THE INDIA ELECTRICITY

MARKET
TIME LINE

LONG TERM POWER PURCHASE SHORT TERM

LOAD FORECAST AGREEMENTS LOAD FORECAST

FUND CAPACITY DAY-AHEAD

MOBILISATION COMMITTMENT SCHEDULING

WEEK TO DAY REAL TIME

10-5 YEARS1-5 YEARS AHEAD 15 MT BLOCKS
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 Components of inter-utility
tariff

(Pre – ABT
Fixed charges
Mechanism)
 Interest on loans
 Depreciation
 O & M charges
 Return on equity
 Interest on Working Capital
 Energy charges (fuel cost)
 Incentives
 Surcharge & other levies
 No charge for reactive energy
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 Payment to Inter State Generating
Stations (ISGS) from beneficiaries under
Availability Based Tariff
(ABT)

 Capacity charges
 Energy charges

 Unscheduled Interchange (UI)

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 SCHEDULING

1000
Forecast ex-bus capability of Power Plant
900
Net Injection Schedule
800

700
MW
600

500
SEB - A's Entitlement - (40% )
400
SEB - A's Requisition
300

200

100

0
0 2 4 6 8 10 12 14 16 18 20 22 24

Hours 4
CAPACITY CHARGE

Capacity charge will be related

to ‘availability’ of the
generating station and the
percentage capacity allocated to
the state. ‘Availability’ for this
purpose means the readiness of
the generating station to deliver
ex-bus output expressed as a
percentage of its rated ex-bus
output capability. 5
ENERGY CHARGE
Energy charges shall be worked
out on the basis of a paise per
kwh rate on ex-bus energy
scheduled to be sent out from
the generating station as per the
following formula

Energy charges = Rate of

energy
charges (paise/kwh) x
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UNSCHEDULED INTERCHANGE (U I)
:
 Variation in actual generation / drawal with
respect to scheduled generation / drawal shall
be accounted for through Unscheduled
Interchange (UI).

 UI for generating station shall be equal to its

total actual generation minus its scheduled
generation.

 UI for beneficiary shall be equal to its total

actual drawal minus its total scheduled drawal.

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UNSCHEDULED INTERCHANGE (U I)
:

 UI shall be worked out for each 15

minute time block.
 Charges for all UI transactions
shall be based on average
frequency of the time block.
 UI rates shall be frequency
dependent and uniform
throughout the country.

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 UI RATE
650
600 Rate of Unscheduled Drawal/Injection
Below 49.0 Hz UI rate =570 p/u Frequency Rate
550
(Hz) (p/u)
500
Above 50.5 0
450 50.0 150
UI rate ----------------->

400 49.8 210

350 49.0 and 570
below
300 At 49.8 Hz UI rate =210 p/u
250
200
150
At 50.0 Hz UI rate =150
100 p/u
Above 50.5 Hz UI rate =0
50
p/u
0
48.9 49 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 50 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 51

Frequency ----------->
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 AVAILABILITY BASED TARIFF
(A) CAPACITY CHARGE
(B) ENERGY CHARGE
(C) ADJUSTMENT FOR DEVIATIONS
(U I CHARGE)
(A) = a function of the Ex-Bus MW
availability of Power Plant for the day
declared before the day starts x
SEB’s % allocation from the plant
(B) = MWh for the day as per Ex-Bus drawal
schedule for the SEB finalised before
the day starts x Energy charge rate
(C) = Σ (Actual energy interchange in a 15
minute time block – scheduled energy
interchange for the time block) x UI rate10
FEATURES :
 (A) and (B) do not depend on actual plant
generation / drawal. No metering required
for this as they are based on off-line
figures. All deviations taken care of by (C)

 No complication regarding deemed

generation.

 Perpetual incentive for maximizing

generation and reducing drawal during
deficit, but no incentive to over generate
during surplus.
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