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Transmission Tariff Regulations

Transmission Tariff Regulations

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Transmission Tariff Regulations

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  1. Transmission Tariff Regulations

  2. 1. ‘Applicant’ means a generating company or transmission licensee who has made an application for determination of tariff in accordance with the Act and Regulations made there under 2. ‘assets’ for the purpose of these regulations include (i) in respect of the generating company, the whole or part of the generating station; and (ii) in case of transmission licensee, the whole or part of the transmission system or the transmission line or the sub-station for which tariff is determined by the Commission 3. ‘Expected revenue from Tariffs and Charges’ means the revenue estimated to accumulates to the applicant, assessed on technical and commercial reasonableness and based on past performances, from the business of generation or transmission, as the case may be, in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 4. “Contract Path” means a transmission path that can be designated to form a single continuous electrical path between the parties to an agreement. 5. Application Period means the period of application of the charges determined as per these regulations and shall ordinarily be 12 (twelve) months coinciding with the Financial Year

  3. 5. “Intervening transmission facilities” means the electric lines owned or operated by a transmission licensee or distribution licensee where such electric lines can be utilised for transmitting electricity, (to the extent of surplus capacity available therein, for and on behalf of a transmission licensee or trading licensee or a distribution licensee at their request and on payment of a tariff or charge) 6. “Parties” means the applicant and the licensee owning or operating the intervening transmission facilities 7. “Time block” means time block of 15 minutes starting from 00.00 hrs. in a day. 8. Submission of information: (1) Every applicant shall submit information in the formats in respect of expected revenue from tariffs and charges determined by the Commission from time to time. (2) The formats shall be submitted annually under affidavit on or before 30th November of each year containing the financial position for the previous financial year, current financial year and the ensuing financial year:

  4. Designated ISTS Customers (‘DIC’s) Users of any segments/elements of the ISTS and shall include all generators, STUs, SEBs or load serving entities directly connected to the ISTS including Bulk Consumer and any other entity/person • Implementing Agency (IA) The agency designated by the Commission to undertake the estimation of allocation of transmission charges and transmission losses at various nodes/zones for the Application Period along with other functions • Approved Injection Injection in MW vetted by IA for the DIC for each representative block of months, peak and other than peak scenarios at the ex-bus of the generator or any other injection point of the Designated ISTS Customer into the ISTS, and determined based on the generation data submitted by the DIC incorporating total injection into the grid, considering the long term and medium term contracts;

  5. Approved Additional Medium Term Injection  means the additional injection, as per the MTOA approved by CTU after submission of data to NLDC by the DIC over and above the Approved Injection for the DIC for each representative block of months, peak and off-peak scenarios at the ex-bus of the generator or any other injection point of the DIC into the ISTS • Approved Short Term Injection The injection, as per the STOA approved by RLDC /RLDC & including PX • Similarly we have Approved Withdrawal (simultaneous withdrawal), Approved additional MT withdrawal & Approved ST withdrawal • Deemed Inter State Transmission System (Deemed ISTS)  Transmission system which has regulatory approval of the Commission as being used for interstate transmission of power and qualified as ISTS • Point of Connection (PoC) transmission charges  Nodal / zonal charges determined using the POC method

  6. Yearly Transmission Charge (YTC) Annual Transmission Charges for existing lines determined by the Commission in accordance with the Terms and Conditions of Tariff Regulations or adopted in the case of tariff based competitive bidding in accordance with the Transmission License Regulations and for new lines based on benchmarked capital costs • Uniform Charge  Charged determined by dividing the YTC of the ISTS Licensees by the sum of the Approved Injection and Approved Withdrawal from the grid(postage stamp charge)

  7. SCOPE OF THE REGULATIONS • Power Stations / Generating Stations that are regional entities as defined in the Indian Electricity Grid Code (IEGC) • SEBs/ STUs connected with ISTS (on behalf of distribution companies, generators and other bulk customers connected to the transmission system owned by the SEB/STU/intrastate transmission licensee) • Any bulk consumer directly connected with the ISTS • Any designated entity representing a physically connected entity as per clauses above • Regional Entity Those who are in the RLDC control area and whose metering and energy accounting is done at the regional level

  8. PRINCIPAL/MECHANISM FOR SHARING OF ISTS CHARGES AND LOSSES • PRINCIPLES: • Load Flow Based Method • Point of Connection Charging Method • MECHANISM • PoC Charges and Losses in advance • Based on Technical and Commercial Information provided by DICs, ISTS Transmission Licensees, NLDC, RLDCs and SLDCs • Charges for LTA/MTOA : Rs/MW/Month • Charges for STOA : Rs/MW/Hour

  9. PROCESS FOR DETERMINATION OF POC CHARGES & LOSSES • Data Collection Regulation 7(1) • DICs, Transmission Licensees to submit Basic Network Data • Network Data for Load Flow Analysis Regulation 7(1)(b) • Electrical Plant or line upto 132 kV • Generators connected at 110 kV • Inflow from lower levels  generation at that node • Outflow towards lower levels  Load at that node • Dedicated Transmission Lines Regulation 7(1)(c) • Owned and Operated by ISTS………. Included in Basic Network • Owned and Operated by Generator….Excluded

  10. Data Collection (1) • As per the Regulation and Data Collection Procedure • All concerned entities to submit • Details of Network Elements • Generation and Load at various nodes • Yearly Transmission Charges • Forecast Injection / Withdrawal • Additional Medium Term Withdrawal / Injection • By 10th of every month by every DIC • RPC to send list of certified non-ISTS lines to IA • IA to send the lists to CERC for approval • YTC of Certified non-ISTS lines to be approved from appropriate commission

  11. VALIDATION COMMITTEE • Nominee from Commission to Chair the Committee Regulation 7(1)(g) • In case of conflict validation committee to take final decision • Validation Committee Comprises two officials each from: • Implementing Agency • National Load Despatch Centre • Regional Power Committee • Central Transmission Utility • Central Electricity Authority • Central Electricity Regulatory Commission 12/19/2019

  12. Section 61 of the Electricity Act, 2003 provides as under: (a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees; (b) the generation, transmission, distribution and supply of electricity are conducted on commercial principles; (c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments; (d) safeguarding of consumers' interest and at the same time, recovery of the cost of electricity in a reasonable manner; (e) the principles rewarding efficiency in performance; (f) multi year tariff principles; (g) that the tariff progressively reflects the cost of supply of electricity and also, reduces and eliminates cross-subsidies within the period to be specified by the Appropriate Commission; (h) the promotion of co-generation and generation of electricity from renewable sources of energy; (i) the National Electricity Policy and tariff policy:”

  13. Regulations for access to inter-state transmission system The transmission customers shall be divided into two categories, namely: - (a) Long-term customers, and (b) Short-term customers. The persons availing or intending to avail access to the inter-state transmission system for a period of twenty five years or more shall be the long term customers, The maximum duration for which the short-term access allowed at a time shall not exceed one year.

  14. The transmission charges for use of the transmission system of the transmission licensee for inter-state transmission shall be regulated as under:- • The annual transmission charges payable by a long-term customer for use of the transmission system shall be determined in accordance with the terms and conditions of tariff notified by the Appropriate Commission from time to time and after deducting the adjustable revenue received from the short-term customers, these charges shall be shared by the long-term customers. (ii) The transmission charges payable by a short-term customer shall be calculated in accordance with the following methodology, namely:- (a) Intra-regional system ST_RATE = 0.25 x [TSC/ Av_CAP]/ 365 (b) Inter-regional system ST_RATE = 0.50 [ TSC/ CIR]/365 Where: ST_RATE is the rate for short-term customer in Rs per MW per day. Note:- ST_RATE shall be calculated and applied for each regional transmission system, inter-regional transmission link, and transmission system of the State Transmission Utility or any other transmission licensee forming part of the inter-state transmission system. "TSC" means the annual transmission charges. "Av_CAP" means the average capacity in MW served by the intraregional transmission system of the transmission licensee in the previous financial year ( sum of the generating capacities connected to the transmission system and contracted capacities of other long-term transactions handled by the system of the transmission Licensee) “CIR” means the transmission capacity of the inter-regional system

  15. The transmission charges payable by a short-term customer in case of uncongested transmission corridor shall be levied as under, namely :- (a) Up to 6 hours in a day in one block : 1/4th of ST_RATE (b) More than 6 hours and up to 12 hours in a day in one block : 1/2 of ST_RATE (c) More than 12 hours and upto 24 hours in a day in one block : equal to ST _ RATE

  16. Every transmission licensee shall declare ST _ RATE, calculated in accordance with clause (ii) above, which shall remain fixed for a period of one year. (vi) If the transmission system belongs to the Central Transmission Utility or State Transmission Utility, 25% of the charges collected from the short-term customer for use of its intra-regional transmission system and 12.5% of the charges collected from the short-term customers for use of its inter-regional system shall be retained by the Central Transmission Utility or State Transmission Utility and the remaining part of these charges shall be adjusted towards reduction in the transmission charges payable by the long-term customers. (vii) Open access charges specified in this regulation shall not be applicable for the inter-state transmission system in North-Eastern Region. The charges for use of the inter-state transmission in this region shall be regulated under the separate orders of the Commission issued from time to time.]

  17. Operating Charge 17. (i) A composite operating charge @ Rs.3,000/- per day or part of the day and @ Rs 1,000/- per day or part of the day shall be payable by a short-term customer for each transaction to the each of the Regional Load Despatch Centre involved and State Load Despatch Centre respectively.

  18. Unscheduled Inter-change (UI) charges 18. (i) The mismatch between the scheduled and the actual drawal at drawal point(s) and scheduled and the actual injection at injection point(s) shall be met from the grid and shall be governed by UI pricing mechanism applicable to the inter-state transactions; (ii) A separate bill for UI charges shall be issued to the direct customers and in case of the embedded customers, a composite UI bill for the State as a whole shall be issued, the segregation for which shall be done at the State level.

  19. Legal provision for Tariff determination 61. The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:- (a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees; (b) the generation, transmission, distribution and supply of electricity are conducted on commercial principles; (c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments; (d) safeguarding of consumers' interestand at the same time, recovery of the cost of electricity in a reasonable manner; (e) the principles rewarding efficiency in performance; multi year tariffprinciples; (g) that the tariff progressively reflects the cost of supply of electricity and also, reduces and eliminates cross-subsidieswithin the period to be specified by the Appropriate Commission; (h) the promotion of co-generation and generation of electricity from renewable sourcesof energy; (i) the National Electricity Policy and tariff policy: Provided that the terms and conditions for determination of tariff under the Electricity (Supply) Act, 1948, the Electricity Regulatory Commission Act, 1998 and the enactments specified in the Schedule as they stood immediately before the appointed date, shall continue to apply for a period of one year or until the terms and conditions for tariff are specified under this section, whichever is earlier.

  20. (1)The Appropriate Commission shall determine the tariff in accordance with provisions of this Act for – (a) supply of electricity by a generating company to a distribution licensee: Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity; (b) transmission of electricity ; (c) wheeling of electricity; (d) retail sale of electricity. Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity. (2) The Appropriate Commission may require a licensee or a generating company to furnish separate details, as may be specified in respect of generation, transmission and distribution for determination of tariff. (3)The Appropriate Commission shall not, while determining the tariff under this Act, show undue preference to any consumer of electricity but may differentiate according to the consumer's load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required.

  21. No tariff or part of any tariff may ordinarily be amended more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified. (5) The Commission may require a licensee or a generating company to comply with such procedures as may be specified for calculating the expected revenues from the tariff and charges which he or it is permitted to recover. (6) If any licensee or a generating company recovers a price or charge exceeding the tariff determined under this section, the excess amount shall be recoverable by the person who has paid such price or charge along with interest equivalent to the bank rate without prejudice to any other liability incurred by the licensee.