Settlement system of Bilateral transactions under Open Access -V.Balaji Chief Manager SRLDC

Terms & meaning Open Access – Non-discriminatory Access to Tr. System Nodal RLDC – RLDC where the Drawee utility is located Applicant - Who applies for OA Customer - Who is granted OA

Category of OA Tx. Advance - Reservation of Cap. up to a max. of 3 months (for each month) First Come First Serve – Reservation of Cap. if any, after allotment to Adv. Applicants (upto a max of next 3 months) Day Ahead/ Reservation of Cap. On Day ahead/ Contingency - Reservation of Cap. On Day ahead/ same day basis, if any after allotment to Day Ahead

Philosophy To avoid pan-caking of charges Reduce cost of power/ burden on end user Encourage transactions Reasonable levy of charges for the usage Fair compensation to the Long term user of Tr. System Fair compensation to the Owner of Tr. System Reasonable charges to RLDC/SLDCs

Curtailment in case of Tr. constraint No No refund Yes Refund Pro-rata Charges of Curtailed Capacity

Settlement of Energy Charges Trader Energy Charges Seller Buyer Trader Trader’s commission charges

Settlement of STOA Charges Nodal RLDC CTU Application fee STU/ licensee charges All STUs involved 75% to Long term Customers Nodal RLDC ISTS+ IR link charges CTU 25%of ISTS to CTU for Augmentation Is OA Granted? Yes Operating Charges For RLDCs All RLDCs involved Operating Charges For SLDCs All SLDCs involved

Bilateral Transaction charges 1) Application fee Rs.5000 per each transaction (Non-refundable) Along with application for Adv/FCFS Within 3 working days for DA/Contingency 2) Transmission Charges a) Regional/CTU Tr. Ch. Rs.80/MWh (ps 8/u) for within region Rs.160/MWh (ps 16/u) for b/w adjoining regions Rs.240/MWh (ps 24/u) for wheeling by one or more regions b) STU/SEB/Tr. Licencee Tr. Ch. To be paid only if the Tx is not internalised. as specified by SERC or Rs.80/MWh (ps 8/u)

Bilateral Transaction charges Operating Charges Rs. 2000/day for each Tx. For each RLDC involved For each SLDC involved (only if not internalised)

Mode of payment to Nodal RLDC Bank draft/ at par cheque/ electronic money transfer No outstation cheque Within 3 working days Transaction-wise payment details to be submitted in Format -VII

Default 0.04% simple interest for each day of delay/default Nodal RLDC may not schedule the Transaction Entertain further application in future till dues are cleared

Other Charges 1) Energy charges As negotiated mutually based on market conditions, demand-supply position Rate need not be disclosed to RLDCs To be directly settled between buyer /seller Trader to collect and disburse May be influenced by losses, trading marigin etc. Charged on energy as reflected in monthly REA REA to furnish figures @Buyer/seller periphery, IR periphery, Peak/offpeak , Discomwise etc.

Other Charges Trading marigin @4ps/u if cost of power =< ps350/u @ 7ps/u if cost of power > ps350/u To be collected by Trader directly from the Buyer

Revision in OA schedule Only for Advance/ FCFS Min. 2 days notice/request excluding the day of revision Scheduled OA charges for 2 days to be foregone OA charges corresponding to Downward revision to be refunded To be reconciled for previous month and refunded within 15 days of current month

Disbursement Nodal RLDC to Reconcile all charges for previous month Disburse to all stake holders within 10 days in current month Disbursement of CTU charges to concerned RTS STU charges to concerned STU/SEB Operating charges to concerned RLDCs Operating charges to concerned SLDCs

Disbursement RTS to retain 25% of CTU transmission charges Balance 75% to give credit in their Transmission Bill (as per weighted Average entitlement to each Long term customer)

Refund When to refund ? A) Incase of curtailment due to transmission constraints B) Incase of revision in Schedule How much to refund ? A) Pro-rata charges for the energy curtailed B) Retain a minimum of five days of OA charges(Tr and Op ch.) and Refund balance OA charges (transmission charges and operating charges) for the reduction in Energy Deadline for Refund : Within 15 days of current month for Tx curtalied/revised in previous month

Indemnification No responsibility to Nodal RLDC In case of Default Indemnify RLDC/ SLDC harmless from All damages/ losses/ claims/ costs etc.

Internalization As Declared in the Application Buyer/Seller is said to be internalised : If they are Directly connected to CTU (ex. SEBs, CGS etc.) In case of an Embedded Customer where The Connected STU is not yet unbundled In case of organizations where full commercial separation is not in place When STU charges and losses are not published If the power purchase rate includes the Tr. Ch. And Losses Implications if internalised : No Transmission charges No Scheduling/ operating charges No Normative Losses

Non-Internalization As Declared in the Application Buyer/Seller is said to be Not Internalised If Buyer/Seller is embedded customer (CPP, IPP, HT consumer etc.) in a not-yet unbundled SEB In an unbundled state setup case If Buyer/Seller is a Power purchase centre, Discom in an unbundled setup Implications if Not internalised : Transmission charges to be paid Scheduling/ operating charges to be borne Normative Losses applicable