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Open Access

Open Access. DEFINITION OF “OPEN ACCESS” IN THE ELECTRICITY ACT, 2003.

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Open Access

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  1. Open Access

  2. DEFINITION OF “OPEN ACCESS” IN THE ELECTRICITY ACT, 2003 “The non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”

  3. INTRODUCTION • Open Access is necessary for utilization of short time surpluses. • Open Access will also create options for distribution companies to buy power. • Open Access will provide means to the traders/buyers/sellers. • Non- discriminatory / Transparent Process • Freedom to buy/sell power • Efficient Market Mechanism to address supply / demand mismatches • Encourage investment in Transmission

  4. Legal Framework SECTION 38: (CTU Function) • CTU to provide open access to Licensee or Generating Company on payment of transmission charge • Any consumer when open access is provided by State Commission on payment of surcharge in addition to transmission charges. • Surcharge shall be for meeting cross subsidy, and to be progressively reduced and eliminated. • Surcharge not payable in case of captive generation and Distribution Companies. • CTU can not engage in generation and trading

  5. Legal Framework Sections 39, 40 and 41 • Similar provisions for STU and Transmission Licensee. • STU can not engage in trading. • Transmission Licensee can not engage in trading Section 42 • State Commission to provide Open Access to all consumers who required supply more than 1 MW in 5 years.

  6. OA Regulations 2004 LTOA STOA OA Regulations 2008 OA Regulations 2010 STOA- collective LTOA STOA- bilateral Connectivity MTOA Evolution of Open Access Regulations

  7. 12 years-25 years 3 months-3 years 3 months LTA STOA MTOA MTOA Duration of STOA,MTOA and LTA STOA- as per short term surpluses / margins in Tr. System MTOA – without transmission augmentation LTA – With / Without transmission augmentation

  8. CERC Open Access Regulations, 2008 3.Subject to any other regulations specified by the Commission, the long-term customer shall have first priority for using the inter-State transmission system for the designated use. These Regulations shall apply for utilization of surplus capacity available thereafter on the inter-State transmission system by virtue of- (a)Inherent design margins; (b) Margins available due to variations in power flows; (c ) Margins available due to in-built spare transmission capacity created to cater to future load growth or generation addition:

  9. CERC Open Access Regulations, 2008 Effective 01.04.2008 Amended in 01.05.2009 Regulations cover only Short-term Open Access Transactions categorized as Bilateral and Collective (through Px) Earlier Products of Short-Term retained under Bilateral Transactions Nodal Agency Bilateral : Drawing RLDC Collective : NLDC

  10. Collective transactions : Both Buyers and Sellers of to bear transmission charges and absorb transmission losses Inter-Regional links -No Separate treatment. Emphasis on “Scheduling” rather than “Reservation” SLDC consent mandated along with application In case of Congestion for Advance Reservation, e-Bidding without Price Cap Exit Option provided with payment of up to 2 days open access charges. Open Access in ISTS: CERC OA Regulations 2008

  11. Open Access in ISTS Products – Short term Access - Advance - First Come First Serve - Day ahead - Contingency CERC OA Regulations 2008

  12. Time lines for various Categories of Applications * M-1 : Month-1 (Current month), M-2- Next month and so on, D-1 Day-1 and so on

  13. Time Line for Advance, FCFS, DA and Contingency Applications M2 D-3 D-2 D-1 D0 M3 M4 M1 20 25 5 1500hrs 1.5hrs Deadline for submission of DA Applications for transactions on D0 Processing time for RLDCs Last Day for submission of Applications for transactions in M2, M3, M4 Deadline for submission of Contingency Applications for transactions during D0

  14. REVISON OF SCHEDULE • Only in case of “Advance Scheduling” or “First-Cum-First Served basis” • minimum five (2) days notice (5days in 2008 Regn) • Transmission Charges and Operating Charges for 2 days (5days in 2008 Regn) • Margin Available – could be utilized for scheduling of other Open Access Transactions

  15. CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS • Allocation/Reallocation of ISGS power • Transmission constraint or to maintain grid security • curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security • Open Access Bilateral Transactions would generally be curtailed first followed by the Collective Transactions • Rerouting allowed without curtailment • refund of Transmission Charges for unused capacity

  16. COMMERCIAL CONDITIONS • All Payment related to Open Access ST Charges • by Applicant to the Nodal RLDC • within three working days from the date of acceptance • Energy charges to be settled among the parties • Losses adjusted in kind • Application Fees (as per Para 7 of Regulation) • non-refundable fee of Rupees five thousand (Rs.5000/-) only • Transmission charges (Para 16 of Regulation) • Intra-region (Rs.80/MWh) • Adjacent Region (Rs. 160/MWh) • Wheeling (Rs.240/MWh) • STU charges – as specified by respective SERCs or Rs. 80/MWh • Operating charges (as per Para 17 of Regulation) • Rs. 2000/- per day each RLDCs/SLDCs involved

  17. DISBURSAL OF PAYMENT • Disburse the Open Access Charges • 10th day of the next month • Transmission Charges and Operating Charges – for State System • Concerned STUs/SLDCs • Refund due to curtailment • 15th day of the next month • Reconcile the Open Access Charges

  18. STOA – SUCCESS STORY Developed in consultation with all stakeholders Applications Processed (Since Beginning) > 60,000 No. Volume (Approved Energy) (Since Beginning) > 190BUs Applications Approved > 95 % Refusal/Non-consent by SLDCs > 3 - 4 % Refusal due to system constraints < 0.5 %

  19. STOA – SUCCESS STORY Robust Financial Settlement System Near Dispute free implementation Logistics/infrastructure -In-house Confidence Building & Dissemination of knowledge

  20. ST charges under OA • w.e.f 01.01.11, ST charges as per Point of Connection charge • Both seller and buyer to bear losses in kind as per the applicable Zonal losses

  21. Thank you

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