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2. In this presentation. The Open Access PaperPricing design objectives Existing ScenarioOpen access transmission tariffMethodology and procedureEnergy accountingOther Discussion Points. Objective(s) of the Paper: To generate a debate on the important issuesIdentification of key issuesUnderstanding the implicationsUnderstanding stakeholder perspectivesFrame regulations.
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1. CERC Paper on Open Access Presentation by the MPERC Bhopal
At New Delhi
25 September 2003
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3. 3 Transmission Pricing DesignDefinition of Objectives (3.1) Objectives defined in the Paper
Efficiency of operations and trading
Efficient use of resources
Signal for investment
Signal for location of generation/load
Compensate owner of the wires
Simple and practical
4. 4 Existing ScenarioRole of the CTU (2.1), CTU Tariffs (2.2) Proposals
Current lines based on BPTA’s
Open access only for spare capacity
“Existing transmission agreements will have to be honored…” for current and future lines built on BPTA’s
Comments
Agree that open access only for spare capacity
Agree that existing arrangements should be honored.
Who is the successor entity to SEB – State Trader / STU / DICSOM’s? Division ratio?
What when a BPTA expires, say at the end of 5 years? Consider as Open Access. Proposals
TSC apportioned based on CGS allocation
Spare capacity paid for by beneficiaries
Open access will reimburse them partially
Comments
Need to decide who pays for unapproved expansion of system.
Transmission pays: Transmission should not be allowed to take uncovered risks
Beneficiary pays: In effect he is subsidizing later users. Preferable.
Relevant Commission must approve the excess investment in capacity at a certain margin above what is immediately required
5. 5 Open Access Transmission TariffAlternatives (4.1) Contract path
May be adopted for those transactions where clear line of power flow can be determined. Exhibit.
6. 6 Open Access Transmission TariffPricing Philosophy (4.2) Proposals
Ceiling on an all-India basis: Purpose is to provide a signal for location of lines and transmission system users.
Observations
Purpose of allowing market forces to operate and create correct economic signals for siting of generation, loads and new lines may not be adequately met
7. 7 Open Access Transmission TariffPricing Philosophy (4.2) Proposals
Levy on capacity reservation
Observations
Paper proposes that open access ceiling be determined assuming average loading of 500 MW as per Annexure I.
This benefits open access users at the cost of “original beneficiaries”
8. 8 Open Access Transmission TariffSharing of TSC (4.6), LD Charges (4.7) Sharing of TSC among beneficiaries (4.6)
Proposals
TSC to be apportioned to regions based on CGS generation capacity
Comments
Inter-regional TSC should be apportioned to regions based on BPTA share from CGS plus share of IPP’s Sharing of LDC charges (4.7)
Proposal
Total LDC charges to be calculated from the weekly LDC charges divided by installed capacity of CGS = 200 rupees per week per MW = 0.12 P/U
Revenue to go to reduce costs to original beneficiaries / successors
Comments
Treat all as equal
Bill original beneficiaries also on a weekly basis
Weekly LDC charges should be divided by total generation capacity scheduled to be handled in the week = CGS + IPP + Traded power
9. 9 Methodology and ProcedureInformation Systems (5.1) Proposals
Hourly updating of information
Dissemination over the Internet or other dedicated communication channel
Comments
Incorporate mechanism for advance declaration of available capacity. This will allow users to plan for open access and a move towards the development of a spot and futures market.
Frequency of advance declarations:
Twelve months ahead spare availability information
Week ahead in hourly blocks
Day ahead in 30-minute blocks
Information updating frequency: 30 minutes for actual values in real time.
Dissemination of information:
Centrally at NLDC / RLDC’s in tandem
Dedicated communication channels connecting central database, traders, distribution licensees, transmission utilities.
Information may also be posted on the Internet
10. 10 Methodology and ProcedureNodal Agency (5.2, 5.4) Proposed:
Processes all applications on FCFS
In order of priority of service
Suggestions: Options may be considered
FCFS.
Bidding.
Beauty Contest. Who judges in case of beauty contest?
Mix of the above.
What would be an appropriate mix?
A pecking order should be defined
11. 11 Methodology and ProcedureSpecial Energy Meters (5.8) and Creditworthiness (5.11)
12. 12 Methodology and ProcedureTypes of Service (5.13), Priority of Allotment (5.15) and Penalty for Hoarding (5.16) Types of Service (5.13)
Need to clearly define Firm and Non-Firm. Also, consider number of hours per day.
What is the treatment for Non-Firm agreement longer than 1 Month?
Need to outline difference of charges for Firm and Non-firm power transmission
13. 13 Methodology and ProcedureCurtailment Due to Constraints
14. 14 Energy AccountingActive Energy (6.1), Reactive Energy (6.2) and Energy Loss (6.3)
15. 15 Additional Discussion Points
16. MP Electricity Regulatory Commission
17. 17 Open Access Transmission TariffPricing Philosophy – Regional Ceilings
18. 18 Open Access Transmission TariffPricing Philosophy (4.2) – 1
19. 19 Open Access Transmission TariffPricing Philosophy (4.2) – 1