1. Sharing of ISTS Charges & Losses Regulation
Prepared By:
Mangaljyoti
Swapnil Nayak
MBA- 6th Batch
“Point of Connection Transmission Pricing Methodology”

2. INDIAN GRID NR NER ER WR SR CURRENT- Case States CTU Lines STU LinesHR
NER ER WR CH SR TN
KAR
CURRENT- Case
States
INTRA REGIONAL -
KAR-TN
ADJACENT REGION-
CH-HR
INTERVENING REGION-
KAR-ER-HR
INDIAN GRID
REGIONAL GRID
CTU Lines
STU Lines
STATES

3. IMPLEMENTING AGENCY (NLDC-2yrs)
CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010
Regulations shall apply to all Designated ISTS Customers, Inter State Transmission Licensees, NLDC, RLDC, SLDCs, and RPCs
The Central Transmission Network is considered for the calculation of charges & losses , which are applicable on the same
DIC’s , ISTS Transmission Licensees, NLDC,RLDC,SLDC & Other Relevant Entity
Commercial + Technical Information
IMPLEMENTING AGENCY (NLDC-2yrs)
IA Create Zones – Generation , Demand
IA compute - PoC charges & Losses
LTOA– Rs./MW/Month
STOA – Rs,/MW/Hr Approved by RLDC/NLDC
Participation factor & PoC Charges shall be computed for :
Day : Peak- 8 hours , Other than Peak- 16 hours
Block of Months :April –June, July – Sep, Oct-Nov, Dec- Feb, March
The complete inter state Transmission System is divided into zones (Generation Zone & Demand Zone) consist of nodes. A state is considered as a single demand zone consist of multiple Generation Zones
The charges & losses are defined for each Generation Zone & Demand Zone and are shared between the Generator and the Consumers based on the point of injection and point of drawal respectively.

4. CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010
Solar generators connected to Central Transmission Lines not have to pay the Transmission Charges & Losses
Billing for ISTS charges : for all Designated ISTS Customers shall be on the basis of Rs./MW/Month, and shall be raised by the CTU . The SEB/STU may recover the transmission charges for the use of the ISTS from the distribution companies, generators and bulk customers connected to the transmission system owned by the SEB/STU
Accounting of charges :Monthly Transmission Accounts applicable for various Designated ISTS Customers in each region shall be prepared by the respective RPC and RPC issue Regional Transmission Accounts on the 1st working day of the month for the previous month, same shall be display on website.
Recovery of Yearly Transmission Charges and losses as per new transmission mechanism shall be based on both the methods by giving appropriate weightage :
50 % of YTC by Uniform Postage Stamp Method
50% of YTC by Point of Connection Method
(After 2yrs Commission will review the weightage)
Transition Period /Mechanism : The Commission shall notify detailed procedures as proposed by the Implementing Agency, along with corresponding timelines, as far as possible within 3 (three) months from the notification of this Regulation( ).
Regulations shall come into force from , and unless reviewed shall remain in force for a period of 5 years

5. Transmission Pricing Philosophy
1. Point-to-Point Tariff (Postage Stamp Charges & Losses – In Practice)
Charges & Losses of Intermediate Transmission System
Transmission Charges & Losses at the Point of Drawal
Transmission Charges & Losses at the Point of Injection
Postage Stamp Charges & Losses
2. Point-of-Connection Tariff (PoC Charges & Losses – New Mechanism)
Demand Access Charges & Losses at the Point of Drawal
Generation Access Charges & Losses at the Point of Injection
Point-of-Connection Charges & Losses

6. Applicability of Transmission Charges & Losses

7. OLD MECHANISM (INTRA REGION) (INTERVENING REGION) SRLDC KAR TN WRLDC
CTU Line
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. TN-SLDC
4. Application Fee
STU Line
SRLDC
KAR
GENERATOR
STU –Tx Charges - C
STU –Tx Losses - C TN
CTU –Tx Charges - C
CTU –Tx Losses -C
STU –Tx Charges - C
STU –Tx Losses -C
CONSUMER
(INTRA REGION)
CTU –Tx Charges - C
CTU –Tx Losses -C
Operating Charges :
1. CH-SLDC
2. WRLDC
3. NRLDC
4. HR-SLDC
5. Application Fee
WRLDC
NRLDC CH
STU –Tx Charges - C
STU –Tx Losses - C HR
CTU –Tx Charges - D
CTU –Tx Losses -D
CTU –Tx Charges - D
CTU –Tx Losses -D
STU –Tx Charges - D
STU –Tx Losses - D
GENERATOR
CONSUMER
CTU –Tx Charges - C
CTU –Tx Losses -C
CTU –Tx Charges - C
CTU –Tx Losses -C
(ADJACENT REGION)
SRLDC
ERLDC
NRLDC HR
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. ERLDC
4. NRLDC
5. HR-SLDC
6. Application Fee
KAR
STU –Tx Charges - C
STU –Tx Losses - C
STU –Tx Charges - C
STU –Tx Losses - C
CTU –Tx Charges - C
CTU –Tx Losses -C
CTU –Tx Charges - C
CTU –Tx Losses -C
CTU –Tx Charges - C
CTU –Tx Losses -C
GENERATOR
CONSUMER
CTU –Tx Charges - C
CTU –Tx Losses -C
CTU –Tx Charges - C
CTU –Tx Losses -C
CTU –Tx Charges - C
CTU –Tx Losses -C
(INTERVENING REGION)

8. NEW MECHANISM (INTRA REGION) (INTERVENING REGION) SRLDC KAR TN CH
CTU Line
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. TN-SLDC
4. Application Fee
STU Line
SRLDC
KAR
GENERATOR TN
STU –Tx Charges - C
STU –Tx Losses - C
CTU –DAC- C
CTU –DL-C
STU –Tx Charges - C
STU –Tx Losses -C
CONSUMER
(INTRA REGION)
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
Operating Charges :
1. CH-SLDC
2. WRLDC
3. NRLDC
4. HR-SLDC
5. Application Fee CH
WRLDC
NRLDC
STU –Tx Charges - C
STU –Tx Losses - C HR
CTU –DAC- C
CTU –DL-C
STU –Tx Charges - C
STU –Tx Losses -C
GENERATOR
CONSUMER
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
(ADJACENT REGION)
NRLDC HR
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. ERLDC
4. NRLDC
5. HR-SLDC
6. Application Fee
KAR
STU –Tx Charges - C
STU –Tx Losses - C
STU –Tx Charges - C
STU –Tx Losses - C
SRLDC
ERLDC
CTU –DAC- C
CTU –DL-C
CONSUMER
GENERATOR
CTU –DAC- C
CTU –DL-C
CTU –GAC- G
CTU –GL-G
(INTERVENING REGION)

9. Power Exchange – Old Mechanism
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. TN-SLDC
4. Application Fee
SRLDC
CTU Line
KAR
GENERATOR TN
STU –Tx Charges - G
STU –Tx Losses - G
STU Line
CTU –Tx Ch- G
CTU –Tx Ls-G
CTU –Tx Ch- C
CTU –Tx Ls-C
STU –Tx Charges - C
STU –Tx Losses -C
CONSUMER
CTU –Tx Ch- G
CTU –Tx Ls-G
CTU –Tx Ch- C
CTU –Tx Ls-C
(INTRA REGION)
Operating Charges :
1. CH-SLDC
2. WRLDC
3. NRLDC
4. HR-SLDC
5. Application Fee
WRLDC
NRLDC CH
STU –Tx Charges - G
STU –Tx Losses - G HR
CTU –Tx Charges - G
CTU –Tx Losses -G
CTU –Tx Charges - C
CTU –Tx Losses -C
STU –Tx Charges - C
STU –Tx Losses -C
GENERATOR
CONSUMER
CTU –Tx Ch- G
CTU –Tx Ls-G
CTU –Tx Ch- C
CTU –Tx Ls-C
(ADJACENT REGION)
SRLDC
NRLDC HR
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. ERLDC
4. NRLDC
5. HR-SLDC
6. Application Fee
KAR
STU –Tx Charges - G
STU –Tx Losses - G
CTU –Tx Charges - G
CTU –Tx Losses -G
ERLDC
CTU –Tx Charges - C
CTU –Tx Losses -C
STU –Tx Charges - C
STU –Tx Losses - C
GENERATOR
CONSUMER
CTU –Tx Ch- C
CTU –Tx Ls-C
CTU –Tx Ch- G
CTU –Tx Ls-G
(INTERVENING REGION)

10. Power Exchange - New Mechanism
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. TN-SLDC
4. Application Fee
SRLDC
CTU Line
KAR
GENERATOR TN
STU –Tx Charges - G
STU –Tx Losses - G
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
STU Line
STU –Tx Charges - C
STU –Tx Losses -C
CONSUMER
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
(INTRA REGION)
Operating Charges :
1. CH-SLDC
2. WRLDC
3. NRLDC
4. HR-SLDC
5. Application Fee
WRLDC
NRLDC CH
STU –Tx Charges - G
STU –Tx Losses - G HR
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
STU –Tx Charges - C
STU –Tx Losses -C
GENERATOR
CONSUMER
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
(ADJACENT REGION)
SRLDC
NRLDC
ERLDC HR
Operating Charges :
1. KAR-SLDC
2. SRLDC
3. ERLDC
4. NRLDC
5. HR-SLDC
6. Application Fee
KAR
STU –Tx Charges - G
STU –Tx Losses - G
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
STU –Tx Charges - C
STU –Tx Losses - C
GENERATOR
CONSUMER
CTU –GAC- G
CTU –GL-G
CTU –DAC- C
CTU –DL-C
(INTERVENING REGION)

11. CASE STUDY

12. CONCLUSION
Currently the transmission charges and losses are paid only by the beneficiaries (consumer). The new mechanism entails all users to pay transmission charges and losses for use, including the generators.
The new transmission pricing mechanism is beneficial and relatively cheaper for energy transactions in case of adjacent region and intervening region.
Encourage Generator and Consumers to connect with Central Transmission system for inter state sale & purchase respectively.
New Transmission Pricing Mechanism have an adverse impact on Intra State Energy Sale (huge increase in Transmission Charges).
Promote short term power transaction/Trading through Power Exchange (PX) and demotivate Bilateral short term power transaction/Trading.
STU Network is not the part of New Transmission Pricing Mechanism, therefore the effect of Pan-caking is not completely removed.
Typically wind resources are “embedded” in the state system. Wind Generators would benefit more from this new mechanism through better market access if the mechanism is applied at the state level.
Promote generation from solar based technology, as they don’t have to pay transmission charges and losses.

13. Steps followed in the implementation of the Hybrid Methodology
DATA ACQUISITION (Input to the Model) – Nodal Generation/Demand Information, Network Data
COMPUTATION OF LOAD FLOWS ON BASIC NETWORK –IA shall run AC load flow to ensure Load/Generation Balance
COMPUTATION : TRUNCATION OF INDIAN GRID AT 400KV- Shall be accepted when slack bus generation and voltage angle at generation & demand matches closely with AC Load Flow on the network
IDENTIFICATION OF SLACK NODES – Using Average Participation Method
HYBRID METHODOLOGY for DETERMINATION OF PoC TRANSMISSION CHARGES
HYBRID METHODOLOGY - FOR SHARING OF TRANSMISSION LOSSES
DETERMINATION OF SHARING OF YTC AND TRANSMISSION LOSSES
CREATION OF ZONES- DETERMINATION OF ZONAL CHARGES & LOSSES

14. Categories of Transmission System
CLASS A : Inter Regional Link (CTU)
CLASS B : Regional Network (CTU)
CLASS C: State Utility Network (STU)
Region
Region
State
CLASS A- Inter Regional Link
CLASS B
CLASS A
CLASS B- Regional Link
State
CLASS C- State Utility Link
State
CLASS C
Inter Regional Link

15. Procedure for Calculation of PoC Tariff
Defining the Total Transmission Charges for the particular Class of Network (Based on the Cost/ARR approved by the Commission)
Calculation of Rate of a line in particular Class of Network.
Calculation of Locational Transmission Price (Charges for Node).
Aggregation of Locational Transmission Prices to form Zones.
Point-of-Connection Tariff for a Zone.
NOTE:
Total Transmission Charges for each Class of network are predefined.
Depending upon the voltage Class (400KV, 220KV, 132KV) & line length, the total transmission charges for each line in that class of network is calculated.
After carrying out real power tracing, the load & generator entities using these lines are charged in proportion to their participation in the line flows.

16. Terminologies Used

17. Calculation of Rate of a line in particular Class of Network
Defining the Total Transmission Charges for the particular Class of Network
Total fixed charges to be recovered from a Inter Regional Link – TSCA
Total fixed charges to be recovered from a Regional link – TSCB
Total fixed charges to be recovered from a State utility Network – TSCC
Calculation of Rate of a line in particular Class of Network

18. Calculation of Locational Transmission Price (Charges for Node)
Aggregation of Locational Transmission Prices to form Zones

19. Point-of-Connection Tariff for a State

20. Computation of Transmission Losses
Procedure :
Calculation of Marginal Loss Factor
The marginal loss factors are multiplied by the generation / demand at these nodes under base case,
Loss Allocation Factor for Generation and Demand Nodes