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The order is signed and issued by

Karnataka Electricity Regulatory Commission


on this 27th day of February 2007.
a) Applicability of this Order: This order is applicable to all those
Captive Power Plants agreeing to supply a capacity of one MW
and above to the distribution licensees duly complying with
the terms indicated in this order.
NCE projects which include biomass, wind and mini hydel,
Sugar based cogeneration Power Plants are exempted from
this order as they are separately covered under relevant
Regulations.

b) Power Purchase Agreement: The Captive power generator


shall enter into an agreement with the distribution licensee for
sale of power. Power purchase shall be through the PPA route
only. Distribution Licensees shall draft the PPA considering
the various provisions made in this order and the same shall
be got approved from the Commission.
Karnataka Electricity Regulatory Commission
on this 27th day of February 2007. Cont..

c) Banking and Wheeling: As the purpose of this order is to harness


the available surplus power with the CPPs in the State, no
banking facility shall be allowed.

d) Metering: All Captive Power Plants desirous of selling power to


either Distribution Licensee or Third party shall install meters at
interface points as per the prevailing CEA regulations as
amended from time to time.

e) Billing and Accounting: The distribution licensee buying power


from one or more CPPs shall settle payment within fifteen days
after the completion of the billing cycle. The billing cycle shall be
one month. The Distribution Licensee shall open a letter of credit
equivalent to one month’s bill for purchase of firm power and
long-term contracts.
Karnataka Electricity Regulatory Commission
on this 27th day of February 2007. Cont..

f) Grid Support/parallel operation Charges: The transmission utility


shall place suitable proposals on grid support charges. The same
will be dealt with as and when the transmission utility submits the
proposal to the Commission.

g) Operational characteristics of the CPP: The captive power plant


shall be capable of being synchronized and operated in the system
within nominal system parameters of voltage, frequency and
power factor range specified by the licensee. The CPP shall be
capable of delivering reactive power commensurate with the
generator design capability and prorated to the capacity
contracted to the grid.

In the first instance, this Order shall be valid for a period of


one year from the date of this Order and the same would be
reviewed based on the feedback from all the stakeholders.
KERALA STATE ELECTRICITY REGULATORY COMMISSION
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Open Access.-
(1) A Captive Generating Plant shall have right to ‘open access’ for carrying
electricity from its plant to the destination of its use by using transmission lines or
distribution system or associated facilities with such lines or system and for that
matter, rules or regulations notified by the Commission in that regard shall apply:
Provided that the plant shall ensure to dispatch electricity as per the schedule
and unscheduled interchange, if any with the grid, shall not exceed 10
percent of the total dispatch in a day restricted to 5 percent during peak
hours, beyond which a penalty may be imposed by the Commission, in
addition to the Unscheduled Interchange Charges payable under the intra
state ABT scheme, on the recommendation of the State Load Despatch
Centre:

Provided also that the ‘open access’ shall be subject to the availability of
transmission capacity as determined by State Transmission Utility or the
Central Transmission Utility, as the case may be:

Provided further that in case of Inter state transmission the rules or


regulations made by the Central Electricity Regulatory Commission shall
apply:
KERALA STATE ELECTRICITY REGULATORY COMMISSION
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Provided further that in case of Intra state transmission the rules or


regulations made by the Kerala State Electricity Regulatory Commission shall
apply, and Provided further that if any dispute arises regarding the availability of
surplus transmission capacity, the matter shall be decided and adjudicated by the
State or the Central Commission as the case may be.

(2) The plant seeking ‘open access’ shall approach State Transmission Utility
and/or Central Transmission Utility and/or intervening transmission licensee
and/or distribution licensee who shall determine and allow non discriminatory
‘open access’ subject to availability of transmission capacity.
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Transmission Charges and Wheeling Charges.-


The NCE plants, seeking non-discriminatory ‘open access’ to the State
and/or Inter state Transmission Systems and/or intervening transmission facility
and/or distribution system for carrying the electricity generated by it to the
destination of use, shall pay the transmission charges at 3% of wheeled energy,
wheeling charges at 5% of wheeled energy. Other plants shall pay Transmission
charges, Wheeling charges and such other charges as determined by the
Commission under Open Access Regulations.

Reactive power.-
Wind energy generators shall maintain their own capacitors and shall not
draw reactive power as far as possible. There will be disincentive for drawing
reactive power on the basis of monthly average power factor. If the average
power factor is less than 0.9 the disincentive fixed is 1% of energy generated for
every reduction of 0.01 below 0.9 PF

Surcharge.-
A Captive Power plant shall not be liable to pay surcharge in addition to
the charges for transmission and wheeling for carrying the electricity to the
destination of his own use.
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Sale of Power.-
(1) A captive generating plant may enter into an agreement with the distribution
licensee for sale of its surplus capacity based on PPA approved by the
Commission. The parties to the agreement may make plant/site specific
conditions in the PPA not inconsistent with the Act, these Regulations and other
relevant regulations. Provided that the plant may also supply electricity to a
consumer who is permitted open access as per provisions of Open Access
Regulations. Such consumers shall pay Transmission charges, wheeling charges
and such other charges as determined by the Commission under Open Access
Regulation.

The distribution licensee shall pay the transmission charges and wheeling
charges for such supply , as may be determined by the Commission by an order:
Provided further that Distribution Licensee may require emergency
assistance following an extensive failure in the system. Subject to technical
feasibility, the Captive Generating Plant may, if requested by the licensee, extend
power supply from its generating station to the licensee’s system. In such
circumstances, the tariff for such supply shall be mutually agreed.
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Purchase of Electricity.-
Any person, who establishes, maintains and operates a Captive Power
Plant, may purchase electricity from a generating company or a distribution
licensee in case his plant is not in a position to generate electricity to meet the
requirement of his own use and consequently additional power is required:
Provided that such purchase of electricity, from a distribution licensee,
shall be charged as per the tariff determined by the Commission under
appropriate ‘Rate Schedule of tariff under which the total load requirement of the
plant shall belong to:
Provided also that in case of purchase of power though a trader or a
generating company or a distribution licensee other than a distribution licensee of
the area in which the plant is located, the rate shall be as mutually agreed
however, surcharge and additional surcharge besides other charges shall be
payable as determined by the Commission under open access regulations.
Provided further that the tariff payable by a captive plant to a distribution
licensee, in case of banking of energy, shall be as per Clause 21 if that plant has
an arrangement of banking of energy with such distribution licensee.
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Metering Arrangement.-
The Generating Plant shall provide ABT compatible Special Energy Meters
at the point of injection and point of drawal and shall comply with all metering
requirements as notified by the State Transmission Utility.

Provided that the point of injection and point of drawl for the purpose of
recording and billing purposes shall be the substation of the licensee and
point of drawal shall be the consumer premises.

Provided also that metering at generator terminal shall be provided as per


the guidelines issued by the Authority.

Energy Accounting and Billing.-

The State Load Dispatch Centre shall do energy accounting and billing
and the same shall be communicated to the utilities interacting with the grid .
Provided that in case of sale to the distribution licensee of the area, the
power purchase agreement may provide for joint metering and in such
cases, energy accounting and billing shall be done by the generating plant in
association with the concerned distribution licensee.
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006
Banking of Power.-
The Generating Plants shall be allowed to bank power, for the purpose of
withdrawal of the banked power in the event of emergency or shut down or
maintenance of the plant, subject to following conditions:

a. The withdrawal of banked energy, subject to deduction of banking


charges of 5%, shall be allowed and banking period starts from 1st of
April every year to 31st March of successive year. Adjustment of
energy drawal shall be done on slot to slot basis within monthly billing
cycle as follows.

(a) Peak hour generation with peak hour consumption


(b) Off peak hour generation with off peak hour consumption
(c) Normal hour generation with normal hour consumption.

Units generated during higher tariff TOD slot could be consumed at lower
tariff TOD slot at the option of generators/ users, but the reverse will not be
allowed. No carryover is allowed during next month. The unutilized banked
energy as on 31st March shall be treated as sold to the licensee at the rate
approved by the Commission and slot to slot adjustment will not be
applicable for such unutilized portion. Excess drawal at any point of time will
be charged under respective tariff applicable to the user. The peak hour extra
charges and off peak hour rebate shall be on net energy consumption after
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006
Payment Mechanism.-
The Distribution Licensee shall make payment through a revolving
selfreplenishing Letter of Credit (LC) in favour of the plant. The value of LC
shall be determined on the basis of average monthly energy scheduled for a
particular calendar quarter under the power purchase agreement. The LC
shall be updated by 5th working day of the quarter. The Licensee shall bear
the charges for opening and maintenance of LC. Any shortfall in the amount
of LC shall be payable within thirty days from the date of billing. In such
case, a rebate of 1.25 percent shall be allowed and for default in payment
beyond thirty days from the date of billing, a surcharge at the rate of 1.25
percent per month or part thereof shall be levied on the billed amount. If the
payment is made by a mode other than through LC within a period of one
month of presentation of bill by the generating company, a rebate of 1.0
percent shall be allowed, however a surcharge at the rate of 1.25 percent per
month or part thereof shall be levied on the billed amount in case of default
in payment beyond 30 days.
Provided further that the rate and payment terms approved by KSERC
from time to time for the respective consumer category under ‘Rate
Schedule for Tariff’ shall apply for purchase of electricity by the plant.

Provided further that in respect of, transmission charges, wheeling


charges, surcharge and additional surcharge, as the case may be, payable
by the Plant for purchase of electricity under these regulations, the payment
mechanism provided under the relevant regulations shall apply.
DRAFT REGULATION ON Terms and Conditions for Supply of Power from
Captive Generating Plants to Distribution Licensees Regulations 2006

Approval of Power Purchase Agreement.-

The distribution licensee shall make an application for approval of power


purchase agreement entered into with the generating station in such forms and
such manner as specified in Kerala State Electricity Regulatory Commission
(Conduct of Business) Regulations,2003 notified by the Commission.

Power to Remove Difficulties.-

If any difficulty arises in giving effect to these regulations, the Commission


may, on its own motion or otherwise, by an order and after giving a
reasonable opportunity to those likely to be affected by such order, make
such provisions, as may appear to be necessary for removing the difficulty.

Power to Relax.-

The Commission, for reasons to be recorded in writing, may vary any of


the provisions of these regulations on its own motion or on an application made
before it by any interested party.
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006

Scheduled Consumer” means a consumer who has a supply


agreement with the distribution licensee in whose area of supply the
consumer is located and also has a supply agreement with a person
other than the distribution licensee under the Open Access
Regulation and includes a consumer of a distribution licensee who
also avails of wheeling facility for carrying the electricity from his
captive generating plant to the destination of his own use.
Open Access Consumer” or “OA Consumer” means a consumer not
having a supply agreement with the distribution licensee in whose
area of supply the consumer is located, but availing or intending to
avail supply of energy from a person other than that distribution
licensee under the Open Access Regulation and includes a consumer
availing wheeling facility for carrying the electricity from his captive
generating plant to the destination of his own use without having a
supply agreement with the distribution licensee of the area in which
the consumer’s premises is located.
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
ALLOCATION OF CAPACITY BY OA GENERATORS

The sum total of the capacity allocations by an OA Generator


for any time block to all the Scheduled Consumers and OA
Consumers shall not exceed the available capacity from his
generating plant being not higher than the installed capacity or
contracted Open Access capacity, whichever is lower.

The OA Generator shall also indicate the allocated capacity in


kW at the exit point(s) for each consumer in the Format using
the loss levels as specified in the applicable Tariff Order of the
Commission. The energy account of the billing month shall be
finalized based on the transmission and distribution losses
specified by the Commission in the applicable Tariff Order

SLDC/DISCOM shall verify the capacity allocated at the Exit


point(s) and correct it in case of discrepancy, if any. The
computations of SLDC shall be final and binding on all.
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
ALLOCATION OF CAPACITY BY OA GENERATORS

The sum total of the capacity allocations by an OA Generator


for any time block to all the Scheduled Consumers and OA
Consumers shall not exceed the available capacity from his
generating plant being not higher than the installed capacity or
contracted Open Access capacity, whichever is lower.

The OA Generator shall also indicate the allocated capacity in


kW at the exit point(s) for each consumer in the Format using
the loss levels as specified in the applicable Tariff Order of the
Commission. The energy account of the billing month shall be
finalized based on the transmission and distribution losses
specified by the Commission in the applicable Tariff Order

SLDC/DISCOM shall verify the capacity allocated at the Exit


point(s) and correct it in case of discrepancy, if any. The
computations of SLDC shall be final and binding on all.
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
METER READING, ENERGY ACCOUNTING AND SETTLEMENT

SLDC shall undertake the accounting of energy for each time block on monthly basis
with the assistance of the Energy Billing Centre (EBC) of the State Transmission Utility
(STU) in respect of the Open Access Generators, Scheduled Consumers and the OA
Consumers who are connected to the transmission system, In respect of the Open
Access Generators, Scheduled Consumers and the OA Consumers who are connected
to the distribution system, it is the EBC that shall be responsible for energy accounting
and settlement in co-ordination with the DISCOMs.
Such Account shall be examined and signed by a Committee comprising the STU,
DISCOMs and Generators:

Provided that in the case of Generators, only one representative, as approved by the
Commission, from each class of Generators mentioned below shall be represented on
the Committee:

• Central Generating Stations (CGS)


• APGENCO
• Independent Power Producers (IPPs)
• conventional Energy (NCE) Developers (Biomass, Mini-hydel, Hydro, Wind,etc.)
• Captive Power Plants (CPPs)
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
SETTLEMENT OF ENERGY/DEMAND AT EXIT POINT IN RESPECT OF SCHEDULED
CONSUMER

The Scheduled energy (in kWh) at exit point shall be calculated for each time block from the
scheduled capacity (kW) at the Exit point, as provided in the wheeling schedule, by multiplying
it with the period of time block in hours.

Scheduled demand at exit point shall be calculated by dividing the scheduled capacity (kW) at
exit point by the power factor for the time block, for which purpose the Power factor shall be
equal to the recorded kWh divided by kVAh.

The Scheduled energy of a Scheduled Consumer from an OA Generator for each time-block
shall be deducted from the recorded energy (in the inter-se order of such Generators, as and
if intimated by the consumer, in case the consumer is availing of energy from more than one
Generator) as a first charge. The balance energy shall be deemed to have been supplied by
the DISCOM and shall have to be paid for as per the terms of the supply agreement with the
DISCOM:

Provided that where there is a deviation between the scheduled capacity and actual capacity
being injected at an Entry point in a time block, the shortfall, if any, in the capacity allocated to
the Scheduled Consumer shall be deemed to have been drawn by the Scheduled Consumer
from the DISCOM and the energy corresponding to such shortfall shall be paid for by the party
which has contracted for the Open Access capacity with the Licensee to the DISCOM as per
the energy tariff applicable for the same consumer category of DISCOM under which the
Scheduled Consumer would normally fall.
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
SETTLEMENT OF ENERGY/DEMAND AT EXIT POINT IN RESPECT OF SCHEDULED
CONSUMER

The Scheduled demand at Exit point or the actual demand made


available to a consumer from each OA Generator at that Exit point in a time-
block whichever is less, shall be deducted from the recorded demand (in the
inter-se order of such Generators, as confirmed by the SLDC while finalising
the day-ahead schedule, in case the consumer is availing of energy from
more than one Generator). The balance demand for each time-block shall be
deemed to have been consumed from the DISCOM and shall be paid for as
per the terms of the supply agreement with the DISCOM.
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
SETTLEMENT OF ENERGY AT EXIT POINT IN RESPECT OF OA CONSUMERS:

The Scheduled Energy at Exit point of an OA Consumer shall be calculated from the
Scheduled capacity from an OA Generator at the Exit point for each time block as
provided in clause Scheduled consumer above.
In case the Open Access Consumer is receiving supply from more than one Open
Access generator, the total energy and demand recorded shall be deemed to have
been consumed from the respective Open Access Generators in the inter-se order of
Generators as confirmed by the SLDC while finalizing the day-ahead schedule.

The excess energy recorded, if any, at the exit point for any time block with reference to
scheduled energy or the actual energy available at that Exit point, whichever is less,
shall be deemed to have been consumed by the Generator or the OA consumer
whoever has contracted for the Open Access capacity with the Licensee, from the
DISCOM and shall be paid for by the Open Access Generator/Consumer at the energy
tariff applicable for the same consumer category of DISCOM to which the OA Consumer
would normally belong. Such excess consumption shall also attract all penal
provisions provided in the applicable Tariff Order like those in respect of Low Power
Factor, voltage surcharge, etc and wherever applicable, the relevant charges shall also
be paid for by the OA generator/OA consumer.

The Scheduled demand at Exit point or the actual demand made available to a
consumer from each OA Generator at that Exit point in a time-block whichever is less,
shall be deducted from the recorded demand (in the inter-se order of such Generators,
as confirmed by the SLDC while finalising the day-ahead schedule, in case the
consumer is availing of energy from more than one Generator). The balance demand
for each time-block shall be deemed to have been consumed from the DISCOM and
shall be paid at twice the demand charges applicable for the same consumer category
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
FOR OA GENERATORS AT ENTRY POINT:

The excess drawals of energy and demand by Scheduled Consumers on account of


under-generation by the Generator for each time block shall be deemed to have been
drawn from the DISCOM. The energy and demand charges for such excess drawls shall
be paid for by the Scheduled Consumer in accordance with the proviso to clause 8.3
and as per clause 8.4 respectively.
The excess drawal of energy and demand by an OA Consumer on account of under-
generation by the Generator for each time block shall be deemed to have been drawn
by the Generator (or Open Access Consumer whoever has contractedfor Open Access
Capacity) and shall be paid for by the Generator/Consumer as per the normal energy
tariff and twice the demand charges applicable for the same consumer category to
which the OA Consumer would normally belong.
The underdrawals by Scheduled Consumers and/or OA Consumers shall have impact
on the Generator and on the DISCOM in whose area of supply the Exit point is located.
Such underdrawals at Exit point shall be treated as inadvertent energy supplied by the
Generator to the DISCOM(s) and shall not be paid for by the DISCOM.

Injection of energy by an OA Generator over and above the scheduled capacity at an


Entry point shall not be accounted for. In such cases, only the scheduled capacity at
exit point shall be accounted for as having been supplied by the Generator to the
Scheduled Consumer or the OA Consumer, as the case may be.
In case of wind and mini-hydel OA generators the actual generation during the month
shall be deemed as scheduled energy. For the purpose of settlement in respect of
scheduled/OA consumer availing supply from these OA generators, the actual
generation during the month will be apportioned for each time block of the month and
deviations reckoned accordingly.
INTERIM BALANCING AND SETTLEMENT CODE FOR
OPEN ACCESS TRANSACTIONS
Regulation No. 2 of 2006
LEVY OF SURCHARGE AND ADDITIONAL SURCHARGE:

Each Open Access Generator, Scheduled Consumer and OA Consumer shall, in


addition to the tariff and other charges mentioned in the preceding clauses, also be
required to pay, wherever applicable, the surcharge in accordance with the provisions
of the Open Access Regulation as also the applicable additional surcharge, if any,
under Section 42 (4) of the Act.

BANKING

No generators other than the Wind and Mini Hydel power generators shall be allowed
the facility of banking the electricity generated by them:

Provided that in the case of existing users of wheeling facility, the energy already
banked as per the subsisting agreements as on the date of coming into force of this
Regulation, shall be allowed to be wheeled as hithertofore till the expiry of the balance
period available for utilization of the banked energy:

Provided, however, that in the case of generators whose cases are pending
appeals in the Hon’ble High Court of Andhra Pradesh and/or the Hon’ble Supreme
Court, this provision shall be applicable subject to the final decision of the High Court
and / or the Supreme Court, as the case may be.

The banking facility to the Wind and Mini Hydel power generators shall be subject
to the conditions specified
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Categorization of intra state Open Access Customers

(i) Short-term intra state open access customer

An open access customer, availing intra state open access for a


period of one year or less shall be short-term intra state open
access customer.

(ii) Long-term intrastate Open Access customers

An open access customer availing intra state open access for a


period of five years or more shall be long-term intra state open
access customer.
Note 1: Open access applications for a period less than five years
and more than a year shall be considered under short term open
access only and shall be allowed at a time for a period not
exceeding one year.
Note 2: A generator of electricity through non conventional energy
sources shall be treated as long term intra state open access
customer and shall be eligible for open access irrespective of the
generating capacity
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Allotment Priority
(a) A distribution Licensee shall have the highest priority in allotment of
open access capacity irrespective of whether the open access
request is for long term or short term
(b) Other long-term open access customers shall have the priority next
to the Distribution Licensee
(c) The short-term open access customer shall have the priority next to
the long term open access customer
(d) Allotment priority for short term open access customer shall be
decided subject to capacity availability
(e) An existing open access customer shall have the priority higher
than new open access customer under respective category
provided he applies for its renewal thirty days prior to the expiry of
existing term of open access.
(f) Subject to clauses (a) to (e) above, the decision shall be based on
the basis of first come first served;
(g) During capacity availability constraints, the allotment can be made
available to the next senior applicant, provided that the first senior
is not able to limit his requirement to the available capacity and so
on.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
1. Transmission charge or wheeling charge

(a) Transmission charges payable to State Transmission Utility /


Transmission Licensee and wheeling charges payable to
Distribution Licensee, by an open access customer shall be
determined by the Commission. Wheeling charges shall be
determined on the basis of same principles as laid down for intra
state transmission charges.
(b) Where a dedicated transmission system or a distribution system
used for open access has been constructed for exclusive use of an
open access customer, the transmission charges or wheeling
charges for such dedicated system shall be worked out by the
Licensee and got approved by the Commission and shall be borne
entirely by such open access customer till such time the surplus
capacity is allotted and used for by other persons or purposes.
(c) In case intra state transmission system or distribution system is
used by an open access customer in addition to inter-state
transmission system, transmission charges and wheeling charges
as fixed and approved by the Commission shall be payable for use
of intra-state system in addition to payment of transmission charges
for inter-state transmission.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
1. Transmission charge or wheeling charge

(a) Transmission charges payable to State Transmission Utility /


Transmission Licensee and wheeling charges payable to
Distribution Licensee, by an open access customer shall be
determined by the Commission. Wheeling charges shall be
determined on the basis of same principles as laid down for intra
state transmission charges.
(b) Where a dedicated transmission system or a distribution system
used for open access has been constructed for exclusive use of an
open access customer, the transmission charges or wheeling
charges for such dedicated system shall be worked out by the
Licensee and got approved by the Commission and shall be borne
entirely by such open access customer till such time the surplus
capacity is allotted and used for by other persons or purposes.
(c) In case intra state transmission system or distribution system is
used by an open access customer in addition to inter-state
transmission system, transmission charges and wheeling charges
as fixed and approved by the Commission shall be payable for use
of intra-state system in addition to payment of transmission charges
for inter-state transmission.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(2) Surcharge
If open access facility is availed of by a subsidizing consumer of a
distribution Licensee of the State or by a direct / embedded
customer to supply electricity to subsidizing HT consumer of the
distribution Licensee in the State, then such customer, in addition to
transmission and / or wheeling charges, shall pay a surcharge
worked out by
(a) The surcharge would be determined by the Commission, taking
into account the tariff applicable to the relevant category of
consumers and the cost of the distribution Licensee to supply
electricity to the consumers of the applicable class.
(b) The amount of surcharge shall be so calculated as to meet the
current level of cross subsidy from that category of consumers and
shall be paid to the distribution Licensee of the area of supply from
whom the consumer is availing supply.
(c) The surcharge will be reduced and eliminated in the same manner
as the Commission may lay down for reduction and elimination of
cross subsidies in its roadmap for such reduction and elimination of
cross subsidy.
Note : Provided that such surcharge shall not be levied in case transmission access is
provided to a person who has established a captive generation plant for carrying the
electricity to the destination of his own use.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(3) Additional Surcharge
(a) An open access customer, receiving supply of electricity from a
person other than the distribution Licensee of his area of supply,
shall pay to the distribution Licensee an additional surcharge on the
charges of wheeling, in addition to wheeling charges and surcharge,
to meet out the fixed cost of such distribution Licensee arising out
of his obligation to supply as provided under sub-section (4) of
section 42 of the Act; 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.
(b) The distribution Licensee whose consumer intends to avail open
access shall submit to the Commission within fifteen days of receipt
of application, a detailed calculation statement of fixed cost which
the Licensee is incurring towards his obligation to supply;
(c) The Commission shall scrutinize the statement of calculation of
fixed cost submitted by the distribution Licensee and obtain
objections, if any, from the open access customer and determine the
amount of additional surcharge.
(d) The additional surcharge shall be levied for such period as the
Commission may determine.
Note : Provided that such additional surcharges shall not be levied in case transmission
access is provided to a person who has established a captive generation plant for
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(4) Scheduling and system operation charges

(a) The scheduling and system operation charges payable to State


Load Dispatch Center by open access customer shall be such as
determined by the Commission under section 32 of the Act;

(b) The scheduling and system operation charges collected by the


State Load Dispatch Center in accordance with clause (1) above
shall be in addition to the other fees and charges approved by the
Commission under this regulations

(c) The Scheduling and system operation charges shall be payable


even when the open access customer happens to be a generating
company or trading Licensee, availing open access under these
regulations.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(5) Unscheduled interchange (UI) pricing

The Commission may, from time to time, as the occasion may


require, by separate order, and in accordance with tariff policy
issued under section 3 of the Act, determine the unscheduled
interchange charges payable by the generators, Licensees and
consumers.

Provided that the actual payment of such interchange charges


may be deferred by the Commission till such period which may
be determined by the Commission having regard to the extent
of demand for open access and the extent of involvement of
private operators in power generation and distribution
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(6) Reactive Energy Charges

(a) The payment for the reactive energy charges for the direct
customers on account of open access shall be in accordance with
the charges to be approved by the Commission from time to time.
These charges shall be based on the requirements to be met by the
direct customer with regard to reactive power generation / drawal,
as stipulated in the State Grid Code / Distribution Code / Supply
Code, as the case may be.

(b). The reactive energy charges payable to or receivable by the


Licensee (presently the State Electricity Board) or the State
Transmission Utility shall be paid to or received from the pool by the
Licensee or the State Transmission Utility concerned and shall not
be apportioned to the embedded customers.

(c) The reactive energy drawals and injections by the embedded


customers shall be governed by these regulations applicable within
the State concerned.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(7) Grid availability Charges
(a) In cases of outages of generator supplying to a consumer on open
access or when the scheduled generation is not maintained or when
the drawal by the said consumer is in excess of the schedule,
standby arrangements should be provided by the distribution
Licensee. Towards this end, the Licensee is entitled to collect grid
availability charges for back up supply from the grid. For the
present, the applicable tariff of that consumer category shall be
allowed as the grid support charges. As and when the ABT regime is
implemented in the State and the UI charges are fixed by the
Commission, the grid support charge eligible to the Licensee shall
be (a) the tariff applicable to the particular consumer category or (b)
the applicable UI charges whichever is higher.
(b) If a generator happens to be an open access customer, partly or
fully in third party sale of power and he desires to avail start up
power from the Grid, the generator shall be permitted to do so at a
charge to be determined by the Commission for the start up power.
However if the generator who has availed open access, happens to
be a Captive Power Producer / NCES Generator / Independent Power
Producer (IPP) and desires to avail start up power from the Grid, the
transaction shall be governed by the respective CPP / NCES policy
of the Commission or as per the power purchase agreement in the
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Charges for open access
(8) Restoration Charges:

Any default in payment of the various charges as specified under


the sub regulations (1) to (7), within the time stipulated by the
Commission will automatically result in the discontinuance of the
open access to the customer. Restoration of such discontinuance
shall be subject to the payment of restoration charges and other
restoration conditions to be determined by the Commission
separately and from time to time
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Phasing of Open Access

The open Access shall be allowed to the intra state


transmission system subject to the satisfaction of the
conditions contained in the Act and in these regulations.
Having regard to operational constraints and other
relevant factors, open access shall be allowed to
customers as stated below:

(a) In the first phase, open access shall be allowed to all


existing and new HT consumers with a load of 10 MW
and above before six months from the date of
commencement of these regulations.

(b) In the second phase, open access shall be allowed to


all existing HT consumers and new applicants with a
load of 5 MW after six months but before eighteen
months from the date of commencement of these
regulations.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Phasing of Open Access
(c) In the third and final phase, open access shall be
allowed to all existing HT consumers and new
applicants with a load of 1 MW and above, after
eighteen months but before 30th December 2008.

(d) In respect of distribution Licensee / trading Licensee,


the same phasing as above shall apply

(e) A person covered by a policy relating to captive


generation or generation through non conventional
energy sources shall be eligible to avail open access
for their own use irrespective of contract demand.

(f) A person covered by a policy relating to captive


generation or generation through non conventional
energy sources shall be eligible to avail open access
in respect of third party sale subject to the above
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
15. Metering

(1) The open access customer shall provide metering


arrangements in accordance with the Central Electricity
Authority’s “Regulations on Installation and Operation of
meters” and based on period of supply and tariff
category.
(2) The Generating company or a Licensee contracting to
effect supply to an open access customer shall provide
Main Meters at interconnecting points based on the
customers to whom it will effect supply under open
access or in case of inter state transmission, it shall
arrange communication of energy accounts of respective
Regional Load Dispatch Centers, effected through
displacement/adjustment in the format as may be
specified by State Load Dispatch Centre on real time
basis as well as periodically;
(3) The Distribution Licensee may provide Check Meters of
the same specification as Main Meters;
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
15. Metering

(4) The Main and Check Meters shall be periodically


tested and calibrated by State Transmission Utility in the
presence of other party involved. Both parties shall seal
Main and Check meters. Defective meter shall be
replaced immediately. The periodicity of testing,
checking, calibration etc., will be governed by the
regulations issued by the Central Electricity Authority in
this regard.

(5) Reading of Main and Check meters shall be taken


periodically at appointed day and hour by authorized
officer of distribution Licensee and customer or his
representative, if present. Meter reading shall be
immediately communicated to State Load Dispatch
Centre, customer, State Transmission Utility and
Generating Company / electricity trader, as the case may
be, by the distribution Licensee,within twelve hours.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
15. Metering

Check meter readings shall be considered when Main


Meters are found to be defective or stopped.

Provided that if difference between the readings of main


and check meter vis-à-vis main meter reading exceeds
twice the percentage error applicable to relevant class,
both meters shall be tested and the one found defective
shall be immediately replaced and reading of other will
be considered.
Provided further that Distribution Licensee for the
purpose of this clause shall be the distribution Licensee
operating and maintaining distribution system to which
consumer’s premises are connected;
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
15. Metering

(6) An open access customer or generating company or


Licensee may request distribution Licensee to provide
Main Meters. In that case he shall provide security to
distribution Licensee and shall pay for its rent and Main
Meter shall be maintained by Distribution Licensee;

(7) Main and Check Meters shall have facility to


communicate its reading to State Load Dispatch Centre
on real time basis or otherwise as may be specified by
the Commission. Such special energy meters
(conforming to the requirements to be specified by
Central Electricity Authority in this regard) shall be
installed by the direct customers to the STU and if
required, also by the embedded customers as found
necessary by the STU / SLDC (the nodal agency)
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
15. Metering

8 The Special Energy Meters installed shall be capable


of time-differentiated measurements (fifteen minutes
integration) of active energy and voltagedifferentiated
measurement of reactive energy as specified by the
State Transmission Utility or the State Load Dispatch
Centre.

(9) The term ‘Meter’ shall include Current transformers,


voltage/potential transformers, wiring between them and
meter box/panel.
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Energy losses

The open access customers shall bear average energy


losses in the transmission system as estimated by the
State Load Dispatch Centre. The energy losses in the
transmission system shall be compensated by additional
injection at the injection point. The information regarding
average energy losses for the previous fifty two weeks
shall be posted on the website of the State Load
Dispatch Centre. Fortnightly average transmission loss
in the system on all open access customers would need
to be monitored by the SLDC.
In case of distribution open access the Licensee
shall estimate the losses in the HT system (upto 11 KV).
These losses as approved by Commission shall be
borne by the open access customer. Progressively these
losses shall be calculated using scientific methods and
the same shall be borne by the open access customers
after it is approved by the Commission under the tariff
Tamil Nadu Electricity Regulatory Commission
Intra State Open Access Regulations 2005
Payment Security

(a) As a payment security towards transmission charges,


a deposit equal to three months of the average billing on
the basis of agreed contract demand or scheduled
drawal shall be maintained with the State Transmission
Utility.
(b) As a payment security towards SLDC charges, a
deposit equal to three months of the SLDC charges shall
be maintained with the State Load DispatchCentre.
(c). As a payment security towards wheeling charges,
surcharge and additional surcharge, a deposit equal to
three months of average billing for these charges
shall be maintained with the distribution Licensee of the
area of supply.
(d) Such security may be in the form of cash deposit,
irrevocable letter of credit from a local branch of a
nationalized bank.
Schedule of Charges in TAMILNADU

• Transmission Charges (Rs/MW/day)


– Long term open access customer Rs2781.00
– Short term open access customer Rs695.25
• Wheeling charges (Ps/Unit) Rs 14.74

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