OPEN ACCESS IN INTER-STATE TRANSMISSION

INTRODUCTION Open Access is necessary for utilization of short time surpluses. Open Access will also create options for distribution companies to buy power. Open Access will provide means to the traders/buyers/sellers.

DEFINITION OF “ OPEN ACCESS ” IN THE ELECTRICITY ACT, 2003 “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”

LEGAL FRAMEWORK SECTION 38: CTU to provide open access to Genco, Licensees and any eligible Customer. State Commission to allow open access to consumers on payment of surcharge in addition to transmission charges. Surcharge shall be for meeting cross subsidy, while additional surcharge for stranded cost, if any. Surcharge to be progressively reduced and eliminated. Surcharge not payable in case of captive generation for own use.

LEGAL FRAMEWORK Section 39 and 40 Similar provisions for STU and Transmission Licensee. Section 42 State Commission to introduce Open Access in Distribution in phases and conditions to be specified within one year.

LEGAL FRAMEWORK Inter-State Transmission System Any system for conveyance of electricity by means of main transmission line from the territory of one State to another State. The conveyance of electricity across the territory of an intervening State which is incidental to such inter-State transmission of electricity. The transmission of electricity within a State on a system built, owned, operated, maintained or controlled by CTU. Intra-State Transmission System Other than inter-State transmission.

LEGAL FRAMEWORK CTU can not engage in generation and trading (Section 38) STU can not engage in trading (Section 39) Transmission Licensee can not engage in trading (Section 41)

Agencies involved in Open Access Transaction RLDC (s) SLDC (s) CTU STU (s) Buyer Seller Trader

Responsibilities Many Agencies involved in day to day operation RLDC – fully responsible for inter-State and inter-Regional transfer. SLDC – full responsibility for intra-State system Open Access Customer –

Responsibilities of RLDCs/SLDCs RLDCs and SLDCs are fully responsible for day to day operation. Congestion in system to be decided judiciously. Each and every decision have monetary implication, so one has to be very careful. Every decision can be questioned by the affected party. So, – Our System should be totally transparent. – Every one to be treated equally. – Judicious decisions to be taken. – No decisions to be taken in a hurry under pressure from buyer, seller or trader.

Responsible and separate identified persons to be allowed to handle it. Time management and quick actions is required from RLDC/SLDCs. CTU and STU roles are to inform about capacity of individual links. Analysis of congestion in inter-State system and inter-Regional links to be done by RLDCs. Analysis of congestion in intra-State system is to be done by respective SLDCs.

Approval for Open Access Application to Nodal RLDC with copy to others. Co-ordination and approval for trading/exchange /sale of power by Nodal RLDC. SLDCs shall co-ordinate with respective RLDCs and they in-turn shall co-ordinate with Nodal RLDC. The applicant to co-ordinate with buyer and/or seller. Proper Records of all correspondence, discussions (if critical) and decisions to be kept to avoid any disputes later.

Open Access to be implemented with effect from 06/05/2004. Salient features of CERC Regulations on Open Access in inter-State transmission and detailed procedure including e-bidding will be discussed in next presentation.

Thank You

Signing of Agreements - ? Signing of Agreements - ? Unbundled State : Andhra Pradesh APTRANSCO APGENCO DISCOM-A DISCOM-B STU – APTRANSCO Can Agreement be signed by STU ?

No unbundling has taken Some agreements are signed on behalf of PSEB. PSEB PSEB has been declared as STU. Can PSEB sign the agreements ?