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Introduction to Electricity Act 2003
Presented By
Indu Maheshwari
Dy. Director
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Jun 5, 2012 POWERGRID - NRLDC 3
SpatialDistribution Of
Load
Source:Powerline
(Siemens Ad),
Oct-2006
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680 720 760 880 920 960800 84 0
SS
WW
NN
EE
NE
B
DESH-
SRI
NEPALBHUTAN
82.5 0
J&K
HPPUNJAB
HARIANA
RAJASTHAN UP
MP
BIHAR
ORISSA
WBLGUJARAT
MAHARASHTR
A
KARNATAKA
TAMILNADU
AP
ASSAM
MNP
MIZTRP
NG
ME
LAKSHADWEEP
A&N
MYANMAR
SKM
PONDICHERY
DELHI
GOA
DIU
DAMAN
NERNER
LANKA
JKND
CTGR
Diversity
Time
GenerationResources
Load Centers
Long Haulage ofPower
Weather
Seasons
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Jun 5, 2012 POWERGRID - NRLDC 6
Typical Seasonal Load CurvesFor Northern Region
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11111
11111
11111
11111
11111
11111
11111
11111
1 1 1 1 1 1 1 1 1 11 11 11 11 11 11 11 11 11 11 11 11 11 11 1
WINTER
MONSOON
SUMMER
EVENING
PEAK
Typical Seasonal Load Curves ForSouthern Region
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Regional Grids Geographical
30,500 MW
16,00052132 MW
39280MW
48554 MW
25272
MW
2147MW
Installed Generation Capacity
Current: 187549.62 MW(Feb 29)
Target for Year 2012: 200,000 MW
Figures as on 29Feb 2012
Inter regional LinkInter regional Link MW capacityMW capacity
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Peculiarities of Regional Grids in India
NORTH-
EASTERN
REGION
REGIONALGRIDS
Deficit Region
Snow fed run-of the riverhydro
Highly weather sensitive load
Adverse weather conditions:Fog & Dust StormVery low load
High hydro potential
Evacuation problems
Industrial load and agriculturalload
Low load
High coal reserves
Pit head base load plants
High load (40% agriculturalload)
Monsoon dependent hydro
CHICKEN-NECK
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N-E-W Grid
SOUTH Grid
SOUTHERN
REGION
WESTERNRE
GION
EASTERN
REGION
NORTHERN
REGION
NORTH-
EASTERN
REGION
1
2
TheElectrical
Regions
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International Connections
Bhutan Tala HEP (1020 MW) 400 KV
Chukha HEP (336 MW) 220 KV
Kurichu HEP (60 MW) 132 KV Net import by India
Nepal Over 16 links of 132/33/11 KV
Net export to Nepal (about 10% of Nepals demand)
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Merging ofmarkets alongwith
synchronization of
NEW Grid
SouthGrid
South
West
North
East
Northeast
FiveRegional GridsFive Frequencies
October 1991East and Northeast
synchronized
March 2003West synchronizedWith East & Northeast
August 2006North synchronized
With Central Grid
Central Grid
INDIA
3,287,263 sq. km area
More than 1 Billion people (2001census)
Installed Capacity of
1,46000 MW (Jan-08)
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1 Status of a country is determined by per capita
power consumption
India 613 Kwh/year
World average 2596 Kwh/year
Country started with a very small MW 1947 -1500 MW
to 1,46,902 MW today
We are planning to add
10th Plan 41,000 MW
11th Plan 78,000 MW
Facing both peaking and general shortages
CURRENT SCENARIO
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76,988.88 53.3
Gas 14,704.01 10.5
Oil 1,199.75 0.9
Hydro 36,877.76 24.7
Nuclear 4, 120 2.9
Renewable 13, 242 7.7
Total 147965MW
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GROWTH OF THE POWER SECTOR
Per Capita Consumption of Electricity
Source :CEA
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COMPARATIVE PER CAPITA CONSUMPTION OF ELECTRICITY(Kwh)
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Overall improved
(Source: CEA)
T& D losses at 30.4% in 2005-06 were highas compared with low T& D Losses of 10-15% in some of the developed markets.
UK, US , Australia and Japan reported T & Dlosses as low as 4-8%
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Electricity, not a substance - A physical
phenomenon of flow of electrons.
It cannot be stored. Consumption and
generation have to match.
Flows through a medium to a path of least
resistance.
Electricity
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A) Consumers
Quality power supply UninterruptedAffordable cost
B) Government and its associated agencies
C) Generation Companies
D) Transmission CompaniesE) Distribution Companies
F) Financing Companies
And so on
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Background
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The Indian Electricity Act, 1910
Provided basic framework for electric supply industry in India.
Growth of the sector through private licensees. License byState Govt.
Provision for licence for supply of electricity in a specifiedarea.
Legal framework for laying down of wires and other works.
Provisions laying down relationship between licensee andconsumer.
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The Electricity (Supply) Act, 1948
Mandated creation of SEBs. Need for the State to step in (through SEBs) to extendelectrification (so far limited to cities) all across the country
Main amendments to the existing Acts
Amendment in 1975 to enable generation in Centralsector.Amendment to bring in commercial viability in thefunctioning of SEBs.
- Section 59 amended to make the earning of aminimum return of 3% on fixed assets a statutoryrequirement (w.e.f 1.4.1985)
Amendment in 1991 to open generation to privatesector and establishment of RLDCs Amendment in 1998 to provide for private sectorparticipation in transmission, and also provision relating
to Transmission Utilities.
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The Electricity Regulatory Commissions Act, 1998
Provision for setting up of Central / State ElectricityRegulatoryCommission to with powers to determine tariffs.
Constitution of SERC optional for States.
Distancing of Govt from tariff determination
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Resultant Industry Structure
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GENCO GENCO
DISCOMDISCOM
CUSTOMERCUSTOMERCUSTOMER
TRADERS
TRANSMISSION
DISCOM
GENERATION
TRANSMISSION
DISTRIBUTION
GENCO
Existing Market Structure
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CustomerCustomer
Distribution
Distribut
ion
Transmission
Transmission
Generation
Generation
CustomerCustomer
Open Access in
Transmission
Open Access in
Transmission
TRADERSTRADERS
OpenAccess
inDistribution
TRADERSTRADERS
DISCOMDISCOMDISCOMDISCOMDISCOMDISCOM
GENCOGENCOGENCOGENCO
Customer Customer
Proposed Market Structure in Act 2003
IPP
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Need for the New Legislation.
Requirement of harmonizing and rationalizing theprovisions in the existing laws to
- Create competitive environment for benchmarkcompetition which will result in enhancing quality andreliability of service to consumer.
- distancing regulatory responsibilities of Govt.
Reform legislation by several States separately.
Obviating need for individual States to enact their ownreform laws.
Requirement of introducing newer concepts like powertrading, Open Access, Appellate Tribunal etc.
Special provision for the Rural areas.
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Competitive
Bidding
Trading
Open Access
Regulatory
Commission /
AppellateTribunal
Restructure
Electricity
Boards
Controlling
Theft of
Electricity
Rural
Distribution
Delicenced
Delicenses
Generation
Private
Investments
Competitive
Environment
Liberal
Framework
Objectives of
Electricity Act
2003
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Industry Structure After Electricity Act 2003
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Role of Government.
Central Government to prepare NationalElectricity Policy and Tariff Policy.
(Section 3)National Electricity Policy released in 2004National Tariff Policy released in February2006
1. Competitive bidding in generation and transmission2. Standards of performance3. Multi-Year Tariff , adopted since April 1, 20064. Reduction of Cross Subsidy5. Time of Day metering6. Intrastate Availability Based Tariff7. Renewable Portfolio Standard
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Rural Electrification
Govt. to endeavor to extend supply of electricity to allvillages/hamlets. (Section 6)
No requirement of licence if a person intends togenerate and distribute power in rural area. (Section14)
Villages electrified as on 30th May 2006 439502
forming only 74% of total villages in the country.Rural Households having access to Electricity only 44%.
Only five states Delhi, Goa, Haryana, Kerala andPunjab (all of them very small in size) have achieved100% village electrification.
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Generation
Generation free from licensing.
Requirement of TEC for non-hydro generation done away
with.
Captive Generation is free from controls. Open access to
Captive generating plants subject to availability oftransmission facility.
The total captive capacity is currently at least 32,000 MW
and is growing handsomely, at a rate of 6% per year.
Generation from Non-Conventional Sources / Co-generationto be promoted. Minimum percentage of purchase of power
from renewables may be prescribed by Regulatory
Commissions.
13 States have come up with RPS regulations.
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Transmission
There would be Transmission Utility at the Centre
and in the States to undertake planning &development of transmission system.
The Load Despatch Centre/Transmission Utility /
Transmission Licensee not to trade in power.Facilitating genuine competition betweengenerators.
Open access to the transmission lines to beprovided to distribution licensees, generating
companies.There are 12 unbundled Transcos, eight SEBs andtwo partially unbundled SEBs (with combinedtransmission and distribution functions)
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DistributionDistribution to be licensed by SERCs
Retail Tariff to be determined by Regulatory commissions
Metering made mandatory Currently, as per officialfigures, 96 % metering has been achieved at the feederlevel and 92% at the consumer level.
Open Access in distribution to be allowed by SERC inphases
The act required the SERCs to frame guidelines forallowing
access in distribution for consumers drawing more than
1 MW ofpower by 2009. Accordingly, So far 22 states haveissued
regulations for open access in distribution.
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Consumer Protection.
Redressal forum for redressal of grievances ofconsumers, to be appointed by every distributionlicensee within six months. Ombudsman scheme
(Section 42 )Today, most states have regulations in place for theCGRF and ombudsman- 22 have CGRFs for utilities and22 have set up an ombudsman.
Standards of performance (20 states) Failure to meet standards makes them liable to pay
compensation to affected person within ninety days. Poor Publicity of these measure!
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Trading and Market Development.
Trading distinct activity permitted with licensing(Section 12)
Regulatory Commission may fix ceiling on tradingmargin to avoid artificial price volatility.
(Section 79(1)(j) and 86(1)(j))
CERC has put a trading margin of 4 paise/kWh.
Regulatory Commission to promote development ofmarket including trading
As on March 31,2008 an interregional power transfercapacity of 17000 MW was established by PGCIL.
Two Power Exchange permitted by CERC
The volume of power, traded in India of about 15 billionunits, equivalent to 2 to 3% of electricity generation.
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Regulatory Commissions and Appellate Tribunal
State Electricity Regulatory Commission to be constitutedwithin six months and Provision for Joint Commission bymore than one State/UT.-
So far, 27 states have constituted ERCs
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Tariff Principles Regulatory Commission to determine tariff
for supply of electricity by generating co.on long/medium term contracts. (Section62)
Except in case of Competitive Bidding and
Open Access Consumer tariff should progressively
reduce cross subsidies and move towardsactual cost of supply. (Section 61
(g), (h)) Tariff Policy stipulates cross subsidy level
to come around +/- 20% of average costof supply by 2011-12
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Restructuring of SEBs
Provision for transfer scheme to create one or morecompanies from SEB.(Section 131)
Provision for continuance of SEBs (Section 172)
As on May 31,2006, 13 states have unbundled theirSEBs into 16 Gencos, 13 Transcos and 37 Discoms whileother states are expected to follow.
Among the frontrunners were, Orissa in 1996, Haryana(1999), Andhra Pradesh (1999) and Karnataka (1999).
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The one duty we owe to history is to rewrite it
Oscar Wilde
Laws and Institutions are constantly tending to
Gravity.
Like clocks they must be occasionally cleaned,wound up and set to the time
Henry Ward Bucher
Perspectives
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