Professional Documents
Culture Documents
Computation of Tariff Bulk Consumer Open Access 15-Jun-2011
Computation of Tariff Bulk Consumer Open Access 15-Jun-2011
Acknowledgement
FOR Secretariat
Detailed inputs regarding Model Terms and Conditions for Intra State Open Access Case Studies for calculation of Open Access Charges
Power Exchanges
Case Studies for calculation of Open Access Charges
Presentation Outline
Introduction
Model Terms and Conditions of Intra-State Open Access Regulations, September 2010
Case Studies
Introduction
DEFINITION
Electricity Act 2003: Open Access is defined as
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.
Tariff Policy
Section 8.5.1 provides A consumer who is permitted open access will have to make payment to the generator, the transmission licensee whose transmission systems are used, distribution utility for the wheeling charges and in addition, the cross subsidy surcharge. The computation of cross subsidy surcharge, therefore, needs to be done in a manner that while it compensates the distribution licensee, it does not constrain introduction of competition through open access.
System Operator Training 9
Tariff Policy
Section 6.3: Harnessing Captive Generation
Wheeling charges and other terms and conditions for implementation should be determined in advance by the respective State Commission, duly ensuring that the charges are reasonable and fair. Grid connected captive plants could also supply power to noncaptive users connected to the grid through available transmission facilities based on negotiated tariffs. Such sale of electricity would be subject to relevant regulations for open access
Section 6.4:
Non-Conventional Energy Sources, including co-generation
Section 8.5:
Calculation of Cross Subsidy Surcharge and Additional Surcharge for Open Access
System Operator Training 10
Determination of Surcharge
Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes Yes No No 20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TOTAL
APERC AERC BERC CSERC DERC GERC HERC HPERC J&KSERC JSERC KERC KSERC MPERC MERC MsERC OERC PSERC RERC TNERC TERC UPERC UERC WBERC JERC-M&M JERC-Uts
11
Model Terms and Conditions of Intra-State Open Access Regulations, September 2010 Forum of Regulators
12
Contents
Preliminary Connectivity General Provisions for Open Access Application Procedure and Approval Open Access Charges Scheduling, Metering, Revision and Losses Imbalance and Reactive Energy Charges Commercial Matters Limited Short Term Open Access Information System Open Access to Generator Connected to Distribution System Miscellaneous
System Operator Training 13
STU
DISCOM
Connection Point
Inter-State
Intra-State
STOA
MTOA
LTA
STOA
MTOA
LTA
Any OA
Period of OA
20/04/2011
Nodal Agency
16
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.
17
Regulation 12
Time frame for disposal of application (days from the receipt of application)
2000
7 working days in case STOA applied for first time. Proof of payment of Application fee, 3 working days on subsequent STOA applications.
Both within the same State but in areas of different Distribution Licensees Injection point in the intra-State transmission system within the State
SLDC
5000
7 working days in case STOA Proof of payment of Application fee, applied for first time. Consent from concerned Distribution 3 working days on subsequent licensees STOA applications.
SLDC
5000
7 working days in case STOA Consent from concerned Distribution applied for first time. licensee, 3 working days on subsequent Proof of payment of Application fee, STOA applications.
20/04/2011
In different States
5000
Consent from concerned SLDCs and Distribution licensees as applicable, Proof of payment of Application fee,
Regulation 12
Time frame for disposal of application (days from the receipt of application)
50000
20
STU
100000
40
STU
100000
40
In different States
CTU
100000
20/04/2011
Regulation 12
Time frame for disposal of application (days from the receipt of application)
50000
20
Long-Term Access
STU
100000
120 days where augmentation of transmission system is not required 150 days, where augmentation of transmission system is required. 120 days where augmentation of transmission system is not required 150 days, where augmentation of transmission system is required.
STU
100000
In different States
CTU
100000
20/04/2011
Injection point in the distribution system within the State SLDC 5000 Consent from concerned Distribution licensee, Proof of payment of Application fee,
In different States
20/04/2011
5000
Consent from concerned SLDCs and Distribution licensee as applicable, Proof of payment of Application fee,
STU
100000
Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station or consumer not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station or consumer not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA, Consent from concerned Distribution licensee Proof of payment of Application fee, PPA or Sale-purchase agreement of power, In case of generating station or consumer not already connected to grid, documentary evidence for completion of the connectivity showing that the same shall be completed before intending date of MTOA, Consent from concerned SLDCs and Distribution licensee as applicable
20
STU
100000
20
In different States
CTU
100000
20/04/2011
Regulation 12
STU
200000
Long-Term Access
STU
200000
Time frame for disposal of application (days from the receipt of application) 120 days where augmentation of transmission system is not required. 150 days, where augmentation of transmission system is required. 120 days where augmentation of transmission system is not required. 150 days, where augmentation of transmission system is required.
In different States
CTU
200000
20/04/2011
23
Transmission charges
Inter State As per CERC Regulations Intra-State :
Transmission charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher. Transmission Charges = ATC/(PLS T 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.
For Open Access for a part of a day, the transmission charges shall be payable on pro-rata basis
25
Scheduling and system operation charges payable to State Load Despatch Centre (SLDC)
In respect of inter-State open access
Long term access or Medium term open access
RLDC fees and charges as specified by the Central Commission. SLDC fees and charges as specified by the Commission under sub-section (3) of section 32 of the Act.
Wheeling charges
Wheeling charges shall be payable on the basis of contracted Capacity/ Scheduled Load or actual power flow whichever is higher. Wheeling Charges = (ARR PPC TC) /(PLSD X365) (in Rs./MW-Day)
Where, 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
For Open Access for a part of a day, the wheeling charges shall be payable on pro-rata basis
27
Possible Scenarios
Scenario Connectivity of Generator 1 Transmission System 2 Distribution System 3 Transmission System 4 Distribution System Connectivity of Consumer Distribution System Transmission System Transmission System Distribution System Applicable Charges Transmission + Wheeling Transmission Transmission Wheeling
Source: MPERC Order on Determination of Wheeling Charges and Cross Subsidy Charges (SMP 101/10) System Operator Training
28
L is the system Losses for the applicable voltage level, expressed as a Percentage
29
In order to ensure regulatory certainty to a open access consumer applicant, any change in cross-subsidy surcharge level should be made applicable only to the new applicants and the open access already sanctioned should not be disturbed.
30
Additional Surcharge
This 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. Any additional surcharge so determined by the Commission shall be applicable only to the new Open Access applicants.
31
Standby Charges
Standby arrangements in cases of outages of generator supplying to open access customer under open access. Standby arrangements 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
Standby charges at the temporary rate of charge for that category of consumer subject to the condition that such tariff shall not exceed the highest consumer retail tariff.
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.
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. Open Access customers would have the option to arrange stand-by power from any other source.
32
Imbalance settlement
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 rate as determined by the Central Commission shall be applicable). In case of under drawal 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.
Case Studies
37
S. No.
State
T Rs./Unit Minimum Maximu m S1=T-[C* (1+L)+D] Rs./Unit Minimum Maximum Rs./Unit Rs./Unit Rs./Unit
1 2 3 4 5 6 7 8 9 10
Bihar Chhattisgarh Gujarat (UGVCL) Haryana Himachal Pradesh Karnataka (BESCOM) Madhya Pradesh (East) Maharashtra (MSEDCL-33KV) Punjab Uttarakhand
3.52 2.53 4.88 3.5 3.47 5.37 3.86 5.23 4.3 4.17
4.96 3.04 3.41 4.93 4.42 4.66 4.05 4.38 3.87 3.68
2.91 2.93 3.05 3.10 4.24 5.06 3.23 4.69 4.55 5.02
8.00% 6.00% 10.01% 6.00% 9.12% 2.99% 4.90% 6.00% 10.00% 19.00%
0.32 0.17 0.13 0.3 1.01 0.10 0.49 0.04 0.70 0.39 to 0.05
0.06 -0.75 1.40 -0.09 -2.17 0.17 -0.31 0.22 -1.41 -2.20
1.59 1.27 1.82 0.56 -0.43 1.78 5.83 3.42 -0.59 -1.85
0.85 0.59 1.61 0.38 -1.62 0.95 1.03 1.91 -1.33 -1.85
38
20/04/2011
0.51 Rs./unit
10.01% 0.1348 Rs./unit 4.20% 603 Rs./MW/Day 2000 per day 5000.00 Rs. Rs./Unit
1836000
4000444 539260 4175829 90450 60000 5000 2530709.92 0.70
Rs. Kwh
Rs. Kwh
Rs. Kwh
Rs.
Rs./Unit
2801759.92
0.78
5000.00
Rs. Rs./Unit
5000
4748087.30 1.32
Rs.
I
J=C+E+G+H+I K=J/B
41
40 2.50
40 2.50
5 8 40 2.50
44
Standby Charges
The various provisions of Act and Policies mandate the DISCOM of providing standby to OA customers.
Unfair on behalf of DISCOMs to keep non open access consumers in dark and provide standby without levying reasonable charges for the standby supply arrangements.
As per the latest FOR guidelines, demand charges for standby supply can be charged for 42 days in a year.
However, some of the States raised the issue that standby charges should be payable for the entire 365 days.
Solution ?
Purchase from market Enter into a PPA
System Operator Training 47
Possible Solution
A vibrant market working in the country In case a particular State becomes surplus, the surplus as and when available can be sold in the market.
System Operator Training 48
Development of Intra State Transmission & Distribution Network Open access presupposes the existence of a robust transmission or distribution network. Many of the States are experiencing a high load growth and commensurate augmentation of the transmission and distribution infrastructure inside the States needs urgent attention to accommodate open access transactions.
49
Procedural Issues including Metering, Settlement and Accounting Issues Clear procedures including the timelines for approval/clearance of open access needs to be clearly defined by the States. In order to avoid flip-flop situation, the need for a minimum time period for availing open access was also felt.
Procedural Clarity
Imbalance settlement
Treatment of under-drawal and over-drawl by Open Access Consumer
Metering Arrangements
ToD meter or SEM Meter specifications Costs involved
Billing Arrangements
Procedure for billing Entities responsible for billing for wheeling, energy component etc. Manner of payment of bills
Breach of PPAs
Breaching an already existing PPA to sell power in the open market. Honouring contracts is important
Need to initiate necessary safeguards for this.
53
Charges should be such that it facilitates open access and does not restrict it.
55
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Assam Chhattisgarh (Short term) Haryana Himachal Pradesh Karnataka (BESCOM) - ST Maharashtra (MSEDCL area) Orissa ( WESCO) Punjab ( short term) Rajasthan Uttar Pradesh ( short term) Madhya Pradesh Uttarakhand ( Long term) Gujarat West Bengal - short term Tamil Nadu Delhi Andhra Pradesh Kerala Bihar ( HTS) Jharkhand
2.94 1.00 1.03 1.32 1.00 0.84 1.81 0.61 0.97 0.66 1.00 1.47 1.34 2.81 2.47 1.93 0.97 2.38 2.56 1.44
6.94 5.00 5.03 5.32 5.00 4.84 5.81 4.61 4.97 4.66 5.00 5.47 5.34 6.81 6.47 5.93 4.97 6.38 6.56 5.44
3.25 3.38 4.57 3.04 4.15 4.53 2.91 5.09 3.98 4.29 4.57 3.9 7.39 3.95 3.96 4.05 3.49 3.94 4.35 4.48
*Tariff for an embedded consumer of 5MW at 11 KV (33 KV in some cases). ** Effective Open Access Charges for consumer of 5MW at 11 KV (33 KV in some cases) in addition with a assumption of power purchase cost of 4 Rs./KwH.
56
2.91
3.04
3.38 3.25 3.00 4.00
5.81
*Tariff for an embedded consumer of 5MW at 11 KV (33 KV in some cases). ** Effective Open Access Charges for consumer of 5MW at 11 KV (33 KV in some cases) in addition with a assumption of power purchase cost of 4 Rs./Kwh.
57
Functions of SLDC
Section 32 (2), EA 2003: The State Load Despatch Centre shall (a) be responsible for optimum scheduling and despatch of electricity within a State, in accordance with the contracts entered into withthe licensees or the generating companies operating in that State; (b) monitor grid operations; (c) keep accounts of the quantity of electricity transmitted through the State grid; (d) exercise supervision and control over the intra-state transmission system; and (e) be responsible for carrying out real time operations for grid control and despatch of electricity within the State through secure and economic operation of the State grid in accordance with the Grid Standards and the State Grid Code
Introduction of system of certification of system operators by an independent central body. Proper compensation structure for LDCs to attract and retain best talent
61
DISCUSSION
saxena.samir@gmail.com
System Operator Training 63