1. OPEN ACCESS EXPERIANCES AND WAY-AHEAD V K Agrawal, General Manager, SRLDC WORKSHOP ON GRID SECURITY AND MANAGEMENT 28 th and 29 th April, 2008

2. OPEN ACCESS: DEFINITION AS PER ELECTRICITY ACT, 2003 Section 2 (47) “Open access” means 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;” “Open access” means 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;”

3. CERC Open Access Regulations, 2008 3. Subject to any other regulations specified by the Commission, the long-term customer shall have first priority for using the inter-State transmission system for the designated use. These Regulations shall apply for utilization of surplus capacity available thereafter on the inter-State transmission system by virtue of- (a) Inherent design margins; (a) Inherent design margins; (b) Margins available due to variations in power flows; (c ) Margins available due to in-built spare transmission capacity created to cater to future load growth or generation addition:

4. CERC Open Access Regulations, 2008 Effective 01.04.2008 Effective 01.04.2008 Regulations cover only Short-term Open Access Regulations cover only Short-term Open Access Transactions categorized as Bilateral and Collective (through PX) Transactions categorized as Bilateral and Collective (through PX) Earlier Products of Short-Term retained under Bilateral Transactions Earlier Products of Short-Term retained under Bilateral Transactions Nodal Agency Nodal Agency Bilateral : RLDCs Bilateral : RLDCs Collective : NLDC Collective : NLDC

5. CERC Open Access Regulations, 2008 Transmission Charges moved from “Contract Path” to “Point of Connection” Transmission Charges moved from “Contract Path” to “Point of Connection” Both Buyers and Sellers of Collective transactions to bear transmission charges and absorb transmission losses Both Buyers and Sellers of Collective transactions to bear transmission charges and absorb transmission losses Inter-Regional links -No Separate treatment. Inter-Regional links -No Separate treatment. Emphasis on “Scheduling” rather than “Reservation” Emphasis on “Scheduling” rather than “Reservation” SLDC consent mandated along with application SLDC consent mandated along with application In case of Congestion – e-Bidding without Price Cap In case of Congestion – e-Bidding without Price Cap Exit Option provided with payment of up to 5 days open access charges. Exit Option provided with payment of up to 5 days open access charges. Moving towards empowerment of SLDCs Moving towards empowerment of SLDCs

6. Regulation 2004 of CERC Regulations on Short-Term Open Access Open Access Duration - Up to One year maximum -single application possible ST Rate - in Rs/MW/Day - Min. Charges for one day Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 25% of Long Term Charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 3000/day for each SLDC involved c. Handling &Service Charges - 2% of total charges (06.05.2004 to 31.03.2005)

7. Regulation 2004 (Amendment 2005)of CERC Regulations on Short Term Open Access Open Access Duration - Up to three months -single application possible ST Rate - in Rs/MW/Day - Charges as per continuous block of up to 6 hours, 12 hours, and more than 12 hours Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 50% of Long Term Charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 1000/day for each RLDC involved c. Handling &Service Charges - Nil ( 01.04.2005 to 31.03.2008)

8. Regulation 2008 of CERC Regulations on Short Term Open Access Open Access Duration - Bilateral -Up to 3 months separate application for each month - Bilateral -Up to 3 months separate application for each month - Collective: -Only Day ahead ST Rate - in Rs/MWh - Based on Scheduled Energy - in Rs/MWh - Based on Scheduled Energy Transmission Charges Bilateral: Bilateral: Rs.30/MWh – intra- regional Rs.60/MWh – Between adjacent regions Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal (From 01.04.2008)

9. Regulation 2008 of CERC Regulations on Short Term Open Access Operating Charges Bilateral: Bilateral: a. Application fee – Rs. 5000/- a. Application fee – Rs. 5000/- b. Scheduling Charges b. Scheduling Charges – Rs. 2000/day for each RLDC involved – Rs. 2000/day for each RLDC involved – Rs. 2000/day for each SLDC involved – Rs. 2000/day for each SLDC involved c. Handling & Service Charges –Nil c. Handling & Service Charges –Nil Collective Transactions: a. Application fee – Rs. 5000/- b. Scheduling Charges b. Scheduling Charges – Rs. 5000/day to NLDC for each State involved ; – Rs. 5000/day to NLDC for each State involved ; -NLDC to Share with RLDCs -NLDC to Share with RLDCs Contd …

10. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) S.No. Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 1. 1. Open Access Duration - Up to One year maximum - single application possible Open Access Duration - Up to Three Months max. - single application possible Open Access Duration Bilateral -Up to 3 months - separate application for each month - Collective: - Only Day ahead 2. 2. ST Rate - in Rs/MW/Day - Min. Charges for one day ST Rate - in Rs./MW/Day -Charges as per continuous block of up to 6 hours, 12 hours, and more than 12 hours Rate -in Rs/MWh - Based on Scheduled Energy

11. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) S. N o. Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 3. 3. Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 25% of Long Term Charges Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter-Regional - 50% of Long Term Charges Transmission Charges: Bilateral: - Rs.30/MWh – intra- regional - Rs.60/MWh – Between adjacent regions - Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal 4. 4. Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 3000/day for each SLDC involved c. Handling &Service Charges - 2% of total charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 1000/day for each RLDC involved c. Handling & Service Charges – Nil Operating Charges Bilateral: a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 2000/day for each RLDC and SLDC involved c. Handling & Service Charges -Nil Collective Transactions: a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 5000/day to NLDC for each State involved ; -NLDC to Share with RLDCs

12. UI vs STOA market (All regions) 5% UI market 3% STOA market 100% power market 92% long term market

13. All India basis

16. STOA – EXPERIANCES Applications Processed Applications Processed (Since Beginning) > 20,000 No. (Since Beginning) > 20,000 No. Volume (Approved Energy) Volume (Approved Energy) (Since Beginning) > 90BUs (Since Beginning) > 90BUs Applications Approved > 95 % Applications Approved > 95 % Refusal/Non-consent by SLDCs Refusal/Non-consent by SLDCs > 3 - 4% Refusal due to system constraints Refusal due to system constraints < 0.5 % < 0.5 %

17. STOA – EXPERIANCES Transactions between extreme corners of the country Transactions between extreme corners of the country RGCCPP ( Kayamkulam) to PSEB Arunachal Pradesh(NER) to PSEB TNEB to J&K Large number of Captive Generating plants used STOA and helped in enhancing the power availability in grid. Large number of Captive Generating plants used STOA and helped in enhancing the power availability in grid. Ugar Sugars (KAR) - JAIPUR (RAJASTHAN) Godavari Sugars (KAR) - MSEDCL NCS Sugar(ANDHARA) – GUVNL Indorama ( MAH) – APPCC ( ANDHRA) Indorama ( MAH) – APPCC ( ANDHRA)

18. STOA – EXPERIANCES Due to High demand in the regions, the costly power has been traded through STOA Due to High demand in the regions, the costly power has been traded through STOA RGCCPP ( Kayamkulam) (NAPTHA) to PSEB BSES(KERALA) (DIESEL) to NDMC (DELHI) Diversity being gainfully utilised by Market players under STOA Diversity being gainfully utilised by Market players under STOA Generators PLF has also increased. Generators PLF has also increased.

19. Issues Skewed load – generation levels Skewed load – generation levels Increased line loading Increased line loading Consents by STU/SLDC for injection of power by embedded customers Consents by STU/SLDC for injection of power by embedded customers Telemetry Telemetry Metering Metering Scheduling Scheduling PPAs PPAs

20. Empowering SLDCs UI Settlement of Intra state entities UI Settlement of Intra state entities Before the Implementation of Open Access Regulations 2008, for deviations Various STU/SLDCs are charging differently for embedded customers. In the New Open Access Regulations the issue is addressed Before the Implementation of Open Access Regulations 2008, for deviations Various STU/SLDCs are charging differently for embedded customers. In the New Open Access Regulations the issue is addressed Functional Autonomy of SLDC Functional Autonomy of SLDC

21. Typical Approvals- Captive Power Plants Typical Approvals- Captive Power Plants Captive Power Plant Quantum( MW) Eastern Region NBVL(OPTCL)27 SAIL-DSP(DVC)20 TISCO(DVC)60 Bhushan Steel 25 J.P Cement (Rewa) 5 Western Region Indo Rama synthetics 22 PSKL10-30 Southern Region Renuka Sugar 25 Vishwanath Sugar 7.5 Godavari Sugar 25 Ugar Sugar 25 Jindal Steel 200 Nav Bharat 50 NCS Sugar 13

22. TYPICAL STOA CASE - 1 TYPICAL STOA CASE - 1 APTRANSCO to MPSEB 100 MW for One day from 0000 to 0600 hrs.

23. APTRANSCO - MPSEB THROUGH NVVNL (0000 HRS – 0600 HRS ) 100 MW AT INJECTION POINT for 1 day INJECTING UTILITY APTRANSCO CUSTOMER: NVVNL DRAWEE UTILITY MPSEB CAPACITY APPROVED 100 MW DAILY PERIOD 0000-0600HRS AP WR GRID MP HVDC BACK TO BACK AT BHADRWATHI IN WR INTERVENING REGIONAL LINK 1.SR-WR TRADER: NVVNL

24. APTRANSCO - MPSEB THROUGH NVVNL (0000 HRS – 0600 HRS ) 100 MW AT INJECTION POINT for 1 day EXPORT AT AP 100 MW AT SR PERIPHERY 96.9 MW MP RECIEVES 93.0 MW LOSSES IN SR 3.12% LOSSES IN WR 4% TOTAL LOSSES FOR TRANSACTION 7.0 MW AP WR GRID MP HVDC BACK TO BACK AT BHADRWATHI IN WR CTU

25. APTRANSCO - MPSEB THROUGH NVVNL (0000 HRS – 0600 HRS ) 100 MW AT INJECTION POINT for 1 day APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MW PER DAY 1.Rs 700.91FOR CTU-SR 2.Rs 881.49FOR SR-WR LINK 3.Rs 339.98FOR CTU-WR TOTAL TRANSMISSION CHARGE PER UNIT 34.53Ps/. SCHEDULING CHARGES PER DAY 1.Rs 3000FOR SRLDC 2.Rs 3000FOR WRLDC AP WR GRID MP HVDC BACK TO BACK AT BHADRWATHI IN WR Payments as per Regulation 2004 of CERC

26. APTRANSCO - MPSEB THROUGH NVVNL (0000 HRS – 0600 HRS ) 100 MW AT INJECTION POINT for 1 day APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MW PER DAY 1.Rs 700.91FOR CTU-SR 2.Rs 881.49FOR SR-WR LINK 3.Rs 339.98FOR CTU-WR TOTAL TRANSMISSION CHARGE PER UNIT 13.52Ps/. SCHEDULING CHARGES PER DAY 1.Rs 3000FOR SRLDC 2.Rs 3000FOR WRLDC AP WR GRID MP HVDC BACK TO BACK AT BHADRWATHI IN WR Payments as per Regulation 2004 Amendment 2005) of CERC

27. APTRANSCO - MPSEB THROUGH NVVNL (0000 HRS – 0600 HRS ) 100 MW AT INJECTION POINT for 1 day APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES 1.Rs 90 /MWH FOR WHEELING TOTAL TRANSMISSION CHARGE PER UNIT 7.83Ps/. SCHEDULING CHARGES PER DAY 1.Rs 2000FOR SRLDC 2.Rs 2000FOR WRLDC AP WR GRID MP HVDC BACK TO BACK AT BHADRWATHI IN WR Payments as per Regulation 2008 of CERC

28. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) Total STOA Charges Paisa/Unit 34.53 Total STOA Charges Paisa/Unit 13.52 Total STOA Charges Paisa/Unit 7.83

29. TYPICAL STOA CASE - 2 TYPICAL STOA CASE - 2 KAYAMKULAM RGCCPP, NTPC to PSEB 150 MW for 31 days on Round the Clock basis

30. SR STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days KERALA INJECTING UTILITY KYCPP,KSEB TRADER: NVVNL KAYAMKULAM RGCCPP NTPC) DRAWEE UTILITYPSEB CAPACITY APPROVED 150 MW DAILY PERIOD 0000-2400 HRS CUSTOMER: NVVNL WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR INTERVENING REGION WR INTERVENING REGIONAL LINK SR-WR WR-NR INTERVENING STATE TRANSMISSION UTILITYKSEB

31. SR STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days KERALA KAYAMKULAM RGCCPP(NTPC) WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR EXPORT AT RGCCPP BUS150 MW PSEB RECIEVES 134.4 MW AT KERALA PERIPHERY 148.9 MW LOSSES IN KERALA 0.75% LOSSES IN SR 3.12% AT SR-WR PERIPHERY 144.3 MW LOSSES IN WR 4.0% AT WR-NR PERIPHERY 138.5 MW LOSSES IN NR 3.0%

32. SR STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days KERALA KAYAMKULAM RGCCPP(NTPC) WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MW PER DAY 1.Rs 700.91FOR CTU-SR 2.Rs 881.49FOR SR-WR LINK 3.Rs 339.98FOR CTU-WR 4.Rs 233.32FOR WR-NR LINK 5.Rs 649.86 FOR CTU-NR 6.Rs 672.07 FOR KSEB SCHEDULING CHARGES PER DAY 1.Rs 3000FOR SRLDC 2.Rs 3000FOR WRLDC 3.Rs 3000FOR NRLDC 4.Rs 3000FOR KSEB TOTAL TRANSMISSION CHARGES PER UNIT 15.12Ps Payments as per Regulation 2004 of CERC

33. SR KERALA KAYAMKULAM RGCCPP(NTPC) WR NR HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MW PER DAY 1.Rs 843FOR CTU-SR 2.Rs 1311FOR SR-WR LINK 3.Rs 357FOR CTU-WR 4.Rs 600FOR WR-NR LINK 5.Rs 594 FOR CTU-NR 6.Rs 672.07 FOR KSEB SCHEDULING CHARGES PER DAY 1.Rs 3000FOR SRLDC 2.Rs 3000FOR WRLDC 3.Rs 3000FOR NRLDC 4.Rs 1000FOR KSEB TOTAL TRANSMISSION CHARGES PER UNIT 18.5Ps Payments as per Regulation 2004 Amendment 2005) of CERC STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days PSEB

34. SR KERALA KAYAMKULAM RGCCPP(NTPC) WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MWHR 1.Rs 90FOR Bilateral Wheeling through one or more region 1.Rs 30 FOR KSEB SCHEDULING CHARGES PER DAY 1.Rs 2000FOR SRLDC 2.Rs 2000FOR WRLDC 3.Rs 2000FOR NRLDC 4.Rs 2000FOR KSEB TOTAL TRANSMISSION CHARGES PER UNIT 12.2Ps STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days Payments as per Regulation 2008 of CERC

35. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) Total STOA Charges Paisa/Unit 15.12 Total STOA Charges Paisa/Unit 18.5 Total STOA Charges Paisa/Unit 12.2