1. Emerging Transco’s -The New Role Managing Director Karnataka Power Transmission Corporation Ltd., Bangalore, Karnataka

2. Karnataka – Down the Age’s  Pioneer State to set up first Hydro Generation in Asia – 1902  Electricity Department formed – 1903  Formation of Electricity Board – 1957  First State to bifurcate Generation from Transmission & Distribution – 1970

3. Power Sector Reforms - Karnataka  Karnataka Electricity Reforms Act enacted – August 1999  Electricity Board Unbundled into KPTCL, VVNL – August 1999  Karnataka SERC constituted – November 1999  MoA with GoI signed for time bound reform program – Feb.2000  IPP Policy announced – Dec.2000  Detailed Power Policy statement announced – Jan 2001  Anti-Theft Law promulgated – 10 th April 2002  T&D Unbundled – KPTCL for Transmission and 4 Distribution Companies – June 2002

4. Role of KPTCL  The important role of KPTCL at present are Power Purchase Transmission of Power Bulk Power supplier Power system operation

5. Customers of KPTCL  Bangalore Electricity Supply Company Ltd  Mangalore Electricity Supply Company Ltd  Hubli Electricity Supply Company Ltd  Gulbarga Electricity Supply Company Ltd  Hukkeri Co-operative Society

6. Electricity Act 2003  Electricity Act 2003 is effective from 10 th June 2003  The Act envisages –Formation of a Board or Govt. Company as a State Transmission Utility (STU) –STU shall not engage in business of trading in Electricity  In effect, STU will be a Power Transmission Service Provider

7. Function of STU  The main functions of STU are –To undertake transmission of Electricity through Intra-State transmission system –To discharge all functions of Planning & Co- ordination relating to Intra-State transmission system –To ensure development of an efficient, coordinated and economical system of Intra-State transmission lines for smooth flow of electricity from Generating Stations to the load centers –To provide non-discriminatory open access to its transmission system

8. Transco’s  The transmission companies shall not trade in Electricity  The Transco’s are the service providers to the Generators, Traders, Discoms and other consumers  The operation of State Load Despatch Centers may also be taken away from Transcos

9. Emerging Model (Flow of Energy) GencoTranscoDiscomConsumer Present Genco/ Captive TranscoDiscomConsumer Future Trader

10. Emerging Model (Flow of Revenue) GencoTranscoDiscomConsumer Present Genco/ Captive TraderDiscomConsumer Future Transco Transmission Charge

11. Transco’s - Issues & Concerns  Sec.40(c) makes it duty of transmission utility to provide open access  Sec.39 debar Transco’s from Power trading with a view to prevent discriminatory practices and free access

12. Transco’s - Issues & Concerns  The Transco shall have to declare total transmission capacity and available transmission capacity in advance as per the approved system of information  The misapprehension on part of Transco on the issue of power trading is totally misplaced

13. Transco’s - Issues & Concerns  Transco’s & Discom’s are at present owned by the respective State Govt. and only the urban sectors of Discom’s may be privatised leaving the rural areas under Govt. control  In such a scenario, the State Govt. may like to have Power Trading by one of its existing entity to take care of its obligations rather than multiple entities  This will also avoid confusion and rigmorale of the existing agreements like PPA, BPSA with Generators and Discom’s

14. Conclusion  Since Transco’s does not have any stake in other systems which may be detrimental to the planning process  Concerns of some players for sharing their data due suspicion that they could be providing a competitive advantage to their affiliated power marketers may derail the process of system planning and operation

15. Conclusion  Thus it may be necessary to permit Transco’s to Trade in power including system operations for integrated, efficient and economic system operation of the power system.

16. Thank you