Billing, Collection and Disbursement Procedures Under CERC “Sharing of Inter-State Transmission Charges and Losses”, Regulations 2010 08/11/2010 Billing, Collection and Disbursement

Billing, Collection and Disbursement Introduction Invoicing Payment and Collection Disbursements to ISTS Licencees CTUs Role 08/11/2010 Billing, Collection and Disbursement

Billing, Collection and Disbursement Invoicing The CTU shall raise the following Invoices: First Invoice Second Invoice Third Invoice Fourth Invoice Supplementary Invoice be raised for Approved Injection and Approved Withdrawal on monthly basis and shall be based on PoC charges given by the Implementing Agency Total amount to be recovered from the DICs on account of adjustments in interest rates, FERV, rescheduling of commissioning of transmission assets, etc, as allowed by CERC, for any ISTS Licensee. be raised for deviations from the approved levels of injection and withdrawal. It shall be calculated computed in line with the Regulations raised for Approved Additional Medium Term Open Access on monthly basis. It shall be calculated computed for the respective DICs in line with the Regulations 08/11/2010 Billing, Collection and Disbursement

Invoicing: General Conditions Invoice 1 & 2 shall be raised on 1st Business day of each month while Invoice 3 on 1st Business day of March and September In case, for any ISTS Licensee, the third invoice to be raised becomes negative, the amount along with the interest thereon shall be adjusted in the Yearly Transmission Charge (to be used for the computation of Point of Connection charges) of the respective ISTS Licensee for the next Application Period Invoice 4 for each DIC within three Business Days of the issuance of the Regional Transmission Deviation Accounts by the RPCs Charges payable by ISGS for Long Term supply shall be billed directly to the respective Long Term customers based on their proportionate share of capacity in such generating stations Billing shall be to the Paying DIC as per their Mutual agreements (Bidding scenario etc) In the event of partial payment / payment default by the payers identified above, the liability of paying the charges shall also be extended to the original DIC for whom the charges have been computed Invoice 4 which deals with the deviations from the approved levels of injection and withdrawal shall be billed directly to the concerned deviating DIC 08/11/2010 Billing, Collection and Disbursement

Payment and Collection The payment by various DICs to CTU would be executed through RTGS only Detailed payment advice to be furnished by the DIC for identifying and tracking the payment Rebates: 2% if paid within 1 Business day 1% if paid within 30 days Surcharge: 1.25% per month on the unpaid amount after 60 days The Letter of Credit shall have a term of twelve (12) Months and shall be for an amount equal to one point zero five (1.05) times the average of the First Invoice Amount All payments required to be made under this Agreement shall only include any deduction, as required by the Law CTU is empowered to undertake Regulation of Power Supply to recover charges under the provisions of CERC (Regulation of Power Supply) Regulations, 2010 08/11/2010 Billing, Collection and Disbursement

CF1&2 + Late payment + Delayed Payment Surcharges Disbursements DIC1 DIC2 DIC3 DICn CF1&2 CF1&2 + Late payment + Delayed Payment Surcharges Delayed payments and the Delayed Payment Surcharges received in the month till the Due Date CF1&2 + Late payment + Delayed Payment Surcharges - Rebates Any rebates for early or timely payments offered against the First and the Second Invoice to the DICs Monthly Transmission charges against the First and the Second Invoice L1 L2 L3 Ln Disbursements on a prorated manner, as per the Monthly Transmission Charges for each ISTS Licensee 08/11/2010 Billing, Collection and Disbursement

Similarly for other invoices DIC1 DIC2 DIC3 DICn CF4 CF4 + Late payment + Delayed Payment Surcharges Delayed payments and the Delayed Payment Surcharges received in the month till the Due Date CF4 + Late payment + Delayed Payment Surcharges - Rebates Any rebates for early or timely payments offered against the Fourth Invoice to the DICs Monthly Deviation Transmission charges against the Fourth Invoice L1 L2 L3 Ln Disbursements on a prorated manner, as per the Monthly Transmission Charges for each ISTS Licensee 08/11/2010 Billing, Collection and Disbursement

Billing, Collection and Disbursement General Provisions The disbursement of transmission charges to ISTS Licensees for each Invoice shall be made within five (5) working days after the Due Date (which is thirtieth day from the receipt of the Invoice by the DICs) for each Invoice Any payments (along with the Delayed Payment Surcharge) made by the DICs after the Due Date of an Invoice shall be disbursed at the next Cut-Off Date The CTU shall issue a Revenue Share Statement to the ISTS Licensees for all disbursements The CTU shall credit the disbursements in accordance with the Revenue Share Statements to the bank accounts of ISTS Licensees directly On or before 15 May of each Financial Year, the CTU shall prepare a statement of reconciliation with regards to each DIC and by 15th June for ISTS Licensee 08/11/2010 Billing, Collection and Disbursement

Billing, Collection and Disbursement Provisions Relating to STOA Charges (These provisions are as per the recommendation of Implementation Committee and are subject to modification of concerned Regulation by CERC) DICs having approved LTA have first priority on scheduling only to the extent of MW for which beneficiaries are identified. However the DIC has to pay the PoC Charges for total quantity of LTA granted For the balance quantity, DIC has to apply STOA as per prevailing Regulation The charges received towards STOA granted to that DIC (subject to ceiling of LTA granted) shall be adjusted in the invoice of the same DIC No adjustments of STOA charges to particular DIC for the quantum exceeding LTA already granted. These excess charges would be adjusted while truing up the YTC The STOA charges received from other DICs having no LTA shall be adjusted while truing up the YTC The CTU share (i.e. 25%) of the STOA charges shall be retained as per the prevailing Regulation 08/11/2010 Billing, Collection and Disbursement

Reporting requirements for the CTU The periodic reports to be submitted to each of the ISTS Licensees shall comprise of: Details of total transmission charges billed to and collected from the DICs Details of the payment defaults made by the DICs Delayed Payment Surcharge collected from the DICs Rebates paid to the DICs Details of total transmission charges disbursed to the ISTS Licensees 08/11/2010 Billing, Collection and Disbursement

Input data required by CTU Data in following formats is required by CTU The purpose of each format is also given in the description Format Description 1A To raise Bill-1 1B To Disburse Bill-1 2 To raise Bill-2 3A To raise Bill-3 3B To Disburse Bill-3 4 To raise Bill-4 1C & 1D To indentify the charges against each DIC 1E & 1F To trace the liability of the Primary DIC Please open the excel sheet and show the participants the input formats 08/11/2010 Billing, Collection and Disbursement

Billing, Collection and Disbursement CTUs Role CTUs role shall be limited to billing and collection agency on behalf of ISTS licensees Only payments received shall be disbursed according to YTC share of ISTS licensees CTU shall at all times be indemnified and shall not bear any financial burden due to this activity The expenses incurred on this activity shall be reimbursed to CTU and shall become part of its YTC Any disputes arising shall be addressed as per details provided in the BCD Procedure 08/11/2010 Billing, Collection and Disbursement

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