Intra-State Availability Based

Tariff (ABT)
What is ABT ?
1. In Year 2000, the CERC revised the tariff structures of
inter- state generators from drawal-based tariffs to
ABT to discipline grid operations.
2. The earlier system was effectively a single-part tariff,
where inter-state generators were compensated on the
basis of their generation and beneficiary states paid on
their actual drawals.
3. As a result, there was no discipline among generators and
beneficiaries, leading to frequent tripping and undesirable
frequency excursions.
4. The ABT structure comprises of the following:
a. Capacity Charge (As per Plant Availability)
b. Energy charge (As per Schedule)
c. Unscheduled Interchange (UI) i.e. deviations from
schedule Charge (Linked to Frequency)
 UI Charges(Inter-State ABT)
1. The UI charge is payable by generators and beneficiary states
for any deviation from the accepted schedule.
2. The UI charge provides incentives and disincentives for
deviations between the scheduled and actual exchange of
power, depending on the deviation’s contribution to the
overall stability and security of the grid.
3. The UI shall be worked out for each 15-minute time block.
Freq UI rate Freq UI rate
>49.00 5.70 49.00 5.70
49.02 5.61 49.50 3.45
49.04 5.52 50.00 1.50
49.06 5.43 50.50 & + 0.00
49.08 5.34 ( Each 0.02 Hz step is equivalent to 6.0 paise/kwh
… in the 50.5-49.8 Hz frequency range, and to 9.0
50.44 0.18 paise/kwh in the 49.8-49.0 Hz frequency range)
50.46 0.12
50.48 0.06
50.50 & + 0.00
Advantages Of ABT
Availability Based Tariff (ABT) is successfully implemented for
Inter-State System in India.
The experience of implementing ABT in the country till date has
shown following major advantages :
1. Significant Improvement in Grid Discipline and Grid Security.
2. Improvement in grid voltage levels leading to reduction in
transmission losses and enhancement of transmission capacity.
3. Enabling environment for meeting Peak Demand.
4. Inter-State trading of electricity becomes reality.
5. Real-Time electricity Market.
6. Improvement in commercial dealings.
Need For Intra State ABT(1)
1. ABT is currently applicable only to central sector generators
and beneficiaries who are directly connected to and are a
player on the regional grids (inter state only). The advantages
not being utilized by the entire power sector.
2. On the intra-state level, a significant surplus capacity exists
with various generating companies & CPPs which at present
is not being optimally utilized.
3. Moreover, a number of state generating stations still have
single part tariff, which is not in line with merit order
regime. Such generating stations would be asked to back
down even though on a variable cost based merit order
system they would have been fully dispatched.
4. It is also necessary that the distribution utilities become more
accountable in their load management processes by assessing
consumer demand more accurately and planning their load
shedding schedules judiciously.
Need For Intra State ABT(2)
5. Unbundling of SEBs would increase no. of players
managing the load in the system.
6. Unless a mechanism is put into place at the intra-state level
to cover these distribution companies also under ABT, the
loop would not be closed and the actual implementation of
ABT would not be completed.
7. Thus, implementation of ABT at the intra-state level
would release up idle generating capacity leading to
meeting of more consumer demand, ensure better load
management by the distribution companies, boost bilateral
trading etc.
8. ABT with self contained discipline mechanism would
enable better and reliable grid operations.
Issues in Intra State ABT

1. Structural Re-Organization (Shall embedded generation

plants, be covered under Intra-State ABT?)
2. Pricing of balancing electricity (Marginal Cost of
Generation + Cost of T&D losses + Frequency Dependant
Incentive / Penalty + Pro-ration of Inter-State UI charges
payable by the state)
3. Incorporation of Infirm power (e.g. Hydro & Non-
conventional Generation)
4. Large number of entities & the infrastructure requirements
5. Banking and Wheeling arrangements to be re-arranged
6. Regulations on costs incurred by utilities in balancing
Market.
 POWER SCENARIO IN GUJARAT

Present Installed Capacity - 8683 MW

Max.Daily Energy Catered - 180 MUs (2004)
Max.U/R Demand - 9692 MW (2004)
Max.Demand Catered - 8078 MW (Sept-04)
Total Installed Capacity of
Gujarat System
GEB + GSECL 4995 MW
PRIVATE SECTOR 2156 MW
CENTRAL SECTOR (SHARE) 1532 MW
TOTAL 8683 MW
Structure of GEB

GEB was constituted in 1961.

• GEB started functioning with two wings.
1. Planning & Project.
2. Operation & Maintenance.
• In 1980 O&M wing was bifurcated into two departments:
1. Transmission Department.
2. Distribution Department.
So, the Generation, Transmission and Distribution
departments are under one umbrella i.e. GEB till on date.
New Structure of GEB

•GENCO : GSECL( Gujarat State Electricity Corpn. Ltd) : Single

GENCO owning all GEB’s power stations and each power station
a profit-centre
•TRANSCO: GETCO (Gujarat Energy Transmission Corporation
Ltd) : Single Transco owning all 400/220/132 and 66kV lines and
transformers owned by GEB.
–Transco to own network upto transformer stepped down to 66kV. 66kV
lines and below to be owned by Discoms.

• DISCOM : There are four Discoms created on the basis of

geographical locations.
•TRADER : Residual GEB (named as Gujarat Urja Vikas Nigam
Limited (GUVNL)) as Trading licensee.
New Structure of DISCOMs
Four DISCOMS
DGVCL( Dakshin Gujarat Vij Company Ltd): South Gujarat
•Districts of Valsad, Surat, Dang, Bharuch & Narmada
•23% of total load i.e. 1858 MW
MGVCL( Madhya Gujarat Vij Company Ltd):Central Gujarat
Districts of Anand, Vadodara, Kheda, Panchmahal & Dahod.
13% of total load i.e. 1050 MW
UGVCL( Uttar Gujarat Vij Company Ltd):North Gujarat
•Districts of Banaskantha, Patan, Mehsana, Sabarkantha, Amdavad & Gandhinagar
•29% of total load i.e. 2343 MW
PGVCL( Pashchim Gujarat Vij Company Ltd):West Gujarat
(Suarashtra)
Districts of Kachchh, Jamnagar, Porbandar, Jungadh, Amreli, Bhavnagar, Rajkot &
Surendranagar.

35% of total load i.e. 2827 MW

Implementation Of Intra-State ABT in Gujarat State
1. Realizing need of an hour, in Feb-2004 GEB had appointed M/S. PGCIL as
“Intra-State ABT Consultant” to formulate and implement the Intra-State ABT
in Gujarat state.
2. As per the plan, the first phase of listing of entities, finalization of metering
issues etc have been completed.
3.As per the schedule planned, under second phase, the tariff will be finalised ,
the market structure will be formed, the existing PPAs will be made ABT-
compliant.
4. In the final phase the metering & software will be installed & commissioned
and UI account will be organized.
5.After joint evaluation of technical offers with PGCIL officials, the A/Ts have
been placed in favour of two meter manufacturers.The scope of A/T comprises
of supply of meters, DCDs, data reading software for DCDs, installation of
meters and meter cubicle, weekly reading of metered data though DCDs,
Confirmation for Transmission of data to SLDC.
6. The meters are expected to be supplied by 2nd week of January and thereafter
the work for installation of meters and cubicles and connections will be started.
GUJARAT STATE POWER POOL : Single Buyer Model

GEN GEN IPP 2 External

1 3 Purchases
GEN IPP 1
2 ISGS
STATE GENCO s Allocations

RESIDUAL GEB TO POOL ALL GENERATION

TRANSMISSION SYSTEM OF GETCO

South Central North West

DISCOM A DISCOM DISCOM DISCOM
SEC AECo
Intra-State ABT implementation is a Journey and not a
Destination

Thank You