ELECTRICITY REGULATORY COMMISSION GUWAHATI. Shri S.C. Das, Chairperson Shri D. Chakravarty, Member

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1 ELECTRICITY REGULATORY COMMISSION GUWAHATI Corum : Shri S.C. Das, Chairperson Shri D. Chakravarty, Member Date: In the matter of Assam Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, Background Statement of Objects & Reasons 1.1. After coming into force of the Electricity Act, 2003, which envisaged Open Access (OA), the Assam Electricity Regulatory Commission ( AERC or the Commission ) notified its Open Access Regulations on These Regulations are in force since then There were no consumers who availed OA till the year Consumers started to avail OA from the FY and by the end of FY , the number of OA consumers in the State reached 14. Since, the Regulations for Open Access were framed in 2005 and a number of developments have taken place in the power sector since then, the Commission decided to review and redraft the Regulations. Accordingly, the Commission notified the draft OA Regulations, 2018 on its websites on 19 th February, 2018 seeking comments/objections/suggestions from all stakeholders up to 20 th March, Representations were received from various organizations seeking extension of time for giving comments on the draft Regulations. Taking cognizance of the requests made, the time limit for submission of comments was extended up to Six organizations submitted their comments on the Draft Regulations. These include - M/s STAR Cement Limited (STAR Cement), Ms Tata Power Trading Company Limited (TATA Power), Indian Energy Exchange (IEX), Assam High Tension Power Consumer Association (AHTPCA), Federation of Industry & Commerce of North Eastern Region (FINER) and Assam Power Distribution Company Limited (APDCL). 1

2 1.5. The Commission held a public hearing on to facilitate oral submission by the respondents and other interested persons. Representatives from the above organizations were present during the hearing. They reiterated the submissions already made in writing before the Commission The Commission also organized a Workshop on Open Access on , which was attended by representatives from the above respondents, power utilities and other stakeholders. 2. Suggestions from the above organizations on the Draft Regulations, the Commission s observations and decisions on the same are discussed in the subsequent paragraphs. The suggestions have been accordingly considered by the Commission and incorporated wherever necessary in these Regulations. The Commission has now framed the AERC (Terms and Conditions for Open Access) Regulations, 2018, which shall come into force from the date of publication in the Assam Gazette. 2.1 Regulation 3: Definition Suggestions received from AHTPCA are as under: While the Learned State Commission has provided a comprehensive list of definitions it is submitted that the following definitions be also included in the Draft OA Regulations: i. Contracted load means the load in kw/hp/kva (kilo Watt/Horse Power/kilo Volt Ampere) which the distribution licensee has agreed to supply from time to time subject to the governing terms and conditions and is different from the contracted load. ii. Imbalance: in a time block for a generating station means the total actual generation minus its total schedule generation and for a consumer or buyer means its total drawal minus its total scheduled drawal iii. Wheeling: means the operation whereby the distribution system and associated facilities of a transmission licensee or distribution licensee, as the case maybe, are used by another person for the conveyance of electricity. on payment of charges to be determined under Section 62 of the Electricity Act, 2003 Commission s analysis & decision: The Commission observed that definition of contract load is provided in the AERC (Supply Code) Regulations The Word imbalance has been replaced by deviation and deviation has been defined in the Regulations. 2

3 Although the term Wheeling has been defined in the Electricity Act, 2003, the same is to be incorporated in the final Regulations. 2.2 Regulation 3: Definition Provisions in the draft Regulations 3.1 (q) Embedded Consumer means a consumer who has a supply agreement with the distribution licensee and avails the option of drawing power from any other person under Open Access, during a day or more in any month or more than one month during the year, without ceasing to be a consumer of the said distribution licensee. The embedded consumer continues to pay various charges defined by the Commission as applicable to the relevant consumer category. APDCL suggested modifying the above Regulations as under: Embedded Consumer should be replaced with Partial Open Access Consumer and Full Open Access Consumer" It is suggested to add definition of Partial Open Access Consumer as: "Partial Open Access Consumer" means an Open Access Consumer who maintains some demand with the Distribution Licensee in whose area of supply he is located in order to cater to his load requirement. It is suggested to add definition of Full Open Access Consumer as: "Full Open Access Consumer" means an Open Access Consumer who maintains zero demand with the Distribution Licensee in whose area of supply he is located in order to cater to his load requirement. Commission s analysis & decision: Partial open access consumer means an embedded consumer. And, it is implied that the rest are all full open access consumers. However, as suggested, the definition of Full Open Access Consumer also be incorporated as 3.1(u), as under: Full Open Access Consumer mean an Open Access Consumer connected to the transmission or distribution system but not having any supply agreement with the distribution licensee within the State. Further, to add more clarity, the definition for Embedded Consumer be modified, as under: Embedded Consumer means a consumer who has a supply agreement with the distribution licensee and avails the option of drawing power from any other person under Open Access, fully or partially of the contract demand, during a day 3

4 or more in any month or more than one month during the year, without ceasing to be a consumer of the said distribution licensee. The embedded consumer shall pay various charges determined by the Commission, as applicable to the relevant consumer category. 2.3 Regulation 3: Definition Provisions in the draft Regulations 3.1(s) Long Term Open Access or LTOA means the right to use the Intra-State transmission and/ or distribution system for a period exceeding 7 years. APDCL suggested modifying the above Regulations as under: Long Term Open Access or LTOA means the right to use the Intra-State transmission and/ or distribution system for a period exceeding 7 years but not exceeds 25 years. Commission s analysis & decision: The Central Electricity Regulatory Commission (Grant of Connectivity, Longterm Access and Medium-term Open Access in inter-state Transmission and related matters) (Sixth Amendment) Regulations, 2017 defines Long-Term Access as the right to use the inter-state Transmission system for a period exceeding 7 years. In order to maintain uniformity with the Central Regulations, the definition is to be retained, as, in the draft Regulations. 2.4 Regulation 3: Definition Provisions in the draft Regulations 3.1(z) Operational Constraints means the non-availability of adequate capacity in the intra-state transmission system or licensee s distribution system and non-existence /inadequacy of a metering and energy accounting system where the electricity to be purchased or sold by open access customers can be correctly measured and accounted for. IEX made the following submissions: Operational Constraints actually imply the real time systemic constraints such as transmission capacity issues, real-time outages etc. The open access customer before filing the application has to comply with all eligibility requirements such as ABT metering/rtu etc. as mentioned under the draft Regulation 4. Therefore, 4

5 non-existence/inadequacy of metering and energy accounting system should not be re-included under operational constraints. It is therefore suggested to amend the definition of operational as hereunder: Operational Constraints means the non-availability of adequate capacity in the intra-state transmission system or licensee s distribution system. Commission s analysis & decision: An open access customer has to comply with all eligibility requirements such as ABT metering/rtu etc. However, there may be times when these meters and systems are out of order, preventing real time recording and verification of energy flow through Open Access. The definition may therefore, be retained as under: Operational Constraints means the non-availability of adequate capacity in the intra-state transmission system or distribution system of the licensee or nonexistence /inadequacy of a metering and energy accounting system where the electricity to be purchased or sold by open access customers can be correctly measured and accounted for. 2.5 Regulation 3: Definition APDCL suggested to add definition of Change-over Consumer as under: Change-over Consumer means a Consumer who was taking supply from a Distribution Licensee through its distribution network and who has changed over to another Distribution Licensee for such supply but continues to be connected to the distribution network of the first Licensee for that purpose. Commission s analysis & decision: The Commission agreed to include the same in the final Regulations. 2.6 Regulation 3: Definition Provisions in the draft Regulations 3.1(k) Detailed Procedure means the detailed procedure laid down by the Nodal Agency pursuant to these Regulations and approved by the Commission. Commission s analysis & decision: Since, it is specifically mentioned in the Regulations that STU shall notify the detailed procedure, the above definition has been amended as under: 5

6 3.1(n) Detailed Procedure means the detailed procedure laid down by the STU, in consultation with SLDC and distribution licensee, pursuant to these Regulations and approved by the Commission. 2.7 Regulation 4: Eligibility For Open Access and Conditions To Be Met Provisions in the draft Regulations 4.2. Subject to the provisions of these Regulations, the licensees, generating stations, captive generating plants and Consumers shall be eligible for Open Access to distribution system of a distribution licensee, on payment of the wheeling and other charges, as may be determined by the Commission pursuant to these Regulations. Suggestion from APDCL Under Para4.2, trader should be added as it is appear under the definition of the Open Access Customer. 4.2 Subject to the provisions of these Regulations, the licensees, trader, generating stations, captive generating plants and Consumers shall be eligible for Open Access to distribution system of a distribution licensee, on payment of the wheeling and other charges, as may be determined by the Commission pursuant to these Regulations. This is in line with the definition under para3.1(x), Open Access Customer includes a consumer, trader, distribution licensee, Captive Generator or a generating Company who has been granted open access under these Regulations. Commission s analysis & decision: The Commission observed that the term licensees include traders as per Section 14 of the Electricity Act, Besides in the definition of Open Access Customer the term distribution licensee has been used instead of licensee. Thus, the term trader was included in the definition. The definition of Open Access Customer shall be as under: Open Access Customer includes a consumer, trader, distribution licensee, Captive Generator or a generating Company or any other person who has been granted open access under these Regulations. 2.8 Regulation 4: Eligibility For Open Access and Conditions To Be Met 6

7 Provisions in the draft Regulations 4.3. Subject to the provisions of these Regulations, Open Access shall be permissible to all Consumers having Contract Demand of 1 MW and above only. Provided further that duties of the distribution licensee with respect of such Open Access Customers shall be of a common carrier providing non-discriminatory Open Access as per section 42(3) of the Act. Suggestions from APDCL, FINER and AHTPCA APDCL Para 4.3 should have Connected load instead of Contracted Demand. Subject to the provisions of these Regulations, Open Access shall be permissible to all Consumers having Connected Load of 1 MW and above only. Provided also that the Maximum Demand of such Consumer in each financial year subsequent to his being granted Partial Open Access shall be equal to or greater than seventy (70) percent of the threshold level at which he has become eligible for Open Access; Provided also that, if the Consumer fails to achieve the Maximum Demand in three consecutive months, the Distribution Licensee shall be entitled to impose a penalty as determined by the Commission for the financial year for which the Consumer failed to achieve such Maximum Demand; Provided also that, if such Consumer has not complied with the above proviso in 3 consecutive months, the Distribution Licensee may initiate the process of reassessment and reinstatement or reduction of Contract Demand. FINER: It is submitted that Open Access should be made available for consumers above 500 KW. Many of our members are in the bracket of 500 KW to 1 MW category. And they wish to get connected to Open Access, as an option. Many states in India, have allowed OA for 500 KWs and above consumers. AHTPCA: Under Regulation 4.2 of the draft OA regulations, the permissibility is only for consumers having load of 1 MW and above. Hon ble Commission, should also consider allowing Open Access to consumers below 1 MW and above 500 KW load, this shall entail an option for High Tension consumers above 500 KW, to have a level playing field. In the state of Assam, there are ample consumers in the category of 500 KW to 1 MW connected loads, which shall help them as option to be competitive. And further, this shall also enable Captive Power 7

8 Producers give power to nearby industries, who wish to avail such power from the Captive Power Producer. Commission s analysis & decision: Section 42 (2) of the EA 2003, allows OA for consumers having demand exceeding 1 MW. The National Tariff Policy, 2016 in Clause 5.13 has observed that - The Act provides for introduction of open access for consumers of one megawatt and above in a time bound manner. The Regulatory Commissions shall introduce open access for different categories of consumers as per the provisions of the Act. Thus, it is decided that Regulation 4.3 be retained as in the draft Regulations at this point of time. 2.9 Regulation 4: Eligibility For Open Access and Conditions To Be Met Provisions in the draft Regulations 4.4. Subject to the provisions of these Regulations, consumers who are connected by dedicated feeders irrespective of their voltage of supply, and where there is no operational constraint shall be allowed open access. The customer shall also be subjected to rostering restrictions including power cuts imposed by the licensee on the feeders serving them. Suggestion from IEX The proposed provision amounts to restricting the right of open access consumers who are connected to mixed feeders. The Electricity Act 2003 confers right of open access to consumers having contract demand of 1 MW and above and connected to network of distribution licensee. This Right is nondiscriminatory provision and provision in draft Regulations is ultra vires to the Act, Further, there cannot be any justified reason for consumers connected to dedicated feeder being subjected to rostering restrictions imposed by Licensee. It is therefore suggested that Regulation 4.4 should be amended as below: Subject to the provisions of these Regulations, consumers who are connected by dedicated feeders and mixed feeders irrespective of their voltage of supply, and where there is no operational constraint shall be allowed open access. Provided that the customer connected to mixed feeder shall also be subjected to rostering restrictions including power cuts imposed by the licensee on the feeders serving them. Commission s analysis & decision: 8

9 The Commission decided to allow open access in dedicated feeders only, at present, given the constraints in the distribution network in the State. However, as suggested, the Commission may allow Open Access in mixed feeders, when a robust distribution infrastructure becomes available in the coming years. Therefore, Regulation 4.4 has been amended as under: Subject to the provisions of these Regulations, consumers who are connected by dedicated feeders, irrespective of their voltage of supply, and where there is no operational constraint, shall be allowed open access Regulation 4: Eligibility For Open Access and Conditions To Be Met Provisions in the draft Regulations 4.6. The Open Access Customer shall have to install Special Energy Meter (SEM) at their place for energy accounting and Remote Terminal Unit (RTU) to facilitate SLDC in real time monitoring, which shall be duly certified by the licensee concerned. Suggestion from FINER, AHTPCA, IEX FINER: As per draft regulation, special energy metering is being introduced. As these needs to be synchronized with SLDC system, and overall the energy accounting of the state, the responsibility of installing such meter should be with SLDC, to avoid any doubt on technical grounds and have seamless data flow between the consumer and SLDC. AHTPCA: The NERLDC in its Manual on Special Energy Meter, Data Processing and Computation, published in January 2017, defines SEM as an application specific Microprocessor base solid state energy meter. This together with a data collecting device (DCD) and a local Computer forms a powerful system of metering and data logging. This type of metering and data logging gives a unique method for measurement of all relevant electrical quantities. Taking help of the support software on a PC enables the user to process metered data and the data can also be viewed in a tabular format. According to the aforementioned manual, SEM is an interface meter. However, it is pertinent to note that these meters; SEM and RTU, have been introduced for the first time through the Draft OA Regulations and thus, it is prayed that the responsibility of installing these meters should not be imposed on Open Access Customer. These equipment s are of special technology and needs to be synchronized with the system of STU/CTU, therefore responsibility of installing and maintenance should be with the nodal agency/sldc/stu. 9

10 Also, under Regulation 27 of the MSERC (Terms and Conditions of Open Access) Regulations, 2012 the responsibility of installing SEMs in on the State Transmission Utility and the distribution licensee, depending upon the load. The relevant extracts of Regulation 27 of MSERC (Terms and Conditions of Open Access) Regulations, 2012 reads as under: Metering: (1) In case of open access consumer having load of 5 MW and above and all generating stations irrespective of capacity, Special Energy Meters shall be installed by the State Transmission Utility or the distribution licensee as the case may be, for and at the cost of the customer. As regards open access consumers having load less than 5 MW, the meter shall be installed by the distribution licensee concerned. In case the meter is provided by the transmission/distribution licensee, the open access customer shall pay for its rent and also provide security deposit. The meter shall be capable of communicating its reading to SLDC on real time basis and protocol for real time monitoring and power low system shall be adopted by consumers of open access. Metering shall be compatible and can be integrated with SCADA/ EMS of SLDC. Further even under the HPERC (Grant of Connectivity, Long Term and Medium Term intra-state Open Access and Related Matters) Regulations, 2010 and CERC (Grant of Connectivity, Long Term and Medium Term Open Access in inter-state Transmission and Related Matters) Regulations, 2009 the responsibility of installing meters is on the State Transmission Utility. The relevant extracts of the Regulations are as under: HPERC: 32. Interface Energy Meters.- (1) Interface Energy Meters shall be installed and maintained by the State Transmission Utility for open access in transmission by the distribution licensee for open access in distribution at the cost of the open access customers. CERC: 11. Interface Meters: (1) Interface meters shall be installed- (a) by the Central Transmission Utility for and at the cost of regional entities; and (b) by the State Transmission Utility for and at the cost of State entities It is submitted that similar provision may also be made in the Draft OA Regulations. This is also necessary since nonexistence/inadequacy of a metering and energy accounting system is covered under the definition of operational constraints, under clause (z) of Regulation 3. Further, under Regulation 4.4 absence of operational constraints is a condition precedent for getting open 10

11 access. Thus, it is prayed that this Hon ble Commission, also make the relevant State Utility responsible for installation of SEM and RTU. IEX: The mandatory installation of RTU by all Open Access customers is undesirable. Furthermore, the SLDC may not be able to monitor consumers having 1-5 MW load due to their limited visibility in the large state grid. It is therefore suggested that installation of RTU may be made mandatory only for consumers having load of 10 MW and above. Commission s analysis & decision: The issue of installation of SEMs and cost has been addressed in Regulation 26.1 of the Draft Regulations, which states that the SEMs shall be installed by the transmission/ distribution licensees as the case may be, at the point(s) of injection and point(s) of drawal, at the cost of the customer. However, to add more clarity, Regulation 4.6 is to be amended, as under: The Open Access Customer shall have Special Energy Meter (SEM) and Remote Terminal Unit (RTU) at their place for energy accounting, which shall be installed by the Transmission or Distribution Licensee, as the case may be, at the cost of the customer, to facilitate SLDC in real time monitoring. The installation of SEM and RTU shall be duly certified by SLDC Regulation 6: Categories of Open Access Customers Provisions in the draft Regulations 6. The application procedure, application fee and the time frame of processing request by eligible customers seeking Open Access shall be based on the following criteria: (1) (2) (3) System to which connected a) Intra-State transmission system b) Distribution system Inter-se location of drawal and injection points a) Both within the same distribution system b) within the State but in different distribution systems c) In different States Duration of Open Access a) Long term access b) Medium-term open access 11

12 c) Short-term open access. Suggestion from STAR Cement It is submitted that in the category of open access, Short Term Open Access shall be classified further as Bilateral Open Access (seller & buyer are known) and Collective Transactions. Short Term Bilateral Open Access are Four categories as per time of application basis which are; i) Advance Reservation- Application received from 15 days to 4 months prior to the open access. ii) First Come First Serve- Application received from5 days to 14 days prior to the supply date. iii) Day Ahead Application- Application received on previous day of supply date. iv) Contingent Application Application for same day scheduling on emergency basis. Advance Reservation shall have higher priority over FCFS, Day Ahead & Collective Transactions. : The categories of STOA are discussed in detail in Regulation 12 of the Draft Regulations. Therefore, it is decided that no change is necessary Regulation 8: Allotment Priority Provisions in the draft Regulations 8.1 A distribution Licensee shall have the first priority in allotment of Open Access capacity irrespective of whether the Open Access request is for LTOA, MTOA or STOA. Suggestion from TATA Power and IEX TATA Power: We would like to submit that the priority of seeking Access/Open Access is already defined i.e. in the order of LTOA, MTOA, and STOA from highest priority to lowest priority. As per Section-2, clause-47 of the Electricity Act, 2003, 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. 12

13 Hence, we would request that priority should be based on the nature of Open Access (i.e. LTA, MTOA, and STOA) only and there should not be any priority within each category of Access. In case a distribution licensee along with other sources as listed above do apply for open access simultaneously, approval may be granted to the applicants on pro-rata basis. IEX: This provision is in contravention of basic definition of Open Access as per Section 2(47) of Electricity Act 2003 which provides for non-discriminatory use of transmission and distribution system. The proposed provision is discriminatory in nature since the provision is biased towards Discom and against the open access applicants. The Act does not provide any exception to non-discriminatory nature of Open Access. Therefore, Regulation 8.1 regarding priority to Discom in grant of any period of Open Access should be dropped. Regulation 8.1 has been incorporated in accordance with the Model Regulations on Open Access (OA) by the Forum of Regulators and similar provision has been made in OA Regulations of other States as well. It is further observed that the distribution licensee is given priority because it caters to a huge number of consumers and requires adequate power to fulfill its obligation to supply. Therefore, no change is to be made to Regulation Regulation 9: Application Procedure for Open Access Suggestion from APDCL Open Access application under Long and medium term should be considered as full open access consumer. Distribution licensee will have the obligation to provide network access to OA consumer in non-discriminatory manner and In case of underdrawal, as a result of non availability of the transmission/distribution system, or unscheduled load shedding, the open access customer shall be compensated by the distribution licensee at the average power purchase cost of the distribution licensee. No standby power will be provided by the distribution licensee to such OA consumers during OA period. Open Access application under short term should be considered as Full open access consumer. However, subject to the choice as made by the applicant and recommendation of distribution licensee Partial Open Access Consumer status will be given to the STOA applicant for standby power. Distribution licensee will have the obligation to provide network access to OA consumer in nondiscriminatory manner and In case of underdrawal, as a result of non availability 13

14 of the transmission/distribution system, or unscheduled load shedding, the open access customer shall be compensated by the distribution licensee at the average power purchase cost (excluding RE power) of the distribution licensee. Standby power will be provided by the distribution licensee to such OA consumers during OA period as per para20 of the draft regulation. Standby Power will be provided by distribution licensee to Partial Open Access Consumers only and as per para20 of the draft regulation. Standby Power is to be provided by the Distribution Licensee only if power is available, on payment of standby charges by the open access customer. Therefore, no specific provision seems necessary as suggested above Regulation 9: Application Procedure for Open Access Provisions in the draft Regulations 9.2. All applicants seeking Open Access shall submit an undertaking of not having entered into Power Purchase Agreement (PPA) or any other bilateral agreement with more than one person for the capacity (quantum of power) for which Open Access is sought. Suggestion from TATA Power A consumer purchasing power from Open access can have PPA with more than one party, but they should not have PPA for the same quantum from the same time period from more than one party. Our request to the Honourable Commission to please consider the said point. It is decided that to add more clarity to the provision, as per suggestion from TATA Power, Regulation 9.2 be amended as under: All applicants seeking Open Access shall submit an undertaking of not having entered into Power Purchase Agreement (PPA) or any other bilateral agreement with more than one person for the same quantum of power and for the same time period for which Open Access is sought Regulation 9: Application Procedure for Open Access Provisions in the draft Regulations In table, Point 1 (a) For Intra State MTOA, Nodal Agency is mentioned as SLDC and Point 1(b) under the head Inter-State: In case injection and drawal points are in 14

15 different States, Nodal agency is mentioned as RLDC. Suggestions from STAR CEMENT AND IEX STAR: For Intra State Medium Term Open Access nodal agent shall be STU instead of SLDC. Collective Transactions are to be included in Inter-State Open Access by nature which involve NLDC, RLDC, CTU& STU in the transactions. Respective regulation of CERC has empowered NLDC as nodal agent for Collective Transactions and SLDCs are subject to issue the prior standing clearances where the applicant are connected in intra-state network. IEX: In case of applicant procuring/selling power through collective transactions, NLDC is the concerned Nodal agency. Therefore, it is suggested that in place of RLDC, As per Central Commission's Regulation should be specified. Commission s analysis & decision As suggested, the following amendments are to be made in the draft Regulations, as under: 9.4 (1) (a). For Intra State Medium Term Open Access, Nodal Agency shall be STU instead of SLDC. 9.4 (1) (b). Inter-State: In case injection and drawal points are in different States, Nodal agency shall be As per relevant Regulations of CERC and amendments from time to time Regulation 10: Procedure for Long Term Open Access(LTOA) Provisions in the draft Regulations A consumer intending to avail open access shall also submit a copy of his application to the distribution licensee who is supplying electricity to him. Suggestion from AHTPCA It is stated that this provision should be deleted as the applicant should only send his open access application to the transmission licensee. The Distribution Licensee has no role to play in granting/denying open access as these regulations appoint the SLDC/STU/CTU (as the case maybe) as the nodal agency. It is the sole responsibility of the nodal agency to examine and decide the fate of an application for open access. 15

16 Further, there is already Regulation which prescribes how the nodal agency will coordinate with other agencies, involved in intra-state transmission system, upon receipt of open access application. Therefore, it is prayed that Regulation be deleted by this Hon ble Commission. There seems no harm if a consumer intending to avail Open Access, also submits a copy of his application to the concerned distribution licensee. The copy of the application would contain all details of the Open Access being sought, which would in fact help in expediting the process of granting LTOA. Therefore, it is decided that no change in Regulation is necessary Regulation 10: Procedure for Long Term Open Access(LTOA) Provisions in the draft Regulations The bank guarantee may be encashed by the Nodal Agency, i) if the application is withdrawn by the applicant; or ii) if the LTOA rights are relinquished prior to the operationalization of such rights when augmentation of transmission system is not required;. Suggestion from AHTPCA A proviso be added to Regulation to read as under: Provided there is change in law or force majeure event in which case abovementioned provisions of Regulation will not be applicable the Bank Guarantee shall be returned to the applicant. As suggested, Regulations is to be amended, as under: The bank guarantee shall be encashed by the Nodal Agency, i) if the application is withdrawn by the applicant; or ii) if the LTOA rights are relinquished prior to the operationalization of such rights when augmentation of transmission system is not required. Provided in case of force majeure event, the above rights shall not be enforced Regulation 10: Procedure for Long Term Open Access(LTOA) 16

17 Provisions in the draft Regulations On receipt of the application, the Nodal Agency shall, in consultation and through coordination with other agencies involved in intra-state transmission system to be used (SLDC and Distribution licensee of the open access customer), process the application and carry out the necessary system studies as expeditiously as possible so as to ensure that the decision to grant LTOA is arrived at within the timeframe specified in these Regulations. Provided that in case the Nodal Agency faces any difficulty in the process of consultation or coordination, it may approach the Commission for appropriate directions. Suggestion from AHTPCA Regulation should also be amended to the extent that the Nodal Agency be directed to ensure that the result of system study is made available to the open access consumers/ applicant within seven days of being finalized. Commission s analysis & decision The following provision in Regulation is to be added as under: Provided further that the result of system study shall be made available to the open access consumer / applicant within seven days of being finalized Regulation 12: Procedure for Short Term Open Access (STOA) Provisions in the draft Regulations Involving inter-state transmission system: Notwithstanding anything contained in these Regulations, procedure for interstate STOA shall be as per Central Electricity Regulatory Commission (Open Access in inter-state Transmission) Regulations, 2008, or its statutory reenactments, as amended from time to time: Provided that in respect of a Consumer connected to a distribution system seeking inter-state short-term Open Access, the SLDC, before giving its consent to the RLDC as required under the Central Commission s Regulations, shall require the Consumer to submit the consent of the distribution licensee concerned. Suggestion from IEX The proviso to Regulation 12.1 provides for additional requirement of prior consent of distribution licensee while applying for inter-state Open Access. The onus of seeking consent has been assigned to consumer. It is submitted that 17

18 since Nodal agency acts as a single window approver of Open Access and to avoid any hurdles, it is suggested that SLDC should seek consent of Discom on the Application made by the Consumer. This practice has been followed in other States too. Further, in case of collective transactions, SLDC does not give its consent to RLDC. In view of the above, proviso to Regulation 12.1 may be specified as: Provided that in respect of a consumer connected to a distribution system seeking inter-state short-term open access, the SLDC, before giving its consent as required under the Central Commission's regulations, shall.obtain the consent of the distribution licensee concerned. In view of the suggestion offered, the provision in Regulation 12.1 is to be amended as under: Provided that in respect of a Consumer connected to a distribution system seeking Inter-State STOA, the SLDC before giving its consent, as required under the Central Commission s Regulations, shall obtain the consent of the distribution licensee concerned. Keeping in line with the above, amendment has also been made to Provision in Regulation (b) as under: Provided that if, the open access is sought for the first time or quantum of open access is changed from the previously approved quantum, the Nodal Agency shall obtain a No Objection Certificate from the concerned Distribution Licensee in a proforma prescribed in the detailed procedure. Similar amendments are also made to the Proviso in the Procedures for LTOA and MTOA, at Regulation 10.1 and Regulation 11.1, as under: 10.1 Provided that in respect of a Customer connected to a distribution system seeking Inter-State LTOA, the SLDC, before giving its consent to the CTU as required under the Central Commission s Regulations, shall obtain the consent of the distribution licensee concerned Provided that in respect of a Customer connected to a distribution system seeking Inter-State MTOA, the SLDC, before giving its consent to the CTU as required under the Central Commission s Regulations, shall obtain the consent of the distribution licensee concerned Regulation 12: Procedure for Short Term Open Access (STOA) 18

19 Provisions in the draft Regulations 12.2 Involving intra-state transmission system: Day-Ahead Open Access (a) An application for grant of day-ahead Open Access may be made to the Nodal Agency within three days prior to the date of scheduling but not later than 13:00 Hours of the day immediately preceding the day of scheduling for day-ahead transaction. For example: Application for day-ahead transaction on 25th day of July shall be received on 22nd day or 23rd day or upto 13:00 hours on 24th day of that month. (b) The Nodal Agency shall check for resultant congestion due to the proposed STOA and convey grant of approval or otherwise in prescribed format at the earliest. All other provisions of application for STOA shall apply. Suggestion from IEX and APDCL IEX: Regulation 12.2 is pertaining to Intra-State Bilateral Transactions, therefore to avoid any confusion and for clarity it is suggested that heading of Regulation 12.2 may be specified as: 12.2 Procedure of Bilateral STOA Involving intra-state transmission system: APDCL: Para (a) regarding Day-Ahead Open Access, the application for grant of day-ahead Open Access may be made to the Nodal Agency within three days prior to the date of scheduling but not later than 0000 Hours of the day immediately preceding the day of scheduling for day-ahead transaction. No change in the heading is required, as STOA transactions may be both bilateral and collective. The Commission is of the opinion that Regulation (a) is in order and therefore, no change is necessary Regulation 12: Procedure for Short Term Open Access (STOA) Provisions in the draft Regulations 19

20 (e) The floor price of transmission and wheeling charges determined on the basis of relevant order of the Commission shall be indicated in prescribed format. And (i) The bidders shall quote price (rounded-off to whole number) in denomination in which floor price has been determined For greater clarity, it has been decided to amend the above Regulations as under: (e) The rate of transmission and wheeling charges determined by the Commission shall be indicated in prescribed format. And (i) The bidders shall quote price (rounded-off to whole number) in denomination in which transmission and distribution price has been determined Regulation 12: Procedure for Short Term Open Access (STOA) Provisions in the draft Regulations The capacity available as a result of surrender or reduction or cancellation of the reserved capacity by the State Load Despatch Centre, may be reserved for any other STOA Customer in accordance with these Regulations. Suggestion from AHTPCA Regulation states that capacity available as a result of surrender or reduction/cancellation of reserved capacity by SLDC may be reserved for any other short term open access consumer. It is submitted that instead of reserving the capacity for any other short term open access consumer it should be subject to the transparent process of re-bidding. Further, the regulation may also be amended such that SLDC is obligated to publish daily information, regarding available capacity, on its website. As per suggestion offered by AHTPCA, Regulation has been amended as under: The capacity available as a result of surrender or reduction or cancellation of the reserved capacity, may be allocated to any other Short-term Open Access Applicant, in accordance with Regulation 8.6 of these Regulations Regulation 13: Consent by STU, SLDC or Distribution Licensee 20

21 Provisions in the draft Regulations 13.1 Inter-State Open Access: In case applicant is connected to the distribution licensee, he has to obtain consent from the distribution licensee Intra-State Open Access: In respect of a Consumer connected to a distribution system seeking Open Access, such Consumer shall be required to submit the consent of the distribution licensee concerned. The distribution licensee shall convey its consent to the applicant by or fax or by any other usually recognized mode of written communication, within three (3) working days of receipt of the application. Suggestion from AHTPCA & IEX. AHTPCA: Under Regulation the applicant has to obtain the consent of the Distribution Licensee it is connected to. It is submitted that there is no such provision in the CERC Grant of Connectivity, Long Term and Medium Term Open Access in inter-state Transmission and Related Matters) Regulations, Further, under the Central Electricity Regulatory Commission (Open Access in inter-state Transmission) Regulations, 2008 only a No Objection Certiicate has to be obtained from the SLDC. Thus, it is prayed that Regulation be deleted. Further, under Regulation the applicant has to seek consent of the distribution licensee it is connected to. It is submitted that in light of Regulation this regulation becomes unnecessary. Further, the process for obtaining approval for open access cannot be made so cumbersome that it becomes deterrence in applying for open access. Once, application has been submitted with the nodal agency it is the responsibility of the nodal agency to conduct system studies and examine the application. IEX: The Regulation provides that consumers have to obtain consent of Discom before applying for inter-state Open Access. However, there is no timeline mentioned for such approval by Discom. In this regard, it is submitted that as suggested above, SLDC should seek consent from Discom and as per Regulation 8(3)(c)of CERC Open Access Regulations, SLDC has to provide consent within 7 working days on first time and 3 working days subsequently from the date of receipt of application. It is thus suggested that Discom should provide consent to SLDC within 5 working days on first time and 1 day or maximum 2 working days subsequently to enable SLDC to provide consent within timeline mentioned in CERC Regulations. 21

22 It is desirable that an applicant connected to a distribution licensee, submits a copy of the application for Open Access to the concerned distribution licensee for information. Accordingly, Regulation has been amended as under: In case the applicant is connected to a distribution licensee, a copy of his application shall also be submitted to the concerned distribution licensee. Further, Regulation shall be amended as under: In respect of a consumer connected to a distribution system seeking Open Access, SLDC shall be required to obtain the consent of the distribution licensee concerned. The distribution licensee shall convey its consent or otherwise to SLDC by or fax or by any other usually recognised mode of written communication, within three (3) working days of receipt of the application Regulation 13: Consent by STU, SLDC or Distribution Licensee Provisions in the draft Regulations 13.2 Intra-State Open Access: Where the distribution has not communicated any deficiency or defect in the application within two (2) working days from the date of receipt of application, or refusal or consent within the specified period of three (3) working days from the date of receipt of the application, consent shall be deemed to have been granted. Suggestion from APDCL, FINER & IEX. APDCL: Para the word licensee should be added in the para. Where the distribution licensee has not communicated any deficiency or defect in the application within two (2) working days from the date of receipt of application, or refusal or consent within the specified period of three (3) working days from the date of receipt of the application consent shall be deemed to have been granted. FINER: The role of Distribution utility in consent, permission and grating of open access should be diluted, as the maximum responsibility is being given to SLDC/STU. Asking for further permissions from discom, shall delay the process and make it unnecessary cumbersome. A single window clearance should be given in the 22

23 regulation, for the ease of making Open Access fruitful. Already there are many applications pending for Open Access due to clearances from multiple tables. Moreover, SLDC in its present form is not equipped to handle the role being bestowed on it vide this regulation. SLDC need to be further strengthened before such regulation come in place, to avoid any confusion and delay in procedures/processes. This entire regulation shall go futile, if SLDC is not made independent. The nodal agency of an OA regulation should not be working under ambit of an utility, like being done in all other states of India. IEX: As suggested above, there should be single window approval of Open Access transactions and since Nodal Agency is SLDC therefore consent of Discom should be sought by SLDC itself in case of STOA. As suggested, amendments incorporated in Regulation as under: Where the distribution licensee has not communicated to SLDC any deficiency or defect in the application within two (2) working days from the date of receipt of application, or refusal or consent within the specified period of three (3) working days from the date of receipt of the application, consent shall be deemed to have been granted Regulation 14: Consideration of Applications from Defaulters Provisions in the draft Regulations 14. Notwithstanding anything contained in these Regulations, the Nodal Agency shall be at liberty to summarily reject an application for Open Access on the ground of non-compliance of the provisions of these Regulations, more specifically the provisions relating to timely payment of the charges leviable hereunder. Suggestion from AHTPCA. Under Regulation 14 it has been proposed that the nodal agency shall be at a liberty to summarily reject the application made by defaulters. It is submitted that Nodal Agency being a statutory body cannot reject any application summarily, without giving any reason. The Nodal Agency must act in a fair and transparent manner. Thus it is suggested that Regulation 14 be amended to provide time to the defaulters to clear their defects/defaults after which their application for open access may be considered afresh without. Regulation 14 has been amended as under: 23

24 Notwithstanding anything contained in these Regulations, the Nodal Agency may reject an application for Open Access after giving reasons for the same, on the ground of non-compliance of the provisions of these Regulations, more specifically, the provisions relating to timely payment of the charges leviable hereunder Regulation 15: Open Access Agreement /Undertaking Provisions in the draft Regulations 15.1 An open access customer shall enter into an agreement with the SLDC for availing open access. Suggestion from STAR Cement. It needs to be specific that Open Access agreement or Transmission/Wheeling Agreement shall be executed by the applicant with the SLDC/STU/Distribution licensee for Long & Medium Term Open Access only. For Short Term Open Access, Nodal agents like RLDC or SLDC receive all the charges including transmission & scheduling charges in advance before the applicant use the network. In case the applicant fails to pay the charges in advance, applications/transactions get rejected with immediate effect. Therefore open access agreement for short term transactions are baseless & irrelevant. Further, it is to be clarified that an applicant can enter into multiple PPA for different power sources and quantum of different power shall be scheduled in accordance with appropriate provisions IEGC for scheduling procedures. Commission s analysis & decision Regarding Open Access Agreement/Undertaking, details shall be specified in the detailed procedure to be drawn up by STU in accordance with these Regulations. Regulation 15.1 has been amended as under: A Long /Medium Term Open Access Customer shall enter into agreements for availing open access with SLDC. Regarding an applicant entering into multiple PPA, it has been mentioned in Regulation 9.2 that all applicants seeking Open Access shall have to submit an undertaking of not having entered into Power Purchase Agreement (PPA) or any other bilateral agreement with more than one person for the same quantum of power for which Open Access is sought, which means that multiple PPAs can be entered into for separate quantum of power Regulation 16: Transmission/ Distribution Charges 24

25 Provisions in the draft Regulations 16.1 The open access customer shall pay the transmission charges and wheeling charges as determined by the Commission from time to time. Provided that the transmission and wheeling charges shall be payable on the basis of open access capacity contracted or open access capacity utilized, whichever is higher. Suggestion from FINER, AHTPCA and IEX. FINER The transmission and wheeling charges should be based on utilized capacity and not on contracted capacity. There might be many factors because of which the capacity might not be available, hence not utilized. Charging on contracted capacity shall make consumers pay for inefficiency in the systems, if any. AHTPCA: The aforementioned proviso maybe amended to say that transmission and wheeling charges shall be payable on the basis of open access capacity utilized. It is pertinent to note that on multiple occasions transmission/distribution lines may not be available due to break down of system or line fault or peak time restrictions. In such scenario it is only fair to the consumers that they get charged for the actual capacity, being utilized by them otherwise it would become too burdensome for the consumers, making open access unviable for them. The proviso in its current form is against the spirit of EA 2003, Tariff Policy and National Electricity Policy which provide for promotion of open access. It is submitted that another clause be added to Regulation 16 in line with the CERC (Grant of Connectivity, Long Term and Medium Term Open Access in inter- State Transmission and Related Matters) Regulations, The aforementioned CERC Regulations, under Regulation 26, also provide for: Provided that any disagreement on transmission charges for such State network as specified above, shall not be the sole reason for denying access and either party may approach the Commission for determination of transmission charges for such State network. IEX: Regulation 16.1 provides for levy of transmission/wheeling charges based on the contracted or open access capacity utilized whichever is higher. This clause is essentially relevant in the context of LTOA and MTOA as the capacity has been reserved these cases. As far as Short-term Open Access (STOA) is concerned the reservation of transmission capacity is not involved and such transactions are allowed only on inherent margins available in transmission and distribution network. 25