OPEN ACCESS

IN
INTRA STATE TRANSMISSION
&
DISRRIBUTION SYSTEM
30
TH
JANUARY 2008

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Indian electricity Act, 2003 Section 39(d), 42(2) states that

1. The function of State Transmission utility shall be to provide non-
discriminatory Open Access to its transmission system for use by
i) Any licensee or generating company on payment of the
transmission charges; or
ii) any consumer as and when such open access is provided by
the State Commission under sub section 2 of Section 42 on
payment of transmission charges and a surcharge thereon., as
may be specified by the State Commission

2. The State Commission shall introduce open access in such phases and
subject to such conditions ( including the cross subsidies, and other
operational constraints) as may be specified within one year of the
appointed date by it and in specifying the extent of open access in
successive phases and in determining the charges for wheeling , it
shall have due regard to all relevant factors including such cross
subsidies, and other operational constraints. (In respect of
Distribution network)
INTRODUCTION
CONCEPT
Clause (47)of Section 2 of Act, 2003 defines the Open
Access as

Non-discriminatory provision for 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



2. A person setting up a captive generating plant carry
power from his captive generating facility to the
destination of his use without payment of surcharge.
DISTRIBUTION
3. Any consumer can access a trader, generator,
distribution licensee other than his own distribution
licensee when the State Commission allows him open
access under Section 42(2) of the Act, on payment of
wheeling charge and surcharge to take care of current
level of cross subsidy and or additional surcharge under
Section 42(4), as the case may be.Thus the consumer is
empowered to select his preferred source of supply of
electricity.

As per Clause 42(4) of the Electricity Act where the State
Commission permits a consumer or class of consumers to
receive supply of electricity from a person other than the
distribution licensee of the area of supply, such consumer shall
be liable to pay an additional surcharge on the charges of
wheeling as may be specified by the State Commission to
meet the fixed cost of such distribution licensee arising out of
his obligation to supply.


Distribution Utility
In the light of statutory provision OERC specified
Regulation for open access to intra-state
transmission and Distribution system irrespective
of ownership of the asset.

Regulation

1. OERC (Terms and Conditions for Open Access)
Regulation 2005 - with effect from 06.05.2005

2. OERC(Determination of Open Access Charges)
Regulation-2006-with effect from 06.06.2005


INTRA STATE OPEN ACCESS REGULATION

Act
-The Electricity Act 2003

Allotted Transmission/Distribution Capacity
The power transfer in MW between the fixed point(s) of
injection and point(s) of drawal allowed to a long term
customer on the intra state transmission or distribution
system under normal circumstances.
Applicant
A person who makes an application to the Nodal Agency
for open access and includes any person engaged in
generation, a licensee or any consumer eligible for open
access under these Regulations

DEFINATIONS /TERMINLOGY USED

Open access customer

The licensees, the generating company, A captive
generating plant and A consumer shall be eligible for non
discriminatory open access to the intra state transmission
system of the STU or any other transmission licensees and
to a distribution system of a distribution licensee subject to
availability of adequate availability of transmission /
distribution capacity and payment of required charges and
fees as may be specified
-Direct Customer

-Means a person directly connected to the transmission/
distribution system owned and / or operated by the State
Transmission Licensee/ Distribution Licensee
- Reserved Transmission Capacity

- Reserved Transmission Capacity means the
power transfer in MW between the specified
point(s) of injection and point(s) of drawal
allowed to a short-term customer on the
transmission system depending on availability
of transmission capacity and the expression
reservation of transmission capacity shall be
construed accordingly;
State
State of Orissa
CATEGORISATION OF OPEN ACCESS CUSTOMERS
- (i) The transmission/distribution customers shall be
divided into two categories
- (a) Long term customer
- (b) Short term customer
- (ii)The persons availing or intending to avail access
to the intra-state transmission system for a period of
twenty five years or more shall be the long term
customer
- Provided that the existing beneficiaries of the State
transmission and distribution systems owned or
operated by State Transmission Utility and the
existing distribution licensees shall be deemed to be
the long term customers of the particular system
- (iii) The transmission customers other than the long
term customers shall be the short term customers.
- Provided that the maximum duration for which the
short term access allowed at a time shall not exceed
one year

- Provided further that short-term customer shall be
eligible and re-eligible to obtain fresh reservation
after expiry of their terms

Allotment priority of long term customers shall
be higher than that of short term customers

Special provisions for existing open access
customers

The persons availing open access to the intra state
transmission and distribution system in the State under
an existing agreement or arrangement, shall be entitled
to continue to avail the open access on the terms and
conditions applicable to them as before for the period
of the existing agreement or arrangement subject to the
payment of the transmission charges, the wheeling
charges and the applicable surcharges as may be
determined by the Commission from time to time.
(i) The long-term access shall be allowed in accordance with
the transmission and distribution planning capacity criteria
stipulated in the Orissa Grid Code and/ or the Orissa
Distribution (Planning and Operation) Code, as the case may
be;
-(ii) The short-term access shall be allowed, if request
can be accommodated by utilizing:-
-(a) Inherent design margins;
-(b) Margins available due to variation in power flows; and un
utilised capacity, if any, and
-(c) Margins available due to in-built spare transmission
capacity in transmission and/ or distribution systems created
to cater to future load growth.
CRITERIA FOR ALLOWING OPEN ACCESS


NODAL AGENCY
Long term access - The nodal agency for
arranging the long term
transmission access shall be the
State Transmission Utility if its
system is used, otherwise the
nodal agency shall be the
respective distribution licensee
within whose area the point of
drawal electricity is situate.

Short term access - The nodal agency for short
term transmission access shall
be the State Load Despatch
Centre (SLDC).
Time-schedule for Processing
Short Term Customer Application
Up to One day 12 hours
Up to one week Two days
Up to one month Seven days
Up to one year Thirty days
CRITERIA FOR ALLOTMENT/RESERVATION OF
TRANSMISSION/DISTRIBUTION CAPACITY
(i) Long term open access customers shall be given priority over
short term open access customers
(ii) Open access shall be allowed only after determining the

Capacity available in the intra state transmission system
Operational constraints, if any,
Capacity available in the distribution system
Capacity utilised by the existing customers
Capacity committed for transmission, distribution and retail
supply of electricity to the consumers of the distribution
licensee
-(b)Subject to the above, open access shall be allowed on first
come first served basis.
LONG TERM APPLICATION /
PROCEDURE
Application to be submitted to the Nodal Agency

Details of
Capacity needed,
points of injection and drawal,
duration,
peak load,
average load and
such other additional information that may be laid down
by the nodal agency to be specified.

Non refundable fee of Rs.One Lakh for transmission access and
Rs. Fifty thousand for distribution access payable in the
manner specified by the nodal agency.
The nodal shall conduct system study in consultation
with other transmission licensees and distribution
licensees involved and intimate whether open access can
be allowed with/without system augmentation within 30
days to the applicant

If system augmentation is not required Intimate OA
customer the start date after entering into commercial
agreement

If system augmentation is required Details of cost
estimate and completion (augmentation) schedule shall
be intimated to the OA customer within 90 days of
receipt of application

The allotment of transmission capacity to a long term
customer may be relinquished or transferred to any other
long term customer in accordance with Regulation
12(c)(ii) of these Regulations

LONG TERMPROCESSING / APPROVAL
LONG TERM- ALLOTMENT/RESERVATION OF
TRANSMISSION/DISTRIBUTION CAPACITY
(i) Long term Applications
In the event of insufficient spare capacity/ congestion in
the network hindering accommodation of all long term
applications, the nodal agency shall inform the
applicants of the same and advise the concerned
licensee(s)to carry out an assessment of works required
to create additional capacity to accommodate such
applicant(s). After completion of such works the nodal
agency shall carry out allotment of capacity to such
applicant(s). As regard capital expenditure incurred by
the licensee(s) for system strengthening, the licensee
may require a capital contribution from the applicants
subject to provision of clause 13(1)v of these
Regulations
LONG TERM BPTA & EXIT OPTION

A long term customer shall not relinquish or
transfer his rights and obligations specified in the
Transmission / distribution Capacity access
agreement without prior approval of the
Commission


The relinquishment or transfer of rights and
obligations by a long term customer shall be
subject to payment of compensation, as may be
determined by the Commission.

TRANSMISSION/ DISTRIBUTION
CAPACITY ACCESS AGREEMENT
A long term customer shall enter into Transmission/
Distribution Capacity access agreement with the
Transmission / distribution licensees

The agreement shall provide, amongst other things,
for the eventuality of premature termination of
agreement and its consequences on the contracting
parties.

After agreements have been entered into and copies
furnished to SLDC, the SLDC shall inform the open
access customer the date from which open access
will be made available which will not be later than
seven days from the date of furnishing of
agreement.

SHORT TERM-APPLICATION
Application to be submitted to SLDC (Nodal Agency)
with copy marked to the concerned Distribution
licensee involved in the transaction and CGM(O&M).
OPTCL.
the details of capacity needed, points of injection,
point of drawal, duration of open access, peak load.
Copies of the agreement/MOU entered between the
buyer/seller/trader

Non refundable fee of Rs.5000/-.
Advance payment for one month or the period of
open access whichever is less to be kept as as
security by SLDC towards OA charges and
Scheduling charges.
The State Load Despatch Center in consultation
with the STU and distribution licensee shall take
a decision on the application based on the
following schedule
SHORT- TERMPROCESSING /
APPROVAL Contd2
Sl
No
Tenure of the
contract
Maximum processing
time(from the end of the
calendar month of
submission
1 Up to one day 12 hours
2 Up to one week Three days

3 Up to one
month
Seven days
2 Up to one year Thirty days

While processing the applications SLDC shall seek
the consent of the Distco/STU involved in the
transactions.
Time taken by SLDC to give acceptance would be as
per the schedule.
If congestion is not anticipated in any of the
transmission/distribution corridors, the applicant
shall be granted short term open access for the
quantum and duration sought.
In case SLDC anticipates congestion in one or more
of the transmission corridors, the STOA customer
shall be intimated the same and asked to reduce the
quantum for the period and corridor causing
congestion.

SHORT- TERMPROCESSING /
APPROVAL Contd3
The applicant must inform SLDC the reduced
requirement of transmission/ distribution
capacity during the period of congestion or opt
for the period when there is no congestion. In
case of non receipt of revised information in
time it is presumed that the applicant is no
longer interested in revising it and SLDC will
process the application as per the capacity
recommended by the STU.

In case SLDC still anticipates congestion, it shall
invite electronic bid for reservation of
transmission capacity of the congested corridor
in accordance with regulation 9(4)(b) of these
regulations.
SHORT- TERMPROCESSING /
APPROVAL Contd4
BIDDING PROCEDURE
In case of applicants for short term open access
with transactions required to be accommodated
through congested corridors of the network, the
nodal agency shall invite bids by fax/e-mail with
floor price equal to the un-congested price for the
short term customers. The bidder shall quote
percentage points above the floor price. The
reservation of capacity shall be done in decreasing
order of the price quoted. In case quotes involving
equal prices, the reservation of capacity shall be
done , if required, pro rata to the capacity sought.
SHORT- TERMPROCESSING /
APPROVAL Contd5
BIDDING PROCEDURE
The customer getting reservation of capacity less
than the capacity sought by him shall pay charges
as per the price quoted by him.All other applicants
getting capacity reservation equal to the capacity
sought by them shall pay charges as per the price
quoted by the last applicant getting full reservation
of capacity sought
The floor price /un-congested price means the
transmission or wheeling charges required to be
paid by the short term customers as per the rates
approved by the commission and published by the
nodal agency from time to time.
SHORT- TERMPROCESSING /
APPROVAL Contd6
SLDC shall issue transaction wise approval:

A. From the point of injection of a seller to the
injecting Distcos / OPTCL periphery,

B. From the periphery of the injecting OPTCL /
Distcos up to the periphery of the drawee
OPTCL / Distcos,

C. From the periphery of the drawee OPTCL /
Distco to the point of drawal of Buyer.

SHORT- TERMPROCESSING /
APPROVAL Contd7
Payments to be made by a Short term customer
1. Transmission charges
OA customer shall pay the transmission /
wheeling charges and any other Charges
including surcharges as may be determined
by the Commission from time to time.
2. Network augmentation charges in case of
long term OA customers if funded by the
Licensee.
3. Scheduling and system operation charges to
SLDC as determined by the Commission.
4. Non refundable fee : Rs. 5,000/-

The annual transmission charges payable by a
long-term customer for the use of the intra state
transmission system shall be determined after
deducting the adjustable revenue received from
the STOA customers as well as the inter state
customers. The long term customers shall share
these charges. The transmission charges
payable by long term customers in terms of
Rs/MW/Day in case of un-congested
transmission corridor shall be worked out as
follows
LT_RATE= [ Net approved transmission
cost(NATC/Average Demand in the
State(MW)/365
OPEN ACCESS CHARGES
The Transmission charges payable by Shirt term
customers in terms of Rs/MW/Day in case of un
congested transmission corridor shall be
calculated in accordance with the following
methodalogy, namely
ST_RATE= 0.25x[NATC/Average Demand in
MW]/365
Where ST_RATE is the rate for short term
customer in Rs/MW/Day.
NATC means the annual transmission charges
or annual revenue requirement on account of
the transmission system for the previous
financial year as determined by the
Commission.
OPEN ACCESS CHARGES Contd.. 2
Average Demand means the average capacity in MW
served by the intra state transmission system of the
transmission licensee in the previous FY.
The transmission charges payable by a Short term
customer using the system for fraction of a day in
case of un-congested transmission corridor shall be
levied as under, namely
a. Up to 6 hours in a day in one block: of ST_RATE
b. More than 6 hours and up to 12 hours in a day in one block: of the ST_RATE
b. More than 12 hours and up to 24 hours in a day in one block: ST_RATE
The transmission charges payable by a short term
customer shall be for one day and in multiples of
whole number of days
Surcharge and additional surcharge shall be as
determined by the commission
OPEN ACCESS CHARGES Contd.. 3
Short term customer shall pay scheduling and system
operation charges to be notified by the Commission
after determination of ARR.
The open access customer shall pay the reactive
energy charges as determined by the Commission.
SYSTEM OPERATION & REACTIVE ENERGY CHARGES
The transmission/distribution customer shall bear
the average energy losses in the
transmission/distribution system as estimated by
SLDC. The energy losses in the
transmission/distribution systems shall be
compensated by additional injection at the
injection points
The information regarding average energy losses
for last 52 weeks shall be posted in the web site of
SLDC

OPEN ACCESS ACCOUNTING OF LOSS
PROCEDURE FOR CURTAILEMENT
In case of transmission constraint , if curtailment
is necessary then,
Short term customers first
Long term customers next

Within the category,
OA customers have
curtailment on pro rata basis
OTHER CONDITIONS
Any mismatch between schedule and actual drawals at the
drawal point and at the injection point shall be met from the
grid and its price shall be governed by the frequency linked
unscheduled energy inter-change pricing mechanism as per
ABT requirement.
All customers OA customers shall meet the metering and
communication requirement as the Commission may direct
from time to time
All OA customers shall abide by the provisions of the OGC,
IEGC and instructions given by STU, SLDC and other
authorities
All transmission customers shall be required to install special
energy meters capable of time differentiated measurement
of active energy and voltage differentiating measurement of
reactive energy.

NON UTILISATION OF RESERVED CAPACITY
In case of a STOA customer is unable to utilise full or
substantial part of the reserved capacity, he shall inform
SLDC along with reasons and may surrender the
reserved capacity
SLDC may reduce or cancel the reserved capacity of a
STOA customer frequently under utilises the reserved
capacity
The STOA customer who has surrendered the reserved
capacity or whose capacity is reduced or cancelled, shall
bear full transmission/distribution charges in addition to
the scheduling and operational charges based on original
reserved capacity and the period for which the capacity
was reserved
THANK YOU