OPEN ACCESS IN INTER-STATE TRANSMISSION

OPEN ACCESS

IN

INTER-STATE

TRANSMISSION

Procedure for reservation of transmission capacity by Short-Term Open Access

Customer

Notice issued to existing customers-5th Mar, 2004.

Long Term Open Access - Guidelines, Procedure and Application forms issued

-29th Mar, 2004.Short Term Open Access – Procedures for

reservation of transmission capacity issued-31st Mar, 2004.

ST_Rate for CTU system posted on websites of RLDCs

-31st Mar, 2004.

OUTLINE– Procedures in compliance of the provisions of

the CERC Regulations dated 30.01.2004. – All short term Open Access Customers to

comply with these procedures.– Review if necessary, after three months. – RLDCs reserve the right to review/revise/

modify/ amend the procedures as and when considered necessary.

APPLICATION AND ITS ENCLOSURES– Separate application for each transaction.– Applications received between 1000 hrs. of a

day and 1000 hrs. of the following day to be treated as to have been received together.

– An incomplete / vague application or an application not found to be in conformity with these procedures/ Regulations shall be rejected.

Enclosures along with the application:– Copies of the agreements/MOUs entered by the

buyer / seller /trader.– Advance payment through a bank draft or

electronic transfer covering the following: Transmission charges of STU/SEB/transmission

licensee system payable to the respective STU/SEB/Licensee.

Transmission charges of CTU system payable to POWERGRID.

Scheduling and system operation charges payable to the SLDCs.

Scheduling and system operation charges payable to the RLDCs

Handling and service charges payable to the Nodal RLDC.

Non-refundable fee payable to the Nodal RLDC. Advance payment for 31 days when Application for

more than one month. Otherwise, full payment in advance.

PROCESSING/APPROVAL OF APPLICATIONS

– Each day to be reckoned as a working day (excluding holidays) of 24 hours.

– Nodal RLDC to seek consent of other SLDCs/ RLDCs involved.

– A non-receipt of timely consent from the SLDCs/ RLDCs to be considered as acceptance by the concerned SLDC/RLDC.

– Approval to be issued transaction wise by Nodal RLDC– Applicant to confirm his acceptance/ refusal of the

approval.– Non receipt of acceptance from the applicant to be

considered as refusal.

– Grid security / stability / reliability shall not be compromised while granting approval.

– RLDC to issue transaction-wise approvals from The point of injection of a seller to the injecting

State’s periphery (control area boundary) as confirmed by the concerned SLDC.

From the periphery (control area boundary) of injecting State up to the periphery of the drawee State.

From the periphery (control area boundary) of the drawee State to the point of drawal of buyer as confirmed by the concerned SLDC.

SCHEDULING– Customer’s coordinator to coordinate with the

Utilities. – Transaction details to be furnished to each of

the SLDCs involved, on a daily basis.– SLDCs to advise RLDCs by 15.00 hours each

day regarding Open Access transactions.– Ramp-up/ramp-down, if required, to commence

at the time of commencement of the transaction and to end at the time of termination of the transaction.

– No request to be entertained for revisions.

Advance payments by Short -Term Open Access Applicants

– Transmission charges Each STU/SEB/transmission licensee involved. Each Regional / inter-regional system involved.

– Scheduling and system operation charges. Each SLDC involved @ Rs3000/- per day Each RLDC involved @ Rs3000/- per day

– Handling & Service ChargesFull amount computed @ 2% of above charges.

- Non refundable Application fee : Rs. 5,000/-

– If the applied period is 31 days or less, the advance comprises of the actual period.

– If the applied period is more than 31 days, the advance to be payable for one month (31 days).

– Payment to be made fortnightly through Bank Draft/ electronic transfer, in case of transaction for a period exceeding 31 days,.

– No separate bills to be issued for the fortnightly payment.

– Short-term Open Access charges shall not be adjusted against any other payment/charges.

- The decision of the RLDCs regarding the existence of a force majeure condition shall be final and binding.

- Customers to bear average energy losses estimated by RLDC/SLDC.

- Energy losses to be compensated by additional injection at the injection points.

ST_RATES FOR SHORT TERM OPEN ACCESS TRANSACTIONS

REGION TSC AV_CAP RATE ST_RATE

in Rs./lakhs in MW in Rs./MW/day in Rs./MW/day

(1) (2) (3) (4)=0.25*(3)

SOUTHERN 62678.75 6125.00 2803.63 700.91

WESTERN 37872.96 7630.09 1359.90 339.98

EASTERN 22939.97 5005 1255.73 313.93

NORTHERN 103853.74 10945.86 2599.44 649.86

NORTH-EASTERN 16261.07 1211 3678.85 919.71

INTER-REGIONAL LINKS TSC AV_CAP RATE ST_RATE

in Rs./lakhs in MW in Rs./MW/day in Rs./MW/day

(1) (2) (3) (4)=0.25*(3)

SR-WR 12869.75 1000 3525.96 881.49

SR-ER 10675.81 500 5849.76 1462.44

WR-ER 4739.02 1200 1081.97 270.49

WR-NR 1703.26 500 933.29 233.32

ER-NR 7063.32 500 3870.31 967.58

ER-NER 7058.08 1050 1841.64 460.41

Commercial Conditions for the Short-term Open Access Customers

– Payment to be made transaction-wise.– Payment to be made as per schedule of fortnightly

payment issued by the Nodal RLDC.– Payment to be remitted only by Bank draft/ electronic

transfer.– The Nodal RLDC to suspend the transaction in case of

a payment default.– In case of persistent payment default, new applications

from such a customer may not be entertained for a period upto twelve months.

– The advance payment to be forfeited by the Nodal RLDC in case of relinquishment /abandonment by an applicant,

– In case of approval with curtailment followed by relinquishment /abandonment by the applicant, only the non-refundable application fee to be retained and the balance advance payment to be refunded.

Payment Security Mechanism– Letter of Credit (LC) - security against payment

default for fortnightly payment. Not a mechanism for regular payment. Intended to ensure recovery of the payment through

LC in case of payment default.

– The Bank Guarantee (BG) - security against payment default in case of relinquishment / abandonment by a customer.

Letter of Credit– The customer to open a fortnightly irrevocable

revolving Letter of Credit (LC) on acceptance of an approval (transaction period > 31 days),

– LC to be opened in a bank as mutually agreed between a customer and the Nodal RLDC.

– LC to be opened within 10 days.– LC to be operated by the Nodal RLDC as and

when customer fails to remit the fortnightly payment.

– TermsforLetterofCredit.doc

Bank Guarantee– Irrevocable Bank Guarantee (BG) in favor of

the Nodal RLDC.– BG to be equal to the amount payable by the

customer for the balance period of the approved transaction.

– BG to be provided from a bank as mutually agreed between a customer and the Nodal RLDC.

– BG to be submitted in original to the Nodal RLDC within five (5) days of the date of acceptance by the customer.

– The BG to be encashed by the Nodal RLDC After five days from the previous date of operation

of the LC, if the same is not recouped. The customer fails to pay the full charges in terms

of the provisions under para 14 (iii) of the Regulations on Open Access, 2004.

BG Performa.doc

Bidding Procedure– Nodal RLDC to invite snap bids when the

capacity sought to be reserved is more than the transfer capacity expected to be available (Para 6 of Regulation).

– Bids to be invited only for such period during which congestion occures.

– The decision of the RLDC/SLDC to be final and binding regarding congestion.

– The bidding procedure is not an “Auction Process”.

– Bids to be submitted on-line. – No bids through fax/post.– Only Applicants entitled to submit a bid.– Bid price in terms of percentage price (upto one

decimal) above the Floor price.– RLDCs reserve the right to reject an incomplete

or vague bid.

GENERAL– RLDC to process application through e-mail if

advance payment is received.– Re-routing to be considered on its merit.– Amendment/ modification to be treated as fresh

application.– Expenses related to Bank draft/ LC/ BG to be

borne by the customer.– Applicant to indemnify RLDCs/ SLDCs from

any damage, losses, claims etc.

Standard Formats– Application for grant of short term open access.– Consent for short term open access.– Approval for short term open access.– Acceptance of short term open access.– Refusal of short term open access.– Format for invitation of bids.

WBSEB

WBPDCL

CESC

DTL

100 MW, 00 to 06 hrs

150 MW, 06 to 12 hrs

125 MW, 22 to 24 hrs

Treated as 3 separate transactions and needs 3 separate applications

Case-I (Customer is PTC for all three)

WBSEB

DTL

DTL

DTL

100 MW, 06 to 12 hrs

150 MW, 15 to 18 hrs

250 MW, 22 to 24 hrs

Case :I) – If covered in 1 application – will be

considered as one transaction and transmission charges shall be paid for 250 MW.

II) If 3 separate applications then will be treated as 3 transactions.

CASE- II(Customer is PTC for all three)

Eastern Region Northern Region

West Bengal

WBPDCL Delhi

BSES

HVDC Pusauli

Short-Term Open Access - A Case Study

: SELLER : WBPDCLBUYER : BSES (Delhi Discom)TRADER : PTCQUANTUM : 100 MWDURATION : 1 YEAR ( 01.04.2004 to 31.03.2005) 

NODAL AGENCY : NRLDC  

    PTC shall submit application to NRLDC.    NRLDC shall co-ordinate with the concerned agencies for processing and approval of the Short-Term Open Access.    NRLDC shall collect and disburse all the Short-Term Open Access Charges.

ESTIMATED CHARGES PAYABLE Non refundable processing fee Rs.5000/- Scheduling and System Operation Charges

WB SLDC Rs. 10.95 Lakhs Delhi SLDC Rs. 10.95 Lakhs ERLDC Rs. 10.95 Lakhs NRLDC Rs. 10.95 Lakhs

Transmission charges WBSEB (same as ERTS Charges) Rs. 114.58 Lakhs ERTS Rs. 114.58

Lakhs ER-NR Link Rs. 353.17 Lakhs DTL Rs. 237.20

Lakhs NRTS Rs. 237.20

Lakhs Transmission charges for ERTS, NRTS, ER-NR link Rs. 704.95 Lakhs

(75% of this i.e.; 528.71 will be adjusted among long term ER and NR beneficiaries) Handling & Processing charges Rs. 22.01 Lakhs Total (payable by short term customer) Rs. 1122.59 Lakhs

Constituent’s credit - Rs.902.40 Lakhs

Average Charges Payable = 13 paisa per unit

ESTIMATED CHARGES PAYABLE Non refundable processing fee Rs.5000/- Transmission charges (POWERGRID)- Rs.7.04 crores

– (for ERTS, NRTS, ER-NR link) Transmission charges(STU) - Rs.3.52 crores

– ( for West Bengal and DTL) Scheduling & system operation charges

– RLDCs(ERLDC & NRLDC) - Rs.0.219 crores– SLDCs (WB SLDC & Delhi SLDC)- Rs.0.219 crores

Handling & Processing charges - Rs.0.22 crores Total (payable by short term customer)- Rs.11.23

crores Other Constituent’s share - Rs.9.02 crores

Total Charges Payable : Approx. 13 paisa per unit