Conn, Lta, Mtoa, Stoa

CONNECTIVITY, LTA, MTOA & STOA DOCUMENTATION-PSTI-JULY 11

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SHORT TERM OPEN ACCESS

AND

GRANT OF CONNECTIVITY, LONG TERM ACCESS, MEDIUM

TERM OPEN ACCESS

-MARKET EVOLUTION

-PRESENT REGULATIONS & PROCEDURES

POWER SYSTEM OPERATION CORPORATION

ERLDC ::KOLKATA


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ABBREVIATIONS

ER Eastern Region

NER North Eastern Region

WR Western Region

NR Northern Region

CERC Central Electricity Regulatory Commission

SERC State Electricity Regulatory Commission

MOP Ministry of Power

NEP National Electricity Policy

NTP National Tariff Policy

FCFS First Come First Served

SOR Statement of Reasons

TSA Transmission Service Agreement

BCD Billing Collection and Disbursement procedures

RSA Revenue Sharing Agreement

PX Power Exchange

FSAS Frequency Support Ancillary Services

VCAS Voltage Control Ancillary Services

PFCAS Power Flow Control Ancillary Services

NCAS Network Control Ancillary Services

RTC Round The Clock


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TABLE OF CONTENTS

Chapter/

Para No.

Contents Page

No.

Ch.1 Evolution of the Regional Grids and Power Markets 1

1.1 Evolution of the Regional Grids 1

1.2 Evolution of the Indian Power Market 1

1.3 Legal framework for Open Access setup as per IE Act 2003 9

1.4 Development of Short Term Open Access subsequent to impetus by

IE Act,2003

12

1.4.1 Step leading to release of Open Access Regulations,2004 12

1.4.2 Open Access Regulations,2004 12

1.4.3 Amendment prior to release of Open Access Regulations 2008 14

1.4.4 Release of Open Access Regulations 2008 & subsequent

Amendments

16

1.5 Present Market Structure 17

1.6 Share of different segments in the Electricity Power Market 17

Ch.2 Short Term Open Access Rgulations,2008(consolidated) with

amendments vide CTU procedures and explanatory memorandum

19

2.1 CERC Open Access in Inter-State Regulations 2008(consolidated with

incorporation of all amendments till date)

19

2.2 Important addendums extracted from the Bilateral procedures 35

2.3 Various formats under the Bilateral procedures 42

2.4 Explanatory memorandums to the Regulations and procedures with

examples

49

2.5 Application of POC methodology for STOA transactions 50

2.6 Examples of POC charges & losses calculations 54

Ch.3 Grant of Connectivity, Long Term, Medium term Open Access

Regulations and procedures

59

3.1 Evolution of the concept of Connectivity, Long Term, Medium term

Open Access

59

3.2 CERC(Grant of connectivity, Long Term and medium term Access in

ISTS & Related matters) Regulations 2009(consolidated with all

amendments till date)

59

3.3 Important addendums to the Regulations vide CTU procedures 74


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Chapter-1

Evolution of the Regional Grids and Power Markets

1.1] Evolution of Regional Grids

Prior to 1991 Regional Grids were running in a desynchronized manner. The

integration of Regional Grids were done gradually with first synchronization being the

Eastern and North Eastern Grids in 1991. Subsequently, ER and NER were synchronized with

WR to form the Central Grid in March,2003. The Central Grid was synchronized with NR on

August,2006 to form the North-Central Grid comprising of North Eastern, Eastern, Western

and Northern regions. Finally, synchronization of Southern Grid with the North-Central Grid

is tentatively planned on 2013. Integration of SR with rest of the Regions would lead to

formation of a combined All India Grid. Parallely, synchronization of the Indian Grid with

Power Grids of other countries is already in progress. The Indian Grid is already connected

with Bhutan and Nepal Grids. While for Bhutan, part of the Grid remains synchronized with

Indian Grid, power exchange with Nepal takes place in radial mode. The evolution of Indian

Power Grid is represented diagrammatically below:

1.2] Evolution of the Indian Power Market

Alongwith the regional Grids the power markets also evolved parallely. The

legal provisions for the regulation of tariffs of power utilities can be traced to the Indian

Electricity Act 1910 (IE Act). The first attempt to closely regulate monopolistic power utilities

by defining the basis on which tariffs could be charged was made in the Electricity (Supply)

Act, 1948 (E(S) Act). At the time there were two types of entities in the power sector;

Licensees under the IE Act and State Electricity Boards (SEBs) created by the E (S) Act.

However, in keeping with perception of the times and considering the fragmented nature of

regional grids proper methodologies for open access and electricity trading were not in

place. The regional Grids were running in an isolated fashion and there was little

transnational exchange of power other than between ER and rest of regions. In this era, ER

was the exporter of power to other regions as WR, NR, SR in radial mode. With NER

synchronized exchanges of power took place. However the exchanges with WR, NR, SR were

in radial mode and the quantum were not very high. The first thrust to formation of

Organized markets was put in form of the Electricity Regulatory Commissions Act,1998

which led to formation of the CERC and the SERCs. The ERC Act of 1998 enjoins the CERC to

October 1991 East and Northeast

synchronized

Five Isolated regional Grids

March 2003 West synchronized

With East & Northeast

August 2006 North synchronized

With Central Grid

Beyond 2013 All India Grid & SARC Grid


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promote competition, efficiency and economy in the electricity industry. It also requires that

the CERC will aid and advise the central government in the formulation of tariff policy, which

shall be fair to the consumers and facilitate mobilisation of adequate resources for the

power sector. The markets got a further boost in 2003 with the enactment of the Indian

Electricity Act 2003. To compliment the same, ER and WR grids were also synchronized in

2003. When NR grid was synchronized with the Central Grid in 2006, and the inter-regional

capacities were further enhanced, the power market gradually took the forward leap.

Transactions of wheeling nature got introduced and diversity of Indian Grid was effectively

utilized.

India has a skewed concentration of resources. While the coal belt is concentrated

around, Jharkhand, Chattisgarh, M.P., hydro resources are concentrated in the North in the

Himalayan region and Lignite in South. The resources in terms of Wind energy is also

concentrated in Tamil Nadu, Karnataka, A.P in South and Gujarat, Maharashtra in West.

Further hydro is seasonal in nature and wind generation may vary significantly. The demand

of various States in the various regions also are seasonal and have their own characteristics.

The skewed nature of availability of generation resources and demand requirements, make

Open access of transmission system all the more necessary. This requirement also needs to

put in place an well developed power market to meet availability and demand.

Enactment of the Electricity Act, 2003 (hereinafter referred to as The Act) has

opened up hitherto constrained electricity market which was characterized by long term

PPAs and inability of Distribution Companies & consumers to have a choice of suppliers.

Besides, de-licensing generation and removing controls on captive generation, the provision

regarding availability of non-discriminatory open access in transmission from the very

beginning and distribution in phased manner is the core of the Act. This creates enabling

environment for competition among generators/traders to choose their customers and vice

versa. The Act has also introduced the concept of multiple distribution distribution licensees

in a distribution area. In summary the Act has not only attempted to open up the markets by

providing non-discriminatory Open Access but has also tried to remove monopoly, oligopoly

which are the constraints to a competitive power market.

In compliance with section3 of the Act, the MOP notified the National Electricity

Policy on 12th

February,2005. Subsequently, the National Tariff Policy was notified in 2006.

The aims and objectives of NEP were:

Access to Electricity - Available for all households in next five years

• Availability of Power - Demand to be fully met by 2012. Energy and peaking shortages to

be overcome and adequate spinning reserve to be available.

• Supply of Reliable and Quality Power of specified standards in an efficient manner and at

reasonable rates.

• Per capita availability of electricity to be increased to over 1000 units by 2012.

• Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012.

• Financial Turnaround and Commercial Viability of Electricity Sector.

• Protection of consumers’ interests.


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Section 3 (4) of the Act requires the Central Electricity Authority (CEA) to frame a National

Electricity Plan once in five years and revise the same from time to time in accordance with

the National Electricity Policy. Also, section 73 (a) provides that formulation of short-term

and perspective plans for development of the electricity system and coordinating the

activities of various planning agencies for the optimal utilization of resources to subserve

the interests of the national economy shall be one of the functions of the CEA. The National

Electricity Plan would be for a short-term framework of five years while giving a 15 year

perspective and would include:

• Short-term and long term demand forecast for different regions;

• Suggested areas/locations for capacity additions in generation and transmission keeping in

view the economics of generation and transmission, losses in the system, load centre

requirements, grid stability, security of supply, quality of power including voltage profile etc.

and environmental considerations including rehabilitation and resettlement;

• Integration of such possible locations with transmission system and development of

national grid including type of transmission systems and requirement of redundancies; and

• Different technologies available for efficient generation, transmission and distribution.

• Fuel choices based on economy, energy security and environmental considerations.

The policy seeks to address the following issues:

• Rural Electrification

• Generation

• Transmission

• Distribution

• Recovery of Cost of services & Targeted Subsidies.

• Technology Development and Research and Development (R&D)

• Competition aimed at Consumer Benefits

• Financing Power Sector Programmes Including Private Sector Participation.

• Energy Conservation

• Environmental Issues

• Training and Human Resource Development

• Cogeneration and Non-Conventional Energy Sources

• Protection of Consumer interests and Quality Standards

Subsequently, the NTP was notified on 6th

January,2006. The objectives of this tariff policy

are to:

(a) Ensure availability of electricity to consumers at reasonable and competitive rates;

(b) Ensure financial viability of the sector and attract investments;

(c) Promote transparency, consistency and predictability in regulatory approaches across

jurisdictions and minimise perceptions of regulatory risks;

(d) Promote competition, efficiency in operations and improvement in quality of supply.

The NTP while specifying the generic tariff approach for Generation, Transmission and

Distribution specifically had the following observations w.r.t the issue of Transmission

tariffing and loss allocation.


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“7.1(1) A suitable transmission tariff framework for all inter-State transmission, including

transmission of electricity across the territory of an intervening State as well as conveyance

within the State which is incidental to such inter-state transmission, needs to be

implemented with the objective of promoting effective utilization of all assets across the

country and accelerated development of new transmission capacities that are required.

(2) The National Electricity Policy mandates that the national tariff framework implemented

should be sensitive to distance, direction and related to quantum of power flow. This would

be developed by CERC taking into consideration the advice of the CEA. Such tariff mechanism

should be implemented by 1st April 2006.

(3)Transmission charges, under this framework, can be determined on MW per circuit

kilometer basis, zonal postage stamp basis, or some other pragmatic variant, the ultimate

objective being to get the transmission system users to share the total transmission cost in

proportion to their respective utilization of the transmission system. The overall tariff

framework should be such as not to inhibit planned development/augmentation of the

transmission system, but should discourage non-optimal transmission investment.

(4) In view of the approach laid down by the NEP, prior agreement with the beneficiaries

would not be a pre-condition for network expansion. CTU/STU should undertake network

expansion after identifying the requirements in consonance with the National Electricity Plan

and in consultation with stakeholders, and taking up the execution after due regulatory

approvals.

(5) The Central Commission would establish, within a period of one year, norms for capital

and operating costs, operating standards and performance indicators for transmission lines

at different voltage levels. Appropriate baseline studies may be commissioned to arrive at

these norms.

(6) Investment by transmission developer other than CTU/STU would be invited through

competitive bids. The Central Government will issue guidelines in three months for bidding

process for developing transmission capacities. The tariff of the projects to be developed by

CTU/STU after the period of five years or when the Regulatory Commission is satisfied that

the situation is right to introduce such competition (as referred to in para 5.1) would also be

determined on the basis of competitive bidding.

(7) After the implementation of the proposed framework for the inter-State transmission ,a

similar approach should be implemented by SERCs in next two years for the intra-State

transmission, duly considering factors like voltage, distance, direction and quantum of flow.

(8) Metering compatible with the requirements of the proposed transmission tariff

framework should be established on priority basis. The metering should be compatible with

ABT requirements, which would also facilitate implementation of Time of Day (ToD) tariffs.

7.2 Approach to transmission loss allocation

(1) Transactions should be charged on the basis of average losses arrived at after

appropriately considering the distance and directional sensitivity, as applicable to relevant

voltage level, on the transmission system. Based on the methodology laid down by the CERC


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in this regard for inter- state transmission, the Forum of Regulators may evolve a similar

approach for intra-state transmission.

The loss framework should ensure that the loss compensation is reasonable and linked to

applicable technical loss benchmarks. The benchmarks may be determined by the

Appropriate Commission after considering advice of CEA. It would be desirable to move to a

system of loss compensation based on incremental losses as present deficiencies in

transmission capacities are overcome through network expansion.

(2) The Appropriate Commission may require necessary studies to be conducted to establish

the allowable level of system loss for the network configuration, and the capital expenditure

required to augment the transmission system and reduce system losses. Since additional

flows above a level of line loading leads to significantly higher losses, CTU/STU should ensure

upgrading of transmission systems to avoid the situations of overloading. The Appropriate

Commission should permit adequate capital investments in new assets for upgrading the

transmission system.”

The Ancillary services market are expected to open up in the near future. Petition for FSAS

has already been filed by NLDC. Other ancillary services as VCAS, PFCAS which are clubbed

under the broad category of services called NCAS, are also expected in future. A third

category of ancillary services called SRAS, capable of providing support during blackstart are

also planned. The road further ahead may comprise of introduction of the Derivatives

markets and Capacity markets. The evolution and future development of Indian Power

markets is depicted diagrammatically below:

IEGC Feb.’2000

ABT 2002-2003

OPEN ACCESS

2004

POWER EXCHANGES 2008

ANCILLARY SERVICES

DERIVATIVES MARKETS

CAPACITY MARKETS

FUTURE


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1.3] Legal Framework for Open Access set up as per IE Act 2003 :

Definition of Open Access [Section 2(47)the Act] :

“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”;

Definition of Open Access as per CERC(Open Access in Inter State Transmission)

Regulations,2008:

“open access customer” means a person who has availed or intends to avail of open access

under these regulations and includes a short-term transmission customer as defined in any

other regulations, specified by the Commission or a generating company (including captive

generating plant) or a licensee or a consumer permitted by the State Commission to receive

supply of electricity from a person other than distribution licensee of his area of supply, or a

State Government entity authorized to sell or purchase electricity;”

Definition of STOA as per IEGC,2010:

“Short-term Open Access” means open access for a period up to one (1) month at one time;”

However, STOA applications are allowed upto a period 3 months in advance considering

visibility issues including appropriate issual of TTC/ATC margins.

Section 9(2) of the Act regarding Captive generation states:

“Every person, who has constructed a captive generating plant and maintains and operates

such plant, shall have the right to open access for the purposes of carrying electricity from

his captive generating plant to the destination of his use:

Provided that such open access shall be subject to availability of adequate transmission

facility and such availability of transmission facility shall be determined by the Central

Transmission Utility or the State Transmission Utility, as the case may be:”

The following sections of the Act state that one amongst the important functions to be

discharged by CTUs and STUs and one amongst the important duties of the transmission

licensees would be

Section 38(2) of the Act(CTU and functions) & Section 39(2) of the Act(STU and functions) &

Section 40(c) of the Act(Duties of transmission licensees):

“ To provide non-discriminatory open access to its transmission system for use by-

(i) any licensee or generating company on payment of the transmission charges; or


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(ii) 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:

Provided that such surcharge shall be utilised for the purpose of meeting the requirement of

current level cross-subsidy:

Provided further that such surcharge and cross subsidies shall be progressively reduced in

the manner as may be specified by the Central Commission:

Provided also that the manner of payment and utilisation of the surcharge shall be specified

by the Central 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.”

Section regarding Duties of distribution licensees and open Access states that:

“ (1) It shall be the duty of a distribution licensee to develop and maintain an efficient, co-

ordinated and economical distribution system in his area of supply and to supply electricity in

accordance with the provisions contained in this Act.

(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 shall be allowed 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 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:

Provided also that the State Commission shall, not later than five years from the date of

commencement of the Electricity (Amendment) Act, 2003, by regulations, provide such open

access to all consumers who require a supply of electricity where the maximum power to be

made available at any time exceeds one megawatt.

(3) Where any person, whose premises are situated within the area of supply of a

distribution licensee, (not being a local authority engaged in the business of distribution of

electricity before the appointed date) requires a supply of electricity from a generating

company or any licensee other than such distribution licensee, such person may, by notice,

require the distribution licensee for wheeling such electricity in accordance with regulations


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made by the State Commission and the duties of the distribution licensee with respect to

such supply shall be of a common carrier providing non-discriminatory open access .

(4) Where the State Commission permits a consumer or class of consumers to receive supply

of electricity from a person other than the distribution licensee of his area of supply, such

consumer shall be liable to pay an additional surcharge on the charges of wheeling, as may

be specified by the State Commission, to meet the fixed cost of such distribution licensee

arising out of his obligation to supply.

(5) Every distribution licensee shall, within six months from the appointed date

or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances

of the consumers in accordance with the guidelines as may be specified by the State

Commission.

(6) Any consumer, who is aggrieved by non-redressal of his grievances under sub-section (5),

may make a representation for the redressal of his grievance to an authority to be known as

Ombudsman to be appointed or designated by the State Commission.

(7) The Ombudsman shall settle the grievance of the consumer within such time and in such

manner as may be specified by the State Commission.

(8) The provisions of sub-sections (5),(6) and (7) shall be without prejudice to right which the

consumer may have apart from the rights conferred upon him by those sub-sections.”

Section 49 of the Act states regarding agreement for purchase or sale of electricity under

Open Access:

“Where the Appropriate Commission has allowed open access to certain consumers under

section 42, such consumers, notwithstanding the provisions contained in clause (d) of sub-

section (1) of section 62, may enter into an agreement with any person for supply or

purchase of electricity on such terms and conditions (including tariff) as may be agreed upon

by them.”

Wherein the clause 62(1) of the Act states that:

“(1) The Appropriate Commission shall determine the tariff in accordance with the 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.”


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Section 86(1)(a) of the Act regarding functions of the State commission states the following

regarding tariff determinations functions of the State commission:

“1) The State Commission shall discharge the following functions, namely: -

(a) determine the tariff for generation, supply, transmission and wheeling of electricity,

wholesale, bulk or retail, as the case may be, within the State:

Provided that where open access has been permitted to a category of consumers under

section 42, the State Commission shall determine only the wheeling charges and surcharge

thereon, if any, for the said category of consumers;

1.4] Development of Short Term Open Access subsequent to impetus by the IE Act 2003

1.4.1]Steps leading to release of Open Access regulations 2004

� Release of concept

paper on Open Access in Inter-State transmission by CERC on August,2003

� Order on Open Access

after hearing on concept paper [petition No.48/2003] Dtd.14th

November,2003

� Draft open access

regulations on December 2003

� Open Access

regulations 2004 notified on 30th

January,2004

� CERC clarification on

Open Access regulations, 2004

1.4.2] Open Access Regulations 2004

The regulations covered both Long Term and medium Term Open access and defined mainly

the following aspects for availing Open Access:

Scope of application of the Open Access regulations

Categorization of Open Access regulations

• Long Term Open Access customers ( 25 years or more)

• Short Term Open Access customers (upto 1 year)

Criteria for allowing transmission access

Criteria for reservation/allotment of transmission capacity

Nodal Agency

Procedures for grant of Long term Access to Open Access customer

BPTA to be entered into by Long term customer with transmission licensee

Exit for LT customer

Procedure for Short-Term Open Access Customer

Release of reserved transmission capacity in case of Non-Utilisation by short-term

Customer

Methodology for treatment for existing transactions

Transmission charges

The charges payable by a short-term customer were defined to be as follows:


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ST_RATE = 0.25 x [ TSC/ Av_CAP ]/ 365

Where:

ST_RATE is the rate for short-term open access customer in Rs per MW per day.

ST_RATE shall be calculated and applied for each - (a) regional system (b) inter-regional

link, and (c) system of the State Transmission Utility or the State Electricity Board or any

other transmission licensee forming part of the interstate system.

TSC means the Annual Transmission Charges of the transmission licensee for the previous

financial year allowed by the Appropriate Commission.

Av_CAP means the average capacity in MW served by the transmission system of the

transmission licensee in the last financial year and shall be the sum of the generating

capacities connected to the transmission system and contracted capacities of other

transactions handled by the system of the transmission licensee.

The minimum transmission charges payable by a short-term customer shall be for one day

and in multiple of whole number of days thereafter.

Non-availability of TSC for the transmission system shall not be reason for delay in

providing transmission access. In the exceptional circumstances, if TSC for any transmission

licensee are not available, the per MW per day charge applicable for the system owned by

the Central Transmission Utility of the region in which the system of transmission licensee

is situate, shall be used. Every transmission licensee shall declare rate in Rs per MW per day

and this rate shall remain fixed for a period of one year.

Provided that in case of north-eastern region, where the Uniform Common Pooled

Transmission Tariff (UCPTT) of 35 paise/KWh is applicable, the Central Transmission Utility

shall notify ST_RATE as 25% of the UCPTT in Rs/MW/Day.

Provided further that where reservation of transmission capacity has been done

consequent to bidding in the manner specified in Regulation 6, the ST_RATE shall be taken

as the floor price for bidding.

25% of the charges collected from the short-term customer shall be retained by the

transmission licensee and the balance 75% shall be adjusted towards reduction in the

transmission charges payable by the long-term customers.

Time-schedule for

Processing Application

Priority of curtailment

Other commercial

conditions

Scheduling & system

operation charges for both RLDcs & SLDCs (Rs.3000/day/transaction or part of day)

Unscheduled Inter-

change (UI) charges

Reactive Energy

Charges

Special Energy Meters


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Compliance of Grid

code by all Open Access customers

Energy losses

Collection and

Disbursement of charges

Information System

Redressal Mechanism

Coordination

1.4.3] Amendments prior to release of Open Access Regulations, 2008

CERC clarification on

OA regulations, 2004 Dtd 20th

May, 2004 wherein the concept of internalisation of

STU was clarified:

“It is, therefore, clarified that in case the transmission system owned by State

Electricity Board or State Transmission Utility is internalised, the transmission

charges under Regulation 16 and the scheduling and system operation charges

payable under clause (i) of Regulation 17, to be collected by the nodal RLDC, shall not

include the charges for the transmission system owned by the State Electricity Board

or the State Transmission Utility and the State Load Despatch Centre charges.”

Petition No. 39/2004

Dtd. 27th

May, 2004, regarding review of certain provisions of CERC(Open Access in

ISTS regulations), 2004

Staff paper on

amendment to OA regulations, 2004 Dtd. 10th

December, 2004

CERC (Open Acess in

Inter State Transmission)(First Amedment) Regulations 2005 introduced newer

concepts in the following areas:

• Concept of

reduction/cancellation of ST transactions in case of re-allocation of GOI share

in a transmission path leading to congestion

• Processing of

applications upto 3 months in advance

• Introduction of

Categorization of transactions into Advance, FCFS, Day Ahead, Same Day

• Introduction of

concept of bidding in congested corridors

• Application fees made

Rs.5000/- per transaction

• Directions on bidding

procedure in case of congestion


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• Changes in

procedures in case of non-utilization of reserved corridor by ST customer

• Change in Operating

charges to Rs.3000/- and Rs.1000/- per transaction/day or part of day for

RLDCS and SLDCs

• Transmission charges:

(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.

[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 or annual revenue requirement

on account of the transmission system for the previous financial year as

determined by the Appropriate Commission.

"Av_CAP" means the average capacity in MW served by the intra-regional

transmission system of the transmission licensee in the previous financial

year and shall be the 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

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

Non-determination of annual transmission charges for the transmission

system shall not be a ground for delay in providing short-term access and

where annual transmission charges for any transmission licensee are not

determined under the Act, ST _ RATE applicable for the system owned by the

Central Transmission Utility of the region in which the system of transmission

licensee is situate, shall be applied for determination of the charges for the

short-term customer.


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Every transmission licensee shall declare ST _ RATE, which shall remain fixed

for a period of one year.

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.

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.”

• Time schedules for

Application processing revised for Short customers in form of reduction of

number of categories vis-vis their processing time

• Introduction of

refunds in case of curtailment of more than 50%

• Special energy meters

:: “The Special Energy Meters shall be installed by the Central Transmission

Utility for and at the cost of the direct customers and by the concerned State

Transmission Utility for and at the cost of the embedded customers”

CERC(Open Access in

Inter State Transmission)(Amendment) Regulations, 2006

Staff paper on

“common platform for Electricity trading” Dtd. June,2006

Draft Open Access in

Inter State Transmission Regulations, 2008

1.4.4] Release of Open Access regulations, 2008 and subsequent amendments

CERC(Open Access in

Inter State Transmission Regulations), 2008 Dtd. 25th

January, 2008 effective from 1st

April, 2008

CERC(Open Access in

Inter State Transmission regulations)(Amendment) Regulations 2009 Dtd. 20th

May,2009

Corrigendum to the

2009 amendments Dtd. 10th

June,2009

Order approving

amendment to CTU procedures(Bilateral & Collective) Dtd. 28th

October, 2009


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ERLDC::POSOCO

17

Amendments to Open

Access regulations & procedures vide CERC(Sharing of ISTS charges & losses),2010

regulations & subsequent amendments

• Removal of difficulties

order Dtd.4th

April,2011

• Order on approval of

BCD TSA & RSA procedures of CTU Dtd.29th

April,2011

• Order on removal of

difficulties Dtd. 2nd

June,2011

• Order on

modifications to CTU procedures on BCD, TSA & RSA Dtd. 15th

June,2011

• Order on POC Slab

rates Dtd.22nd

June,2011

• Order on removal of

difficulties w.r.t Open Access on implementation of CERC(Sharing of ISTS charges

& losses),2010 Dtd.28th

June,2010

• Order on removal fo

difficulties Dtd. 29th

June,2011

• Order on approved

results Dtd. 29th

June,2011

• Order approving

procedures of POSOCO on computation of POC losses Dtd.30th

June,2011

• Order approving

procedure of POSOCO on scheduling of Bilateral & collective transactions Dtd. 30th

June,2011

1.5] Present market structure

The present market structure is depicted below:


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18

1.6] Share of different segments in the electricity power market

The present average share( for F.Y 2010-11) of different segments in terms of LT, STOA, PX

and UI(balancing market) is depicted below:

From the above it can be seen that size of the Long Term market comprising of GOI

allocations and Long Term PPAS amount to 90% of market share and dominate the market.

The short term market excluding the UI(Balancing market) amounts to 7%. The Bilateral

transaction market and the balancing UI market are comparable in size. The market

captured by Power Exchanges is still relatively small. However, it needs to be noted that UI

needs to be perceived more as a disciplinary measure and balancing mechanism in case of

contingencies instead of viewing it as a normal market also taking into consideration the

fact that UI exchanges are not based on contracts.

Further breakup of the short term market(F.Y.2010-11 average) is depicted below:


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19

From the above it can be seen that UI exchanges are significant as compared to the short

term market as a whole. STOA contracts through traders form a dominant part of the short

term market occupying 34% share. Transactions through Power Exchanges and directly

between DISCOMs are comparable.

Chapter-2


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20

Short Term Open Access Regulations,2008(Consolidated) with addendums

vide CTU procedures & Explanatory memorandums

2.1] CERC Open Access in Inter State Regulations 2008(Consolidated with incorporation of

all amendments uptil date)

# Indicates modifications/addendums vide amendments

These regulations shall apply to the applications made for grant of 1[short term open

access] for energy transfer schedules commencing on or after 1.4.2008 for use of the

transmission lines or associated facilities with such lines on the inter- State transmission

system.

Definitions

2. (1) In these regulations, unless the context otherwise requires:

(a) “Act” means the Electricity Act, 2003 (36 of 2003);

(b) 2[bilateral transaction” means a transaction for exchange of energy (MWh) between a

specified buyer and a specified seller, directly or through a trading licensee or discovered at

power exchange through anonymous bidding, from a specified point of injection to

aspecified point of drawl for a fixed or varying quantum of power (MW) for any time period

during a month;]

(c) “collective transaction” means a set of transactions discovered in power exchange

through anonymous, simultaneous competitive bidding by buyers and sellers;

(d) “Commission” means the Central Electricity Regulatory Commission referred to in

Section 76 of the Act;

(e) “day” means a day starting at 00.00 hours and ending at 24.00 hours;

(f) 3[“detailed procedure” means the procedure issued under regulation 4;]

(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) “intra-State entity” means a person whose metering and energy accounting is

done by the State Load Despatch Centre or by any other authorized State utility;

(i)4 [“long-term customer” means a person granted long-term access for use of the

inter-State transmission system.]

5[(i-a) “medium-term customer” means a person granted medium-term open

access for use of the inter-State transmission system.”]

(j) “month” means a calendar month as per the British calendar;

(k) “nodal agency” means the nodal agency defined in Regulation 5 of these regulations;

(l) 6 Definition of Open Access customer[Omitted]

(m) “power exchange” means the power exchange established with the prior approval of

the Commission;

(n)“regional entity” means a person whose metering and energy accounting is done at the

regional level;


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21

7[(n-a) “short-term open access” means open access for a period up to one (1) month at

one time.]

8[(n-b) “short-term customer” means a person who has availed or intends to avail short

term open access.]

(o) “State Commission” means the State Electricity Regulatory Commission constituted

under Section 82 of the Act and includes the Joint Commission constituted under Section 83

thereof;

(p) “State network” means network owned by the State Transmission Utility, distribution

licensee or any other person granted licence by the State Commission to construct, operate

and maintain the transmission system;

(q) “State utility” means a State Transmission Utility, or a State Electricity Board, or

Electricity Department of the State, or a State Government organization authorized to sell or

purchase electricity on behalf of the State;

(r) “time block” means 15 minutes time period specified in the Grid Code for the purposes

of scheduling and despatch; and

(s) “working day” means a day on which banks are open for business;

(2) Words and expressions used in these regulations and not defined herein but defined in

the Act or the Grid Code, shall have the meaning assigned to them under the Act or the Grid

Code, as the case may be.

Scope

3. 9[(1) The long-term-customer and the medium-term customer shall have priority over the

short-term customer for use of the inter-State transmission system.

(2) The short-term customer shall be eligible for short-term open access over the surplus

capacity available on the inter-State transmission system after use by the long-term

customer and the medium-term customer, by virtue of-

(a) inherent design margins;

(b) margins available due to variation in power flows; and

(c) Margins available due to in-built spare transmission capacity created to cater to future

load growth or generation addition.]

Detailed Procedure

4. 10[ Subject to the provisions of these regulations, the Central Transmission Utility, till the

Regional Load Despatch Centre is operated by it and thereafter the Government company

or any authority or corporation notified by the Central Government under subsection (2) of

Section 27 of the Act: shall, after obtaining prior approval of the Commission, issue the

detailed procedure to operationalise open access and on any residual matter not covered

under these regulations.]

Nodal Agency


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22

5. The nodal agency for bilateral transactions shall be the Regional Load Despatch Centre of

the region where point of drawal of electricity is situated and in case of the collective

transactions, the nodal agency shall be the National Load Despatch Centre.

Submission of 11[Short-term Open Access] Application

6. (1) An 12[short-term customer] or the power exchange (on behalf of buyers and sellers)

intending to avail of 13[short-term open access] for use of the transmission lines or

associated facilities for such lines on the inter-State transmission system, shall make an

application to the nodal agency in accordance with these regulations.

(2) The application for a bilateral transaction shall contain the details, such as names and

location of supplier and buyer, contracted power (MW) to be scheduled and interface at

which it is referred to, point of injection, point of drawal, starting time block and date,

ending time block and date, and such other information that may be required in the

detailed procedure.

(3) The application for a collective transaction shall contain the requisite details in

accordance with the detailed procedure.

Application Fee

7. An application made for each bilateral transaction or the collective transaction shall be

accompanied by a non-refundable fee of Rupees five thousand (Rs.5000/-) only:

Provided that the fee for bilateral transaction on the day of the application or on the day

immediately following the day of the application may be deposited within three working

days of submission of the application.

Concurrence of State Load Despatch Centre for bilateral and collective transactions

8. (1) Wherever the proposed bilateral transaction has a State utility or an intra-State entity

as a buyer or a seller, concurrence of the State Load Despatch Centre shall be obtained in

advance and submitted along with the application to the nodal agency. The concurrence of

the State Load Despatch Centre shall be in such form as may be provided in the detailed

procedure.

(2) When a State utility or an intra-State entity proposes to participate in trading through a

power exchange, it shall obtain a “no objection” or a prior standing clearance from the State

Load Despatch Centre in such form as may be prescribed in the detailed procedure,

specifying the MW up to which the entity may submit a buy or sell bid in a power exchange.

(3) 14[(a) For obtaining concurrence or ‘no objection’ or prior standing clearance an

application shall be made before the State Load Despatch Centre who shall, acknowledge

receipt of the application, either by e-mail or fax, or any other usually recognised mode of

communication, within twenty four hours from the time of receipt of the application:

Provided that where the application has been submitted in person, the acknowledgement

shall be provided at the time of submission of the application.


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23

(b) While processing the application for concurrence or ‘no objection’ or prior standing

clearance, as the case may be, the State Load Despatch Centre shall verify the following,

namely-

(i) existence of infrastructure necessary for time-block-wise energy metering and accounting

in accordance with the provisions of the Grid Code in force, and

(ii) availability of surplus transmission capacity in the State network.

(c) Where existence of necessary infrastructure and availability of surplus transmission

capacity in the State network has been established, the State Load Despatch Centre shall

convey its concurrence or ‘no objection’ or prior standing clearance, as the case may be, to

the applicant by e-mail or fax, in addition to any other usually recognised mode of

communication, within three (3) working days of receipt of the application:

Provided that when short-term open access has been applied for the first time by any

person, the buyer or the seller, the State Load Despatch Centre shall convey to the applicant

such concurrence or ‘no objection’ or prior standing clearance, as the case may be, within

seven (7) working days of receipt of the application by e-mail or fax, in addition to any other

usually recognised mode of communication.]

15[(3A) In case the State Load Despatch Centre finds that the application for concurrence or

‘no objection’ or prior standing clearance, as the case may be, is or defective in any respect,

it shall communicate the deficiency or defect to the applicant by e-mail or fax, in addition to

any other usually recognised mode of communication, within two (2) working days of

receipt of the application:

Provided that in cases where the State Load Despatch Centre has communicated any

deficiency or defect in the application, the date of receipt of application shall be the date on

which the application has been received duly completed, after removing the deficiency or

rectifying the defects, as the case may be.]

(4) 16[In case the application has been found to be in order but the State Load Despatch

Centre refuses to give concurrence or ’no objection’ or prior standing clearance as the case

may be, on the grounds of non-existence of necessary infrastructure or unavailability of

surplus transmission capacity in the State network, such refusal shall be communicated to

the applicant by e-mail or fax, in addition to any other usually recognized mode of

communication, within the period of three (3) working days or seven (7) working days, as

the case may be, from the date of receipt of the application, specified under clause (3),

along with reasons for such refusal:

Provided that where the State Load Despatch Centre has not communicated any deficiency

or defect in the application within two (2) days from the date of receipt of application or

refusal or concurrence or ‘no objection’ or prior standing clearance, as the case may be,

within the specified period of three (3) working days or seven (7) working days, as


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ERLDC::POSOCO

24

applicable, from the date of receipt of the application, concurrence or ‘no objection’ or prior

standing clearance, as the case may be, shall be deemed to have been granted:

Provided further that where concurrence or ‘no objection’ or prior standing clearance, as

the case may be, is deemed to have been granted by the State Load Despatch Centre, the

applicant while making application 17[] shall submit to the nodal agency an affidavit (in the

format provided in the detailed procedure), duly notarised, declaring that –

(a) the State Load Despatch Centre has failed to convey any deficiency or defect in the

application or its refusal or concurrence or ‘no objection’ or prior standing clearance, as the

case may be, within the specified time,

(b) necessary infrastructure for time-block-wise energy metering and accounting in

accordance with the provisions of the Grid Code in force, is in place; and enclosing with the

affidavit –

(i) a copy of the complete application after removal of deficiency or rectification of defects,

if any communicated, made to the State Load Despatch Centre for seeking concurrence or

‘no objection’ or prior standing clearance, as the case may be, and

(ii) a copy of the acknowledgement, if any, given by the State Load Despatch Centre, or any

other evidence in support of delivery of the application to the State Load Despatch Centre.]

Procedure for Advance Scheduling for bilateral transactions

9. (1) An application for advance scheduling for a bilateral transaction may be submitted to

the nodal agency up to the fourth month, the month in which an application is made being

the first month:

Provided that separate application shall be made for each month, and for each

transaction.

(2) (a) An application for inter-State scheduling during the fourth month shall be made up to

the last day of the first month.

(b) All applications received shall be taken up together for consideration.

(c) The nodal agency shall convey its acceptance or otherwise to the applicant latest by the

fifth day of the second month.

(3) (a) An application for inter-State scheduling during the third month shall be made up to

five (5) days prior to the close of the first month.

(b) All applications received shall be taken up together for consideration.

(c) The nodal agency shall convey its acceptance or otherwise to the applicant latest by the

close of the first month:

Provided that while accepting the application, 18[short-term open access] granted to any

person prior thereto shall not be withdrawn.

(4) (a) An application for inter-State scheduling in the second month shall be made with the

nodal agency up to ten (10) days prior to the close of the first month.

(b) All applications shall be taken up together for consideration.


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ERLDC::POSOCO

25

(c) The nodal agency shall convey its acceptance or otherwise to the applicant five days prior

to the last day of the first month:

Provided that while accepting the application, 19[short-term open access] granted to any

person prior thereto shall not be withdrawn.

(5) Wherever the nodal agency rejects an application, it shall convey its reasons to the

applicant in writing.

Congestion management

10. Where in the opinion of the nodal agency, grant of all applications at a particular stage

of advance scheduling is likely to cause congestion in one or more of the transmission

corridors to be used, it shall conduct electronic bidding for grant of 20[short-term open

access] for the available surplus transmission capacity among the applicants at

that stage, in accordance with the detailed procedure:

Provided that if any person does not participate in the bidding process he shall be deemed

to have withdrawn his application.

Procedure for scheduling of bilateral transactions on first-come-first served basis

11. (1) The applications for grant of 21[short-term open access] for the second month,

received after the date specified in clause (4) of Regulation 9 and the applications for grant

of 22[short-term open-access] during the first month shall be considered on first-come-first-

served basis, and such transactions shall be scheduled subject to availability of the required

transmission capacity:

Provided that such applications shall reach the nodal agency at least four (4) days in

advance of the date of the bilateral transaction:

Provided further that separate application shall be made for each transaction.

(2) All these applications shall be processed and decided within three (3) days of their

receipt.

Procedure for scheduling for day-ahead transactions

12. All applications for bilateral transactions received within three days prior to the date of

scheduling and up to 1500 hrs of the day immediately preceding the date of scheduling shall

be clubbed and treated at par, and shall be processed after processing of the applications

for collective transactions received till 1500 hrs.

Illustration:

An application for scheduling a transaction on 25th day of a month, shall be processed on

first-come-first-served basis only if such application is received till 21st day of that month. If

the application is received on 22nd day or 23rd day or up to 1500 hrs on 24th day, it shall be

treated only after processing of the applications for collective transactions received up to

1500 hrs on 24th day for scheduling on 25th day.

Procedure for scheduling of transactions in a contingency

13 23[ In the event of a contingency, the buyer or on its behalf, a trader may locate, and the

power exchange may offer its platform to locate, a source of power to meet shortterm


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ERLDC::POSOCO

26

contingency requirements even after the cut-off time of 1500 hrs of the preceding day and

apply to the nodal agency for short-term open access and scheduling and in that event, the

nodal agency shall endeavour to accommodate the request as soon as may be and to the

extent practically feasible, in accordance with the detailed procedure.]

Revision of Schedule

14. 24[(1) The short-term open access schedules accepted by the nodal agency in advance

or on first-come-first-served basis may be cancelled or revised downwards on an application

to that effect made to the nodal agency by the short term customer:

Provided that such cancellation or downward revision of the short-term open access

schedules shall not be effective before expiry of a minimum period of two (2) days:

Provided further that the day on which notice for cancellation or downward revision of

schedule is served on the nodal agency and the day from which such cancellation or

downward revision is to be implemented, shall be excluded for computing the period of two

(2) days.

(2) The person seeking cancellation or downward revision of short-term open access

schedule shall pay the transmission charges for the first two (2) days of the period for which

the cancellation or downward revision of schedule, as the case may be, has been sought, in

accordance with the schedule originally approved by the nodal agency, and thereafter in

accordance with the revised schedule prepared by the nodal agency during the period of

such cancellation or downward revision.

(3) In case of cancellation, operating charges specified under regulation 17 shall be payable

for two (2) days or the period of cancellation in days, whichever is less.

Note: The provisions of this regulation shall also be applicable to the short-term customers

granted short-term open access prior to 15.6.2009.]

Curtailment in case of transmission constraints

15. 25[(1) The Regional Load Despatch Centre may curtail power flow on any transmission

corridor by cancelling or re-scheduling any transaction, if in its opinion cancellation or

curtailment of any such transaction is likely to relieve the transmission constraint on the

corridor or to improve grid security:

Provided that subject to provisions of the Grid Code, while cancellation or curtailment of

any transaction, among short-term, medium-term and long-term transactions, short-term

transactions shall be cancelled or curtailed first, followed by medium -term and thereafter

long term–transactions:

Provided further that while cancelling or curtailing any short-term transaction, bilateral

transactions shall be cancelled or curtailed first followed by collective transactions.]

(2) In case of inter-regional bilateral transactions, approved schedule may be revised or

cancelled by the Regional Load Despatch Centre, if the Central Government allocates power

from a central generating station in one region to a person in the other region and such

allocation, in the opinion of the Regional Load Despatch Centre, cannot otherwise be


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ERLDC::POSOCO

27

implemented because of congestion in inter-regional link. The intimation about such

revision or cancellation shall, as

soon as possible, be conveyed to the affected 26[short-term customer]s.

(3) In case of curtailment of the approved schedule by the Regional Load Despatch Centre,

transmission charges shall be payable pro-rata in accordance with the curtailed schedule:

Provided that operating charges shall not be revised in case of curtailment.

26A 16.Transmission Charges

(Para.16(1) & (2) on Transmission charges REPEALED vide CERC(Sharing of ISTS charges

& Losses) Regulations,2010 & subsequent amendments

16. 27[(1) In case of bilateral transactions, the transmission charges at the rate specified

hereunder shall be payable by the short-term customer for the energy approved for

transmission at the point or points of injection:

Type of Transaction Transmission charges(Total)(Rs./MWh)

(a) Bilateral, intra-regional 80

(b) Bilateral, between adjacent regions 160

(c) Bilateral, wheeling through one or more intervening regions 240

(2) In case of the collective transactions, transmission charges at the rate of Rs. 100/MWh

for energy approved for transmission separately for each point of injection and for each

point of drawal, shall be payable.

(Cl.16(3) not repealed & applicable as per CERC(Sharing of ISTS charges & Losses)

Regulations,2010 & subsequent amendments

16.(3) The intra-State entities shall pay the transmission charges for use of the State

network as fixed by the respective State Commission in addition to the charges specified

under clauses (1) and (2):

Provided that in case the State Commission has not determined the transmission charges,

the charges for use of respective State network shall be payable at the rate of Rs.80/MWh

for the electricity transmitted:

Provided further that non-fixation of the transmission charges by the State Commission for

use of the State network shall not be a ground for refusal of 28[short –term open access]:

Provided also that the transmission charges payable for use of the State network shall be

conveyed to the Regional Load Despatch Centre concerned who shall display these rates on

its web site:

Provided also that the transmission charges payable for use of the State network shall not

be revised retrospectively.]

26ATransmission Charges(As per CERC(Sharing of ISTS charges & Losses) Regulations,2010

& subsequent amendments)


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ERLDC::POSOCO

28

Quotations from CERC(Sharing of ISTS charges & Losses) Regulations,2010 & subsequent

amendments related to amendments to Open Access Regulations,2008:

“5. Mechanism to share ISTS charges

(4) The Point of Connection transmission charges shall be computed in terms of Rupees per

MegaWatt per month. The amount to be recovered from any Designated ISTS Customer

towards ISTS charges shall be computed on a monthly basis as per these regulations. The

Point of Connection transmission charges for short term open access transactions shall be in

terms of Rupees per MegaWatt per hour and shall be applicable for the duration of short

term open access approved by the RLDC/NLDC.

11. Billing

(9) The governance of the Short Term Open Access Transactions shall be as per the Central

Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations,

2008 and as amended by the Commission from time to time with the exception that the

Transmission Charges for Short Term Open Access Transactions shall be the Zonal Point of

Connection charges as determined by these regulations.

19. Savings & Repeal

(1) Save as otherwise provided in these regulations, Regulation 33 of the Central Electricity

Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009, Regulation 16(1)

and 16(2) of the Central Electricity Regulatory Commission (Open Access in inter-State

Transmission) Regulations, 2008 are hereby repealed.

(2) Not withstanding such repeal, anything done or any action taken or purported to have

been done or taken under the repealed regulations shall be deemed to have been done or

taken under these regulations.”

AS per CERC order on removal of difficulties Dtd. 29th

June,2011:

“4. Clauses (1) and (2) of Regulation 16 of Open Access Regulations have been repealed by

clause (1) of Regulation 19 of Sharing Regulations. Consequently, the provisions of Sharing

Regulations including the removal of difficulty orders issued by the Commission will be

applicable for deciding the rates for transmission charges for bilateral and collective

transactions through short term open access.”

26A� corrections inserted vide CERC CERC(Sharing of ISTS charges & Losses)


Operating Charges

17. (1) Operating charges at the rate of Rs. 2,000 /- per day or part of the day for each

bilateral transaction for each of the Regional Load Despatch Centre involved and at the rate


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ERLDC::POSOCO

29

of Rs.2,000 /- per day or part of the day for each State Load Despatch Centre involved shall

be payable by the applicant.

(2) In case of the collective transaction, operating charges shall be payable by the power

exchange @ Rs.5000/- per day to the National Load Despatch Centre for each State involved

and Rs.2,000 /- per day for the State Load Despatch Centre involved for each point of

transaction.

(3) National Load Despatch Centre shall share the operating charges with the Regional Load

Despatch Centres in such manner as may be decided by the Central Transmission Utility.

(4) All buyers within a State shall be clubbed together and all sellers within a State shall be

clubbed together by the power exchange (with necessary coordination with the State Load

Despatch Centre) and each of the groups shall be counted as a single entity by National Load

Despatch Centre for levy of operating charges and for scheduling:

Provided that for levy of operating charges for State Load Despatch Centre and levy of the

intra-State transmission charges, each point of injection or drawal in the State network shall

be counted separately.

Note 1

The operating charges include fee for scheduling, system operation and collection and

disbursement of charges.

Note 2

The operating charges collected by the nodal agency shall be in addition to the fees and

charges specified by the Commission under sub-section (4) of Section 28 of the Act.

Payment of transmission charges and operating charges

18. In case of the bilateral transaction, the applicant shall deposit with the nodal agency

transmission charges and operating charges within three (3) working days of grant of

application and in case of collective transactions, the power exchange shall deposit with the

nodal agency these charges by the next working day falling after the day on which its

application was processed:

Provided that in case of the collective transactions, the transmission charges for use of State

network and operating charges for State Load Despatch Centre shall be settled directly by

the power exchange with respective State Load Despatch Centre.

Default in payment of 29[short-term open access] charges

19. (1) In case of default in payment of the application fee or the charges specified under

these regulations, the nodal agency may, in its discretion, decide not to schedule the

transaction, or to cancel the scheduling of already scheduled transaction or not to entertain

any application of such persons in future until such time the default is cured.

(2) Notwithstanding the above, the person committing default in payment shall pay simple

interest at the rate of 0.04% for each day of default.

Unscheduled Inter-change (UI) Charges


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30

20. (1) All transactions for State utilities and for intra-State entities scheduled by the nodal

agency under these regulations, shall be accounted for and included in the respective day-

ahead net interchange schedules of the concerned regional entity issued by the Regional

Load Despatch Centre.

(2) Based on net metering on the periphery of each regional entity, composite UI accounts

shall be issued for each regional entity on a weekly cycle and transaction-wise UI

accounting, and UI accounting for intra-State entities shall not be carried out at the regional

level.

(3) The State utility designated for the purpose of collection / disbursement of UI charges

from / to intra-State entities shall be responsible for timely payment of the State’s

composite dues to the regional UI pool account.

(4) Any mismatch between the scheduled and the actual drawal at drawal points and

scheduled and the actual injection at injection points for the intra-State entities shall be

determined by the concerned State Load Despatch Centre and covered in the intra-State UI

accounting scheme.

(5) Unless specified otherwise by the concerned State Commission, UI rate for intra-State

entity shall be 105% (for over-drawals or under generation) and 95% (for under-drawals or

over generation) of UI rate at the periphery of regional entity.

(6) 30[No charges, other than those specified under these regulations shall be payable by

any person granted short-term open access under these regulations.]

Reactive Energy Charges

21. (1) No separate reactive energy charge accounting for 31[short-term open access]

transactions shall be carried out at inter-State level:

Provided that the State Utility designated for the purpose shall be responsible for timely

payment of the State’s composite dues to the regional reactive charge account in

accordance with the provisions of the Grid Code.

(2) The reactive energy drawals and injections by the intra-State entities shall be governed

by the regulations applicable within the State concerned.

Special Energy Meters

22. (1) Special Energy Meters shall be installed by the Central Transmission Utility for and at

the cost of the regional entities and by the State Transmission Utility for and at the cost of

the intra-State entities.

(2) Special Energy Meters installed shall be capable of time-differentiated measurements for

time block wise active energy and voltage differentiated measurement of reactive energy in

accordance with Annexure – 2 to Chapter–6 of the Grid Code.

(3) Special Energy Meters shall always be maintained in good condition.

(4) Special Energy Meters for the regional entities shall be open for inspection by any person

authorized by the Central Transmission Utility or the Regional Load Despatch Centre.


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Transmission losses

23. (1) The buyers and sellers of the electricity shall absorb apportioned energy losses in the

transmission system as estimated by the Regional Load Despatch Centre and the State Load

Despatch Centre concerned, and applied in accordance with the detailed procedure.

(2) The energy losses shall be accounted for by providing a differential between schedules at

the points of supply, inter-utility transfer and drawal of electricity.

(3) The applicable transmission losses for the regional transmission system as well as for

State network shall be declared in advance and shall not be revised retrospectively.

Compliance of Grid Code

24. The buyers and sellers of energy shall comply with the provisions of the Grid Code in

force from time to time.

Collection and Disbursement of Transmission Charges and Operating Charges

Paras 25 (1,2,3,4,5) are REPEALED as per CERC(Sharing of ISTS charges & Losses)


25. 32[(1) The transmission charges and the operating charges payable by the persons

allowed short-term open access shall be collected and disbursed by the nodal agency,

except for transmission charges for State network and operating charges for State Load

Despatch Centre in the case of the collective transaction.

(2) The transmission charges collected by the nodal agency for use of the transmission

system other than State network, for a bilateral transaction shall be directly disbursed to the

long-term customers after disbursing 25% of such transmission charges to the Central

Transmission Utility in the following manner;

(a) In case of intra-regional bilateral transaction: 75% of the transmission charges to the

region concerned.

(b) In case of bilateral transaction between adjacent regions: 37.5% of the transmission

charges for each region.

(c) In case of bilateral transaction through one or more intervening regions: 25% of the

transmission charges for each of importing and exporting each region and remaining 25% of

the transmission charges to be allocated equally among all intervening regions.

(3) The transmission charges collected for use of the transmission system other than State

network for a collective transaction for each point of injection and each point of drawal shall

be disbursed by the nodal agency in the following manner, namely-

(a) Central Transmission Utility: 25%

(b) Long-term customers of the region of point of injection or drawal, as the case may be, is

situate: 75%

(4) The transmission charges shall be disbursed to the long-term customers in proportion to

the monthly transmission charges payable by them.


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(5) The transmission charges for use of State network shall be disbursed to the State

Transmission Utility concerned.

(6) In case 33[a State utility] is the short-term customer, the operating charges and the

transmission charges collected by the nodal agency shall not include the charges for use of

the State network and operating charges for the State Load Despatch Centre.”]

Amendment as per Removal of difficulties w.r.t Open Access Dtd. 28th

June,2011:

10. On account of the change in the philosophy of determination of transmission charges

from postage stamp method to the Point of Connection charges method and consequential

financial adjustment as required under Sharing Regulation, difficulties have arisen for

collection and disbursement of the short term open access charges. In exercise of our power

under Regulation 21 (3) of the Sharing Regulations, we direct that pending appropriate

amendment to the Open Access Regulations, the collection and disbursement of the short

term open access charges will be governed as per the following provisions:

“(1) The transmission charges and operating charges payable by the persons allowed short-

term open access shall be collected by the nodal agency, except for transmission charges for

state network and operating charges for State Load Despatch Centre in the case of the

collective transaction.

(2) The transmission charges collected by the nodal agency for use of the transmission

system other than State network, for both bilateral and collective transaction shall be given

to the CTU for further disbursement to long-term customers in accordance to Central

Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses)

Regulations, 2010, and the approved detailed procedure there under for Billing, Collection

and Disbursement.

(4) The transmission charges collected for use of the transmission system other than State

network for a bilateral or collective transaction for each point of injection and each point of

drawal shall be disbursed by the CTU after adjusting against the charges for Long Term

Access without identified beneficiaries in the same region in accordance with detailed

procedure for Billing, Collection and Disbursement in the following manner, namely-

(a) Central Transmission Utility: 25%

(b) Long-term customers of the synchronously connected grid: 75%

(4) The transmission charges for use of State network shall be disbursed to the State

Transmission Utility concerned.

(5) In case a State utility is the short-term customer, the operating charges and the

transmission charges collected by the nodal agency shall not include the charges for use of

the State network and operating charges for the State Load Dispatch Centre.”

Modifications as perpara 7.3(b) & (c) of BCD procedures:


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“(b) For STOA, DIC shall have to pay applicable transmission charges to the RLDC/NLDC at

the time of application. The payment made for the STOA charges for varying quantum and

varying duration with respect to (i) bilateral transactions to the region of LTA granted and

(ii) all collective transactions, shall be credited to that DIC in the next month billing subject

to the upper limit of the amount paid as LTA charges after accounting for the MTOA

charges, if any, as per 7.2 (b) above.

Provided that the STOA is in the direction of the targeted regions mentioned in the LTA

granted to the DIC by the CTU. If the STOA is other than the targeted regions mentioned in

the LTA, then such STOA, PoC charges shall not be adjusted against the LTA granted by the

CTU and a separate applicable PoC charges shall have to be paid by the DIC.

Provided that this adjustment shall not be done for collective transaction and bilateral

transactions done through portfolio trader.

(c) For STOA transactions not qualifying for aforementioned credit, the STOA charges after

disbursing 25% of such transmission charges to the CTU in accordance with the CERC (Open

Access) in inter-State Transmission Regulation 2008 and amendment thereof, shall be

adjusted with respect to the paying DICs (for the respective applicable month) by the next

30 days of receipt of such payments.”

Further modifications as per amendment to BCD procedures Dtd. 15th

June,2011:

9. Para 7.3 (b) of the Procedure has further been modified through para 7 of the order of

the Commission dated 15.6.2011 which is reproduced below:

“(b) For STOA, DIC shall have to pay applicable transmission charges to the RLDC/NLDC at

the time of application. The payment made for the STOA charges for the quantum with

respect to bilateral transactions upto the LTA for the specific Region of LTA granted without

identified beneficiaries,, shall be credited to that DIC in the next month billing after

accounting for the MTOA charges, if any, as per 7.2 (b) above.

Provided that the STOA is in the direction of the targeted regions mentioned in the LTA

granted to the DIC by the CTU. If the STOA is other than the targeted regions mentioned in

the LTA, then such STOA, PoC charges shall not be adjusted against the LTA granted by the

CTU and a separate applicable PoC charges shall have to be paid by the DIC.

Provided that this adjustment shall not be done for bilateral transactions done through

portfolio trader.”

34[Short-term Open Access Not To Be Granted

25A. When so directed by the Commission, the National Load Despatch Centre or the

Regional Load Despatch Centre, as the case may be, shall not grant short-term open

access to the entities and associates of such entities, who consistently and willfully

default in payment of Unscheduled Interchange charges, transmission charges, reactive


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energy charges, congestion charges and fee and charges for National Load Despatch

Centre or Regional Load Despatch Centre including the charges for the Unified Load

Despatch and Communication Scheme .]

Redressal Mechanism

26. 35[All disputes arising under these regulations shall be decided by the Commission

based on an application made by the person aggrieved.]

36[Information System – National Load Despatch Centre and Regional Load Despatch

Centres]

27. National Load Despatch Centre and each Regional Load Despatch Centre shall post the

following information on their websites in a separate web-page titled “Open access

information”:

(a) These regulations;

(b) The detailed procedure;

(c) A list of bilateral transactions accepted by the nodal agency, to be displayed till the end

of the month in which transactions are scheduled, indicating:

(i) Name of customers;

(ii) Period of the 37[short-term open access] granted (start date and end date);

(iii) Point or points of injection;

(iv) Point or points of drawal;

(v) Transmission systems used (in terms of regions and States);

(vi) Accepted schedule (MW) with start time and end time;

Note

The status report shall be updated daily.

(d) Information regarding usage of the inter-regional links.

(e) The information regarding average regional energy losses for the previous 52 weeks.

(f) Transmission charges and applicable transmission losses for various State networks as

informed by the State utilities concerned.

(g) The list of 38[short-term open access] applications for advance scheduling received as

the nodal agency which have not been accepted, along with reasons for denial, to be

displayed till one month after the scheduling period.

39[Information System – State Load Despatch Centres

27A. Each State Load Despatch Centre, shall within 60 days of coming into force of these

regulations, develop its website and post the following information on separate web-page

titled “information on Inter-State Open Access”:

(a) List of bilateral transactions for which concurrence has been granted and list of entities

to whom concurrence or “no objection” or prior standing clearance, as the case may be, has


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been granted till the end of the month in which such concurrence or no objection or prior

standing clearance has been granted,indicating:

(i) Name of customer;

(ii) Period of concurrence or “no objection” or standing clearance, as the case may be, (start

date and end date);

(iii) Point or points of injection and drawal,; and

(iv) Accepted schedule (MW).

Note

The status report shall be updated daily.

(b) Average transmission losses for the State network for the immediately preceding 52

weeks;

(c) Applicable transmission charges and transmission losses for the State network;

(d) List of applications where concurrence or “no objection” or standing clearance, as the

case may be, was not granted, along with reasons for refusal, to be displayed till one month

after the scheduling period given in the application;

and

(e) A list of applications pending for decision.]

Savings and Repeal

28. (1) The provisions of the Central Electricity Regulatory Commission (Open Access in

inter-State Transmission) Regulations, 2004 shall not apply to the 40[short-term open

access] customers whose applications are processed under these regulations.

(2) The provisions relating to long-term customers as contained in the Central Electricity

Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2004 shall

continue to apply till Commission notifies separate regulations covering aspects relating to

long-term customers.

(3) The provisions relating to short-term open access as contained in the Central Electricity

Regulatory Commission (Open Access in inter-StateTransmission) Regulations, 2004 shall

stand repealed on 1.4.2008

The Central Electricity Regulatory Commission (Open Access in inter-State Transmission)

Regulations, 2008 were published in Part III, Section 4 No. 10 of the Gazette of India

(Extraordinary) dated 7.2.2008 and amended vide Central Electricity Regulatory Commission

(Open Access in inter-State Transmission)(Amendment) Regulations, 2009 published in Part

III, Section 4 No. 86 of the Gazette of India (Extraordinary) dated 29.5.2009 and

Corrigendum dated 10.6.2009

All clauses tagged with numbers are either Inserted/substituted vide Central Electricity

Regulatory Commission (Open Access in inter-State Transmission) (Amendment) Regulations

2009, published in the Gazette of India (Extraordinary) Part III, Section 4 (No.86) on

29.5.2009 unless where specifically mentioned otherwise

2.2] Important Addendums extracted from the procedures:


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PROCEDURE FOR ADVANCE SCHEDULING OF BILATERAL TRANSACTION

2 Submission of Application

2.1 Before issuing approval, RLDC will check if connectivity with CTU/ ISTS or STU system (as

the case may be) is established, necessary metering, protection, communication are in

place, transfer capability upto the CTU network for power flow of the quantum of

injection/drawal applied for is available on the date of application and whether the

applicant has undertaken to abide by the Central Electricity Authority (Technical Standards

for Connectivity to the Grid) Regulations, 2007. A declaration to this effect will also be

submitted by the new regional entities along-with application.

The application submitted by new regional entities would be processed only if connectivity

with CTU/ ISTS or STU system (as the case may be) is established, necessary metering,

protection, communication are in place, transfer capability upto the CTU network for power

flow of the quantum of injection/drawal applied for is available on the date of application

and that the applicant has undertaken to abide by the Central Electricity Authority

(Technical Standards for Connectivity to the Grid) Regulations, 2007. A declaration to this

effect will also be submitted by the new regional entities along-with application.

Methodology for Advance scheduling

5.1. An Application for Advance Scheduling for a Bilateral Transaction may be submitted to

the nodal RLDC up to the fourth month, considering the month in which an Application is

made being the first month.

5.2. A separate Application shall be made for each month and for each transaction in a

month in a suitable cover marked “Application for Short-Term Open Access - Advance

Scheduling for - <<Month-Year’s name>>”.

5.3. (a) An Application for inter-State scheduling during the fourth month shall be made up

to the last day of the first month.

(b) An Application for inter-State scheduling during the third month shall be made up to the

five (5) days prior to the close of the first month.

(c) An Application for inter-State scheduling in the second month shall be made up to the

ten (10) days prior to the close of the first month.

5.4. All the Applications received up to 17:30 Hrs on the last day as mentioned above shall

be taken up together for consideration. Applications received after prescribed time shall not

be considered.

5.5. While processing the Applications, the Nodal RLDC shall seek the concurrence of each of

the other RLDCs involved in the transaction by 12:00 Hrs. on next day of the applicable last

date for submission of Application.

5.6. The other RLDCs shall give their concurrence/denial latest by 20:00 Hrs on the same day

on which request for concurrence is sent by the nodal RLDC.

5.7. In case of perceived congestion in transmission corridor, nodal RLDC on next day (i.e.

2nd day after the applicable last date for submission of Application) will inform the

concerned applicant(s) as per enclosed format [FORMAT-IV: “Congestion Information-


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Advance Scheduling”] latest by 12:00 Hrs. By next day (i.e.; 3rd day after applicable last date

for submission of Application) latest by 11:00 Hrs, the Applicants must inform the nodal

RLDC as per enclosed format [FORMAT-V: “Request for Revision of Schedule- Due to

Congestion”], the reduced request for Scheduling during the period of Congestion or opt for

Scheduling only for the duration when no congestion is anticipated or opt for Scheduling

through the alternate route. In case of non-receipt of revised request

in time, it shall be presumed that the Applicant is not interested in revising it and nodal

RLDC shall process the Application accordingly.

5.8. In case, the nodal RLDC still anticipates Congestion, it may invite electronic bids for

advance scheduling on 4th day after applicable last date for submission of Application.

5.9. The nodal RLDC shall convey its acceptance or otherwise to the Applicant in five days

from the last date of submission, as per enclosed format [FORMATVI: “Acceptance for

Scheduling”]. In case, the nodal RLDC rejects an application ,it shall convey its reasons to the

Applicant in writing

6. e-BIDDING PROCEDURE.

6.1. Bids shall be invited, from the concerned Applicants, for only such period during which

congestion is expected to occur and for the Regional transmission system or inter-Regional

corridor, whichever is expected to get over stressed.

6.2. The decision of the nodal RLDC in respect of an expected congestion shall be final and

binding.

6.3. Any Applicant intending to participate in bidding for Short-Term Open Access shall

register and obtain the “User ID” and initial “Password” in advance from the RLDC for its

Authorized User(s). The “Registered Users” will be issued a system generated “User ID” and

initial “Password’ by RLDC to enable them to submit their ‘Bid’ electronically. Upon receipt

of the User Id and initial password, the User shall immediately change the password. It shall

be the responsibility of such Applicant to maintain its confidentiality/security and to prevent

its misuse.

6.4. The Applicants shall submit their ‘Bid’ electronically through the web site of the CTU/

RLDCs. Only the Applicants, through their “Registered Users”, shall be entitled to submit a

Bid.

6.5. The Bids shall be accepted up to the “bid closing time” as indicated on the website of

CTU/RLDCs, designated for e-bidding. Modification / amendment to a bid, once submitted,

including submission of a second or subsequent bid by an Applicant, shall not be

entertained. During the bidding period, the bidder cannot view the bids submitted by

bidders except his own.

6.6. In case the Applicant does not participate in the e-bidding process, his Application shall

be considered as withdrawn.

6.7. Bidding process and the Approval of the Schedules of the bidders shall be as per

following:


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• The bid price shall be in addition to the Transmission Charges for the Inter-State

Transmission System for Bilateral Transactions as specified in the Para 16 of the Regulations.

• The Bidder shall quote price in terms of Rs./MWh in multiples of 10. The minimum price a

bidder may quote is Rs. 10/MWh.

• Approval of Short-Term Open Access for Advance Scheduling will be accorded in the

decreasing order of price quoted.

Procedure for Scheduling of Bilateral Transaction Page 6 of 13

• In case of equal price quoted by two or more successful bidders, the approval for

scheduling shall be made pro-rata to the scheduling request sought by them.

• The Applicant, which gets approval for scheduling less than the

scheduling request sought by him, shall pay the charges quoted by him. The Applicant

getting approval for scheduling equal to the scheduling request sought by him shall pay the

charges quoted by the last Applicant getting approval of its full scheduling request.

7. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION

ON “FIRST-COME-FIRST-SERVED” BASIS

7.1. An Application shall be submitted to the nodal RLDC in a cover marked “Application for

scheduling on - First-come-first-served basis”.

7.2. Application received under the following categories shall be treated as “First-Come-

First-Served” application:-

i. Application received under “First Come First Served” category for Short-Term Open Access

shall be considered only when transactions are commencing and terminating in the same

calendar month.

ii. Application for scheduling a Bilateral Transaction which is commencing in the same

month in which Application is made, provided that such Application is received at least four

(4) days in advance from the date of commencement of the Bilateral Transaction. All such

Application shall be processed and decided within three days of their receipt.

iii. Application received during the last ten (10) days of the first month, for scheduling of

transactions in the second month. However,Applications received up to five (5) days prior to

the end of the month shall be processed only after completing the process for Advance

Scheduling of Bilateral Transactions for the second month.

7.3 All Applications received by the Nodal RLDC in a day up to 17:30 hrs shall be considered

together for processing and shall have same priority. Applications received by the nodal

RLDC after 17:30 hrs of a day shall be treated as having been received on next day.

7.4 Pro-rata scheduling acceptance shall be given in case scheduling requests of the

Applicants is for more than the margins available.

8. PROCEDURE FOR SCHEDULING OF DAY-AHEAD BILATERAL

TRANSACTION


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8.1. Applications received within three days prior to the date of scheduling and up to 15:00

Hrs. of the day immediately proceeding the day of scheduling shall be treated as having

been received together for processing and shall have same priority.

8.2. Applications for Day Ahead transactions shall be processed only after processing of the

Collective Transactions of the Power Exchange(s).

8.3. Pro-rata scheduling acceptance shall be given in case scheduling requests of the


9. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION

IN A CONTINGENCY

9.1. In the event of a contingency, the buyer or in its behalf, a trader may locate, and the

power exchange may offer its platform to locate, a source of power to meet short-term

contingency requirement and make an Application to the Nodal RLDC.

9.2. Nodal RLDC shall accept such Application only after 1500 hrs of the day immediately

preceding the day of scheduling.

9.3. Nodal RLDC shall take steps to incorporate such Bilateral Transactions in Day Ahead

schedules/Same -Day schedules, as the case may be. In case of Same Day, the transaction

shall be scheduled from the 6th time block, counting the block in which acceptance is

accorded as the first time block.

9.4. Applications received by 1800 Hrs under the contingency category for scheduling of

bilateral transactions on the next day shall be taken up together for processing. Applications

received after 1800 Hrs under the contingency category for scheduling of bilateral

transactions on the next day and those applications received on the same day shall be

processed on a first come first serve basis.

9.5. Pro-rata scheduling acceptance shall be given in case scheduling requests of the


10. INCORPORATION OF BILATERAL TRANSACTIONS IN DAILY SCHEDULES BY THE RLDCs

10.4. While finalizing the net drawl schedule / net injection schedule of Entities, each

transaction will have a resolution of 0.01 MW at each State/inter-Regional boundaries.

11. REVISON OF SCHEDULE

11.1. The Short-Term Open Access Schedules accepted by the Nodal RLDCs in case of

“Advance Scheduling” or “First-Cum-First Served basis” may be cancelled or revised

downwards by the Applicant by giving minimum two (2) days notice. The notice period shall

be excluding the day on which notice is served and the day from which revised schedules

are to be implemented.

11.2. The accepted schedules for Day-Ahead transactions and transactions in a Contingency

shall not be revised or cancelled.

11.3 Example of downward revision:


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Say an Applicant has been scheduled for 10 days from 21st day of a month to 30th day of a

month for 100 MW on round the clock basis (i.e. for 2400 MWh per day). If this Applicant,

on or before 18th day of that month, submits request for revision of schedule to 50MW on

round the clock basis (i.e. 1200 MWh per day), the revised schedule will get implemented

from the beginning of the transactions (i.e. 21st day of the month). The Applicant shall pay

the Transmission Charges for 2400 MWh per day for the period from 21st to 22nd day of the

month. Whereas for the period from 23rd day to 30th day of the month, Transmission

Charges shall be payable for 1200MWh per day.

However, if the Applicant requests for such revision on 20th day of the month, his request

will be implemented from 23rd day of the month. He shall pay Transmission charges for

2400 MWh per day for 2 days i.e. from 23rd to 24th day of the month and for the remaining

period he shall pay the Transmission Charges based on 1200MWh per day.

A detailed example of downward revision is depicted in Sec.2.4

11.4. The margins becoming available as a result of such revision or cancellation shall be

available for scheduling to any other Applicant in accordance with relevant provisions of

Regulations on Open Access.

12. CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS

12.1. Bilateral Transactions shall be reduced or cancelled by the Regional Load Despatch

Centre, if the Central Government allocates power from the Central Generating Station or

Stations in a Region to a person in another Region and such allocation, in the opinion of the

Regional Load Despatch Centre, cannot otherwise be implemented due to Congestion in the

inter-Regional corridor. In the event of reduction or cancellation of already accepted

schedules of Bilateral Transactions, the Applicant shall be suitably intimated by the RLDC.

12.2. When because of transmission constraint or to maintain grid security as decided by

RLDC, it becomes necessary to curtail power flow on a transmission corridor, the

transactions already scheduled, would be curtailed in the manner, which in the opinion of

RLDC, would relieve transmission constraints/ enhance grid security. Subject to the

provisions of the Grid Code, while cancellation or curtailment of any transaction, among

short-term, medium term and long-term transactions, short-term transactions shall be

cancelled or curtailed first, followed by medium term and thereafter long-term transactions.

Short-Term Open Access Bilateral Transactions would be curtailed first followed by the

Collective Transactions.

12.3. In case of transmission constraint or otherwise when Long Term Customer’s power

from one Region to another needs to be re-routed through the third Procedure for

Scheduling of Bilateral Transaction Page 10 of 13 Region, RLDC shall allow such re-routing to

the extent of the surplus margin available without curtailing the existing Long-Term,

Medium Term and Short-Term Open Access transactions.

12.4. In case of curtailment of the accepted schedules for any particular day for the reasons

of transmission constraints or due to allocation of power from Central Generating Station

from one Region to the person in other Region, the Transmission Charges for that day shall


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be payable on pro-rata basis in accordance with the transactions finally scheduled. Provided

that the Operating Charges shall not be revised in case of curtailment.

13. COMMERCIAL CONDITIONS FOR BILATERAL TRANSACTION

The following commercial conditions shall apply for the Bilateral Transaction:

13.1. TERMS OF PAYMENT

13.1.1. All payments associated with Bilateral Transaction shall be made by the Applicant to

the Nodal RLDC.

13.1.2. The Applicant shall make the following payment to the Nodal RLDC within three

working days from the date of acceptance of Bilateral Transactions. The charges for

scheduling of Bilateral Transactions will be worked out on the basis of total MWh approved

at the point of injection.

a) Application Fees (as per Para 7 of Regulation)

An Application made for each Bilateral Transaction shall be accompanied by a non-

refundable fee of Rupees five thousand (Rs.5000/-) only. Provided that the fee for Bilateral

Transaction on the day of the Application or on the day immediately following the day of

the Application may be deposited within three working days of submission of the

Application.

b) Transmission charges

Full amount for the entire period of Bilateral Transaction, in respect of the

following:

1. Regional Transmission systems involved

2. STU/SEB/transmission licensees involved

c) Operating charges (as per Regulation 17)

Operating Charges at the rate of Rs.2000/- per day or part of the day of each for the entire

period of Bilateral Transaction in respect of the following:

1. Each RLDC involved

2. Each SLDC involved

Transmission charges shall be applicable as per the rate specified under Central Electricity

Regulatory Commission(Sharing of Inter State Transmission Charges and Losses) Regulations

2010 and relevant CERC orders.

The methodology of application of transmission charges are detailed in Section 2.5

13.1.4. The Transmission charges for the use of the State network shall be in Rs/MWh, as

determined by the respective State Commission and the same shall be intimated to RLDCs

by concerned STU. Provided that in case the State Commission has not determined the

Transmission charges in Rs./MWh (or the STU has not intimated the charges in Rs./MWh),

the charges for use of the respective State network shall be payable at the rate of

Rs.80/MWh for the energy approved

13.1.5. In case a State utility is the Buyer/Seller, the Operating Charges and the Transmission

Charges shall not include the charges for that State network and the Operating Charges for


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that State Load Dispatch Center. A certificate in this regard from the concerned

STU(s)/SLDCs shall be submitted by the Applicant.

14. DEFAULT IN PAYMENT OF SHORT-TERM OPEN ACCESS CHARGES

14.1. In case of default in payment of the Application fee or the charges specified under the

Regulations specified by CERC, the nodal RLDC, at its discretion may not schedule the

transaction or may cancel the scheduling of already scheduled transaction or may not

entertain any Application of such Applicant in future until such time the default is cured.

14.2. The Applicant committing default in payment shall pay the simple interest at the rate

of 0.04 % for each day of default from the Due Date of Payment.

14.3. In case a payment made by the Applicant through cheque has been dishonored, the

Applicant shall immediately pay the amount due by demand draft or electronic transfer and

no further cheque payment will be accepted from that Applicant for next three (3) months.

15. DISBURSAL OF PAYMENT

15.2. The Transmission Charges for use of State network and Operating Charges for SLDCs

shall be disbursed to the State Transmission Utility/SLDC concerned, after receiving the

same from the Applicants.

15.4. Transmission charges collected by the Nodal RLDC for use of the transmission system

other than that of the State network shall be transferred to the CTU for disbursement in

accordance with the Approved Detailed Procedure for Billing, Collection and Disbursement

under Central Electricity Regulatory Commission (Sharing of Inter State Transmission

Charges and Losses) Regulations 2010 andrelevant CERC orders.

[The methodology for the same has been detailed in the consolidated regulations]

15.5. In case of refunds arising due to curtailment/revision of transactions during the

previous month, the same shall also be disbursed to the concerned Applicants by 15th day

of the current month.

15.6. Nodal RLDC does not have any responsibility towards non-payment as well as

dishonoring of cheque(s) submitted by the Applicants. The amounts actually collected by

RLDCs shall only be disbursed.

16. GENERAL CONDITIONS

16.1. The Entities which are making Application for the first time or intend to make, must

submit the “One- Time” information as per enclosed format. [FORMATVIII: “Registration

Form] to the concerned nodal RLDC. In case of any change in the existing information, the

same shall be intimated to the concerned nodal RLDC.

16.2. The Application for Bilateral Transactions can be submitted through Post/fax.

16.3. Any amendment/modification to an existing Application, except for reasons

specifically mentioned in the Procedure, shall be treated as a fresh Application.


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16.4. The Applications of the Applicants, who have not been accorded the Acceptance for

Scheduling of Bilateral Transactions, shall stand disposed off with suitable intimation to the

concerned Applicant(s).

16.5. All costs/expenses/charges associated with the Application, including Bank Draft, shall

be borne by the Applicant.

16.6. An incomplete/vague Application, and an Application not found to be in conformity

with these Procedures and Regulations, shall be summarily rejected.

16.7. None of charges payable by Applicant(s) and/or any other Entities involved in the

transaction shall be adjusted by them against any other payments/charges.

16.8. The Applicant shall abide by the provisions of The Electricity Act, 2003, Indian

Electricity Grid Code and CERC Regulations, as amended from time to time.

2.3] Various formats under STOA procedures

The various formats(eight Nos.) under the bilateral procedures are depicted below:


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Format –II A � Affidavit by Applicant in case of non-concurrance by SLDCs


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2.4] Explanatory memorandum to the Regulations & procedures with examples:

The categories and applicable timelines for the same are indicated below:


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Example- Calculation of MWh in case of downward revision

R0� REVISION 0 R1� REVISION1 App. Date � application Date

Scheduled � MWh scheduled Billed � MWh Billed

[The calculation methodology is explained in the consolidated regulations]

2.5] Application of POC transmission charges methodology for STOA transactions

R0From date To Date From time To Time MW MWh

20-Mar-11 31-Mar-11 00:00 24:00 100 28800.00Scheduled MWh28800.00Billed MWh 28800.0012 days

APPLICATION FOR REVISION ON 17TH MarchR1 App. Date : 17thFrom date To Date From time To Time MW MWh

20-Mar-11 31-Mar-11 00:00 24:00 50 14400.00Scheduled MWh14400.00Billed MWh 16800.0012 days

additional charge =(100-50)*24*2 for 20th & 21st Ma rch 2400.00

APPLICATION FOR REVISION ON 2OTH MarchR1 App. Date : 20thFrom date To Date From time To Time MW MWh

20-Mar-11 22-Mar-11 00:00 24:00 100 7200.0023-03-2011 31-03-2011 00:00 24:00 50 10800.00

Scheduled MWh18000.00Billed MWh 20400.0012 days

additional charge =(100-50)*24*2 for 23rd & 24th Ma rch 2400.00

Operating charges

Operating charges

INITIAL APPLICATION

Operating charges


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Calculation of Nodal POCs

Nodal POCs are zoned to form zonal POCs applicable to various entities to be scheduled.

For transaction from an area X to area Y the transmission charges applicable would be =

contracted MWh x (POC injection of X + POC withdrawal of Y). STU charges if applicable

would be payable extra.

The POCS are slabbed to fall into High, Average and Low categories.

Slab rates table-

Slab NEW Grid SR Grid

POC charges

(Rs./MW/Month)

POC charges

(paise/unit)

POC charges

(Rs./MW/Month)

POC charges

(paise/unit)

High 1,00,000 14 1,10,000 15

Average 85,000 12 95,000 13

Low 70,000 10 80,000 11

Previous to implementation of CERC(Sharing of ISTS charges & Losses),2010 Regulations

there were only three stamp rates viz, 80, 160, 240 Rs/MWh.

With above stamp rates effective from 01.07.2011 there are a total of 6 POC rates with

combinations of any two from thses six rates possible. Again we can also have pairing of

same POC rates. Accordingly, total No. of combinations possible(not permutations as order

does not matter) : NC2 + N = N(N+1)/2 [considering N additional cases for same POC injection/withdrawal

rates]

Thus increase in total number of possible stamp rates for various transactions have risen

from 3 to 21.


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Samples of approved POC charges results for NEW Grid and SR Grid are given below:


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2.6] Application of POC losses methodology for STOA transactions:

Nodal POC losses are obtained from Webnetuse software. Subsequently, zoning is done to

obtain zonal losses for each entity to be scheduled.

The POC losses are applied as follows:

Assume POC injection loss of X = a% & POC withdrawal loss of B = y%

For 100MW injection transaction from X to Y:

Upto 30th September,2011 losses to be absorbed by Buyers only

Point of contract �Sellers periphery

Injection schedule of X = -100Mw

Withdrawal schedule of Y = 100*(1-a/100)*(1-b/100) rounded off to 2 decimals

After 1st October,2011 losses to be apportioned to both buyer & Seller

Point of contract �Regional periphery where entity located

Injection schedule of X = -100/(1-a/100) rounded to 2 decimals

Withdrawal schedule of Y = 100*(1-b/100) rounded to 2 decimals

Losses are classified as Tier-I , II , III according to Low, Average or High slab.

Example of loss table as uploaded to websites:


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Similiarly slabs for all other regions would also be indicated.

2.6] Examples of POC charges & losses calculation

Path followed for the contract:

Tata Steel�DVC�ER�WR�NR�DTL�NDPL


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Details of charges payable for the contract:


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Format of Acceptance:

Nodal RLDC : NRLDC

Acceptance No. : ERLDC/BILAT/2011-12/ 556 F Date : 06-09-2011

Ref : Original Application No. : TPTCL/OA/2011-12/3072 Date : 06-09-2011

1 Name of applicant : TPTCL

2 Name of Injecting Entity / State / Region : TATA STEEL / DVC/ ER

3 Name of Drawee Entity / State / Region : NDPL / DTL / NR

4 Wheeling Region(s) : NIL5 Open Access Scheduling Accepted :

From To From To Requested Accepted00:00 24:00 100 100 12000

00000

12000.006 Bidding Details :

From To From To

7 Payment Schedule : Payment Due Date : 10-09-2011i) Transmission Charges

(a) Intra-State

(b) Inter-State(POC)

ii) Operating Charges

iii) Non Refundable application fee ( if not paid earlier )

8 A curtailed acceptance is being granted on account of Nil9 This acceptance is subject to provisioning of CERC (Open Access in inter-State Transmission) Regulations,2008.

POSOCO Portion : 25000 OTHERS : 4362200To: 1. Applicant: TPTCL, Mahalxmi Bldg, Lower parel, Mumbai--400013

Fax :022-66310849 2. NRLDC, New Delhi 3. SLDCs: SLDC, DVC 4. SLDCs: SLDC, DTL, New Delhi, Th' NRLDC Desig nation :

POC Delhi Withdrawal 100 12000 1200000

पूव� �े�ीय भार ेषण के��

FORMAT - VIOPEN ACCESS (BILATERAL TRANSACTION) - ACCEPTANCE FO R SCHEDULING

4387200Grand Total ( I + ii + iii )

10000100001000010000

Name :

0Total of (ii) : 40000

5000

5555

Signature :

SLDC, DVCSLDC DELHI

ERLDCNRLDC

2000200020002000

4342200.0Total of (i) :

Rate (Rs./ Day) Number of Days Total ( Rs )

1200012000

12000

960000502200

1680000

0

Total ( Rs )

8041.85

140

STU / DVCSTU / Delhi

POC DVC injection

Bidding

Date Hours Schedule (MW)

Transmission System Rate (Rs./Mwh) Mwh

15-Jun-2011 19-Jun-2011

Transmission SystemDate

Registration Code : ER0000TPTC

Hours Applicable Bid Rate( Rs. / Mwh )

Route Mwh

Total Mwh

ER , WR, NR


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Calculation of Losses:

Methodology of loss calculation(Upto 30th

September,2011)

Contract value� 100MW

Transaction� Tata steel- DVC - ER – WR – NR – DTL- NDPL

DVC STU loss� 3% DVC Inj POC loss� 1.5%

Delhi withdrawal POC loss� 2% DTL STU loss� 1.5%

TATA

STEEL

NDPL

100MW

CONTRACT

TATA

STEEL BDY

97MW

DVC BDY

93.64MW

DTL BDY

92.24MW

NDPL BDY

ER

WR

NR

95.55MW

REGIONAL

BDY

RLDCs need to show schedules

only upto requisite control area

peripheryHence schedule values only upto DVC boundary &

DTL boundary need be shown by

RLDCs. Accordingly, all

STU losses are not required. [Values

are shown for understanding

only].

Methodology of Loss calculation(W.e.f 1st

September, 2011)

Contract value� 100MW

Transaction� Tata steel- DVC - ER – WR – NR – DTL- NDPL

DVC STU loss� 3% DVC Inj POC loss� 1.5%

Delhi withdrawal POC loss� 2% DTL STU loss� 1.5%

TATA

STEEL

NDPL

104.66MW

TATA

STEEL BDY

101.52MW

DVC BDY

98MW

DTL BDY

96.53MW

NDPL BDY

ER

WR

NR

100MW

CONTRACT

RLDCs need to show schedules

only upto requisite control area

peripheryHence schedule values only upto DVC boundary &

DTL boundary need be shown by

RLDCs. Accordingly, STU

losses are not required w.e.f

01/10/11 [Values are shown for understanding

only].


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N.B States would need to adjust for intra-state losses by applying STU losses as applicable

vide SERC orders to arrive at schedules for embedded customers. RLDCs to show schedules

upto entity periphery only


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Chapter-3

Grant of Connectivity, Long Term and medium Term Open Access Regulations

and procedures

3.1] Evolution of the concept of Connectivity, Long Term and medium Term Open Access

The Open Access regulations, 2004 first introduced the concept of Long Term open Access.

At that time there were a limited number of IPPs in operation and market was mostly

dominated by power plants under CPSE and State Govt. undertakings. Subsequently, various

amendments have been carried out to the above regulations. Parallely a large number of

IPPs under private sector had also started coming up with targeted PPAs to load centers in

NR and WR. Further, certain IPPs came up with the concept of ‘merchant Capacity’ wherein

the capacity was not tied to any PPAs. Similiarly, some IPPs were desirous of selling for time

durations less than the time stipulated for LT PPAs. These IPPs targeted to change their

customers within a period of even less than a year under PPAs. Again the number of such

IPPs planning to come up were increasing at a remarkable rate. Some IPPs wanted to trade

their merchant capacity under Short Term and even UI. With the introduction of PXs the

merchant capacity had another alternate route. Recently, even Central Sector plants with

part merchant capacity amounting to 15% are coming up e.g. FSTPP-Stage-III. Again these

plants desired to connect mostly to ISTS systems for more flexibility and ease of trading

their power at profitable rates. Connectivity at any ISTS point needs study in terms of

increased Short circuit MVA levels at the point of connectivity and its vicinity and there is

also a need to also check that proper connectivity standards are followed in terms of

equipment, protection, metering, etc. Thus all these led to huge difficulties in integration of

the IPPs and plants with merchant capacities. It was realized that a more streamlined

procedure for handling of Open Access for these power plants were required. This lead to

the need for a proper procedure for Grant of connectivity and Long Term access. It was also

realized that another category of Access between Long Term and short Term was required.

This led to conceptualization of the CERC(Grant of connectivity, Long Term , Medium Term

Open Access) regulations, 2009 and also introduction of the concept of Medium Term open

Access.

3.2] CERC(Grant of Connectivity, Long-term Access and Medium-term Open Access in

inter-State Transmission and related matters) Regulations,2009[Consolidated with all

amndments uptil date]

2. Definitions

(1) In these regulations, unless the context otherwise requires:

(a) “Act” means the Electricity Act, 2003 (36 of 2003);

(b) “Applicant” means


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(i) a Generating station of installed capacity 250 MW and above, including a captive

generating plant of exportable capacity of 250 MW and above or a bulk consumer in respect

of grant of connectivity and

Sub clause 2(1) (b)(i) was substituted vide amendment Dtd. 3rd

September,2010 as follows:

(i) The following in respect grant of connectivity:

(a) A generating station with installed capacity of 250 MW and above, including a captive

generating plant of exportable capacity of 250 MW and above or;

(b) A Hydro Generating station or generating station using renewable source of energy, of

installed capacity between 50 MW and 250 MW.

(c) One of the Hydro Generating stations or generating stations using renewable sources of

energy, individually having less than 50 MW installed capacity, but collectively having an

aggregate installed capacity of 50MW and above, and acting on behalf of all these

generating stations, and seeking connection from CTU at a single connection point at the

pooling sub-station under CTU, termed as the lead generator, or;

(d) A bulk consumer.

(ii) a generating station including a captive generating plant, a consumer, an Electricity

Trader or a distribution licensee, in respect of long-term access or medium-term open

access , as the case may be;

(c) “Bulk consumer” means in respect of connectivity, any consumer who intends to avail

supply of a minimum load of 100 MW from the Inter-State Transmission System;

(d) “Commission” means the Central Electricity Regulatory Commission referred to in sub-

section (1) of section 76 of the Act;

(e) “Connectivity” for a generating station, including a captive generating plant, a bulk

consumer or an inter-State transmission licensee means the state of getting connected to

the inter-State transmission system;

(f) “consumer” means any consumer eligible to avail open access as specified by the State

Commission under sub-section (2) of section 42 of the Act;

(g) “day” means the day starting at 00.00 hours and ending at 24.00 hours;

(h) “detailed procedure” means the procedure issued by the Central Transmission Utility as

referred to in regulation 6 hereof;

(i) “Grid Code” means the Grid Code specified by the Commission under Clause (h) of sub-

section (1) of section 79 of the Act;

(j) “intra-State entity” means a person whose metering and energy accounting are done by

the State Load Despatch Centre or by any other authorized State utility;

(k) ‘interface meters’ means interface meters installed in accordance with the Central

Electricity Authority (Installation and Operation of Meters) Regulations, 2006, specified by

the Central Electricity Authority and amended from time to time;

(l) “long-term access” means the right to use the inter-State transmission system for a

period exceeding 12 years but not exceeding 25 years;


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(m) “long-term customer” means a person who has been granted long-term access and

includes a person who has been allocated central sector generation that is electricity supply

from a generating station owned or controlled by the Central Government;

(n) “medium-term open access” means the right to use the inter- State transmission system

for a period exceeding 3 months but not exceeding 3 years;

(o) “medium-term customer” means a person who has been granted medium-term open

access;

(p) “month” means a calendar month as per the British calendar;

(q) “nodal agency” means the Central Transmission Utility referred to in regulation 4 hereof;

(r) “regional entity” means a person whose metering and energy accounting are done at the

regional level;

(s) “short-term open access” has the meaning ascribed thereto in the Central Electricity

Regulatory Commission (Open Access in inter- State Transmission) Regulations, 2008;

(t) “State Commission” means the State Electricity Regulatory Commission constituted

under section 82 of the Act and includes the Joint Commission constituted under section 83

thereof;

(u) “State network” means the intra-State transmission system owned by the State

Transmission Utility, transmission licensee or the network of any other person who has

been granted licence by the State Commission to establish or operate distribution lines

within the State;

(v) ‘Stranded transmission capacity’ means the transmission capacity in the inter-State

transmission system which is likely to remain unutilized due to relinquishment of access

rights by a long-term customer in accordance with regulation 16.

(2) Words and expressions used in these regulations and not defined but defined in the Act

or the Grid Code or any other regulations specified by the Commission shall, unless the

context otherwise requires, have the meanings assigned to them under the Act or the Grid

Code or other regulations specified by the Commission, as the case may be.

GENERAL PROVISIONS

3. Scope

These regulations, after they come into force, shall apply to the grant of connectivity, long-

term access and medium-term open access, in respect of inter-State transmission system:

Provided that a generating station, including captive generating plant or a bulk consumer,

seeking connectivity to the inter-State transmission system cannot apply for long-term

access or medium-term open access without applying for connectivity:

Provided further that a person may apply for connectivity and long-term access or medium-

term open access simultaneously.

4. Nodal Agency

The nodal agency for grant of connectivity, long-term access and mediumterm open access

to the inter-State transmission system shall be the Central Transmission Utility.

5. Filing of Application


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Applications for grant of connectivity or long-term access or medium-term open access shall

be made to the nodal agency:

Provided that an application for connectivity is not required to be made by any transmission

licensee, since transmission system planning is carried out in a coordinated manner by the

Central Transmission Utility and the Central Electricity Authority;

Provided, however, that an inter-State transmission licensee other than Central

Transmission Utility, nevertheless, shall sign a connection agreement with the Central

Transmission Utility, as provided for in Clause (5) of regulation 8 of these Regulations.

6. Application fee

The application referred to in regulation 5 shall be accompanied by a nonrefundable

application fee specified hereunder, payable in the name and in the manner to be laid down

by the Central Transmission Utility in the detailed procedure:–

7. Timeframe for processing of application

CONNECTIVITY

8. Grant of Connectivity

(1) The application for connectivity shall contain details such as, proposed geographical

location of the applicant, quantum of power to be interchanged that is the quantum of


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power to be injected in the case of a generating station including a captive generating plant

and quantum of power to be drawn in the case of a bulk consumer, with the inter-State

transmission system and such other details as may be laid down by the Central Transmission

Utility in the detailed procedure:

Provided that in cases where once an application has been filed and thereafter there has

been any material change in the location of the applicant or change, by more than 100 MW

in the quantum of power to be interchanged with the inter-State transmission system, the

applicant shall make a fresh application, which shall be considered in accordance with these

regulations.

Cl.8(1) substituted vide amendment Dtd. 3rd

September,2010

(1) The application for connectivity shall contain details such as, proposed geographical

location of the applicant, quantum of power to be interchanged, that is the quantum of

power to be injected in the case of a generating station including a captive generating plant

and quantum of power to be drawn in the case of a bulk consumer, with the inter-State

transmission system and such other details as may be laid down by the Central Transmission

Utility in the detailed procedure;

Provided that where after filing of an application, there has been any material change in the

location of the applicant or change in the quantum of power to be interchanged with the

inter-State transmission system, by more than 100 MW in the case of applicant defined

under Regulation 2(1) (b)(i) (a) and 40% of the Installed capacity in the case of applicant

defined under Regulation 2(1) (b) (i) (b) and 40% of the aggregate Installed capacity in the

case of applicant defined under Regulation 2(1) (b)(i) (c), such an applicant shall make a

fresh application, which shall be considered in accordance with these regulations.

Provided further that the application by the applicant defined under Regulation 2(1) (b)(i) (c)

shall be considered by CTU only if all the generators, whose aggregate capacity is connected

at the single connection point, formalize a written agreement among themselves that the

lead generator shall act on behalf of all the generators to undertake all operational and

commercial responsibilities for all the collective generators connected at that point in

following the provisions of the Indian Electricity Grid Code and all other Regulations of the

Commission, such as grid security, scheduling and dispatch, collection and payment/

adjustment of Transmission charges, UI charges, congestion and other charges, etc., and

submit a copy of the agreement to the CTU, with the application of connectivity, along with

a copy to the respective RLDC in whose control area it is located.

Provided further that the CTU shall suitably incorporate the requirement of formal

agreement amongst such generators in the detailed procedure and Connection Agreement

signed with such lead generator.

(2) On receipt of the application, the nodal agency shall, in consultation and through

coordination with other agencies involved in inter-State transmission system to be used,

including State Transmission Utility, if the State network is likely to be used, process the

application and carry out the necessary interconnection study as specified in the Central

Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007.


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(3). While granting connectivity, the nodal agency shall specify the name of the sub-station

or pooling station or switchyard where connectivity is to be granted. In case connectivity is

to be granted by looping-in and looping-out of an existing or proposed line, the nodal

agency shall specify the point of connection and name of the line at which connectivity is to

be granted. The nodal agency shall indicate the broad design features of the dedicated

transmission line and the timeframe for completion of the dedicated transmission line.

(4) The applicant and all Inter-State Transmission Licensees including the Central

Transmission Utility shall comply with the provisions of Central Electricity Authority

(Technical Standards for Connectivity to the Grid) Regulations, 2007.

(5) The applicant or inter-State transmission licensee, as the case may be, shall sign a

connection agreement with the Central Transmission Utility or inter-State transmission

licensee owning the sub-station or pooling station or switchyard or the transmission line as

identified by the nodal agency where connectivity is being granted:

Provided that in case connectivity of a generating station, including captive generating plant

or bulk consumer is granted to the inter-State transmission system of an inter-State

transmission licensee other than the Central Transmission Utility, a tripartite agreement as

provided in the Central Electricity Authority (Technical Standards for Connectivity to the

Grid) Regulations, 2007 shall be signed between the applicant, the Central Transmission

Utility and such inter-State transmission licensee.

(6) The grant of connectivity shall not entitle an applicant to interchange any power with the

grid unless it obtains long-term access, medium-term open access or short-term open

access.

(7) A generating station, including captive generating plant which has been granted

connectivity to the grid shall be allowed to undertake testing including full load testing by

injecting its infirm power into the grid before being put into commercial operation, even

before availing any type of open access, after obtaining permission of the concerned

Regional Load Despatch Centre, which shall keep grid security in view while granting such

permission. This infirm power from a generating station or a unit thereof, other than those

based on non-conventional energy sources, the tariff of which is determined by the

Commission, will be governed by the Central Electricity Regulatory Commission (Terms and

Conditions of Tariff) Regulations, 2009. The power injected into the grid from other

generating stations as a result of this testing shall also be charged at UI rates.

(8) An applicant may be required by the Central Transmission Utility to construct a

dedicated line to the point of connection to enable connectivity to the grid:

Provided that a thermal generating station of 500 MW and above and a hydro generating

station of 250 MW and above, other than a captive generating plant, shall not be required

to construct a dedicated line to the point of connection and such stations shall be taken into

account for coordinated transmission planning by the Central Transmission Utility and

Central Electricity Authority.

Cl.8(8) substituted vide amendment Dtd. 3rd

September,2010


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Provided that a thermal generating station of 500 MW and above and a hydro generating

station or a generating station using renewable sources of energy of capacity of 250 MW

and above, other than a captive generating plant, shall not be required to construct a

dedicated transmission line to the point of connection and such station shall be taken into

account for coordinated transmission planning by the Central Transmission utility and

Central Electricity Authority”.

LONG-TERM AND MEDIUM-TERM OPEN ACCESS

9. Criteria for granting long-term access or medium-term open access

(1) Before awarding long-term access, the Central Transmission Utility shall have due regard

to the augmentation of inter-State transmission system proposed under the plans made by

the Central Electricity Authority.

(2) Medium-term open access shall be granted if the resultant power flow can be

accommodated in the existing transmission system or the transmission system under

execution:

Provided that no augmentation shall be carried out to the transmission system for the sole

purpose of granting medium-term open access:

Provided further that construction of a dedicated transmission line shall not be construed as

augmentation of the transmission system for the purpose of this regulation.

10. Relative priority

(1) Applications for long-term access or medium-term open access shall be processed on

first-come-first-served basis separately for each of the aforesaid types of access:

Provided that applications received during a month shall be construed to have arrived

concurrently;

Provided further that while processing applications for medium-term open access received

during a month, the application seeking access for a longer term shall have higher priority;

Provided also that in the case of applications for long-term access requiring planning or

augmentation of transmission system, such planning or augmentation, as the case may be,

shall be considered on 30th of June and 31st of December in each year in order to develop a

coordinated transmission plan, in accordance with the perspective transmission plans

developed by the Central Electricity Authority under section 73 of the Act;

Provided also that if an intra-State entity is applying for long-term access or medium-term

open access, concurrence of the State Load Despatch Centre shall be obtained in advance

and submitted along with the application to the nodal agency. The concurrence of the State

Load Despatch Centre shall be in such form as may be provided in the detailed procedure.

(2) Where necessary infrastructure required for energy metering and time-blockwise

accounting already exists and required transmission capacity in the State network is

available, the State Load Despatch Centre shall convey its concurrence to the applicant

within ten working days of receipt of the application.

(3) In case SLDC decides not to give concurrence, the same shall be communicated to the

applicant in writing, giving the reason for refusal within the above stipulated period.

11. Interface Meters


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(1) Interface meters shall be installed –

(a) by the Central Transmission Utility for and at the cost of the regional entities; and

(b) by the State Transmission Utility for and at the cost of the State entities.

(2) Interface meters for the regional entities shall be open for inspection by any person

authorized by the Central Transmission Utility and the Regional Load Despatch Centre.

(3) Interface meters for the intra-State entities shall be open for inspection by any person

authorized by the State Transmission Utility or the State Load Despatch Centre.

LONG-TERM ACCESS

12. Application for long-term access

(1) The application for grant of long-term access shall contain details such as name of the

entity or entities to whom electricity is proposed to be supplied or from whom electricity is

proposed to be procured along with the quantum of power and such other details as may be

laid down by the Central Transmission Utility in the detailed procedure:

Provided that in the case where augmentation of transmission system is required for

granting open access, if the quantum of power has not been firmed up in respect of the

person to whom electricity is to be supplied or the source from which electricity is to be

procured, the applicant shall indicate the quantum of power along with name of the

region(s) in which this electricity is proposed to be interchanged using the inter-State

transmission system;

Provided further that in case augmentation of transmission system is required, the applicant

shall have to bear the transmission charges for the same as per these regulations, even if

the source of supply or off-take is not identified;

Provided also that the exact source of supply or destination of off-take, as the case may be,

shall have to be firmed up and accordingly notified to the nodal agency at least 3 years prior

to the intended date of availing long-term access, or such time period estimated by Central

Transmission Utility for augmentation of the transmission system, whichever is lesser, to

facilitate such augmentation;

Provided also that in cases where there is any material change in location of the applicant or

change by more than 100 MW in the quantum of power to be interchanged using the inter-

State transmission system or change in the region from which electricity is to be procured or

to which supplied, a fresh application shall be made, which shall be considered in

accordance with these regulations.

(2) The applicant shall submit any other information sought by the nodal agency including

the basis for assessment of power to be interchanged using the inter-State transmission

system and power to be transmitted to or from various entities or regions to enable the

nodal agency to plan the inter-State transmission system in a holistic manner.

(3) The application shall be accompanied by a bank guarantee of Rs 10,000/- (ten thousand)

per MW of the total power to be transmitted. The bank guarantee shall be in favour of the

nodal agency, in the manner laid down under the detailed procedure.


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(4) The bank guarantee of Rs. 10,000 /- (ten thousand) per MW shall be kept valid and

subsisting till the execution of the long-term access agreement, in the case when

augmentation of transmission system is required, and till operationalization of long-term

access when augmentation of transmission system is not required.

(5) The bank guarantee may be encashed by the nodal agency, if the application is

withdrawn by the applicant or the long-term access rights are relinquished prior to the

operationalisation of such rights when augmentation of transmission system is not required.

(6) The aforesaid bank guarantee will stand discharged with the submission of bank

guarantee required to be given by the applicant to the Central Transmission Utility during

construction phase when augmentation of transmission system is required, in accordance

with the provisions in the detailed procedure.

13. System Studies by the Nodal Agency

(1) On receipt of the application, the nodal agency shall, in consultation and through



application and carry out the necessary system studies as expeditiously as possible so as to

ensure that the decision to grant long-term access is arrived at within the timeframe

specified in regulation 7:

Provided that in case the nodal agency faces any difficulty in the process of consultation or

coordination, it may approach the Commission for appropriate directions.

(2) Based on the system studies, the nodal agency shall specify the inter- State transmission

system that would be required to give long-term access. In case augmentation to the

existing inter-State transmission system is required, the same will be intimated to the

applicant.

(3) The Empowered Committee established in accordance with the ‘Tariff based

Competitive-bidding Guidelines for Transmission Service’ issued by the Central Government,

may identify one or more elements needed for augmentation of inter-State transmission

system to be developed through tariff based competitive bidding:

Provided that the agency identified to construct one or more elements needed for

augmentation of the inter-State transmission system for long-term access shall be eligible

for grant of transmission licence in accordance with the regulations specified by the

Commission from time to time and the guidelines for competitive bidding for transmission

issued by the Central Government.

14. Communication of Estimate of Transmission Charges, etc.

While granting long-term access, the nodal agency shall communicate to the applicant, the

date from which long-term access shall be granted and an estimate of the transmission

charges likely to be payable based on the prevailing costs, prices and methodology of

sharing of transmission charges specified by the Commission.


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15. Execution of Long-term Access Agreement

The applicant shall sign an agreement for long-term access with the Central Transmission

Utility in case long-term access is granted by the Central Transmission Utility, in accordance

with the provision as may be made in the detailed procedure. While seeking long-term

access to an inter-State transmission licensee, other than the Central Transmission Utility,

the applicant shall sign a tripartite long-term access agreement with the Central

Transmission Utility and the inter-State transmission licensee. The long–term access

agreement shall contain the date of commencement of long-term access, the point of

injection of power into the grid and point of drawal from the grid and the details of

dedicated transmission lines, if any, required. In case augmentation of transmission system

is required, the long-term access agreement shall contain the time line for construction of

the facilities of the applicant and the transmission licensee, the bank guarantee required to

be given by the applicant and other details in accordance with the detailed procedure.

16. Information to RLDC and SLDC

Immediately after grant of long-term access, the nodal agency shall inform the Regional

Load Despatch Centres and the State Load Despatch Centres concerned so that they can

consider the same while processing requests for grant of short-term open access, received

under Central Electricity Regulatory Commission (Open Access in inter-State transmission)

Regulations, 2008 as amended from time to time.

17. Renewal of Term for Long-term access

On the expiry of the period of long-term access, the long-term access shall stand extended

on a written request provided by the long-term customer in this regard to the Central

Transmission Utility mentioning the period for extension that is required:

Provided that such a written request shall be submitted by the longterm customer to the

Central Transmission Utility at least six months prior to the date of expiry of the long-term

access;

Provided further that in case no written request is received from the long-term customer

within the timeline specified above, the said long-term access shall stand withdrawn.

18. Relinquishment of access rights

(1) A long-term customer may relinquish the long-term access rights fully or partly before

the expiry of the full term of long-term access, by making payment of compensation for

stranded capacity as follows:-

(a) Long-term customer who has availed access rights for at least 12 years

(i) Notice of one (1) year – If such a customer submits an application to the Central

Transmission Utility at least 1 (one) year prior to the date from which such customer desires

to relinquish the access rights, there shall be no charges.

(ii) Notice of less than one (1) year – If such a customer submits an application to the Central

Transmission Utility at any time lesser than a period of 1 (one) year prior to the date from


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which such customer desires to relinquish the access rights, such customer shall pay an

amount equal to 66% of the estimated transmission charges (net present value) for the

stranded transmission capacity for the period falling short of a notice period of one (1) year.

(b) Long-term customer who has not availed access rights for at least 12 (twelve) years –

such customer shall pay an amount equal to 66% of the estimated transmission charges (net

present value) for the stranded transmission capacity for the period falling short of 12

(twelve) years of access rights:

Provided that such a customer shall submit an application to the Central Transmission Utility

at least 1 (one) year prior to the date from which such customer desires to relinquish the

access rights;

Provided further that in case a customer submits an application for relinquishment of long-

term access rights at any time at a notice period of less than one year, then such customer

shall pay an amount equal to 66% of the estimated transmission charges (net present value)

for the period falling short of a notice period of one (1) year, in addition to 66% of the

estimated transmission charges (net present value) for the stranded transmission capacity

for the period falling short of 12 (twelve) years of access rights.

(2) The discount rate that shall be applicable for computing the net present value as

referred to in sub-clause (a) and (b) of clause (1) above shall be the discount rate to be used

for bid evaluation in the Commission’s Notification issued from time to time in accordance

with the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power

by Distribution Licensees issued by the Ministry of Power.

(3) The compensation paid by the long-term customer for the stranded transmission

capacity shall be used for reducing transmission charges payable by other long-term

customers and medium-term customers in the year in which such compensation payment is

due in the ratio of transmission charges payable for that year by such longterm customers

and medium-term customers.

MEDIUM-TERM OPEN ACCESS

19. Application for Medium-term Open Access

(1) The application for grant of medium-term open access shall contain such details as may

be laid down under the detailed procedure and shall, in particular, include the point of

injection into the grid, point of drawal from the grid and the quantum of power for which

medium-term open access has been applied for.

(2) The start date of the medium-term open access shall not be earlier than 5 months and

not later than 1 year from the last day of the month in which application has been made.

20. System Studies by the Nodal Agency

On receipt of the application, the nodal agency shall, in consultation and through



application and carry out the necessary system studies as expeditiously as possible so as to


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ensure that the decision to grant or refuse medium-term open access is made within the

timeframe specified in regulation 7:

Provided that in case the nodal agency faces any difficulty in the process of consultation or

coordination, it may approach the Commission for appropriate directions.

21. Grant of Medium-term Open Access

(1) On being satisfied that the requirements specified under clause (2) of regulation 9 are

met, the nodal agency shall grant medium-term open access for the period stated in the

application:

Provided that for reasons to be stated in writing, the nodal agency may grant medium-term

open access for a period less than that sought for by the applicant;

Provided further that the applicant shall sign an agreement for mediumterm open access

with the Central Transmission Utility in case medium-term open access is granted by the

Central Transmission Utility, in accordance with the provision as may be made in the

detailed procedure. While seeking medium-term open access to an inter-State transmission

licensee, other than the Central Transmission Utility, the applicant shall sign a tripartite

mediumterm open access agreement with the Central Transmission Utility and the inter-

State transmission licensee. The medium–term open access agreement shall contain the

date of commencement and end of medium-term open access, the point of injection of

power into the grid and point of drawal from the grid, the details of dedicated transmission

lines required, if any, the bank guarantee required to be given by the applicant and other

details in accordance with the detailed procedure.

(2) Immediately after grant of medium-term open access, the nodal agency shall inform the

Regional Load Despatch Centres and the State Load Despatch Centres concerned so that

they can consider the same while processing requests for short- term open access received

under Central Electricity Regulatory Commission (Open Access in inter-State transmission)

Regulations, 2008 as amended from time to time.

22. Execution of Dedicated Transmission Line

Medium-term customer may arrange for execution of the dedicated transmission line at its

own risk and cost before the start date of the mediumterm open access.

23. No overriding preference

On the expiry of period of the medium-term open access, the medium-term customer shall

not be entitled to any overriding preference for renewal of the term.

24. Exit option for medium-term customers

A medium-term customer may relinquish rights, fully or partly, by giving at least 30 days

prior notice to the nodal agency:

Provided that the medium-term customer relinquishing its rights shall pay applicable

transmission charges for the period of relinquishment or 30 days which ever is lesser.


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CONDITIONS OF LONG-TERM ACCESS AND MEDIUM-TERM OPEN ACCESS

25. Curtailment

(1) When for the reason of transmission constraints or in the interest of grid security, it

becomes necessary to curtail power flow on a transmission corridor, the transactions

already scheduled may be curtailed by the Regional Load Despatch Centre.

(2) Subject to provisions of the Grid Code and any other regulation specified by the

Commission, the short-term customer shall be curtailed first followed by the medium-term

customers, which shall be followed by the longterm customers and amongst the customers

of a particular category, curtailment shall be carried out on pro rata basis.

26. Transmission Charges

The transmission charges for use of the inter-State transmission system shall be recovered

from the long-term customers and the medium-term customers in accordance with terms

and conditions of tariff specified by the Commission from time to time:

Provided that if the State network is also being used in the access as a part of inter-State

transmission system for the conveyance of electricity across the territory of an intervening

State as well as conveyance within the State which is incidental to such inter-State

transmission of electricity, recovery of charges for such State network and terms and

conditions thereof shall be in accordance with the regulation as may be specified by the

Commission under section 36 of the Act for intervening transmission facilities, if such

charges and terms and conditions cannot be mutually agreed upon by the licensees;

Provided that any disagreement on transmission charges for such State network as specified

above, shall not be the sole reason for denying access and either party may approach the

Commission for determination of transmission charges for such State network.

27. Detailed Procedure

(1) Subject to the provisions of these regulations, the Central Transmission Utility shall

submit the detailed procedure to the Commission for approval within 60 days of notification

of these regulations in the Official Gazette:

Provided that prior to submitting the detailed procedure to the Commission for approval,

the Central Transmission Utility shall make the same available to the public and invite

comments by putting the draft detailed procedure on its website and giving a period of one

month to submit comments;

Provided further that while submitting the detailed procedure to the Commission, the

Central Transmission Utility shall submit a statement indicating as to which of the comments

of stakeholders have not been accepted by it along with reasons thereof.

(2) The detailed procedure submitted by the Central Transmission Utility shall, in particular,

include—

(a) The proforma for the connection agreement, referred to in clause (5) of regulation 8

above.

(b) The proforma for the long-term access agreement referred to in regulation 15 above:


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Provided that the Transmission Service Agreement issued by the Central Government as

part of standard bid documents for competitive bidding for transmission in accordance with

section 63 of the Act shall be a part of this Agreement along with necessary changes;

Provided further that in case transmission system augmentation is undertaken through the

process of competitive bidding in accordance with section 63 of the Act, the Transmission

Service Agreement enclosed as part of bid documents shall be used as a part of the

proforma agreement to be entered into between the applicant and the Central

Transmission Utility for long-term access.

(c) The time line for phasing of construction/modification of the transmission elements by

the Central Transmission Utility/transmission licensee, as the case may be, and the coming

up of generation facilities or facilities of bulk consumer, as the case may be, so as to match

the completion times of the two;

Provided that the time period for construction of the transmission elements shall be

consistent with the timeline for completion of project included as Annexure-II to the Central

Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009.

(d) Aspects such as payment security mechanism and bank guarantee during the period of

construction and operation:

Provided that the bank guarantee during construction phase shall not exceed Rs. 5 lakh per

MW of the total power to be transmitted by that applicant through inter-State transmission

system.

(e) The proforma for the medium-term open access: agreement, referred to in the second

proviso to clause (1) of regulation 21 above.

(f) Provisions for collection of the transmission charges for inter- State transmission system

from the long-term customers or medium-term customers, as the case may be, by the

transmission licensee or the Central Transmission Utility as and when so designated in

accordance with the first proviso to clause (1) of regulation 29 hereof and disbursement to

the Central Transmission Utility and/or the transmission licensees as the case may be.

28. Fees and charges for the Regional Load Despatch Centre and the State Load Despatch

Centre

(1) The fees and charges for the Regional Load Despatch Centre including charges for the

Unified Load Despatch and Communication Scheme shall be payable by the long-term

customer and medium-term customer as may be specified by the Commission.

(2) The fees and charges for the State Load Despatch Centre shall be payable as applicable.

29. Payment of transmission charges and Fees and Charges for the Regional Load Despatch

Centre

(1) The transmission charges in respect of the long-term customer and medium-term

customer shall be payable directly to the transmission licensee:

Provided that the Central Transmission Utility may be designated by the Commission as the

agency for the purpose of collecting and disbursing the transmission charges for inter-State

transmission system;


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Provided further that when the Central Transmission Utility is so designated as the agency

as aforesaid, the transmission charges shall be paid to it;

Provided also that the Central Transmission Utility shall enter into agreements with the

long-term customers and medium-term customers for collection of transmission charges

and with the transmission licensees whose inter-State transmission system is being used, for

disbursement of transmission charges as received, pro rata to the transmission charges

payable to the transmission licensees and to the Central Transmission Utility;

Provided also that the Central Transmission Utility shall be entitled to reimbursement of

reasonable costs incurred by it in collecting the transmission charges of the other

transmission licensees, as approved by the Commission.

(2) The fees and charges for Regional Load Despatch Centres (including the charges for

Unified Load Despatch Scheme) and State Load Despatch

Centres shall be payable by the long-term customer and medium-term customer directly to

the Regional Load Despatch Centre or the State Load Despatch Centre concerned.

30. Unscheduled Inter-change (UI) Charges

(1) Scheduling of all transactions pursuant to grant of long-term access and medium-term

open access shall be carried out on day-ahead basis in accordance with the Grid Code.

(2) Based on net metering on the periphery of each regional entity, composite accounts for

Unscheduled Interchanges shall be issued for each regional entity on a weekly cycle:

Provided that Unscheduled Inter-changes accounting for intra-State entities shall not be

carried out at the regional level.

(3) The State utility designated for the purpose of collection or disbursement of the

Unscheduled Interchanges charges from or to the intra- State entities shall be responsible

for timely payment of the State’s composite dues to the regional Unscheduled Interchanges

Pool Account Fund.

(4) Any mismatch between the scheduled and the actual drawal at drawal points and

scheduled and the actual injection at injection points for the intra- State entities shall be

determined by the concerned State Load Despatch Centre and covered in the intra-State

Unscheduled Interchanges accounting scheme.

(5) Unless specified otherwise by the State Commission concerned, the Unscheduled

Interchanges rate for intra-State entity shall be 105% (for overdrawals or under generation)

and 95% (for under-drawals or over generation) of the Unscheduled Interchanges rate at

the periphery of regional entity.

31. Transmission Losses

The buyers of electricity shall bear apportioned losses in the transmission system as

estimated by the Regional Power Committee.

32. Redressal Mechanism

All disputes arising out of or under these regulations shall be decided by the Commission on

an application made in this behalf by the person aggrieved.

INFORMATION SYSTEM


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33. Information System

The nodal agency shall post the following documents / information on its website in a

separate web-page titled “Long-term access and Medium-term

open access information”:

(a) These regulations;

(b) Detailed procedure;

(c) List of applications, separately, for long-term access and medium-term open access

received by the nodal agency along with necessary details.

(d) Separate lists for long-term access and medium-term open access granted, indicating-

(i) Name of customers;

(ii) Period of the access granted (start date and end date);

(iii) Point or points of injection;

(iv) Point or points of drawal;

(v) Transmission systems used (in terms of regions and States);

(vi) Capacity (MW) for which access has been granted.

(e) List of applications where approval for connectivity or long-term access or medium-term

open access, as the case may be, has not been granted along with reasons thereof.

Provided further that it shall be a constant endeavour of the nodal agency to take steps in

accordance with the requirements herein to provide as much information suo motu to the

public at regular intervals through various means of communications, including internet, so

that information is disseminated widely and in such form and manner which is easily

accessible to the public.

MISCELLANEOUS

34. Repeal and Savings

(1) On commencement of these regulations, Regulation No.’s 4(1)(a), 4(ii), 5(i), 6(i), 7, 8(i), 9,

10, 11, 12, 16(i), 18, as far as it applies to long-term customers, and 31(i) of the Central

Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations,

2004, shall stand repealed.

(2) Notwithstanding anything contained in clause (1), long-term access granted in

accordance with the Central Electricity Regulatory Commission (Open Access in inter-State

Transmission) Regulations, 2004 shall continue to be valid till the expiry of the term of long-

term access.

3.3] Important Addendum to the regulations vide CTU procedures

The detailed procedures including formats for Grant of connectivity , Long Term access and

medium Term open Access are available at CTU website www.powergridindia.com . Some of

the relevant extracts are detailed below:

Procedure for Grant of connectivity to ISTS


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1.4 The applicant (Generator/bulk consumer) already connected to grid (regional or state

grid) or for which connectivity is already granted under the present arrangement, shall not

be allowed to apply for additional connectivity for the same capacity. In case of extension of

capacity of generator or bulk consumer, however, it shall be required to make application

for connectivity as per the provisions of these procedures.

1.5 The nodal agency for grant of Connectivity, Long-term access and Medium-term open

access to the inter-state transmission system shall be the CTU i.e. Power Grid Corporation of

India Limited (POWERGRID).

1.6 Applicant granted “Connectivity” will be required to sign “Connection Agreement” with

CTU prior to the physical inter-connection. In case the connectivity is granted to the ISTS of

an inter-State transmission licensee other than the CTU, a tripartite Procedure for making

application for Grant of Connectivity in ISTS agreement shall be signed between the

applicant, the Central Transmission Utility and such inter-State transmission licensee, in line

with the provisions of the Regulations. After signing of the Agreement, Nodal Agency will

provide a copy of the same to concerned SLDC/RLDC.

2. INFORMATION REQUIRED TO BE SUBMITTED WITH THE APPLICATION FOR CONNECTIVITY

BY GENERATING STATION

2.1 In order to assess preparedness of applicant making application for the connectivity to

the ISTS, an applicant is required to submit along with its application, documents in support

of having initiated specific actions for project preparatory activities in respect of matters

mentioned in (i) to (v) below.

i) Site identification and land acquisition: The applicant shall inform land required for the

generation project along with extent to which the same have been acquired and taken

possession of. The “Requirement” of land would be considered as indicated in the proposal

filed with the competent authority for seeking environmental clearance.

In case of land to be acquired under the Land Acquisition Act 1894, the applicant shall

submit copy of notification issued for such land under Section 4 of the Land Acquisition Act

1894. In all other cases, the applicant shall furnish documentary evidence in the form of

certificate by concerned and competent revenue / registration authority for the acquisition

/ ownership / vesting of the land.

ii) Environmental clearance for the power station: The applicant shall have to inform status

on submission of requisite proposal, for the environmental clearance, to the concerned

administrative authority (first level submission).

iii) Forest Clearance (if applicable) for the land for the power station: The applicant shall

have to inform status on submission of requisite proposal, for the forest clearance, to the

concerned administrative authority (first level submission).

iv) Fuel Arrangements: Details on fuel arrangements shall have to be informed for the

quantity of fuel required to generate power from the power station for the total

Procedure for making application for Grant of Connectivity in ISTS installed capacity

intended for connectivity.


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v) Water linkage: The applicant shall inform the status of approval from the concerned state

irrigation department or any other relevant authority for the quantity of water required for

the power station.

These evidences shall be supported by a sworn in affidavit by the generation project

developer as per the format given at FORMAT-CON-1.

3. SUBMISSION OF APPLICATION

3.5 All applications received during the month shall be treated to have been made

concurrently.

5. GRANT OF CONNECTIVITY

5.1 On receipt of the application, the CTU shall, in consultation and through coordination

with other agencies involved in inter-state transmission system to be used, including State

Transmission Utility, if the State network is likely to be used, process the application and

carry out the necessary inter-connection study as specified in the Central Electricity

(Technical Standards for Connectivity to the Grid) Regulations, 2007.

5.2 The intimation for grant of connectivity shall be communicated to the applicant within

60 days from last day of the month in which the application has been received as per

FORMAT-CON-3.

5.3 Applicant given intimation for Connectivity to the grid shall have to furnish additional

details to CTU for signing of “Connection Agreement” as per format given at FORMAT-CON-

4, These details are to be furnished to CTU at least 2 (two) years prior to physical

interconnection, unless otherwise indicated by CTU. The Applicants are, however advised to

furnish such details as early as possible for enabling them have lead time for any type of

access.

5.4 The CTU will process the above information and will intimate the Connection details as

per format given at FORMAT-CON-5. Pursuant to such Connection details, the applicant shall

have to sign “Connection Agreement” with CTU prior to the physical inter-connection as per

format given at FORMAT-CON-6. In case the connectivity is granted to the ISTS of an inter-

State transmission licensee other than the CTU, a tripartite agreement shall be signed

between the applicant, the Central Transmission Utility and such inter-State transmission

licensee, in line with the provisions of the Regulations. After signing of the Agreement,

Nodal Agency will provide a copy of the same to concerned SLDC/RLDC.

6. INTERCHANGE OF POWER WITH THE ISTS

6.3. The Generating Station including Captive Generating Station shall submit likely date of

synchronization, likely quantum and period of injection of infirm power before being put

into commercial operation to the SLDC and RLDC concerned at least one month in advance.

7. CONSTRUCTION OF DEDICATED TRANSMISSION SYSTEM

7.1. An applicant may be required by the CTU to construct a dedicated system to the point

of connection to enable connectivity to the grid which shall be owned, operated and

maintained by the applicant.

7.2. However, a thermal generating station of 500 MW and above and a hydro generating

station or a generating station using renewable sources of Energy of 250 MW and above,


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other than a captive generating plant, shall not be required to construct a dedicated line to

the point of connection and such stations shall be taken into account for coordinated

transmission planning by the CTU and CEA.

7.3. In all the cases where dedicated transmission system up to point of connection is to be

undertaken by CTU / Inter-State Transmission licensee, the applicant after grant of

connectivity shall sign transmission agreement as per the format given at FORMAT-CON-8

within one month of the grant of connectivity. Further applicant shall furnish Bank

Guarantee (BG) for the amount EITHER (a) at the rate of Rs. 2.5 lakhs/MW (or such amount

as amended from time to time, with the approval of the Commission)) if the connectivity

requires transmission lines upto 20 kms OR (b) at the rate of Rs. 5 lakhs/MW (or amount as

amended from time to time in the Regulations if the connectivity requires transmission lines

more than 20 kms. The BG as per format given at FORMAT-CON-7 should be made in favour

of CTU / Transmission licensee within one month of signing of transmission agreement with

validity upto commissioning of above transmission system.

In case application for Grant of Connectivity and Grant of Long Term Access are made

concurrently or after a time gap, then the requirement of submission of above BG should be

read in conjunction with the clause for Bank Guarantee of Rs. 5 lakhs per MW for

construction/augmentation of transmission system under “Procedure for Grant of Long

Term Access”. In such cases the total BG required to be submitted for both the construction

of dedicated line as well as for augmentation of transmission system together, at any time,

shall not exceed Rs. 5 Lakhs per MW. .

The time frame for commissioning of above dedicated transmission system from the signing

of BPTA would be 9 months plus the time lines as specified by CERC in tariff Procedure for

making application for Grant of Connectivity in ISTS regulations or actual date of

commissioning desired by the applicant and agreed to by the CTU, whichever is earlier.

7.4. If dedicated line is to be constructed and terminated by the applicant as per the

Connection Agreement, the modifications at the connection point required to be under

taken by CTU would be undertaken on deposit of estimated cost by applicant. In this case

there shall be no requirement of BG.

7.5. Provided further that if the dedicated transmission system is also used by any other

user(s) at a later date, then the transmission charges for above dedicated transmission

system would be shared in proportion to the quantum of power injected by respective user

into the grid, as per the system in vogue at that time.

There are eight formats from CON1 to CON8 related to procedure for application, affidavits

and Grant of connectivity. The same are available at website www.powergridindia.com

Procedure for application for grant of MTOA to ISTS

9.3. The nodal agency for grant of MTOA shall be the CTU i.e. Power Grid Corporation of

India Ltd.


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The start date of MTOA can be any day of the month however, it shall not be earlier than 5

months and later than 1 year from the last day of the month in which application has been

made .

9.4. MTOA is the right to use the ISTS for any period exceeding three months but not

exceeding three years and shall be provided on the basis of availability of transmission

capacity in the existing transmission system or transmission system under execution and

likely to be available from the intended date of MTOA. In case of delay in commissioning of

transmission system under execution considered for such grant, which was beyond the

control of the CTU, then date of commencement of MTOA shall be extended upto the date

of commercial operation of the above system..

9.5. No augmentation of transmission system is envisaged for granting MTOA. Construction

of dedicated transmission line shall not be construed as augmentation of the transmission

system.

9.6. After receipt of application, any change either in timeframe, drawl/injection point or

increase in quantum of power shall require submission of a fresh application and the

already made application shall stand disposed off and its application fees forfeited.

A power transaction involving combination of both multiple injections and one drawl point

in case the MTOA is sought by a single bulk consumer shall not require filing of separate

applications.

10. APPLICANTS FOR MTOA

Application for MTOA can be made by a generating station including a captive generating

plant, a consumer, an Electricity Trader or a distribution licensee, a State Government

owning some quantum of power (like free power given to the State Government in which

the hydro station is located, equity power given to a State for allowing a power station to be

set up in the State), who desires to utilize ISTS for Inter state transfer of power, provided the

power station from which the power is being sourced or the load, as the case may be, is

already connected to the grid, whether the State grid or the inter-State grid, or is likely to

get connected to the grid before the intended start date of MTOA. Documentary evidence

needs to be submitted for establishing the condition of connectivity.

Note:

(i) “consumer” means any consumer eligible to avail open access as specified by the State

Commission under sub-section (2) of section 42 of the Act.

(ii) If the Applicant is an Electricity Trader, it must have a valid trading license as per CERC

(Procedure, Terms and Conditions for grant of Trading License and Related matter)

Regulations, 2009 and subsequent amendments thereof. The Trader must have a valid

contract for buying and selling of at least the same quantum of power and period of time for

which Medium-term Open Access has been applied for.

(iii) There should exist required facility for metering and energy accounting at the point of

injection and point of drawal.,

(iv) The trader shall submit a copy of valid trading license


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(v) All applicants shall submit an affidavit stating that they have a valid contract along with a

copy of the contract.

10.1. A generating station, including captive generating plant or a bulk consumer, seeking

MTOA to the inter-State transmission system cannot apply for medium-term open access

without applying for connectivity, in case it is not already connected to the grid. It may,

however, apply for connectivity and medium-term open access simultaneously. The

interconnection, as finalized by CTU, however, should be available from the intended start

date of MTOA, for which documentary evidence w.r.t. the condition of connectivity has to

be submitted. Medium-term customer may arrange for execution of the dedicated

transmission line at its own risk and cost before the start date of the MTOA.

11. INFORMATION / DATA TO BE FURNISHED ALONG WITH THE APPLICATION

11.1. The information in the application shall be supported by a sworn in affidavit by the

applicant as per the format given at FORMAT-MTOA-1.

11.2. The application for MTOA shall be made as per the enclosed application format

(FORMAT-MTOA-2) and shall include details like quantum of power to be injected at the

suppliers point, details of injection & drawl points, time period from and upto which access

is required, the source of power, clearance from respective SLDCs for intra state entities etc.

and other details as sought in the application format.

12. CONCURRENCE FROM SLDC / SLDCS

12.1. If a State Utility or an intra state entity is applying for MTOA, concurrence of the

concerned State Load Dispatch Centres, both from injection and drawl point SLDCs is to be

submitted along with the application in the enclosed format (FORMAT-MTOA-3).

12.2. Where necessary infrastructure required for energy metering and time- block-wise

accounting already exists and required transmission capacity in the State network is

available, and the applicant has a valid PPA for buying or selling power for the same

quantum for which MTOA is sought, then the SLDC shall convey its concurrence to the

applicant in writing within 10 (ten) working days of receipt of the application.

12.3. In case SLDC decides not to give concurrence, the same shall be communicated to the

applicant in writing, giving the reason for refusal within 10 (ten) working days of receipt of

the application..

14.1. The start date of MTOA shall not be earlier than 5 months and later than 1 year from

the last day of the month in which application has been made.

14.2. All applications shall be processed on first-come-first-served basis provided that the

applications received during a month shall be construed to have come together on the last

day of the month. For all the applications received during a month (1st month), CTU shall

carry out the studies and circulate the results to the concerned STUs / RLDCs for seeking

their comments by 15th day of the 2nd month. The comments on the studies shall be

received upto 25th of the 2nd month. After reviewing the comments, the decision on grant

of MTOA shall be intimated to the applicant as well as to concerned RLDCs/STUs by the 10th

day of the 3rd month. The intimation shall be provisional and shall be applicable only after

signing of necessary agreements and submission of requisite BG


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14.3. Provided that while processing applications for MTOA received during a month, those

seeking access for a longer time shall have a higher priority.

15. APPLICATION

15.1. Documents to be submitted alongwith the application:

• Duly filled in Application in specified format. Incomplete application shall be

rejected.

• Proof of payment of Application fee

• Concurrence from SLDC / SLDCs as applicable.

• PPA or Sale-purchase agreement of power

• In case of generating station or consumer not already connected to grid,

documentary evidence for completion of the connectivity showing that the same

shall be completed before intending date of MTOA

16. GRANT OF MTOA

16.1. The CTU shall notify the following on 31st day of March of each year: Total Transfer

Capability (TTC) for 4 (four) years i.e. on 31st March, 2010, TTC shall be declared for period

1st April, 2011 to 31st Mar 2015. This may be revised by CTU due to change in anticipated

network topology or change of anticipated generation or load at any of the nodes, giving

reasons for such change. Transmission Reliability Margin considered along with basis.

Available Transfer Capability (ATC) for MTOA will be worked out after allowing the already

approved applications for Long-term access, Medium Term Open Access and Transmission

reliability margin. The grant of MTOA shall be subject to ATC.

9.b. After the grant of MTOA, the applicant shall sign the agreement for sharing the

transmission charges within 30 days of grant of MTOA, which will form a part of the

medium–term open access agreement (FORMAT-MTOA-5). The MTOA Agreement shall

contain the quantum of power, date of commencement and end of medium-term open

access, the point of injection of power into the grid and point of drawl from the grid, the

details of dedicated transmission lines required, if any, and the bank guarantee required to

be given by the applicant.

c. After signing of the MTOA agreement, the applicant shall submit a Bank Guarantee (BG)

to CTU/Transmission Licensee equivalent to estimated transmission charges of two months

within 30 days from the grant of MTOA. The estimated average transmission charges would

be reviewed every six months/MTOA period whichever is less and accordingly the amount

of Bank Guarantee would be enhanced/reduced by Medium-term customers.

d. The agreement for MTOA is to be signed by the applicant with the Central Transmission

Utility in case medium-term open access is granted by the Central Transmission Utility.

While seeking medium-term open access to an inter-State transmission licensee, other than

the Central Transmission Utility, the applicant shall sign a tripartite MTOA agreement with

the Central Transmission Utility and the inter-State transmission licensee.

e. In case the MTOA agreement has not been signed or requisite bank guarantee has not

been submitted by the applicant within the stipulated period, the grant of MTOA shall be


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cancelled by the CTU and the same shall be informed to Applicant, concerned SLDCs/RLDCs

and STUs.

f. Immediately after grant of medium-term open access, the nodal agency shall inform the

RLDCs and SLDCs concerned so that they can consider the same while processing requests

for short- term open access received under Central Electricity Regulatory Commission (Open

Access in inter-State transmission) Regulations, 2008 as amended from time to time.

g. On the expiry of period of the medium-term open access, the medium-term customer

shall not be entitled to any overriding preference for renewal of the term.

17. SCHEDULING OF MEDIUM TERM OPEN ACCESS TRANSACTION

The scheduling jurisdiction and procedure, curtailment and revision of schedule of MTOA

transactions, metering, energy accounting and accounting of (Unscheduled Interchange) UI

charges shall be as per the Regulations and the Indian Electricity Grid Code, as amended

from time to time. While scheduling on day-ahead basis, long-term access customers would

have the highest priority, followed by medium term customers and then followed by short-

term customers.

a. Underutilization of transmission capacity

In case it is observed by RLDCs that the MTOA customer request for scheduling is

consistently (for more than 5 days) lower than the capacity granted by the Nodal Agency

(i.e.; CTU), RLDC may issue a notice to such MTOA customer asking the reasons for such

under-utilization. The MTOA customer shall furnish the reasons for such under-utilization

and will provide such details like the reduced requirement, likely period, etc. by the

following day. The un-utilized transfer capability will then be released for scheduling of

Short-term open access transaction.

b. No refund of transmission charges shall be made due to above curtailment.

18. TRANSMISSION CHARGES

18.1. The transmission charges for use of the ISTS shall be recovered from the medium-term

customers in accordance with terms and conditions of tariff specified by the Commission

from time to time and the Regulations. If the State network is also being used in the access,

recovery of charges for such State network and terms and conditions thereof, shall be in

accordance with the regulation and as may be specified by the State Commission under

Section 36 of the Act, if such charges and terms & conditions cannot be mutually agreed.

18.2. The transmission charges for inter-State transmission system shall be paid directly to

the Central Transmission Utility or the inter-State transmission licensee as the case may be.

18.3. In case CTU is designated by CERC as the agency for the purpose of collecting and

disbursing the transmission charges for inter-state transmission charges, CTU shall enter

into agreements with the MTOA customers for collection of the charges and with the

transmission licensees whose inter-state transmission system is being used, for

disbursement of transmission charges as received, pro rata to the transmission charges

payable to the transmission licensees and to the CTU. The Central Transmission Utility shall

be entitled to administrative charge tfor this work as approved by the Commission.


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18.4. For payment of monthly transmission charges, irrevocable revolving LC through a

scheduled commercial bank in favour of “Power Grid Corporation of India Ltd.” equivalent

to 105% of the average monthly transmission charges shall be opened by MTOA applicant

15 days before the commencement date of MTOA. LC should remain valid upto one month

after MTOA period. Further the bank guarantee equivalent to 2 (two) months estimated

average monthly billing would also be required to be furnished in favour of “Power Grid

Corporation of India Ltd”, which would be in place 3 (three) months prior to the date of

scheduled commencement of MTOA with validity upto 1 (one) month after the expiry of

MTOA period.

18.5. The fees and charges for the Regional Load Despatch Centre including charges for the

Unified Load Despatch and Communication Centre shall be payable by the medium-term

customer directly to the Regional Load Despatch Centre or the State Load Despatch Centre

concerned.

19. ENCASHMENT / DISCHARGE OF BANK GUARANTEE

19.1. The Bank Guarantee will be encashed in case the applicant defaults on payment of

transmission charges. The Bank Guarantee shall be recouped and remain valid upto one

month after MTOA period.

19.2. In case any request for downsizing the power transfer is received after signing of the

BPTA and submission of Bank Guarantee, any adjustment of Bank Guarantee shall be carried

out after expiry of the MTOA term.

20. EXIT/ DOWNSIZING

20.1. A customer who has been granted MTOA, may relinquish rights, fully or partly, by

giving at least 30 days prior notice to the nodal agency, provided that the medium-term

customer relinquishing its rights shall pay applicable transmission charges for the quantum

of relinquishment, for the period of relinquishment or 30 days which ever is lesser. Further,

the above compensation paid by medium-term customer shall be used for reducing

transmission charges payable by other long-term customers and medium-term customers in

the year in which such compensation payment is due in the ratio of transmission charges

payable for that year by such long term customers and medium-term customers.

20.2. Once downsizing request has been accepted by CTU, an intimation of MTOA for the

reduced power shall be issued and the same shall be informed to Applicant, concerned

SLDCs/RLDCs and STUs. Any increase thereafter, either in timeframe or quantum shall

require submission of a fresh application.

There are five formats MTOA1 to MTOA5 for application and approval of MTOA by CTU.

Procedure for grant of Long Term Access

22.4. Application for LTA can be made by a Generating station including a captive generating

plant, a consumer, an electricity trader or distribution licensee, a State Government owning

some quantum of power (like free power given to the State Government in which the hydro

station is located, equity power given to a State for allowing a power station to be set up in

the State). However the power station from which the power is being sourced or the load,


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as the case may be, should (i) already be connected to grid, whether the State grid or the

inter-State grid, or (ii) have already been granted permission for connectivity to the grid or

(iii) have already applied for connectivity to the grid or (iv) be making application for

connectivity to the grid simultaneously with this application in line with the Regulations.

Note:

(i) “consumer” means any consumer eligible to avail open access as specified by the State

Commission under sub-section (2) of section 42 of the Act.

(ii) If the Applicant is an Electricity Trader, it must have a valid trading license as per CERC

(Procedure, Terms and Conditions for grant of Trading License and Related matter)

Regulations, 2009 and subsequent amendments thereof. The Trader must have a valid

contract(or PPA) for buying and selling of at least the same quantum of power and period of

time for which Long-term Access has been applied for.

(iii) The tradershall submit a copy of valid trading license

(iv) All applicants shall submit an affidavit stating that they have a valid contract along with a

copy of the contract.

22.5. LTA can be availed for any period between 12 years to 25 years and might require

construction of new transmission capacities.

22.6. In line with para-12 and para-33(d) of the Regulations, LTA shall be granted for a given

capacity from defined point of injection to a defined point of drawl. Accordingly, in the

application for LTA, the applicant shall be required to indicate location of the load point on

the grid of the entity or entities to whom electricity is proposed to be supplied and the

location of the source point on the grid of the entity from whom electricity is proposed to

be sourced, along with the quantum of power to be transferred.

22.7. (i) In case, however, entity or entities to whom electricity is proposed to be supplied or

from whom electricity is proposed to be procured along with the quantum of power have

not been firmed up at the time of application, the applicant shall indicate the target

region(s) along with quantum of power to be supplied to the region(s).

(ii) In such cases, the applicant shall have to firm up exact source of supply or destination, as

the case may be, at least 3 years prior to the intended date of availing long term access at

least for a capacity equivalent to 50% of the quantum of power for which LTA has been

sought for through signing of PPA with such grid connected entity(ies)/ State Utilities.

(iii) The augmentation of the transmission system as identified for grant of LTA shall be

undertaken only after fulfillment of above condition. In case a common system

augmentation/strengthening has been identified for more than one generator, then the

above condition of signing of PPA for at least 50% of LTA sought for, with the grid connected

entity(ies)/ State Utilities, shall have to be met by all the generators.

(iv) In the event of failure of any generator meeting above condition of 3 years prior to the

intended date of availing long term access, the implementation of

augmentation/strengthening of system shall be undertaken in due consideration of the

same and if necessary with the approval of CERC for the same.


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(v) For the balance capacity (not exceeding 50% of LTA sought for) for which exact source of

supply or destination could not be firmed up on long-term basis, the augmentation/system

strengthening further from the target region shall be taken up only after identification of

exact source/destination. CTU shall be allowed up to 3 years time for such

augmentation/system strengthening from the target region to the exact source/destination.

During such period the applicant shall be liable to pay the transmission charges up to the

target region.

(vi) Payment of such transmission charges for the balance capacity for which exact source

on long term basis is not known, shall not entitle the applicant any right over the

transmission system up to the target region and CTU may release this balance transmission

capacity up to target region for short-term open access or the medium term open access till

the applicant firms up source/destination on long-term basis and its operationalisation.

(vi) However, applicant may seek short-term open access or the medium term open access

separately till such time it gets long-term access for the balance capacity as any other short-

term open access customer or the medium term open access customer.

Note: LTA applicant shall keep in view that it takes about 9 months for pre-investment

activities and in addition construction time for the transmission project as given in the CERC

(Terms and Conditions of Tariff)Regulations, 2009. Therefore, Applicant should expedite the

finalization the beneficiaries and intimate to CTU. The date of commencement of LTA shall

be applicable from at least 3 years and 9 months (9 months time required for project

preparation and investment approval) from firming up beneficiaries and signing of BPTA

with them.

23. SUBMISSION OF APPLICATION

23.1. The LTA applicant (hereinafter referred to as “applicant”) intending to avail LTA in ISTS

shall make an application in prescribed format [FORMAT-LTA-2] to the Nodal Agency(CTU)

i.e, POWERGRID in a sealed envelope marked “Application for grant of long-term access in

ISTS”, alongwith a prescribed format [FORMAT-LTA-1] of affidavit duly attested by notary.

23.2. In case of generator or consumer, along with the application of LTA, the applicant shall

submit the details of approved connectivity of the generator or consumer with grid point(s)

or furnish the information about the connectivity application already submitted to the nodal

agency.

23.3. In case an intra-State entity is applying for LTA, concurrence of concerned State

Transmission Utilities of states having injection and drawl points shall be obtained in

advance in the prescribed format [FORMAT-LTA-3] and attached with the application.

23.5. Application shall also be accompanied by a bank guarantee of Rs. 10,000/- (Rupees ten

thousand only) per MW of the total power to be transmitted. The bank guarantee shall be in

favour of “Power Grid Corporation of India Ltd”.

The bank guarantee of Rs. 10,000/- (Rupees ten thousand only) per MW shall initially be

valid for one year and shall be revalidated, if required, till the execution of the long-term

access agreement (in case when augmentation of transmission system is required) or till

operationalisation of long-term access (in cases when augmentation of transmission system


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is not required) as per format given at FORMAT-LTA-4. The aforesaid bank guarantee will

stand discharged with operationalization of long-term open access, when augmentation of

transmission system is not required or the submission of appropriate bank guarantee

required to be given by the applicant to the CTU during construction phase when

augmentation of transmission system is required , as the case may be. The bank guarantee

may be encashed by the nodal agency,

(i) if the application is withdrawn by the applicant or

(ii) the long-term access rights are relinquished prior to the operationalisation of such long-

term access when augmentation of transmission system is not required.

(iii) If the applicant fails to sign the Long Term Access Agreement with CTU or a tripartite

agreement with CTU and transmission licensee, as the case may be, and fails to furnish

appropriate BG for construction phase, within stipulated time as indicated in the intimation

letter.

(iv) If the applicant fails to revalidate the earlier furnished BG at least 30 days prior to its

expiry.

(v) If the applicant fails to firm up beneficiaries in terms of clause 22.7, 3 years prior to

intended date of Long Term Access. Genuine requests for extension of time shall be suitably

accommodated on merit upon furnishing of documentary evidence(s).

24. PROCESSING OF APPLICATIONS

24.1. Assessing the adequacy of transmission capacity/system strengthening requirement

24.1.1. The applications shall be processed on first-come-first-served basis. The applications

received during a month and upto the last day of the month shall be construed to have

arrived concurrently. In case of applications received by post, the date of receipt of

application at POWERGRID office shall be considered as the date of application.

24.1.2. The nodal agency i.e, POWERGRID shall carry out system studies in ISTS to examine

the adequacy of the transmission system corresponding to the time frame of

commencement of long-term access to effect the desired transaction of power on long-term

basis, using the Available Transfer Capability (ATC).

i. The study may reveal that:

a) Transmission system commissioned / planned in the time frame of desired long-term

access is adequate and separate system strengthening is not required for effecting desired

long-term access. In such cases the nodal agency shall prepare proposal for grant of long-

term access and forward the same to respective constituents of concerned region(s), CEA

and the applicant. This proposal shall be discussed and formalized in the regional

transmission planning forum and RPC of the concerned region(s). The intimation for grant of

LTA as per the provisions of Regulations shall be communicated to the applicant and

RLDC/NLDC within 120 days from the date of application as per the Regulations with copy to

all the constituent States of the region(s) involved, transmission licensee (if any), concerned

RPC(s) and CEA.


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b) There is a constraint in transmission system expected to be available by the time frame of

commencement of desired long-term access and system strengthening is necessary for

effecting desired transaction. The nodal agency shall carry out studies to identify system

strengthening in accordance with the perspective plans made by the CEA covering all

aspects of IEGC. Such transmission system augmentation planning shall be considered on

30th of June and 31st of December in each year in order to develop a coordinated

transmission plan. The applications received during 1st half of the calendar year shall be

considered together by 30th June and finalized by 31st Dec of the same calendar year.

Similarly application received during the 2nd half of the calendar year shall be considered

together by 31st December and finalized by 30th June of the next calendar year. The

intimation for grant of LTA as per the provisions of Regulations shall be communicated to

the applicant and RLDC/NLDC with copy to all the constituent States of the region(s)

involved, transmission licensee (if any), concerned RPC(s) and CEA.

If there is more than one application for long-term access in the same complex in similar

time frame, the nodal agency shall undertake joint studies and prepare a consolidated

proposal for transmission system strengthening.

ii. While granting long-term access in ISTS, the nodal agency shall communicate to the

applicant, the date from which long-term access is granted and an estimate of the

transmission charges likely to be payable based on the prevailing costs, prices and

methodology of sharing of transmission charges specified by CERC. The time frame of the

construction of the facilities of the applicant and the CTU shall be clearly laid out, so as to

match the two as closely as possible, for optimum utilization of resources.

b. Confirmation of reservation of transmission capacity

i. Where system strengthening is not required

(i) The nodal agency shall confirm grant of long-term access on format [FORMAT-LTA-5]

within 120 days from the month in which application was received with direction to the

applicant to enter into Bulk Power Transmission Agreement (BPTA) with POWERGRID within

thirty days.

(ii) The applicant shall sign a long-term access agreement (FORMAT-LTA-6A) with

POWERGRID. In case transmission system of inter-State transmission licensee other than

CTU is used, the applicant shall sign a tripartite long-term access agreement with

POWERGRID and inter-State transmission licensee.

ii. Where system strengthening is involved

(i) The nodal agency shall carry out system studies and identify the system strengthening

requirement including transmission voltage level, conductor configuration, broad cost

estimates, expected commissioning schedule etc. in consultation with CEA and respective

regional constituents.

(ii) The nodal agency shall intimate grant of long-term access on format [FORMAT-LTA-5]

indicating identified system strengthening with direction to the applicant to enter into Long-

term access agreement Bulk Power Transmission Agreement (BPTA) with CTU within thirty

days.


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(iii) The applicant shall sign a long-term access agreement with POWERGRID. In case

transmission system of inter-State transmission licensee other than CTU is used, the

applicant shall sign a tripartite long-term access agreement with POWERGRID and the inter-

State transmission licensee.

(iv) The nodal agency may change system strengthening requirements identified for a

particular applicant project on the basis of any subsequent study carried out on its own

motion or on another application for LTA, with the purpose of optimum utilization of the

transmission system or to conserve limited right-of-way, and in such event, the changes

carried out by the nodal agency shall be intimated to the applicant, or any other person

associated with the LTA. Provided that the optimized system shall not work to the

disadvantage of the applicant.

(v) Applicant shall submit construction phase bank guarantee of Rs. 5 lakh per MW for the

quantum of long-term access sought.

In case application for Grant of Connectivity and Grant of Long Term Access are made

concurrently or after a time gap, and construction of dedicated line is not required to be

constructed by the applicant but by the CTU/inter-State transmission licensee(for a thermal

generating station of 500 MW and above and a hydro generating station of 250 MW and

above, other than a captive generating plant), as per provisions of the Regulations, then the

total BG required to be submitted for both the construction of dedicated line as well as for

augmentation of transmission system shall together, at any time, not exceed Rs. 5 Lakhs per

MW.

(vi) In case of applicants who have already firmed up the entity or entities to whom

electricity is proposed to be supplied or from whom electricity is proposed to be procured

for the entire quantum of power for which LTA has been sought through signing of PPA or,

in the case of Inter-State Generating Stations owned by the Central Government or Ultra

Mega Power Projects coming up through the initiative of the Central Government, allocation

of power to various beneficiaries as notified by it, then the applicant shall not be required to

submit Bank Guarantee(BG) with the application form or the Construction Stage BG. In such

cases, however, the augmentation of the transmission system as identified for grant of LTA

shall be undertaken only after agreement of the beneficiaries in Standing Committee on

Power System Planning/Regional Power Committee for bearing its transmission charges.

The applicant shall submit a copy of PPA or notification made by Govt. of India, whichever is

applicable. The long-term access agreement, may, in such cases be directly signed by the

beneficiaries with the CTU or tripartite agreement with the CTU and ISTS, as the case may

be.

25. BULK POWER TRANSMISSION AGREEMENT (BPTA)/TSA)(Transmission Service

Agreement)

25.1. Bulk Power Transmission Agreement (BPTA)/TSA shall be signed by the applicant with

POWERGRID(ii). The applicant shall sign a tripartite long-term access agreement with

POWERGRID and inter-State transmission licensee, in case long-term access to an inter-

State transmission system belonging to a inter-State transmission licensee other than CTU is


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granted. This agreement shall be signed within time communicated to the customer under

sub-clause 4.1(i) or under sub-clause 4.2(ii).

25.2. For execution of work where system strengthening is involved, the parties should note

the following:

(i) The implementation of respective system strengthening works shall be taken up by

POWERGRID/concerned licensee/applicant/any other agency identified by the Empowered

committee after signing of BPTA for timely commissioning and operation as per provision of

BPTA.

(ii) The applicant/concerned licensee shall furnish progress of implementation of the

respective generation project/system strengthening scheme, as applicable on quarterly

basis to the nodal agency. Any other necessary execution or submission of information as

per provisions of BPTA shall also be complied. In case POWERGRID is executing the works,

POWERGRID shall inform the applicant of the progress being made for system

strengthening.

(iii) The applicant/concerned licensee shall inform, in writing, at least ninety days ahead of

scheduled date of commissioning and commercial operationalisation of their generation

project/system strengthening scheme, as applicable to POWERGRID with copy to

RLDC/NLDC and other concerned/affected persons.

(iv) Based on information received above, the nodal agency shall confirm the applicant and

concerned licensees at least sixty days ahead of scheduled date of commencement of long-

term transaction and direct the applicant to:

a) Establish adequate payment security within fifteen days; and

b) Submit a request for scheduling of transaction to RLDC/NLDC within fifteen days.

(v) Whenever any equipment and/or drawing are proposed to be changed, then the

applicant or licensee shall intimate necessary changes to the nodal agency. When changes

are implemented, revised single line diagram shall be submitted by the applicant or licensee

to the nodal agency.

27. TRANSMISSION SYSTEM CONSTRAINTS

27.2. In case of curtailment of capacity by RLDC/NLDC, transmission charges payable shall

remain unaffected.

28. Renewal of Term for Long-term access

28.1. On the expiry of the period of long-term access, the long-term access shall stand

extended on a written request provided by the long-term customer in this regard to the

Central Transmission Utility mentioning the period for extension that is required.

28.2. Further, such a written request shall be submitted by the long term customer to the

Central Transmission Utility at least six months prior to the date of expiry of the long-term

access. In case no written request is received from the long-term customer within the

timeline specified above, the said long-term access shall stand withdrawn.

31. TREATMENT OF PRESENT LONG TERM OPEN ACCESS APPLICATIONS ALREADY MADE TO

CTU


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31.1. In line with the repealed regulations of Central Electricity Regulatory Commission

(Open Access in Inter-state Transmission) Regulations, 2004, CTU has received numerous

applications for Long Term Open Access.

1. Long Term Open Access Application where no system strengthening is required:

(i) The Long term open access already granted and have become operational shall continue

to remain valid till the expiry of long term access.

(ii) The Long term open access already granted and BPTA has been signed but yet to become

operational shall continue to remain valid till the expiry of long term access.

(iii) The Long term open access already granted and BPTA is yet to be signed shall have the

option either to continue with the provisions of Regulations 2004 or to adopt the new

Regulations, 2009. In such cases, if applicant opts for continuing with provisions of earlier

regulation then he shall have to abide by clauses pertaining to Exit option, Early

Relinquishment of Access Rights, Construction of dedicated line etc of the earlier

Regulation, 2004 only. Further, the applicant shall have to sign BPTA within 3 months.

However, in case applicant opts for adoption of provisions of new regulation, 2009 then he

shall have to give declaration to this effect complying with provisions of the new regulation

(without Application fees) within 3 months from approval of these procedures. In the event

of failure to respond by applicant, in either of the cases, the already granted LTOA shall

stand cancelled and they would be required to apply afresh as per the provision of the new

Regulations, 2009.

2. Long Term Open Access Application where system strengthening is required:

A large number of LTOA applications were found to require strengthening of transmission

system to enable transfer of power to the target/intended beneficiaries indicated by the

applicants in their applications. Such transmission system strengthening was evolved after

detailed studies in consultation with CEA, constituents of concerned regions and the

applicants. The implementation of finalized transmission system require many pre-

investment project preparation activities like survey, land identification, preparation of DPR

including cost estimates, tendering activity like issuance of NIT, opening/evaluation of bids

etc. These project prepration activities require substantial time

For large number of IPPs coming in different area like Orissa, Sikkim, Chattisgarh, Andhra

Pradesh, Tamil Nadu, POWERGRID have initiated such activities after grant of

LTOA/finalization of transmission system so as to get lead time

To enable unhindered development of transmission system necessary for LTOA projects,

POWERGRID have gone ahead with such activities with the tentative/target beneficiaries

given by the LTOA applicants. Further, to ensure seriousness of IP developers for

POWERGRID to undertake initial activities, POWERGRID have initiated the draft Long term

Agreement, pending its finalization by CERC, incorporating provisions for furnishing BG by

the applicants.

However, now before initiating physical implementation and making actual investment it is

necessary that firm beneficiaries are identified by the IPP developers so that POWERGRID

may sign BPTA with the beneficiary States and take investment decisions. Accordingly,


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applications for which LTOA applications where strengthening of transmission system is

envisaged are proposed to be treated in the following manner:

(i) The Long term open access already granted and BPTA has been initialed between

generation developers and POWERGRID, like Orissa, or yet to be signed/initialed and

become operational, shall have to inform firm beneficiaries in terms of para 22.7 of the

detailed procedure atleast 3(three) years prior to the commencement date of open access.

If applicant is already completed this time-period, then he shall have to firm up and inform

firm beneficiaries in terms of para 22.7 of the detailed procedure alongwith the supporting

documents (as explained in the detailed procedure for long term access) within 6 (Six)

months of approval of detailed procedure by CERC.

(ii) The Long term open access already granted and BPTA is yet to be signed/initialed,

applicant shall have to inform firm beneficiaries in terms of para 22.7 of the detailed

procedure atleast 3(three) years prior to the commencement date of open access. If

applicant is already within this time-period then he shall have to firm up and inform firm

beneficiaries in terms of para 22.7 of the detailed procedure alongwith the supporting

documents as explained in the detailed procedure for long term access within 6(Six) months

of approval of detailed procedure by CERC.

(iii) Applications which are under process and who have already given the consultancy

charges for evolution of transmission system strengthening shall be required to apply afresh

without giving the application fees and clearly indicating the quantum of power for

connectivity and/or for Long Term Access separately. They shall however, not be required to

furnish application Bank Guarantee of Rs. 10,000/- per MW for the quantum of power for

which Long term Access has been sought. However, they shall also be required to submit

the various documents as prescribed in the detailed procedure for connectivity/Long term

Access.

(iv) Applications which are under process and for which the consultancy charges for

evolution of transmission system strengthening have not been either paid to or demanded

by POWERGRID shall have to apply afresh as per the detailed procedure for

connectivity/LTA.

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Conn, Lta, Mtoa, Stoa

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