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OPEN ACCESS IN INTER-STATE TRANSMISSION

OPEN ACCESS IN INTER-STATE TRANSMISSION. Procedure for reservation of transmission capacity by Short-Term Open Access Customer. Notice issued to existing customers -5 th Mar, 2004. Long Term Open Access - Guidelines, Procedure and Application forms issued -29 th Mar, 2004.

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OPEN ACCESS IN INTER-STATE TRANSMISSION

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  1. OPEN ACCESS • IN • INTER-STATE • TRANSMISSION

  2. Procedure for reservation of transmission capacity by Short-Term Open Access Customer

  3. Notice issued to existing customers -5th Mar, 2004. • Long Term Open Access - Guidelines, Procedure and Application forms issued -29th Mar, 2004. • Short Term Open Access – Procedures for reservation of transmission capacity issued -31st Mar, 2004. • ST_Rate for CTU system posted on websites of RLDCs -31st Mar, 2004.

  4. OUTLINE • Procedures in compliance of the provisions of the CERC Regulations dated 30.01.2004. • All short term Open Access Customers to comply with these procedures. • Review if necessary, after three months. • RLDCs reserve the right to review/revise/ modify/ amend the procedures as and when considered necessary.

  5. APPLICATION AND ITS ENCLOSURES • Separate application for each transaction. • Applications received between 1000 hrs. of a day and 1000 hrs. of the following day to be treated as to have been received together. • An incomplete / vague application or an application not found to be in conformity with these procedures/ Regulations shall be rejected.

  6. Enclosures along with the application: • Copies of the agreements/MOUs entered by the buyer / seller /trader. • Advance payment through a bank draft or electronic transfer covering the following: • Transmission charges of STU/SEB/transmission licensee system payable to the respective STU/SEB/Licensee. • Transmission charges of CTU system payable to POWERGRID. • Scheduling and system operation charges payable to the SLDCs.

  7. Scheduling and system operation charges payable to the RLDCs • Handling and service charges payable to the Nodal RLDC. • Non-refundable fee payable to the Nodal RLDC. • Advance payment for 31 days when Application for more than one month. • Otherwise, full payment in advance.

  8. PROCESSING/APPROVAL OF APPLICATIONS • Each day to be reckoned as a working day (excluding holidays) of 24 hours. • Nodal RLDC to seek consent of other SLDCs/ RLDCs involved. • A non-receipt of timely consent from the SLDCs/ RLDCs to be considered as acceptance by the concerned SLDC/RLDC. • Approval to be issued transaction wise by Nodal RLDC • Applicant to confirm his acceptance/ refusal of the approval. • Non receipt of acceptance from the applicant to be considered as refusal.

  9. Grid security / stability / reliability shall not be compromised while granting approval. • RLDC to issue transaction-wise approvals from • The point of injection of a seller to the injecting State’s periphery (control area boundary) as confirmed by the concerned SLDC. • From the periphery (control area boundary) of injecting State up to the periphery of the drawee State. • From the periphery (control area boundary) of the drawee State to the point of drawal of buyer as confirmed by the concerned SLDC.

  10. SCHEDULING • Customer’s coordinator to coordinate with the Utilities. • Transaction details to be furnished to each of the SLDCs involved, on a daily basis. • SLDCs to advise RLDCs by 15.00 hours each day regarding Open Access transactions. • Ramp-up/ramp-down, if required, to commence at the time of commencement of the transaction and to end at the time of termination of the transaction. • No request to be entertained for revisions.

  11. Advance payments by Short -Term Open Access Applicants • Transmission charges • Each STU/SEB/transmission licensee involved. • Each Regional / inter-regional system involved. • Scheduling and system operation charges. • Each SLDC involved @ Rs3000/- per day • Each RLDC involved @ Rs3000/- per day • Handling & Service Charges Full amount computed @ 2% of above charges. - Non refundable Application fee : Rs. 5,000/-

  12. If the applied period is 31 days or less, the advance comprises of the actual period. • If the applied period is more than 31 days, the advance to be payable for one month (31 days). • Payment to be made fortnightly through Bank Draft/ electronic transfer, in case of transaction for a period exceeding 31 days,. • No separate bills to be issued for the fortnightly payment. • Short-term Open Access charges shall not be adjusted against any other payment/charges.

  13. The decision of the RLDCs regarding the existence of a force majeure condition shall be final and binding. • Customers to bear average energy losses estimated by RLDC/SLDC. • Energy losses to be compensated by additional injection at the injection points.

  14. Commercial Conditions for the Short-term Open Access Customers • Payment to be made transaction-wise. • Payment to be made as per schedule of fortnightly payment issued by the Nodal RLDC. • Payment to be remitted only by Bank draft/ electronic transfer. • The Nodal RLDC to suspend the transaction in case of a payment default. • In case of persistent payment default, new applications from such a customer may not be entertained for a period upto twelve months.

  15. The advance payment to be forfeited by the Nodal RLDC in case of relinquishment /abandonment by an applicant, • In case of approval with curtailment followed by relinquishment /abandonment by the applicant, only the non-refundable application fee to be retained and the balance advance payment to be refunded.

  16. Payment Security Mechanism • Letter of Credit (LC) - security against payment default for fortnightly payment. • Not a mechanism for regular payment. • Intended to ensure recovery of the payment through LC in case of payment default. • The Bank Guarantee (BG) - security against payment default in case of relinquishment / abandonment by a customer.

  17. Letter of Credit • The customer to open a fortnightly irrevocable revolving Letter of Credit (LC) on acceptance of an approval (transaction period > 31 days), • LC to be opened in a bank as mutually agreed between a customer and the Nodal RLDC. • LC to be opened within 10 days. • LC to be operated by the Nodal RLDC as and when customer fails to remit the fortnightly payment. • TermsforLetterofCredit.doc

  18. Bank Guarantee • Irrevocable Bank Guarantee (BG) in favor of the Nodal RLDC. • BG to be equal to the amount payable by the customer for the balance period of the approved transaction. • BG to be provided from a bank as mutually agreed between a customer and the Nodal RLDC. • BG to be submitted in original to the Nodal RLDC within five (5) days of the date of acceptance by the customer.

  19. The BG to be encashed by the Nodal RLDC • After five days from the previous date of operation of the LC, if the same is not recouped. • The customer fails to pay the full charges in terms of the provisions under para 14 (iii) of the Regulations on Open Access, 2004. • BG Performa.doc

  20. Bidding Procedure • Nodal RLDC to invite snap bids when the capacity sought to be reserved is more than the transfer capacity expected to be available (Para 6 of Regulation). • Bids to be invited only for such period during which congestion occures. • The decision of the RLDC/SLDC to be final and binding regarding congestion. • The bidding procedure is not an “Auction Process”.

  21. Bids to be submitted on-line. • No bids through fax/post. • Only Applicants entitled to submit a bid. • Bid price in terms of percentage price (upto one decimal) above the Floor price. • RLDCs reserve the right to reject an incomplete or vague bid.

  22. GENERAL • RLDC to process application through e-mail if advance payment is received. • Re-routing to be considered on its merit. • Amendment/ modification to be treated as fresh application. • Expenses related to Bank draft/ LC/ BG to be borne by the customer. • Applicant to indemnify RLDCs/ SLDCs from any damage, losses, claims etc.

  23. Standard Formats • Application for grant of short term open access. • Consent for short term open access. • Approval for short term open access. • Acceptance of short term open access. • Refusal of short term open access. • Format for invitation of bids.

  24. WBSEB Case-I (Customer is PTC for all three) 100 MW, 00 to 06 hrs WBPDCL 150 MW, 06 to 12 hrs DTL CESC 125 MW, 22 to 24 hrs Treated as 3 separate transactions and needs 3 separate applications

  25. CASE- II(Customer is PTC for all three) DTL 100 MW, 06 to 12 hrs DTL WBSEB 150 MW, 15 to 18 hrs DTL 250 MW, 22 to 24 hrs • Case : • – If covered in 1 application – will be considered as one transaction and transmission charges shall be paid for 250 MW. • If 3 separate applications then will be treated as 3 transactions.

  26. Short-Term Open Access - A Case Study Eastern Region Northern Region West Bengal HVDC Pusauli Delhi WBPDCL BSES • : SELLER : WBPDCL • BUYER : BSES (Delhi Discom) • TRADER : PTC • QUANTUM : 100 MW • DURATION : 1 YEAR ( 01.04.2004 to 31.03.2005) • NODAL AGENCY : NRLDC • ØPTC shall submit application to NRLDC. • ØNRLDC shall co-ordinate with the concerned agencies for processing • and approval of the Short-Term Open Access. • ØNRLDC shall collect and disburse all the Short-Term Open Access Charges.

  27. ESTIMATED CHARGES PAYABLE • Non refundable processing fee Rs.5000/- • Scheduling and System Operation Charges • WB SLDC Rs. 10.95 Lakhs • Delhi SLDC Rs. 10.95 Lakhs • ERLDC Rs. 10.95 Lakhs • NRLDC Rs. 10.95 Lakhs • Transmission charges • WBSEB (same as ERTS Charges) Rs. 114.58 Lakhs • ERTS Rs. 114.58 Lakhs • ER-NR Link Rs. 353.17 Lakhs • DTL Rs. 237.20 Lakhs • NRTS Rs. 237.20 Lakhs • Transmission charges for ERTS, NRTS, ER-NR link Rs. 704.95 Lakhs (75% of this i.e.; 528.71 will be adjusted among long term ER and NR beneficiaries) • Handling & Processing charges Rs. 22.01 Lakhs • Total (payable by short term customer) Rs. 1122.59 Lakhs • Constituent’s credit - Rs.902.40 Lakhs Average Charges Payable = 13 paisa per unit

  28. Thank you

  29. ESTIMATED CHARGES PAYABLE • Non refundable processing fee Rs.5000/- • Transmission charges (POWERGRID)- Rs.7.04 crores • (for ERTS, NRTS, ER-NR link) • Transmission charges(STU) - Rs.3.52 crores • ( for West Bengal and DTL) • Scheduling & system operation charges • RLDCs (ERLDC & NRLDC) - Rs.0.219 crores • SLDCs (WB SLDC & Delhi SLDC)- Rs.0.219 crores • Handling & Processing charges - Rs.0.22 crores • Total (payable by short term customer)- Rs.11.23 crores • Other Constituent’s share - Rs.9.02 crores Total Charges Payable : Approx. 13 paisa per unit

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