1 / 19

Power Trading Corporation Of India Ltd.

Power Trading Corporation Of India Ltd. Power Trade Perspective. Mahendra Kumar Director, Power Trading Corporation of India Ltd. Electricity Act, 2003…… on Open Access. Electricity Act, 2003… on Trading of power. Definition:

jvina
Télécharger la présentation

Power Trading Corporation Of India Ltd.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Power Trading Corporation Of India Ltd. Power Trade Perspective Mahendra Kumar Director, Power Trading Corporation of India Ltd.

  2. Electricity Act, 2003…… on Open Access Electricity Act, 2003… on Trading of power Definition: Trading: Purchase of electricity for resale thereof and the expression “trade” shall be construed accordingly Need of License for Trading Sec. 12 No person shall – (a) transmit electricity; or (b) distribute electricity; or (c) undertaketrading in electricity, unless he is authorised to do so by a license issued under section 14, or is exempt under section 13.

  3. Electricity Act, 2003… on Trading of power Issue of Trading License Sec 14 The Appropriate Commission may, on application made to it under section 15, grant any person license to any person - (c) to undertake trading in electricity as an electricity trader, in any area which may be specified in the license. Provided also that in case an Appropriate Government transmits electricity or distributes electricity or undertakes trading in electricity, whether before or after the commencement of this Act, such Government shall be deemed to be a licensee under this Act, but shall not be required to obtain a licence under this Act. Provided also that the Damodar Valley Corporation, established under sub-section (1)of section 3 of the Damodar Valley Corporation Act, 1948, shall be deemed to be a licensee under this Act but shall not be required to obtain a licence under this Act and the provisions of the Damodar Valley Corporation Act, 1948, in so far as they are not inconsistent with the provisions of this Act, shall continue to apply to that Corporation: Provided also that the Government company or the company referred to in sub- section (2) of section 131 of this Act and the company or companies created in pursuance of the Acts specified in the Schedule, shall be deemed to be a licensee under this Act Provided also that a distribution licensee shall not require a licence to undertake trading in electricity.

  4. Electricity Act, 2003… on Trading of power Role of CERC/ SERC Sec 79(1) The Central Commission shall discharge the following functions, namely:- • to issue license to persons to function as transmission licensee and electricity trader with respect to inter-state operations • to fix the trading margin in the inter-state trading of electricity, if considered, necessary. Sec 86 (1) The State Commission shall discharge the following function, namely:- • issue license to persons seeking to act as transmission licenses, distribution licensees and electricity traders with respect to their operations within the state. • fix the trading margin in the intra-State trading of electricity, if considered, necessary.

  5. Electricity Act, 2003… on Trading of power Qualification of Trader Sec 52 (1) Without prejudice to the provisions contained in clause (c) of section 12, the Appropriate Commission may, specify the technical requirement, capital adequacy requirement and credit worthiness for being an electricity trader. (2) Every electricity trader shall discharge such duties, in relation to supply and trading in electricity, as may be specified by the Appropriate Commission. Promotion of Trading Sec 66 The Appropriate Commission shall endeavor to promote the development of a market (including trading) in power in such manner as may be specified and shall be guided by the National Electricity Policy referred to in section 3 in this regard.

  6. CERC’s paper on “Eligibility Criteria for Electricity Trader Technical Requirement: • Experts from System Operation, Metering, Financial matters & Commercial transaction i.e. billing and legal matters • Good communication link between Customers, CTU, STU, RLDC, SLDC etc Financial Requirement: Original ProposedRevised Proposed • Application fee : 5 lakhs 1 lakhs • Capital Adequacy & Annual License Fee:- Original Proposed Revised Proposed

  7. Opportunities for Trading • Power generation from hydro power stations is weather sensitive, causing surplus in high hydro season and shortage in low hydro season to states having high hydro power share. • Demand is weather sensitive in general and time sensitive in metropolitan areas. • Vertical disintegration of SPUs would increase the opportunities due to different load/ generation pattern. • Out of about 100,000 MW generating capacity, trading of even 20% capacity with 60% load factor would mean trading of 1000 BU. • Substantial surplus capacity available with CPPs with CPP capacity of over 25000, trading opportunities could be very high.

  8. Electricity Act, 2003… on Trading of power Provisions on Open Access Open Access: Open Access means 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 Sec 38 (2) The functions of the Central Transmission Utility shall be – (d) to provide non-discriminatory open access to its transmission system for use by: • any licensee or generating company on payment of the transmission charges; or • any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the Central Commission:

  9. Electricity Act, 2003… on Trading of power Sec 39 (2) The function of State Transmission Utility shall be: - • to provide non-discriminatory open access to its transmission system for use by- • any licensee or generating company on payment of the transmission charges ; or • any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission

  10. Electricity Act, 2003… on Trading of power Sec 42 (2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints: Provided that such open access may be allowed before the cross subsidies are eliminated on payment of a surcharge in addition to the charges for wheeling as may be determined by the State Commission; Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee; Provided also that such surcharge and cross subsidies shall be progressively reduced and eliminated in the manner as may be specified by the State Commission; Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.

  11. Strategic Intent of the Act… • Dis-aggregate the process of Generation, Transmission, Distribution and Supply • Promote investment • Elimination of Cross Subsidy • Choice to the consumers. • Promote competition • Commercialization of Power Industry

  12. Emerging Market Structure IPPs CPPs SGS CGS Tr. Licensee Tr. Licensee Dist. Licensee Trader Co-operatives Trader Consumer

  13. Types of traders… • Inter State Traders: • Presence in all regions. • Involve in Surplus & Short term/ Long term trading. • Diverse customers & High volumes of trading • Intra-State Traders / Bulk Supply Licensees: • Sources power for the local Distribution Licensee • Limited set of customers • May / may not have presence in all regions • Local Traders: • Trades surplus power available with local IPPs /CPPs • Supply to major consumers / cooperatives • Low volumes of trading • Operate within a State

  14. Non Discrimination in Open Access… • Adequacy of inter-regional transmission system. • Adequacy of Regional Transmission Network. • Non-discrimination in Open Access to various players e.g. ISGS, SGS, IPPs, CPPs, Traders, Consumers. • Claims of ISGS/ SGS/ for priority. • Impact of priority on opening of market.

  15. Transmission Charges and Losses • CERC order dated 8th December 2000 on Transmission Charges and losses for inter-regional exchange of power • applicable for exporting region • applicable for importing region • For intermediate region – only the losses • Applicable for intervening state system • In Electricity Act, 2003 • Open Access charges to be paid for the service as prescribed by the commission. • Surcharge to be levied if directly supplied to the consumer.

  16. Complexity in Trading • Priority in Scheduling • Resolution of the same with RLDC needs vigorous monitoring • Energy Accounting • Frequent mis-match in Regional Energy Accounts • Difficulty in inter-regional exchange. • Adherence to contracts • No commitment from purchaser / or seller side • Parties not willing to enter into Agreement with provision of penalty in case of default. • Demand is sensitive to political environment.

  17. Traders’ Perspective • Market potential for trading is very high. • Non-discriminatory open access is an essential requirement. • In immediate future, well defined rules should be available for priorities. • Pricing of transmission services with due differentiation in firm/ infirm, long term/ short term services. • Time frame for removal of cross subsidies and road map for open access to consumers. • Open Access by STUs to surplus power of CPPs • Financial health of State Power Utilities and their commitment to agreements.

  18. Thank You

  19. CERC’s paper on “Eligibility Criteria for Electricity Trader Technical Requirement: • Experts from System Operation, Metering, Financial matters & Commercial transaction i.e. billing and legal matters • Good communication link between Customers, CTU, STU, RLDC, SLDC etc Financial Requirement: • Application fee : 5 lakhs • Annual License fees : 25 lakhs • Capital Employed • Minimum : 10 Crores For Monthly Transaction of: • 50 MUs – 100 MUs : 15 Crores • 100 MUs – 150 MUs : 25 Crores • 150 MUs – 200 MUs : 35 Crores • 200 MUs – 300 MUs : 50 Crores • 300 MUs – 500 MUs : 75 Crores • 500MUs – 700 MUs : 100 Crores • 700 MUs – 1000 MUs : 200 Crores • >1000 MUs : Avg. Generation tariff * trade volume / month If trading limit is exceeded, the market participant must provide a bank gaurantee in favor of the Commission equivalent to the additional trade multiplied by the average generation tariff. Subsequently, within one year, the trader should raise equivalent capital.

More Related