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Unscheduled Interchange charges and related matters-CERC Regulations, 2009

Unscheduled Interchange charges and related matters-CERC Regulations, 2009. With amendments w.e.f. 53.5.2010. Definitions. (1) In these regulations, unless the context otherwise requires,- (a) ‘Act’ means the Electricity Act, 2003 (36 of 2003);

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Unscheduled Interchange charges and related matters-CERC Regulations, 2009

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  1. Unscheduled Interchange charges and related matters-CERC Regulations, 2009 With amendments w.e.f. 53.5.2010

  2. Definitions • (1) In these regulations, unless the context otherwise requires,- • (a) ‘Act’ means the Electricity Act, 2003 (36 of 2003); • (b) ‘actual drawal’ in a time-block means electricity drawn by a beneficiary or • a buyer, as the case may be, measured by the interface meters; • (c) ‘actual injection’ in a time-block means electricity generated or supplied • by the generating station or seller, as the case may be, measured by the • interface meters. • (d) ‘beneficiary’ means the person purchasing electricity generated from the • generating station; • (e) ‘buyer’ means a person, other than the beneficiary, buying electricity • through a transaction scheduled in accordance with the regulations of the • Commission applicable for short term open access, medium term access and long • term access;

  3. (f) ‘generating station’ means a generating station whose tariff is • determined by the Commission under clause (a) of sub-section (1) of • Section 62 of the Act; • (g) ‘Grid Code’ means the Grid Code specified by the Commission under • clause (h) of sub-section (1) of Section 79 of the Act • (h) 'Commission' means the Central Electricity Regulatory Commission • referred to in sub-section (1) of section 76 of the Act; • (i) ‘interface meters’ means interface meters as defined by the Central • Electricity Authority under the Central Electricity Authority (Installation and • Operation of Meters) Regulations, 2006, as amended from time to time; • (j) ‘Load Despatch Centre’ means National Load Despatch Centre, • Regional Load Despatch Centre or State Load Despatch Centre, as the • case may be, responsible for coordinating scheduling of the generating • station in accordance with the provisions of Grid Code

  4. k) `scheduled generation’ at any time or for any period or time block means • schedule of generation in MW or MWh ex-bus given by the concerned • Load Despatch Centre; • (l) `scheduled drawal’ at any time or for any period or time block means • schedule of despatch in MW or MWh ex-bus given by the concerned Load • Despatch Centre; • (m) ‘seller’ means a person, other than a generating station supplying • electricity through a transaction scheduled in accordance with the • ( regulations specified by the Commission for short term open access, medium term • access and long term access; • (n) ‘time-block’ means block of 15 minutes, for which specified electrical • parameters and quantities are recorded by special energy meter, with first • time block starting at 00.00 Hrs;

  5. (o) ‘Unscheduled Interchange’ in a time-block for a generating station or a • seller means its total actual generation minus its total scheduled • generation and for a beneficiary or buyer means its total actual drawal • minus its total scheduled drawal. • (2) Save as aforesaid and unless repugnant to the context or the subjectmatter • otherwise requires, words and expressions used in these regulations and • not defined, but defined in the Act, or the Grid Code or the Central Electricity • Regulatory Commission (Terms and conditions of Tariff) Regulations, 2009 • shall have the meanings assigned to them respectively in the Act or the Grid • Code or the Central Electricity Regulatory Commission (Terms and conditions • of Tariff) Regulations, 2009.

  6. Objective • The objective of these regulations is to maintain grid discipline as envisaged under the • Grid Code through the commercial mechanism of Unscheduled Interchange Charges by • controlling the users of the grid in scheduling, dispatch and drawl of electricity.

  7. Scope • These regulations shall be applicable to – • (i) the generating stations and the beneficiaries, and • (ii) sellers and buyers involved in the transaction facilitated through open access or • medium term access or long-term access in inter-State transmission

  8. Limits on UI volume and consequences of crossing limits • (1) The over-drawal of electricity from the schedule by any beneficiary or a buyer • during a time-block shall not exceed 12% of its scheduled drawal or 150 MW • (whichever is lower) when frequency is below 49.7 Hz, and 3% on a daily • aggregate basis for all time blocks when the freq is below 49.7Hz. • (2) The under-injection of electricity from the schedule by a generating station or by

  9. a seller during a time-block shall not exceed 12% of the scheduled injection of • such generating station or seller when frequency is below 49.7 Hz, and 3% on • daily aggregate basis for all time blocks when the freq is below 49.7Hz. • . • (3) In addition to UI Rate corresponding to frequency of 49.5 Hz, as stipulated • under regulation 5, an Additional Unscheduled Interchange Charge at the rate • equivalent to 40% of the UI Rate corresponding to frequency of 49.5 Hz shall be • applicable for over-drawal or under-injection of electricity for each time-block • when grid frequency is below 49.5 Hz.

  10. Provided that for under-injection of electricity during the time-block when • grid frequency is below 49.5 Hz to 49.2Hz for the generating stations using coal or lignite • or gas supplied under Administered Price Mechanism (APM) as the fuel, • Additional Unscheduled Interchange Charge shall be equivalent to 20% of the • UI Cap Rate and for below 49.2Hz it is 40% of the cap rate. • Note: The Additional Unscheduled Interchange Charge shall be reviewed • by the Commission on six-monthly basis or earlier, and revised, if necessary • through separate orders. • (4) Payment of Unscheduled Interchange Charges under regulation 5 and the • Additional Unscheduled Interchange Charge under Regulation 7(3) above, shall • be without prejudice to any action that may be considered appropriate under • section 142 and section 149 of the Act for contravention of the over-drawal and • under-generation limit specified in these regulations, for a time block when • frequency is below 49.5 Hz. • (5) The Commission may from time to time, if considered necessary, prescribe the • Additional Unscheduled Interchange Charge for over-drawal or under-injection • of electricity during the time-block when grid frequency is below 49.5 Hz and up • to 49.2 Hz.

  11. Compliance with instructions of Load Despatch Centre • Notwithstanding anything specified in Regulations 6 and 7, the generating station, the • seller, the beneficiary and the buyer shall follow the instructions of the Regional Load • Despatch Centre on generation and drawal.

  12. . Unscheduled Interchange Charges Accounting • All payments on account of Unscheduled Interchange charges including the Additional Unscheduled Interchange Charges levied under these regulations and interest received • on late payment thereof shall be credited to a Fund called the “Unscheduled Interchange Pool Account Fund”, which shall be maintained and operated in accordance with provisions of the Grid Code.

  13. . Schedule of Payment of Unscheduled Interchange Charges • (1) All payments for Unscheduled Interchange charges including the Additional • Unscheduled Interchange Charge shall be made to the “Unscheduled Interchange Pool • Account Fund” within 10 days of issue of Unscheduled Interchange account statement • by the Regional Power Committee. • (2) If any payments for the Unscheduled Interchange charges on the Additional • Unscheduled Interchange Charge are delayed by more than two days, that is to say, • payments are made beyond a period of 12 days of issue of the statement by the • Regional Power Committee, simple interest @0.04% for each day of delay shall be • payable. • (3) All payments from the Unscheduled Interchange Pool Account Fund to the entities • entitled to receive any amount shall be made within 5 days of crediting of the amount to • “Unscheduled Interchange Pool Account Fund”.

  14. Rationale in fixing the rate • UI rate @50Hz= 155ps/u Median of of Average cost of Coal/ Lignite for 08/09-01/10 • UI rate @49.7Hz= 403ps/u sufficient incentive to the generating station based on coal including imported coal • UI rate @49.5Hz= 873 ps/u highest of the average energy charges of generating stations for 08/09-01/10

  15. UI computations

  16. UI cap rates Generators under APM fuel: • If the UI rate in a time block exceeds 403 ps/u then the UI rate for the station is restricted to = 403ps/u Restricted cap rates • For over-generation in a time block beyond 105% of the Declared Capacity i.e. if the generation is 105% to 107% (say) then for the extra 2% beyond 105% the rate = 155ps/u • For over-generation when the generation exceeds 101% of the Declared Capacity over an entire day then for any time block in that day,when the generation is say 104% then for the extra 3% (104%-101%) the rate is = 155ps/u

  17. UI cap rates Beneficiary or Buyer : • For Underdrawal upto10% or 250MW whichever is less = No cap • For Underdrawal beyond 10% or 250MW shall not exceed 403ps/u • For Eg:- if AP has schedule of 100 MW,but is underdrawing at 91MW then for the 9MW the prevailing rate applies. But, if it is underdrawing at 88MW and if the rate is 873ps/u (i.e. more than 403ps/u) then for 2MW (i.e. 100-10% of 100=90;90-88=2) the rate will be restricted to 403ps/u

  18. UI cap rates For Sellers • For Overgeneration upto 120% of Schedule = No cap • For Overgeneration beyond 120% of Schedule but upto 105% of Installed capacity =403ps/u Restricted Cap Rates • For Overgeneration beyond 105% of IC in a block or 101% of IC in a day = 155ps/u

  19. Additional UI • Additional UI is independent of individual behaviour of any constituents/ISGS/Seller • It is dependent solely on frequency. • Two frequency slabs • 49.5 Hz < SR/ER frequency < 49.2 Hz • SR/ER frequency < 49.2 Hz

  20. 49.5 Hz < SR/ER frequency < 49.2 Hz • For Beneficiary/Seller • If Overdrawing then 40 % of rate at 49.5 Hz i.e. 40% of 873ps/u • If Underinjecting then 20% of rate at 49.5 Hz i.e. 20% of 873ps/u • For ISGS • Only for underinjecting 20% of rate at 49.7 Hz i.e. 20% of 403ps/u

  21. SR/ER frequency < 49.2 Hz • For Beneficiary/Seller • If Overdrawing then 100 % of rate at 49.5 Hz i.e. 873ps/u • If Underinjecting then 40% of rate at 49.5 Hz i.e. 40% of 873ps/u • For ISGS • Only for underinjecting 40% of rate at 49.7 Hz i.e. 40% of 403ps/u

  22. Computation of UI • UI = Schedule – Actual • Taken from .tn1/kp1/… & .re1 files • Nuclear UI Adjustment to be taken into picture.

  23. Nuclear UI Adjustment • Case study: • Suppose KAPS has a Schedule of 100MW.As per schedule its allocation has been split equally between KA,KL,TN,AP. • Now,let its Actual be 104MW. • So, KA gets 26MW=KL=TN=AP. • Each state gets an extra of 1MW. • If there was no nuclear UI, then let UI of each state be 100,200,300,400 MW respectively • Now, when there is nuclear UI,then the UI of each state is adjusted by 1MW. • Resultant UI becomes 99,199,299,399MW for respective beneficiaries.

  24. UI Calculation • After the nuclear adjustment is done (for all 4 nuclear PPs) this resultant/effective/total UI is from now on taken as the normal UI. • So amount for the UI (Rs) = 2.5 * UI (in MW) * rate (in ps/KWh) for that particular time block

  25. Calculation of restricted UI • Calculation of quantity of UI to be restricted = X (say…) • Restricted amount = 2.5*restricted rate * X • Restricted rate = 155ps/u iff prevailing rates more than 155ps/u • Valid only for ISGS & Seller

  26. Calculation of Cap rates • For ISGS/Seller –> Quantity of UI to be capped = UI – X • Capped amount = 2.5*(UI - X)*capped rate(403ps/u)

  27. Calculation of Cap rates • For beneficiary, Capped amount = 2.5*quantity*capped rate(403ps/u) • Quantity = beyond 10% of Schedule or 250MW,whichever is less.

  28. Calculation of Cap rates • For seller • Rate = 403ps/u when UI > 120% of schedule but when UI < 105% of IC. • Capped amount = 2.5*UI*rate. • Quantity = UI

  29. Additional UI • Applicable only when frequency is lower than identified frequencies i.e., < 49.5 Hz and < 49.2 Hz . • Amount = 2.5*rate*UI • Rate is dependent on frequency, type of constituents and overdrawal/underinjection.

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