling Charges
• Wheeling Charges = (ARR – PPC – TC) /(PLSD X365) (in
Rs./MW-Day)
• ARR= Annual Revenue Requirement of the distribution licensee in
the concerned year
• PPC= Total Power Purchase Cost of distribution licensee in the
concerned year
• TC = Total transmission charges paid by distribution licensee for
State and Inter-State transmission system for the concerned year
• PLSD= Total Peak load projected to be served by the concerned
distribution system in the concerned year
• Provided that Wheeling charges shall be payable on the basis of
contracted Capacity/ Scheduled Load or actual power flow
whichever is higher.
• For Access for a part of a day, the wheeling charges shall be
payable on prorata basis:
OA charges-Wheeling Charges
• Provided further that where a dedicated distribution system used for open
access has been constructed for exclusive use of an open access
customer, the wheeling charges for such dedicated system shall be worked
out by distribution licensee for their respective systems and got approved
by the Commission and shall be borne entirely by such open access
customer till such time the surplus capacity is allotted and used for by
other persons or purposes;

• Provided also that an open access customer connected to the STU system
shall be liable to pay the wheeling charges determined under this
regulation, if such customer was paying wheeling charges directly or
indirectly before availing open access.

• In case an Open Access customer continues to pay the fixed charge and
such fixed charge can be attributed to wheeling/distribution network
related cost, partly or fully, SERC may provide for adjustment of such fixed
charges against the wheeling charges determined as above
OA charges-Cross Subsidy Surcharge
• If open access facility is availed of by a subsidising consumer of a distribution
licensee of the State, then such consumer, in addition to transmission and/or
wheeling charges, shall pay cross subsidy surcharge determined by the
Commission.
• Cross subsidy surcharge determined on Per Unit basis shall be payable, on
monthly basis, by the open access consumers based on the actual energy drawn
during the month through open access. The amount of surcharge shall be paid to
the distribution licensee of the area of supply from whom the consumer was
availing supply before seeking open access.
• Cross Subsidy Surcharge formula:
• S = T – [ C (1+ L / 100) + D ]
• S is the surcharge
• T is the Tariff payable by the relevant category of consumers;
• C is the Weighted average cost of power purchase of top 5% at the margin
excluding liquid fuel based generation and renewable power
• D is the Wheeling charge in per kWh basis (to be derived from the wheeling charge
in Rs./MW-Day
• L is the system Losses for the applicable voltage level, expressed as a percentage
• Provided that in case the above formula gives negative value of surcharge, the
same shall be zero:
OA charges-Cross Subsidy Surcharge
• Provided further that the Commission may fix a lower surcharge in the situation of
shortages and load shedding by the distribution licensee:

• Provided also that such cross subsidy surcharge shall not be levied in case
distribution access is provided to a person who has established a captive generation
plant for carrying the electricity to the destination of his own use.

• Cross subsidy surcharge so determined by the Commission shall be reduced by 20%

every year at a linear rate, taking the year in which the Commission has allowed open
access to a category of consumers as the first year.
• e.g. Cross subsidy surcharge of 1 Rs./ kWh determined in the first year will be 80
Paise/kWh in second year and 60 paise/ kWh in third year and so on:

• Provided that in case power supply position or the consumer load seeking open
access changes substantially, the Commission may review the Cross Subsidy
Surcharge as and when required

• Provided further that the revised cross subsidy surcharge so determined by the
Commission in subsequent years shall be applicable only to the new Open Access
applicants.
OA charges-Additional surcharge
• Additional surcharge shall become applicable only if the obligation of the
licensee in terms of power purchase commitments has been and continues to
be stranded or there is an unavoidable obligation and incidence to bear fixed
costs consequent to such a contract. However,the fixed costs related to
network assets would be recovered through wheeling charges.
• The distribution licensee shall submit to the Commission on six monthly
basis, a detailed calculation statement of fixed cost which the licensee is
incurring towards his obligation to supply.
• The Commission shall scrutinize the statement of calculation of fixed cost
submitted by the distribution licensee and obtain objections, if any, and
determine the amount of additional surcharge:
• Provided that any additional surcharge so determined by the Commission
shall be applicable only to the new open access customers.
• Additional surcharge determined on Per Unit basis shall be payable, on
monthly basis, by the open access consumers based on the actual energy
drawn during the month through open access:
• Provided that such additional surcharges shall not be levied in case
distribution access is provided to a person who has established a captive
generation plant for carrying the electricity to the destination of his own use
OA charges-Standby charges
• In cases of outages of generator supplying to open access customer
under open access, standby arrangements should be provided by the
distribution licensee for a maximum period of 42 days in a year, subject
to the load shedding as is applicable to the embedded consumer of the
licensee and the licensee shall be entitled to collect tariff under
Temporary rate of charge for that category of consumer in the prevailing
rate schedule subject to the condition that such tariff shall not exceed
the highest consumer retail tariff in the prevailing rate schedule:
• Provided that in cases where temporary rate of charge is not available
for that consumer category, the standby arrangements shall be provided
by the distribution licensee for a maximum of 42 days in a year and on
payment of fixed charges of 42 days and energy charges for that
category of consumer in the prevailing rate schedule:
• Provided further that in case of stand by arrangements sought by
continuous process industries, the licensee shall charge on the basis of
actual costs involved in arranging power:
• Provided also that open access customers would have the option to
arrange stand-by power from any other source.
OA charges-Imbalance Charges
• In case of deviation by open access consumers with load of less than 10
MW, the difference between the applicable sanctioned Open Access load
and the actual drawal shall be accounted through the Time of Day (ToD)
Meters on monthly basis and settled at the rate of the imbalance charge as
determined by the Commission (where imbalance charge has not been
determined by the Commission, UI charges as specified by the Central
Commission shall be applicable).
• In case of underdrawal as a result of non availability of the distribution
system or unscheduled load shedding, the open access consumer shall be
compensated by the distribution licensee at the average power purchase
cost of the distribution licensee.
• Deviations between the schedule and the actual injection/drawal in respect
of open access consumers with load of 10 MW and above and the
Generating Stations irrespective of the capacity, shall be settled based on
the composite accounts for imbalance transactions issued by SLDC on a
weekly cycle based on net metering in accordance with the charges
specified by the State Commission.
• Where the imbalance charges are not specified by State commission UI
charges specified by the Central Commission to be used.
OA charges-Imbalance Charges
• Payment of imbalance charges shall have a high priority and the
concerned constituents (including the licensees or the open access
customers as the case may be) shall pay the indicated amounts
within 10 (ten) days of the issue of the statement, into a State
imbalance pool account operated by the SLDC.
• Recipient would then be paid out from the State imbalance pool
account, within three (3) working days.
• If payments against the above imbalance charges are delayed by
more than two days, i.e., beyond twelve (12) days from the date of
issue of statement, the defaulting party shall have to pay simple
interest @ 0.04% for each day of delay.
• The interest so collected shall be paid to the person who had to
receive the amount, payment of which got delayed.
• Persistent payment defaults, if any, shall be reported by the SLDC
to the Commission, for initiating remedial action.
OA charges- Reactive Energy charges
• In respect of open access consumer having a load of 10 MW or
above, the payment for the reactive energy charges by open access
consumers shall be in accordance with provisions stipulated in the
State Grid Code.

• Where the reactive energy charges are not specified by the State
Commission, charges as per provisions stipulated in the IEGC shall
be applicable

• In respect of open access consumers of load less than 10 MW,

reactive energy charges shall be calculated on Power Factor basis
as specified by the Commission.
State OA charges- Sample calculations for Transmission
charges only
State OA charges- Sample calculations for Transmission
charges only