NEA Grid Code Grid Code Management

CHAPTER 2

GRID CODE MANAGEMENT

2.1 OBJECTIVE (T-1)

The objectives of the Grid Code Management (GCM) are:

(a) To ensure that all Parties are represented in reviewing and making
recommendations pertaining to all aspects of the management and operation of
the Grid;
(b) To specify the process for submission and approval of revisions to the Grid
Code;
(c) To ensure compliance and enforcement of the Grid Code; and
(d) To specify the process for settlement of disputes in the interpretation and
administration of the Grid Code.

2.2 SCOPE AND APPLICATION (T-1)

The provisions of the Grid Code Management apply to all Parties, including the
following:

(a) Grid Owner;

(b) System Operator;
(c) Grid Constructor;
(d) Generator;
(e) Distributor; and
(f) Any other non NEA entity with a User System connected to the Grid.

2.3 GRID CODE MANAGEMENT COMMITTEE (T-1)

2.3.1 Functions of Grid Code Management Committee

NEA shall establish a Grid Code Management Committee (GCMC) within one
week of the effectivity of the Grid Code. The GCMC shall have the following
functions:

(a) Monitor implementation of the Grid Code;

(b) Review, evaluate, and when appropriate, approve suggestions for amendments
to the Grid Code submitted by any User of the Grid;
(c) Recommend to the NEA Management amendments to the Grid Code that the
Committee believes to be desirable or necessary;
(d) Coordinate Grid Code dispute resolution and, if necessary, make appropriate
recommendations to the NEA Management for final decision;
(e) Issue guidance on implementation of the Grid Code to the Users of the Grid
when requested.

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(f) Recommend to NEA Management a course of punitive actions against a Party

who fails to comply with any provision of the Grid Code.
(g) Prepare Grid Code Management Committee reports on the activities of the
committee for submission to NEA Management.

2.3.2 Membership of the GCMC

2.3.2.1 The composition of the Grid Code Management Committee shall be as

follows:

(a) The General Manager of Transmission and System Operation of the NEA
shall act as the chairperson of the GCMC;
(b) The Director of System Operation Department of the NEA shall assume
the role of the member secretary of the GCMC;
(c) Other members of the GCMC shall include the following:
(1) One member from Grid Operation Department of the NEA;
(2) One member from Grid Constructor of the NEA;
(3) One member from System Planning Department of the NEA;
(4) One member from Generation of the NEA;
(5) One member from Technical Services Department under
Distribution and Consumer Services of the NEA;
(6) Members from Independent Power Producers, High Voltage
Consumers and private Distributors as and when invited by the
GCMC.

2.3.2.2 Members from organizations within the NEA shall be not below the rank of
directors/departmental heads. All members shall have sufficient background
and experience in the field of Grid operation, planning and development.

2.3.3 Terms of Office of GCMC Members

All GCMC members from NEA including the Chairperson shall be ex-officio
staffs.

2.3.4 GCMC Operating Cost

2.3.4.1 The operating cost of the GCMC and its sub committees, including
permanent staffs, shall be borne by the Transmission and System Operation
(TSO) of the NEA, which shall recover the costs from Grid service charges.

2.3.4.2 The GCMC shall prepare and submit the budget requirements for the
following fiscal year to TSO of the NEA by the end of the month of Falgun
(mid March) of the current year. The budget shall also include any
allowances to be given to GCMC members and its invitees.

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2.3.4.3 The GCMC shall operate the budget in accordance with NEA approved rules
and regulations.
2.3.4.4 The salaries of all the GCMC members and the subcommittee members shall
be the responsibility of their respective employers or sponsoring
organizations.

2.3.5 GCMC Rules and Procedures

2.3.5.1 The GCMC shall establish its own rules relating to the conduct of its
business. These include:

(a) Administration and operation of the committee;

(b) Establishment and operation of GCMC subcommittees;
(c) Evaluation of Grid operation results;
(d) Coordination of dispute resolution process;
(e) Monitoring of Grid Code enforcement;
(f) Revision of Grid Code provisions; and
(g) Coordination with Nepal Electricity Regulation and other Acts.

2.3.5.2 The GCMC shall decide issues based on majority voting with at least five
members in favor of the resolution.

2.4 GRID CODE MANAGEMENT SUBCOMMITTEES (T-2)

2.4.1 Grid Planning Subcommittee

2.4.1.1 A permanent Grid Planning Subcommittee shall be established with the

following functions:

(a) Review and advise on Grid planning procedures and standards adopted by
the System Planning Department of the NEA;
(b) Technically support and assist the System Planning Department of the
NEA in Impact Studies;
(c) Technically support and assist the Grid Constructor of the NEA with the
major Grid reinforcement and expansion plans;
(d) Technically support and assist the Grid Operation Department of the
NEA with the reinforcement, up gradation and equipment replacement
plans;
(e) Technically support and assist the Load Dispatch Center with the
communication plans; and
(f) Submit reports to GCMC as and when required.

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2.4.1.2 The Grid Planning Subcommittee shall be composed of following members:

(a) The Director or Departmental Head of System Planning Department of

the NEA shall act as the chairperson of the subcommittee;
(b) One member from the System Planning Department of rank not below
Deputy Manager;
(c) One member from the Grid Constructor of the NEA;
(d) One member from the Grid Operation Department of the NEA;
(e) One member from the System Operation Department of the NEA; and
(f) One member from the Technical Services Department of Distribution and
Consumer Services of the NEA;

2.4.1.3 The members including the Chairperson shall be engineers having sufficient
technical background and experience in planning. All members shall be not
below the rank of director or departmental head of relevant Departments
unless specified otherwise.

2.4.2 Grid Operation and Reliability Subcommittee

2.4.2.1 A permanent Grid Operation and Reliability Subcommittee shall be

established with the following functions:

(a) On a semi-annual basis, technically review and make recommendations

on the Grid operation procedures and standards adopted by the Grid
Operation Department of the NEA;
(b) On a semi-annual basis, technically review and make recommendations
on Grid reliability and protection procedures adopted by the Grid
Operation Department of the NEA; and
(c) Submit reports to GCMC as and when required.

2.4.2.2 The Grid Operation and Reliability Subcommittee shall be composed of

following members:

(a) The Director or Departmental Head of the System Operation Department

of the NEA shall act as the chairperson of the subcommittee;
(b) One member from the System Operation Department of the NEA;
(c) One member from the Grid Constructor of the NEA;
(d) One member from the Grid Operation Department of the NEA;
(e) One member from the Distribution and Consumer Services of the NEA;
and
(f) One member from the Generation of NEA.

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2.4.2.3 The members shall be electrical/electronics/mechanical engineers with

sufficient technical background and experience in Grid operation and/or
protection. All members shall be not below the rank of Deputy Manager of
relevant Departments unless specified otherwise.

2.4.3 Other Grid Management Subcommittees

The GCMC may establish other ad hoc subcommittees as and when necessary.

2.5 GRID CODE DISPUTE RESOLUTION (T-2)

2.5.1 In case of disputes regarding the provisions of the Grid Code, the
following dispute resolution process shall be followed.

(a) When a dispute arises, the Parties will make all reasonable efforts to
informally resolve the dispute among themselves as soon as is practicable.
(b) When the Parties are unable to resolve the dispute informally, the disputing
Party shall register the dispute in writing to the GCMC and the other Party or
Parties. A committee of the representatives of the Parties shall be formed by
the GCMC within 15 days of the issue of the first notice to discuss and attempt
to resolve the dispute. The committee so formed shall meet and discuss the
issue so as to resolve it within 45 days of the formation of the committee. If the
dispute is resolved, it shall be documented and copies of the resolution shall be
provided to all the disputing Parties and to the GCMC. The GCMC shall notify
all parties to the Grid Code of the dispute and its resolution.
(c) If the dispute is not resolved within 60 days of the issue of the first notice,
the GCMC shall hear the arguments of the Parties and issue a resolution to the
dispute. The GCMC at their own discretion may appoint a dispute panel to
assist them in the hearing and decision. The GCMC shall issue their decision
within 90 days of the issue of the first notice and shall notify all Parties to the
Grid Code of the dispute and its resolution.
(d) If either Party to the dispute disagrees with the decision of GCMC they
may refer the issue directly to the NEA Management, within 15 days from the
date of the GCMC decision. NEA management's decision shall be made within
60 days and shall be final and binding upon the Parties.
(e) NEA Management shall notify the GCMC of their decision and the GCMC
shall notify all Parties to the Grid Code of the dispute and the resolution.
(f) At least once a year, the GCMC shall submit a report regarding any
disputes, including any recommendations for Grid Code revisions, to the NEA
Management.

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2.5.2 Cost of Dispute Resolution

The costs of the dispute resolution process as incurred by the GCMC and the
Dispute Panel, if any, shall be borne by the Party losing the dispute.

2.6 COMPLIANCE MONITORING (T-2)

2.6.1 The GCMC shall ensure, to the extent reasonably possible, that all Parties comply
with the provisions of this Grid Code and shall investigate all suspected non-
compliance with provisions of the Grid Code by any Party including the Grid
Owner and the System Operator.

2.6.2 Any Party that has reason to believe that another Party has failed to comply with
provisions of the Grid Code may notify the GCMC. Such notice shall be in writing
and shall include the Party suspected of non-compliance, the provision allegedly
not complied with, the circumstances related to the alleged non-compliance and the
date and time the alleged non-compliance occurred.

2.6.3 The GCMC shall investigate any alleged non-compliance. The GCMC shall notify
the Party alleged to be in non-compliance that a complaint has been made. Such
notice shall be in writing and shall include the provision allegedly not complied
with, the circumstances related to the alleged non-compliance and the date and
time the alleged non-compliance occurred.

2.6.4 Within 15 days of receiving a notice from the GCMC under section 2.6.3, the
alleged non-compliant Party shall respond, in writing, to the allegation of non-
compliance.

2.6.5 If the alleged non-compliant Party admits that an instance of non-compliance has
occurred, the GCMC shall evaluate the non-compliance and prepare a report that
includes the details of the non-compliance, an assessment of the impact of such
non-compliance on the operation and management of the Grid, an assessment of
the likelihood of such non-compliance continuing to occur and an assessment as to
whether the non-compliance warrants an amendment to the Grid. Such report shall
be issued to all Parties.

2.6.6 If the non-compliant Party denies that an instance of non-compliance has occurred
or fails to respond to the notice sent by the GCMC within the stipulated time, the
GCMC shall investigate the complaint and determine whether the alleged Party
was in non-compliance with the Grid Code.

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2.6.7 Following the investigation by the GCMC, the GCMC shall prepare a report that
includes their determination as to whether the alleged Party was in non-
compliance, the details of the non-compliance, an assessment of the impact of such
non-compliance on the operation and management of the Grid, an assessment of
the likelihood of such non-compliance continuing to occur and an assessment as to
whether the non-compliance warrants an amendment to the Grid Code. Such report
shall be issued to all Parties.

2.7 GRID CODE ENFORCEMENT (T-2)

2.7.1 Enforcement Process

2.7.1.1 The Grid Code Management Committee shall initiate sanctions against the
Party or the Parties it has determined to be in non-compliance with any
provision of the Grid Code.

2.7.1.2 The procedures for the enforcement process shall be as follows:

(a) The GCMC shall serve a notice in writing to the non-compliant Party
with the specifics of the non-compliance along with the recommended
course of action necessary to rectify the non-compliance;
(b) The offending Party shall respond in writing its reaction to the notice
within five (5) days of receiving the notice from the GCMC. Its reaction
shall state whether or not it will comply with the course of action
recommended by the GCMC;
(c) If the GCMC is satisfied with the response, it shall notify the Party in
writing that the issue has been resolved; and
(d) If the GCMC is not satisfied with the response or if the event of non-
compliance was of a serious nature that impacted the security, reliability
and efficient operation and management of the Grid, the GCMC shall
document the non-compliance committed by the Party and submit to the
NEA Management a report, including the recommended course of
punitive action which could include warnings, disciplinary action and, in
the extreme case, disconnection.

2.8 GRID CODE REVISION (T-1)

2.8.1 Each clause within the Grid Code is designated a tier number for purpose of
determining the approval process for revision of that clause. The tiers are:

Tier 1 (T-1): Clause relates to the company or industry policy and requires the
approval of the NEA Management for revision.

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Tier 2 (T-2): Clause relates to the planning, management and operational

requirements to ensure an efficient, safe and reliable Grid. Revisions to these
clauses require the approval of the GCMC.

Tier 3 (T-3): Clause relates to departmental procedure and requires the approval
of the relevant General Manager for revision.

2.8.2 If any Party believes that a change is necessary to Tier 1 or Tier 2 designated
clause, they shall present the proposed change in writing to the GCMC with
justification for the change. The GCMC shall notify all Parties of the proposed
change and request them to provide their comments within 15 days of the
notification.

2.8.3 For a revision to Tier 1 designated clause, the GCMC shall consider the proposed
change and take the necessary action to evaluate the appropriateness of the change
proposed. The GCMC shall submit to the NEA Management the proposed change
and their recommendation for approval or rejection of such proposed change. The
NEA Management shall consider the recommendations of the GCMC and inform
the GCMC of their approval or disapproval, as the case may be, of the proposed
change.

2.8.4 For a revision to Tier 2 designated clause, the GCMC shall consider the proposed
change and take the necessary action to evaluate the appropriateness of the change
proposed. If the GCMC agrees with the proposed change it shall provisionally
approve the change and inform the NEA Management of the details of the change.
In the absence of any notification within 30 business days that the NEA
Management disagrees with the change approved by the GCMC the change shall
be deemed to have final approval.

2.8.5 For a revision of a Tier 3 designated clause, the relevant General Manager shall
consider the proposed change and take the necessary action to evaluate the
appropriateness of the change proposed. If the General Manager agrees with the
proposed change, they shall provisionally approve the change and inform the
GCMC of the details of the change. In the absence of notification within 30
business days that the GCMC disagrees with the change approved by the General
Manager the change shall be deemed to have final approval

2.8.6 The GCMC shall inform all Parties to the Grid Code of approved changes to the
Grid Code and shall issue revised pages to the Grid Code, if required, to all Parties
at least once every six months.

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2.9 GRID CODE MANAGEMENT COMMITTEE MEETING (T-1)

The GCMC shall meet at least three times in a year. It shall hold meetings as often
as required to handle problems and issues referred to it.

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Date of
S. No. Section Amendments to Grid Code
Amendment

This page is left intentionally blank to record future amendments to the Grid Code.

28 August 2004