BEFORE THE TAMILNADU ELECTRICITY REGULATORY COMMISSION, CHENNAL Filing No. Case No. MPNe.24 of 2021 INTHE MATTER OF: ‘The Tamil Neda Blestscty Regulatory Commission may be pleased to fix the adjustment priority among various sources oF open Aceess energy against HT consumption AND Inthe matter of ‘Tamil Nadu Generation and Disebution 1 Comportion Limited, 144, Anna Sala, 1 ‘Chena - 600 002. 1 Repeesented by its Chet Financial Consolle/Revenue! ‘TANGEDCO 1 Petitioner “Nersis!- - Nie Respondents ISL OF ANNEXURES jst DESCRIPTION PAGE.No. 1 “The Affidavit filed by the pet The Comments of TASMA, 2: The Comments of Tamil Nad Electricity Consumers’ Associaton [4 Anexure-3r The Comments 0° The Southern India Mills? Association 3743. he Comments of Tamil Nada Power Producers Association, Annexure: | AaneaureS: The Conners | Former Member (Generation). 6 | Anmexure-6: The Comments ofTulsyan NEC Lid Lo] oo7 | Anmeaure:Ti The Comments of [EX ~ Indian Energy | Exchange. Annexure The Commenis of OPG Energy Pv Lid 9, | Ammexure9: The Comments of OPG Power Generation Pvt Lid / 10 Annexure:10:_The Comments oF AD. Thirumoorhy- “Member State Working Group on RE. [TT | Annexes The Comments oTndian Wind Power | asin, “TR | Anmexure-12: The Comments of Watsin Inifabild Private Limited All are true copies best of my knowledge and belie ted at Chennai on this the 11 day of Aupust 2021 96-98 44-4 [20-140 MI 48 143 Malay oe “yRETITIONERo BEFORE THE TAMILNADU ELECTRICITY REGULATORY ‘COMMISSION, CHENNAL Filing No. Case No, MPNo.24 of 2021 IN THE MATTER OF: The Tamil Nadu Elewicity Regulatory Commission may please be fixed the adjustment prionty among various sources of open Access energy against HT consumprion AND Inthe matter of ‘Tamil Nadu Generation and Distribution 1 Corporation Linite, 144, Anna Sala, 1 (Chennai - 600 02, 1 Represented by its Chief Financial ControlerRevenue/_] ‘TANGEDCO i Pettonsr Nersus! + Nile Respondents AFEIDAVIT FILED BY THE PETITIONER 1, KMalarvizhi, wife of M.ayyappan, Hind, aged about 53 years, working 45 Chief Financial Controlle’evenue, Tamil Nadu Generation and Distribution Corporation Lid, (A subsidiay of TNEB Lid), having office at [No.144, Anna Salai, Chennai -2 do hereby solemnly aim and sincerely states as follows 1. L respectfully submit tha he petitioner filed Miscellaneous Petition seeking order of adjustment among varius souees of open Access energy salnst HT consumption vide M.P.No24 of 2221, The same has been admitted on 29.06.2021 and it has been ordered to TANGEDCO to webhost the said petition and to obtain the stakeholders comments Pursuant to the above, TANGEDCO ‘webhosted the said petition on 03.07.2021 requesting the stakeholders to fumish ‘heir comments on or before 03.08.2021. Based on the above, the following stake holders have furished thet comments. otNami fe Sacboler ~~ [Resehedon] Tani Nau Spina Mills Asosiion, 2307027 2 Tamil Nagu Eleewicyy Conamers Association [24072007 —] 3°” The Soulen india Mille” Asosaion [peor 4" Tamil Nadu Power Produces Adsosiaon 30072027 | 5 nber (Generation). | 39.07 2001) 67 Ms Tuyen NEC Lia ra 1X Indian Energy Bechange soe] Mis OFG Energy Peed waa | 8 MS OPG Fewer GeneationPaLS 193.08 3087 | 10. Thirty A.D. Thirumoorthy- Member State Working 030820201 Grovpon RE — { Tis ndian Wind Power Asocaton TeaeIDAT "Mis Waisn infabld Prvae Lines ~~ 0083087 The above commen are annexed hereaith for kind reference. In this connection, its stated thatthe stakeholders mentianed in $L.No.I and 2 have stated thet the matter of Priority of Adjustment is sbeady sub-judice before the Hon'ble High Cour of Judicature st Madras in WP No. 10069 of 2020 filed by TASMA. With respect ta the above comment, iti submited thatthe impugned circular issued ide Circular Memo No, CEIGOISE:Comml OpRIERIOAF, Exchange/D102/20, 64.17.07.2020 is only relevant so appromal and accounting of IEX power purchased by the HT consumers under interstate apen access, In said circular, the sequence of adjustment of energy among varios sources of open access power was not mentioned. Hence, the contention ofthe stakeholders isnot coret. Furie, it i submited that with regard to other isses (viz. Civil Appeal No.15616 of 2017, MP No.6 of 2017, et.) rise by the sakeholdrs in their comments, most of the issues were already covered in the original petition fled by the peiioner TANGEDCO. Page No.2 Nov of Corras. “NilFor the reasons stated above, the Hon'ble Tamil Nadu Blestsvity Regulatory ‘Commission may be pleased to fix the erder of adjustment of the Open Access nergy against HT consumption as stated above or pass any other onder or orders 4s this Hon'ble Tamil Nadu Eleticity Regulatory Commission may deem fit and wk “PREONENY.” ome 16 ERIFICATION 1, KMataviai, the Deponen sbove nae, do hereby at Chennai on his the 119 day of Angus "202 tit the conten of my foregoing Ada are tr and correct othe best of my knowlege and bei. No part oft i filse and noting tmnt as been concealed tee fom. ws Sy cal Fan cs a : sso a, Last page & Page No3 [No.of Corras. "Nil™[BEFORE THE HON'RLE TNERC CHENNA\ MPNo.28 of 2 MISCELLANEOUS PE'JION 1. FOR PETITIONER,Annaeaine = 4 @ Tamilnadu Spinning Mills Association manatee a a ‘iy Rep Nn S007 TE Reg No 38610 ByEMall/ RPAD te Date: 23.07.2023 ‘The Chief Francs Controle Revenue ‘TANGEDCO, 7 Poor, 144, Ama Sal, Chennai = 600 0. smal 1: lerevDinebnet ora, feeevennebnetors Mader ‘Su: M.P. No. 24 of 2021- In the matter of fing of Prorty of [Adjetment of OR power consumed ‘om various sources by 29 OR orsumer fling of comments Regarding Ret! 41. Your Petition in MP. No. 28 of 2021 dated 13.06.2021 flee 2, The Daly Order of tha Hovble Commission in MP. No. 24 of 202 dated 29.06.2021, 43. The webhoated matter ofthe Hon'ble Commision along with is Notice deed 08.07.2021 m M.P No. 24 of 2021. | Bratace: 1. Ne invite your kind reference tothe petion fled by You, In MP. No. 24 of 2021 on 11.06.2021, before. the Horble Commission. Aecorsingiy, 00 hearing the matter on 2.06,2024, the Hon'ble Commision has mace the “olewing order. “TiruM.Gopinathan, Standing Counsel appeared for TANGEDCO. Beet arguments heard.” Thru.s:PPanhasarathy, Advocate 90 Informed that te cecularisved by TANGEDCO has been stayed by ‘igh Court at Madras. Petition i admitted. As prayed by Thiru. Rah Bala, Advocate, Commissin directed both TANGEDCO and Regs'y (oF the Commission f0 webhost the petton in ther respecive Websles Yor seeking comments from the stakenoders. eis 2is0 further rected that the Registry of the Commission shal! arrange TOformulate Regulations on the subject. The case is adjourned to 27.07.2024 for fing ataave”™ Accordingly, Both the CFC-Reverue, a= well as the Honble Commission, have wobhested the matter covered by MP. No. 24 of 202%, bath in the Website of tne TANGEDCO, ar wel ae of tne Hon'le Commission, Whe the Hon'ble Commission webnosted the peten, nas also weonasted & note deted 06.07.2021, to invite the comment fom the stacehovers Gn tre matter covered by MP. No. 26 oF 2021. for submission before 03.08.2023, ‘copy of the Daly Order dated! 29.05.2021 (Anmexure-A) ofthe Honble Commission ad the Natce ofthe Honsle Commision deed 08.07.2021 (Annexure-B) are sent herewith for stan reference ‘Accordingly, on behalf of Tamllradu Spinning Mills Association (here fer ealed_ 25 TASMA ), rich nas 2 member strength of 68? spinning mils end other incusris falling in the Texte Value Chain, we ae fing {Sur comments Below ‘The subject of *Priatty of Adjustment af OA Power" was one among the fen tasks alloted to TANGEDCO. by the TANTRANSCO Vide is cofemunicatan dates 17.07.2020 n Creuar Heme No, CE/Ga/SE/Comm Opn/es/Oa/e. Excrange/0102/20 (ARMexuUre-C) 876 accorcingiy, the asslgnment was provided as bei. “Tae folowing are the Operative ortons af he above circular Meme dated 17207-2020 ised by the TANTRANSCO, a) The Superintencing Engineer/Commercial Operation (3 Resoondent) i instructed to dopense the process of issuance of Tn Dprnepal Agarovar” by 5.0C, for the Interstate Collective and Biacera! Power Purchase Transaction, Issuing for” Standing Giearance 25 in vogue, shel be continied with HO fom EDC 1) The Superitenaing Ensineers/ EDCS are intrted to dispense the execution oF agreement Incuzing the existing agreement or the Inter-State colective and bilateral power purchase transactions, ©) TANGEDCO-Finance Wing (5° Respondent) shall intite hecessary action for accitanal surcharge csim, ice the manthiy Spplestons for colective/blateralvansactions shal be treated 2 ‘ew application hereafter@ 4) The Superintencing Engheers/ EDCS are instructed to adhere {he flowing tthe time of suing consent) NOES (i) Aa Undertakng/Decaration(Format-t enclosed) shal be obtained from the coon access consumers, who intend (9 Dburenase power thveugh Inter-State Open Access that the ‘maximum poner made avaiable at any time exceeds 1 MW {Qimaintain grid cisco and also cannot exceed the acta! {approved quontum (maximum hm). For thse who are Nt ‘opting these terms and conaltions, NOC should not. be (sued bythe EDCs, 1) accordance wih TNERC's Order in MP No. 24 of 2014 ated 31.03.2016, provision of ABT Meters and metering ‘Set (CT8PT) with 0.25 Clase Accuracy, shall be. made ‘mandatory, for the consumers who Intend t0 purenase Dower though Intr-tate Open Access. Tt shal be ensured before issuing consentNOC by concemed ECS fer Open Aecess or othenaise NOC should nat be issued by the Distribution Licensse 12) The Superintending Engineer / Commercial Operation (3° Respondent) is instructed to adhere that the applcation for the standing clearance fom LDC's inthe prescribed format ( Format-If enclosed) named as “Applcaton forthe Standing Clearance” along ‘nth the enclosures mentioned herein 1) The Superintending Enginer / Commercisl Operation is instructed to ensure through Superintending Engineer / LDRGO thatthe Coridor ‘valiablty (N1) fe veied wih Inter-State Transmission System 7 Inara-Stato Transmission System Une Clear (Lc) Program 25 i _g) The Superintending Engineer / LO&GO is instructed that in fase of any forced constraints in the State Transmission INetwork, at any point of lime SLDC to give priarity for the Distribution Licensee to avall power through exchange and (0 restrict the consumers. For any constraints In the Distribution Network STOA transactions have to give east priority. 1) The Chie angineer/ Commerce TANGEDCO and Chet Financial CContrater/ Regulatory Call) TANGEDCO (Kuncioning under 5 Respondent) are Instructed tc frame the commercial Mechanism for Imposing ponaty for the excess demand avaled ftom TANGEDCO than the demand that has been proposed fo be avaled fom TANGEDCO after deduction of proved quantum of demand proposed {a be purchased trom Povae Exchanges/, Bieter Tranaactons Necessary regulatory Approval wharever required shal be obtained,1). The Superntending Engineer/ Commercial Operation (3% Respondent) is instructed te share the 15 minute time Beck anergy Durchase from Power Excharges/Slateral Transections f0 IT wing f 0aid gaming 4) The Chie Engineer / Tard the Chet Financial Canraller/ Revenue ‘7 rANGEDCO (ori ofthe 5* Respondent) are insted 19 nt biock wise energy acjustmert of the power excnanse) Diateral power Purchase transaction, 4) Te above order supersedes the previous order Intesla, for other reasons, the sag communication dsted! 17.07.2020 los challenges by TASMA before the Horble High Court of usieaure at adcas in WP No. 10069 of 2020 and on an order issued inthe sid Wt Petition on 03.05.2020, the Henble High Court has stayed the entire operation of the communieaton cated 17.07.2020. issued by the TANTRAWSCO. Tne operave potion ofthe orger dated 02.08.2020 In VP No, 10069 of 2020 is reoaucec setow or the orcer copy of the Hon Re High Court in iP No. £0058 e 2020 i ennewed to the comments 22 (Annexure-b) “4.This Court is sated that a prime face case has Deen made out for grant of inten orders Sreer ata bes trier sac fate respects lon he Sonoerned pending danasel3¢ hs wr petition Therefore, the Cheular Mem sted 17.07.2020 issued by the TANTRANSCO, nter-ala, dling with the matter of pronty of acustment vas ordered tobe on Interim Stay and therefore, I har los is operation 48 of now, Accorcingy, the sutject matter of prety of acjustiet i ateaay sub-juace before the Honbie High Cours In WP No. 10069 of 2020, 2s the total Creular Meme was seedy styed by the order estes (03,08.2020 of the Hon'ble High Cour. hon the nstane matter covered by ML. Neo. 24 of 2023, came to be hetra oh 29.06.2021 before tte Hon'ble Commission, the Counsel of TTASMA sopeered, has brought this fact forthe information of Hon'ble Commission, whieh was ao faung resordes In the Daly Orcer cated 28.05.2021 ‘seuna bythe Hon ble Commision, Without pre-usie to the same we are fing eur comments as Deon rth.@ (. TANGEDCO has not demonstrated the cause of action or prima 1 ‘tacie for filing the petition onthe arounds of alleacd losses: [As per the existing procedure, the Pronty of Adjustment, was being followed historically, as per the Ist provided below whicn wos admitted by the Chet Financial Controlr-Revenue In Para 8 of tne Peon in MP. No. 24 of 2021 12k Power 3° Party Power ic Cape Thermal Eneray Ih. Captive Soar Power '. Captive Wing Energy without Banking Wi Wind Energy with Barking (ave to the principle that Higher cost energy fst and lower cost energy later 40.88 10 rinur the pay ou for the uutilzd quant of enersy) While things are owing smooths, during all these years, suddenty the Pation i M.P. No. 24 of 2021, was fed to ture the peaceful system of Diorty of adjustment, alleging that there. is revenue, hss’ to. the TTANGEDCO. The alleged revenue ss tothe TANGEDCO, was explained by the Pettioner CFC-Ravenue, In a2 NO. 918 10 of the Pettion and or the brevity of reference Pera'No. 1) of the Petton alone is reproduced below, “T respecttly submt that, dee to the existence of banking facity, the above HT consumer is purchasing power fram the T6X/2" party Surplus energy Im banking acount for future adjustment obvious uring offseason. Moreover, the wind gansraion i having mst rah Status and the Honble CommBsion has generously extended banking facity and concession n OA charges tothe wind energy generators tO bromate the RE generavon I9 the State. In all ways benefits are fextended to the Wind Goneraors Further, the Hon ble Commision has issued guidlines on the procedure of banking of wind eneray In every order sued on wind energy that “one The energy generated during Apri shall be adjusted agaist consumption i pit and he blance any sal be reckoned as he barked energy. The generation in Nay shall be frst adjusted agoinst the onsumption i ay. 1fthe consumption exe the generton during Mey, the energy vob the anling shal be drawn tothe ered exon IF ‘he consumption during May less than the generation during May, the batonce sal be ode tthe banked energy This procedure shal he ‘peated every month” ‘As per the above guidelines, the HT consumer has to exhoust the Wind energy generated during ary month against the industriel Consumaton. But’ as shown inthe table, the HT consumer purchasing poner frm the 11/3 party and foe fel sources even@ Clning the wind peak saasoe and keep the surplus energy in banking Becount for future ajustmer®cbvously during offseason” 13. 1s stated by TASMA that by waving alleged in the sbove manner, the Petitioner CFCReverue, has nut corecty understood the scopes and funetions ofthe State Commissions as provided uncer the Elerrtty AC. 2003, for the promotion of enery fem Non-Conventional SoureEs, more Darticulary under Section 86(1).e) of tre Electty Act 2003, besides to the very preamble of the Act. The barking slowed to WEG is tmereore no mors remsine te bes concatson nor # Benet o° favour tthe wine energy” genertors.Accorcingy, the Howele Commission after Understanding the letter and spit of te Electric Act 2003, inline wth the mandatory scope and funcins provided under theAct , has covecty fcied up on them ang accordirly, extended the seveme of banking to Wecs through ts various Tart Crdars relating to Wind Energy up f 31.03.2038, Hence, te ecenson of banking to WEG ls nat an act Favour or concession to WEGS as assumed by the pettioner CFC-Revenve. TTASMA wants to deal the matte separately under another heeding, wit Teference to te thera of seme of Banking for WEGs commissionss Rar 01.04.2038" Trerafore, thn Pottones has to understand that mE cheme of banking to WEG fe ne mare a favour nr conceston. 24, Further tothe same, TASMA sates tht ie Petitioner CFC-Revenue, has not corvecsiy demonstrated, 28 how the TANGEDCO is ncuring losses, While in folowing the present sytem af Pray af Aajustment. In cont [nis satectnat the Pettoner nas not at al conicerea and Yoctoed the follwing efortessreverues foning > TANGEDCO, while the TANGEDCO Is following the present systam o Ponty of Adjustments Table SL] Source of shove Raveme omned BY QO x Nature of Revenue TANGEDCO with no | effort/Unit 1 [TEXT Exchange | Come Sibaay Sorarge 7 RE 187 = 0.704 O38 [Power Scotions Surenange / ere 52.73) ‘State Ok Charges i 2 [Thied —Pary | Cross Subway Surharge 7] Rs TAT O7O+O3E “Power Aastra Sucerge 7 nr o273 | Site ox chrges. | 3, | Bisiwal Power | Goss Sibscy sutarge 7) Re TST TO7OT OSE | ‘Adéitional Surcharge / Intra = 52.73 | | Ste 06 charges, [Dae w BEA antg CaaS © Ta 137 of ine Power tne uns bankas | [Total revenue to TANGEDCO while the Re. 3.677070 || WEG captive user banks the wind energy 0.36 40,97 = Re.2.70 snd goes for IEX / Third Party/ Bilateral | LL lPewer@ 16. The split up for the revenues of TANGEDCO / SLDC, when consumers trade through TEX platform or Thtd Party Power oF Siateral Power are provided below inthe below Table ‘or quick understanding. ‘STU & SLOC Charges Excluding OA Lostes | “Transmission Charges{ Rs. 126,55 / MWK) | OF SUC System Operating Charges (is.1.44/0H 0.02 ‘SLOC Scneduing Charges (e_i60/D3y) Whesing Cages (Re. 3.05/2m) om SS (Re L.S7/KWh). 187 [Aaaitionsi Surcherge 070 Total 273, 17. Therefore, from the above Tables t could be seen thet in no way, the TANGEDCO Is incuring any losses, because of the reason of 2 wind teneray captive user, sanks hs wind energy ond opts to g9 for sourcing Dower trom IEX / Third Party / Blsteral Power ‘Such en option fe avaye to the benent ofthe TANGEDCO oriy and the Péioner has fated to factor Such revenues lowing te TANGEDSO os tabuited above, With no eforts fr with no investments, the TANGEDCO is earning out of the present Schome of Prony of Adjustment to the extent of Re.3.70/Uni I the TANGEDCO Is provides with the approval to change the. Pronty ot ‘Aesustment a5 prayed far, the 1ANAEuCL would completely deprive ofthe Imonetery benefits to the extent of R5.3.70/Unt. ‘To the contrary, the TTANGEDCO ane even the SLOC are getting benefited out of the O8 ‘charges and Cross Subsidy Surcharge and aiso by way of the Addonal Surcharge, to the extent tabulate above Pare 15 8 16, tothe extent of S'3.70,/ Unt, wth no single pase extra investment. if the Pravty of Agjustment is revised, 2s sought for by the Petvoner, then would Be etrmental to the financial interest ofthe TANGEDCO ony, 26 long as wen the captive user of wind energy Is paying the banking charges and Biko other OA charges to the exert expained above. Being the HOD Tunetoning for adang revenues tothe TANGEDCO, kis quite unfortunate ‘thatthe CFC-Revenue hes ot faced al eee matters corecly before fling the petivon ©, How the instant setition filed br the CFC-Revenue in M.P.No.24 of 2024 has nat correctly considered the order of the Hon'ble APTEL ‘dated 28.03.2021 in Appeal No, 191 of 2048 fled by TASHA; 18. Wehoutprejuaice to the above stands, ts also stated thatthe Petitioner, CFe-Revenue is seeking for an approval to revise the Proty of Aajustment in the below manne, ex extracted from Para Il of the Petar in MP. No, 24 of 2021 fd before this Hon'ble Commason.Non:Caatien Category: i. Tex Power Te "5 Pary from Thermal Generator 3 Pary from Solar Generator 2° Par from Wn Energy Generator 2 Pay from Bapasse Generator 1° Pary rom Biomass Generator ‘Sante Categomys 4. Blomass (75% payment for surplus units) 5. Wing eneray with banking (Higher Cast Ars an lower cost later) Wind energy without banking (Kiger cost first and loner cost later) 75% payment for surplus units) {Soir power (igh cost frst ower cost 75% payment for surplus unt) .Bagasse co-ge (surplus uns lapsed) 4 Thermal energy (suus uns lapsec) 29, From the above narrations of tte CRC-Revenua, Is highly supeing to ‘TASMA that the CFc-Revenue "os flied to appreciate tne order of the Hon'ble APTEL sotes 26.01.2021 coiveres in. Appes! No. 193 of 2018 fies by TASMA. By the above orger of tne Hon'ble APTEL, the Hon'ble DPTEL nae sot once the entire oer ofthe Honbie Commission lssued o> £3.08.2038 1m Order No. © oF 2018, Aecorcingly, TASMA states that there Bansing, "afer te Issuance ofthe otaer of the honble APTEL dates 28,01 2021 In Anpeal No. 191 sf 2018 feo by TASMA. Accordingly, the faclity of banking. witncrawn for the new WeGs with affect from 01.08.2618, by the order of te Hon'ble Commission In crder No. 6 of 2046, cated 13.04.2018 i total set aside. Accordingly, the folowing are the operative porsons of orcr of tne Hon bla APTEL ceted 28.01.2021 In ppes' No. 18% 9f 2038, ‘Operative Portions of the order of APTEL dated 28.03.2021 in ‘Appeal No, 124 of 2048 filed by TASMA & Others. Batch), "For the foregoing reasons, we find the impugned order, to the extent cbaenges, to be miffering fom the veer of being shorn oF ‘reesans,erirry, capricious, unjust and inequitable® (2) withdrawal of banking teclty (0 for 12 months to Wind Power Projects commissioned after 31.03.2018 and (W) altogether for all existing and new WEGs selling under {nied party open ‘ccers saa schome, respective fate of commissioning, (0) inrease in banking charges tom 12% to 1496 (6) inreese in cross subsiy surcharge tram 50% 0 60%: (4) determination ofthe capac utilsaton factor at high love! of Beast (©) nerease In open access charges from 40% of the normative charges for conventanal sources of power, to. 30% of lransmission and Wheeling charges and the Bons of levy on the Installed capacty Instead of generated units and pasing 100% scheduling and sytem aperation charges fr REC WEGS: (0, xed Feed-o-tanf at Re2.86 without accelerated depreciation (AO) ape 52.80 vh AD’ without considering. relevant perameters: and (2) reduction In fabilty for delay ip Invoice payment on sale to {the above subjects, as prevaling prior to impugned order, shall stand restored and revied for the contol period covered by {tne impugned order The State Commission shai ensure afl necessary consequential orders are passed and these rections ore serpulousy complied ‘wth bya concerned, 36. We would not afow further 2a hoe apprasch on the subject. We, ‘thus, also dre that the State Commission sail not bring about changes In the rules fer pawer banking (of the kind attempted {through the non speaking impugned decison) by any futher order ehout undertaking a. stucy bosed on requisite. data properly Gathered and analysed so at to draw informed conclusions about ‘nancial impact an vars siueholders. We are given 10 Lnderstand that there is suient time availsle for such study before tne time for isuing Fesh order on te subject for the next control period arrives. The work I ths regard, thus, must begin Torthwith and in ight earnest Al stakeholders shall be duty-bound ‘cooperate for making the endeavour meonighl97, The sppeats, and pending applications, are decided in above terms. Bester making avaiable copies of this judgment Fr the artes, we cect tat the Registry shall send 3 copy also t0 the Secretary, Ministry of Fower Inthe Central Goverment for iecessry action with retersnce tthe observation recorded ebove, ‘Therefore, 11s stated tat as te order of the Honble APTEL s Nal as of ‘ow, tere wil not Be any wird In the State of Tamuinagu wihost faving stheme of banking. On that score, the Petioner CFC-Revenue faving sit up the Priory of acjstment, one forthe WEGs with banking feelty and the other for the WEGE without banking fei, Is tb ‘erroneous ena tersfore, completely woltes the very order oF the Homie APTEL cated 26.01.2021 in Appeal No. 191 of 2018. To that ‘otent, the Pettioner hes to withdraw the Peon, as te pebtion B= resented an fed before the Wotbe Commission, now dedi violates fhe order of the Hon'ble APTEL and therefore, leeds to contemptng of the order of the Hon'ble APTE:, In having made spit up narration for ‘Wie wth senking and WEGs without banding. On this score lene, the Petson io MiP. NO. 24 of 2021, needs to be ether wttndravn by the Petivoner orto be dismissed by the Hon'ble Commission. ‘The Petition in MP, No. 24 of 2024 directly violates the principles [ald_down under Section 2(47) read with section 9 of the Hlecircity Act 2003; ‘witout prejucee tothe above Ie is stated that Wf the scheme of xerty of Agjustmans ls moified or aerad in the manner ae prayed for by the Petioner CFe-Revenus, i woud take away the accrued rights of the ‘aptve users of the OA power and would make the whole arrangement these nthe Clewwisty Ac 2000, completely siactminetary. Wen me OA ower has to be allowed for Open Acces, witout any alcrminabon 2¢ Drovded under Section 2(47) red with Section 8 of the Elecrcky Bet 2005, atemptng to bring clsaiminaten in avaling of te OA power, eciy violates the principles set down in the Electric Act 2003 ss. Far tne purpose of beef understanding, Section 2(47) ana Section 9 of the lecrrtty Act 2003 are reproduced below. "Section 2(47) “open access” means the nondiscimintoy provision foe tha use of tevamiaion tes of distribution system ot ‘esociated facies with sch nes or stem By any licensee or {onsumer ara person engaged In generation In accordance withthe regulations specie by te Appropriate Commision” ‘Section 8. (Captive generation): (2) Notwtstanding anything contained in this Act, 2 person may. GSetuce mamtals 0” anstate a capeve genersting” plane and evicted transmission nse ‘rovised that the supply of eecrcty trom the captive generating Diane tough the rd shall be regulated in the same manner # the ‘enerating station 99 generating company. 10@ Provided further that no teense shall be required under tis Act for BRI of ety gerrated ro 9 cote geerang lnt oor snd vegulseons made thereunser ond to any consumer subjat to the ‘regulators made under subsection (2) of action 42 Provided that such open accass shall be subject to avalablty of ‘adequate Yansmision facity and such availablity of transmission ‘Beit sha be determined by the Central Transmission Us oF the State Transmission Utty, as te case may be: Provided further thet ary dspute regarding the aveiabilty of traramisson fect sil be added upon by the Approie 22. Therefore, by attempting to inteduce 2 system a5 prayed for, the Pattioner crC-Reverve ls taking «completely discriminstory view in the matter of alowing the Open Access nits ov fashion, wthove any rhyme (or Feason, On the allegation of fe TANGEDCO incrsng losses duet {atoning tne present system of Pray af Adjustment, TASMA has leary demonstrated; as how the presen system i benefiting the TANGEDCO the extent of s.3.70/UnI even witout any single paie extra investment ‘Therefore, the allegation a losses tothe TANGEDCO fs compltsiy found tobe not true and devoid of merts. Except to trouble the Open Access ‘Rojastment thre ls ro moive Tound demonsirates in te peton In any manner. Therefore, the peltionfuls to demonstrate suflent cause of {ctan and the whole pettion i las to prejuacaly affect the interest of {he OA consumers inthe State, F Ifthe proposed system of Priority of Adjustment , if approved by tha Hon'ble Commission, would prejudiially and financially affect the interest of al captive users: 23, By the prayer made in Para 11 ofthe Petion fled by the CFC-Revenue, the Pettoner wants to get approsl to\enforce the following Priory oF ajustment ‘Nan-Captive Category: Lex Pomer "¥" Party from Thermal Generator ‘ary from Solar Generator ‘3 Party trom Wind Energy Generator 3 Party ftom Bagasse Generator 3 Party fom Biomass Generator‘Santive category: 2 Biomass (75% peyment fo sup units) Bing energy wi Banking (Higher Cost fst and lower cost later) Wind energy without banking (Hgher cost frst ang lower ‘ost later) 755 payment for surplus uns). Solar power (higher cost Fst lower cost 75% payment for surplus unts) [egetseco-gen (sup unt lapsed) fC tmermal energy (Gurus Un lapsed) 24. As far as the Prorty of Adjustment is concern in respect of the Non- Captive Category (ue) Third Pury, TASMA has no ciference of eplion, SSTANGEDCD would be grety Seneftteg by way of collection of Open ‘ecese and other Cross Subscyan cetonal Surcharges an thereore, ‘TASMA cxoresses fea consent 10 g0 mith tre Nov-Coptve CRtOG0"y 25 prayed for bythe Pettioner. 25, However, only wth reference to the Cantve Category, the changes Droposed are tot acceptable to TASMA. The fst oft the Spit up of wind Energy. gonerators, based on tanking and wihout banking, should be ‘mergee togeter as wind enery alone and there 's no need to sub- GBtegorze te with Bonking ena without banking, In ven ofthe express Seders provides by the Hon'ble APTEL in Appeal No. 39% of 2018 eared 26:01.2021 a5 expaines sup, Therefore, toe Sub-Categories of 2 & fezc to be merged togetver and should be places im te lace of the DProrty of austen, ak hes banking seneme bvaiable and ensures By he Hon ble APTEL a0 26, Accordingly, the Thermal Energy (Sli tnt apa), an ine in the (Ser onder Succaagory Nov should be slacee st sub-category Ne."s Under" mein Catagory of Capuve. Category. Accoraingy, TASMA Breposes to Keep the captive Category Inthe flowing ore’ of Prony ot elustment antive category 2. Thermal enersy (sus units lapsed) B. Biomass (75% payment for surius uns) Solar poner (igher cost Nat loner cost 75% payment fer surpius units) 4. Bagasse covaen (Suu units lapsed) wing energy that Banking [Wigher cost frst and lower os later) 75% payment for surplus uns) f Win energy wih Fanking (Higher Cost frst ane lower cost ier) 27. even though, TASMA suggested not to spt up the sting energy vith oF Witnaut banking, for be sake ef convenience of referee, is notes Wen spe ups under e& * Sub-Category, 2@ 28. The Hon'ble Commission hes alse mentoned in the Daly Order dated 23.06.2021 that the Honste Commission would be weahosting @ Draft Regulation for the comments oni accordingly, the comments fee By TASMA by this letter would not anyway Be preludied for Tokng ‘comments’ on the. Draft Regulatans it proposed to be webhosted Dy Homrate Commission In ths regare. However, lef to the purview of the Howe Commission, whether auch matters of Prony of Aajustment have to be regulated nthe form ofa Raguation 6. The Priority of Adjustment now proposed by the CFC-Revenue in the Petition also violates the Regulations under Grid Connectivity {and Intea-State Open Access Regulations 2014 29, Each energy, sourced from each Category Is fang elther under the folowing eorce main categories |. Shor Term Open Aecess (STOA) I, Meetum Teer Open cess (TOA) WH. Long Term Open Access (L108) 30. The energy trom the Renewable. Sources mest instenty from the WEGs 's Cassie as LTOA Power. Nermall the Therm Captive Power, comes Under the Category of MTOM Power. Therefore even by the Sderot Prionty, Long Term Open Access Power, covered by the banking scheme, has tobe pushed tote ast of te Piatt and therefore, onthe ter and pint of the ISOA Regulations 2014 also, the Prony of hajustmant has to Be regulated in 2 manner witnout ctlecsing the Interest of any Mauehoder Involved in the process [Above all he Puttin In HL.P. No. 24 of 2024 completely vioates the order of the Hon'ble APTEL in Appeal No, 366 of 2037 dated paaiaose, 31, The matter ofPrioty of Aajustmert was seady analysed cially by the 28.11.2016, which made the matte of Pray of Adjustment fly sete, ‘his order’as based on an Aupeal ed by the Manarasntra sate Electety istibuton Company Uimited against the arder of How'sle Mahorasitra State lecrcty Regiatory Commission in Order in Case NNo1139 of 2016, Therefore, has Become sieaay 2 seed Matter, 32. The Hon'ble APTEL has already ebserved that any thm thermel power needs tobe fst adjustes over the insrm power tof, Renewable Sources. The Operative Porcons oth order In Ropesl Hor 366 of 2017 ates 26.11.2016 i eprocuced ben, "43. I is signincant to note sat, the concept of banking has been Introduced forthe sole purpes 0 encourage generation of ect) {through renewable sources avaiable nthe sate and wise wien needed. Since, Tenenable sources of nergy are not avaiable ati Inoue of te te and In order fo rasinean efficent supply of power {he consumers are supplied cleticty generated frm convents sources of energy Its manaatory for a! consumers to consume a ‘ercentage of ther total consumplion as Med by the Appropriate Commission’ from venewabe "sources of energy. However 13=) 2: ¢ ) 23, Therefore, on 2 matter alrendy setted by the 8.11 2018 Feel In Appeal No 66 oF 2007, che present, ie Poiboner GFC-Reverue hes become eotly infuctuous and tereore he Petvon reuires ne futher tudiston et al eecerdingy, the Patton In.P. No, 24 of 2021 may be closed as such by levying Neavy cost on ‘the Pectone for naving wasted she te of he Hone Commision34, The Petitioner has not made out eny prima facie case and the balance of convenience Is 380 noth favour af the ettioner. Therefor, the Peon Is able to be clsmissed uncer all the sbove eeoes, more Pacey on the ground of flag a Pett en «complete settled matter. The alaged losses. happening” to TANGEDC®, Toon” 2. myth and is no wy amonstated in detail in the Pettion, In te absence of the some also father the Pettioner should be ected to witha the Petioon or Be Pettion should be siemisces by the Hon'ble Commission, forthe reason thatthe Petitioner has fais te cemenstrate the couse of pcton and the Drima face and the balance of cowveniene, to proceso nth the Pttion for isuing any order bythe Hone Commission’ On the contrary TASMA, hs demanstated bath an legal rounas ae wel Se on factual mate, ae how the petition s not malntainase both on law as well an merits and BSccordingy, TASMA has demonstrates thatthe exiting system of Pricy lr Aajustmert requires no itervertion in any manner oh any reason, 35. TASMA submits thatthe instant Fetion in M.P. No. 24 of 2024 is Fisted for hearing on 27-07-2021 under Item No. 25, 85 per the Cause List hotfed by ‘the Horisle Commission and “accordngy, "the Hon'ble {Commission ‘ay be pleased to direct the Petitioner to witharaw the Petition on hearing the matter on 27.07.2001 Met 1. Conclusion: 36, For al the reasons and grounds a5 explained sbove inthe commants se ‘ile by Tamtinadu Spinning Mills Association (TASMA), "ASMA prays {hat the Hon'ble Commision may be pleased to arect te Petisoner to ‘thdraw the pebion and in the case of falure to witraw the peton, {he Hon'ble Commission may be pleased to demise the same, by imposns CCervmission In bringing such untenobe petton,seaking fr te wrdes of the Hon'ble Commision wich ie ard a sted matter and whichis oo ‘Way supported ether by lon or on facts and accordingly, for the Feasons Stated above, the petilon ee by the CRC-Revenue Im MP. No. 24 oF 2021 may be dismissed or slowed to be withdrawn and thes render ‘Tharking You, vars en 4 \oy ck venlatachaam copy to: The Secretary, Tart he OearictyRegltory Commies, ‘Ath Roor,SIDCO Corpse Ome Bulan, ‘tka Indust Eats, uindy, henna 600 O82 Eel iD: inicin, standxseadedgmal.con, ‘Sonedamal.can ‘copy to: MembersAnnecuit-2, iy TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION Mead No 18.8524/1998 Chae U2 O2T2 6oRGanoOHED=| "han sa btn, 4 fos Cov Cabaret O18 Mv esc nei Fre eh a ‘Teca:2021-22/TANGEDCO/45 ‘The Chie Financial Contralr-Revenue, TANGEDCO, 7" Foor, 14, Anna Saal, Crennai— 606 002 Exmal a: efrevinebnet.org , ‘cceeBinehnet.org Sub: TECA Comments on M.P. No. 24 of 2021- In the matter offing of Prorty of Adjustment of OA power consumed from varus Sources by an OA consumer Ret: 1. Your Potton in MP. Ne. 24 of 2021 dated 11.06.2021 filed batore the Hobe Commies 2: Tne Daly Order ofthe Horbie Commission In M.P. No, 24 of 2021 dated 29.06.2021, 5. The webnosted motter of the Hon'ble Commission along with ts Note dates 08-07-2021 in LP. No. 24 of 2021 |. Bratace: 1 We invite your kind reference tothe petition fled by you, in MP. No. 28 of 2021 on 11.06.2021, before the Hor'ble Commission. Accordingly, on hearing the matter on 29.06.2021, the Hon'ble Commission has made the Talloning order ‘Thins M.Gopinathan, Standing Counsel appeared for TANGEDCO. Be? arguments heard, This, SP. Parthasarathy, Advocate oso Informed that the ereuar issued by TANGEDCO has been stayed by high Court of Madras. Pettion Is admitted. As prayed by Thirw Raul Bales, Advocate, Commieson drscted both TANGEDCO and Registy ofthe Commission ta wetnost tne petition n thor respective websites for Seeking comments from the stakehoWers. leis also further sirected that the Registry of the Commission shal arrange % Formuiste Regulavons on the subject. The case Is adjourned % 27.07.2021 for fing faa.”A ia ‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION ep Ne, j-0554/198 Oe Ue7 soar poaouosoneae Prone ie 2381400 wai Sporto ch mcsnea have weohdsted te matter covered by MP. No. 26 of 2021, Sat" lathe Uiebete of the TANGEDCO, ae wel ae of the Hon'ble Commissen. While the Her'bie Commission webhosted the petton, has also webhosted = noice catee 08 07.2021, tp invte the comments from te seakenolers On the matter coveres by MP. No. 26 of 2021 for submission Sete 3.08:202% | copy ofthe Daly Order dated 29.06.2021 (AnnexurenA) of he Hone ommiasion andthe Notice of te Hon'ble Commisson detec 08.07.2021 {Annexure-B) are cent herent for instant reference. Accordingly, om behaof Tamil Nadu Electricity Consumers’ Assocation (TEEA), having strength of 620 dustrial members, eling our comments The subject of "Priority oF Adjustment of OA Power" was one among the few tanks elloted to TANGEDCO. by the TANTRANSCO vide Rs cotmmunicatan cated 17.07.2020 in Cretlar Meme No, CE/GO/SEYCarm Gpn/Se/On/r. exchanga/0102/20 and accordingly, the assignment wes provided 26 below ‘The folowing are the Operative fortons ofthe above Circular Meme dates 17.07.2020 ved by the TANTRANSCO, '3)_The Superintending Engineer/Commersl Operate (3 Respondent) is instructed to cspense the process of suance of "n bpinepa! Approval” by S.DC, for the Inter-State Calesive and Biatere! Power Purcnase Transaction. lasung for” Standing Clearance 2s In vogue, shall be continued with NOC from EDS. >) The Superintending Enpineers/ EDCS are Instructed to dispense the aiecutan of Agreement incising the ewsting agreement fot the Inter-State clecive snd blateral power purchase transactionsGG ‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION. Regd Mo 15-8531/1998- ON 70972 9>eoanoaeeD4 rene ioe sho math om tio tc natch 12) TANGEDCO-Phance Wing’ (S" Respondent) shal inivate necessary action for aaltanal surcharge cam, since the Monthy ‘pplestions for colective/hstral tansachons shal be reated 9 he application hereafter. 1) The Superintending Engineers EDCS are instructed to adhere {he flowing atthe time of suing consent/ Note: (i) An Undertaking/Cacoration (Format:l enclosed) shal! be ‘obtained from the apen access consumers who intend £9 purchase power thraugh Inter-State Open Access that the ‘maximum povser mate available t any time exceeds 1 MW {ormaintain grid aisaline and also cannot exceed the acta! approved quantum (maximum lt). For those who are Not ‘opting these terms and conlions, NOC should not be "sued BY the EDCs 1) accordance with TNERC's Order in HP No. 24 of 2014 Gaxea SLssu16 provision of As) Meters and Metering Set (CTAPT) with 225 Class Accuraey, shall Ge. mace ‘mandatory, or the consumers who Intend t0 purchase Dower trough IntarState Open Access. It shal be ensured before issuing consen/NOC by concemed EDCS Tor Open ‘Access or otherwise NOC should not be issued by the 2) The. Superintending Engineer / Commercial Operation (3 Respondent) is intrcted adhere that the. application or the Standing clearance from SLDC ie in the prescribed format (Format {nclosed) named ar “pplication for the Standing Cleerancs” along lth the enclosures mentioned therein 1 The Superintending Engineer / Commercial Operation i instructed {w ensure trough Superntanang Engineer / LDBGO thatthe Corder avalebinty (Wt) 1s verted wth Inter” tate Transmission System / Inra-Stete Transmission ‘System Line Clear (LC) Program as in 9) The Superintending Engineer / LDBGO ls instructed that in ease of any forced consvaints In the State Transmission& ae ‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION gd a, 11-9524/198 Oe UIT IOZT MBGANNOESDA Prone «381400, iain rams enc ncn Network, at any point a time SLDC to give priority for the Distribution Licensee to svail power through exchange and to ‘restrict the consumers. For any constraints In the Distribution [Network STOA transactions have fo give least priority. 1) The Chief engineer? Commercie/ TANGEDCO and Chief Financia! CControlr/ Regulstory Cei/ TANGEDCO” (funetoning under s* Respondent) are Insnictes to frame te commercial Mechanism er Imposing penaity for the exces demand avaled from TANGEDCO than the demand that hes been proposed {0 be. avalee fom TANGEDCO after deduction c approved quantum of camand proposed (G6 purchased from Paver Exchanges) lateral Transactions Necessary regulatory appro! wherever required shal be obtaed, 1) The Superintensing Engineer) Commercia!_ Operation (3° Respondent) is Iatructed (© share the 15 minite time Bock ene"ay purenase ram Power Excharges/ BleteralTransactons ¢917 wing © void gaming |) Te Chiat Engineer / 17 ard the Chit Financial Contraler/ Revenue / TaINGEDCO (attials ofthe 5” Respondent) are instructed to iia block wise energy achusement of the power exchange/ Beers! power 1) The above onder sunersas the previous order, intersli, for other ressons, the said communication deted 17.07.2020 Was calengea by one ofthe aereeation namely Taminad Spinning Mis ‘Assocation (TASMA) before the Hon'ble High Court of Judeture. at aaras in WP Na. 10068 of 202) and on an orgeriesved inthe ald Writ Pavan on 05.08.2020, the Hen’ble High Cours nas stayed the entire fperation of te communieston dated 17.07.2020 arued by. the TANTRENSCO. The opersuve pion ofthe order dates 03.08.2020 In WP No, 10069 of 2020 is resroducedbelow. "This Court is satisfied that a prima face case has been made cut ‘on grant of interim orders ‘onder of interim stay of the operation of the Imauaned meme there shal be 9 turer rection t te respendents to "alow he isting Regulation insofar a5 open access Inter Sate ansmisson Is Concerned, peng dsposalof tus wr pettion. Therefore, the Crear Memo dated 17.07.2020 tued by the TANTRANSCO, lotta, dealing with te matter of arom ot austen vas ordered to be on Intarm Stay and therefore, ithe na es operation 35 of now. Accordingly, the subjec: attr af vert of adjustment Siready sub-udce before the Honble High Court In WP No. 10063 ofia TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION Prone: 51400, ii i arses "Scofcnseaie 2020, as the total Creuar Memo was aready stayed by the order dated 15.09.2020 ofthe Hon be High Court When the instant matter covered by MP. No. 24 of 2021, came to be heard oh 29.06.2021 before the Howe Commission, the Counsel of TASMA zppeares, hes brought this fact for the information of Hane Commission, which was also found recorded in the Dally Order gated 29106,2021 ‘ssued bythe Hon'ble Commision, \Wehout pre-udice to the same, we are filng our comments as below fuer ‘tacie for filing the petition on the grounds of alleged lossas: [AS per the existing procedure, the Pronty of Adjustment, was being fotewed historical, as per the ist proved below which wae somites by the Chef Financial Conteller-Revenue in Para of the Peon in MP. No dof 2021 5 Party Power 1. Captive Thermal Energy ‘Captive Wing Energy wthout Banking Wi Wind Energy with Banking (cue to the principle that Higher ‘com energy frst anf lower cost energy late’ s0 20 0 minimum the pay ou fr the unuilzes quantum of enersy) hie things are towing smooth, ding al tese years, suddenly the Ferison in MP, No. 24 of 2021, was fed to dtr the peace system of provty of adjustment, alleging. that there is revenue lass to the TTANGEDCO. The alleged revenue less tothe TANGEDCO, was explained by the Pettioner CFe-Reverwe, n ata No.9 & 40 ofthe Patton ad forthe Brevity of reference, Para Ho. 1D of the Pettion alone is repraduced "Lvespectuly submit that, de to the existence of bonking fcilty, the above HF cansumer is puehasing power Hom the IEX/I° party {2d fossil fuel sourees even during the wind peak season and keep the Surplus energy in banking assoun for future adjustment obvovsiy during oft-seaton. Horeover, the wind generation f= having must run ‘fats and the Hon'le Commasion has generously extended banking facity and concession n OA enarges tothe wind eneray generators tO‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION. ond Ne lg 2551/1958 Che Ueri0ats popounseeeze "iinet, bce Coun exams ot 68 row itn net SPraeteo mat mado promote the RE generation in the State, In lf mays benefits are Gxcanded £0 the Wind Genertors.Furter, the Honbie Commission has issued guidelines on the procedure af banking of wind energy 0 (ery order sued on wind energy tat “cane TRO onorgy ganerted during Apr shall be ousted apeinst cnsption in pr and chebalance any shal be ackoned asthe banked fcrergy The generation in Moy shall be fist odjaced gains the onsumpcon i Ma. thecnsumpion excnde he generation dong May. {he nergy avalbe ne onkng Sal be drawn fo the egured exten IF Ce conumpciondurig Mey is less chan the generation dong May he bolnce shall beaded tothe banked energy. The procedure call be repeated very month 1s per the above guideline, the HT consumer hes to exhaust the Wind energy generated cising any month against the industri forsumation. But as shown inthe tae, the HT consumer Durcasing comer from the EX/3" party and toss fuel sources even uring the wind peak season and Kaeo the surplus energy In Sonking {ecoune fer future adjustmert obviously during offseason” Periusner CFC-Reverse, hae nwt corecly underetoed the scones and fonctions of the State Commissora or provided under the Becbety ket 2003, for the promton of enersy farm Non-Conventonsl SovTees) More particule uncer Section 86(1)[e) of the Electrcty Act 2003, besces to fhe very preamble ofthe Act. Tre Bank sliones to WEG fs therefore ro more remains to be 8 concession nor @ bene or favour to the wind Grey generis. According, the Hon'ble Commission we Udertanaing the letter and spit of te Secricky Ack 2003 In line wh te manaatory scope and funcens provided under the Act, has correctly acted up on tem ana accorangy, extended the scheme of banking *2 WWEGs through its varous Tart Orders releting to Wind Energy uP 31.03.2018. Hence, te extension of banking to WEG Is not an act Favour of concession to WEGs ss ature by the pattioner CFC-Reverve, ‘Therefore, the Petloner has t unceriand thatthe severe of Bank fo WEGS Iso mere a fevaur ner concession, 14. Further to the seme, TECA states thatthe Paitoner CFC-Aevenue, has Rot corecty demonstrated, ne how the TANGEDCO ts incuring Teste, While In flloning te present sytem of Port of Aajustment. 29 contr, Wis states thatthe Petkoner has not et ell conicered anc factored! the2 ‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION ead Mo 8 8224/1998 CNN 719212 eoecarooeeDe| Pon EO mei eNO Fa a folowing effortiess revenues Towing to TANGEDCO, wile the TANGEDCO Is folowirg the present system of nonty of Aajustments. 15. They are tabulsted below Table Revenue earned by Re Source of ature of Revenue | TANGEDCO with no. : torts /Unit 1. TERT exchange | crass Sony Sura 7] REY 0.70 = O36 Power ‘ional Sutcarge 7 rca Pear Z [Third Party Crass Subsidy. Surcharge 7] RLV 0707036 Power Aedtional Surcerge / Inte R273 State O& charges 3. | Biteral Power [Crass Subsidy Surcharge 7] RE-TA7 7 O7O> 036 Aadtionel Surenarge | Into 273 tt Wind Power | the unis tanked 5 Total revenue to TANGEDCO while the] REL7+O.70+) WEG captive user banks the wind energy | 0.26 40.97 = Re.2.70 land goes for TEX / Third Party/ Bilateral 16. The spit up for che revenues of TANGEDCO / SLOC, when consumers trade through TEX patform or Tard Party Power or flateral Power are provided below inthe below Table for quick understanding [STU a SLDE charger Excluding OA Losses] “Transmission Charges( Rs. 126.55 / WH) O13 SLC Syste” Operating ChaTgRE Gs.t-unawin 0.02 'SLOC Scheduling Charges Re. 160D5y] ‘ihesing harges (21.05/80) O21 CS (Re. 67/K0 187 ‘edional Surcharge 3.70 Total 273, 17. Therefore, from te above Tables, could be seen tht inno way, the TTANGEDCO is incurring any losses, because of the reason of a” wind fenersy ceptive user, banks his whd energy and opts to 90 for sourcinglat 4 \& 18. TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION ‘agd Me 618524/1998 EN 71072 199SGAPOOREDE| rae ota 381400 ain ne era Et Bregerina power trom IEX / Thre Prty/ Biter Power. Such an option ls aay fo tne benefit of the TANGEDCO oly and te Petoner has ‘ald to factor ich revenues Moning to TANGESCO te tabulted nbove. itn no effort Schome of Pronty of Adjustment to the extant of R.3.70/Uni. IF the TANGEDCO Is proves With re approval to change the Prorty of Aajustment as prayed for, the TANGEDCO would completely deprive ofthe monetary banefts to the exten: of RS.3.70/Uni. To the contrary, the TANGEDCO and even the SLDC are getting benefited out of the OA narges and Cross Subsidy Surctage and also by nay of te Adlon Surcharge, tote extent tabulaes above in Pare 25 8 16, to he extent of 5.3.70,/ Unk, lth no single glse extra investment ifthe Pry of ‘Adjustment is revised, a8 sought for by the Petitoner, then would be detrimental to the fnancia interests of the TANGEDCO ony, as long a8 When the captive user of win energy Is paying the banking charges and also other OA charges to the extent explained above. Being the HOD functioning for acing revenues 2 the TANGEDCO, ts quite unfortunate thot the CFC-Revenue has not factored all hese mattrs correctly before Fling the peivon inoue prejusice to the above sands, fs also state thatthe Petione, CFe-Revenue. seeking for an epproval to revse the. Ponty of Jgjastwent Ip the below manger, ae extracted ‘rom Porat of the Petion in MP. No. 24 of 202% fag before tis Hon'ble Commission. ‘nonsSankve Category: Be Romer 2. 3 Party thm Therma Generator party from Suar Generator ©. Party from Wd Energy Generator 4. 5 Party from Sagasse Generator 58 Far from Slemess Generator ‘cantive Categcr 2 Blomass (75% payment for surples units)TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION one fo3 81400, ie ‘ereeece va eofecantenle ©. tng energy with Earking (Higher Cost Fst and lower cost later) «Wing energy without banking (higher cost Ast and lower ost later} 75% payment for surlis units. 4. Solar power (higher cot frst lower cost 75% payment for surplus uns) :Bagasse corgen (surplus uns lapsed) Thermal energy (supe units lapsed) 19. From the above narrations of the CFC-Revenue, itis highly suprising to TTECA that the CFC-Ravenue has faled to apprecate the order of the Hon'ble APTEL dated 28.01.2021 deivered in Appeal No. 19) of 2018 flea by TASMA. Sy the above oVGer of the Horie APTEL, the Hon'ble APTEL has set asde the entire oar cf the Hobe Commission ‘aa on 104.2018 in Order No. 6 of 2018. accordingly, TECA states that there re no wingmis in the State o' Tami Nad wthout the scheme of Banking, afer the Issuance of tye order of the Honble APTEL dated 28.01.2621 in Appeal No. 291 of 2048 flea by TASMA. Accordingly, the fealty of tanking withdrawn ‘or the new Wees wih effec fom 01.09.2018, by the arder of the Horbie Commiasion In Order No. ot 2046, cated 13.04-2016 totaly set aside, Accordingly, the felowing sre the operatve partons ofthe order ofthe Hone APTEL gated 2801-2025, Im Appeal No, 191 of 2038, ‘Operative Portions of the oer of APTEL dated 28.01.2021 in ‘Appeal No, 191 of 2018 fil hy TASMA B Others ( Batch). “For the foregoing reasons, we find the impugned order, to the extent chalenged, to be sufering from the vices of being shor of reasons, arbtvary, capricious. unjist and inequitable, We, therefore, set aside and_vacate the directions of the ‘State_Commission in-the Impusned order to-tho extent It stioulated (2) withdrawal of banking facility (D for 12 months to Wind Power Projects commissioned ‘after 31.03.2018 and (i) shogether for all existing and new WEG selling under third party open access sale scheme, Irrespective of date of commissioning?@ sverige sats nates frat tt adc (2) imerease in banking charges am 12% 191436: (©) merase n crass substy surcharge from 50% to 60%: (4) determinavion ofthe apacty utilsaton factor at high ‘evel of 25.15% (6) ineeose in open access charges from 40% of the normative Gharges for conventonal “soutces of power tO 5036. of transmission and wheelg charges and the basis of evy of the Installed capacty Instead of generated unts. and imposing 100% Scheduling ana system operation enarges for REC WEGS: (9 te teed.n-tarit at .2.86 witout accelerated depreciation (ab) ands 2.80 nth AD wienout considering. relevant (g) reduction in lbity far delay in Tovoce payment on sale to ISCOMS category to 195 intrest. n te rut, the orders of the above subject, ax prevang rir to impugned arr, shal and restored and revived forthe contol period covered by the imouaned order. ‘ne. State Commission stall ensure all necessary consequential rors ore pessey and these directions are senpulousy comed 196, We would net allow fuer ad hoe aporosch an the subject. We, {hus also rat that the State Commission shall not bring about ‘chonges in the rules for power banking (oF the lind attempted {hrough the non-speaking impugned decision) by any further order wichout undertaking 2 sty based 2” regulate. cata propery gathered and analysed S0 08 to draw iformes conclusions about finanelsi impact on varous stakenolters We are iver’ t Understand that there is sumcsene sine avalale for such study before the time or ising fest onder on the subject for eText Control period aries. The wort in the regen, tis, Must besin ferthnth and in rah earnest. Al stakeholders shal be Guty-bound {e eooperate for making the endeavour meaning 87, The appeals, and persing apaicatons, are decided in above {terms Besces making salable copies of this judgment for the Dares, we cect thatthe Registy shall send © copy also to the‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION one f435/4281400" vie erin rot eefteosnaele Secretary, Minisy of Pover' inthe Central Government for necessary action With referee to the observations recorded above. Therefore, tis stated thot as the ader ofthe Hon'ble APTEL is ial as of rom, there will not be ony windmill the State of Tans! Nadu without having scheme of banking. On tat score, the Pettloner CFC-Revenve having Spit up the Ponty of Aahstment, one forthe Wes wih banking facity and the ether for the WEGe without Banking fait, totally frroneous. and therefore, IC completely violates the very order of the Hon'ble APTEL dated 28,01.2021 in Appeal No. 191 of 2018, To that feten, the Petter has to wisdraw the Petition, as the petition 3= Dreseted and fled before the Hove Commission, now drectiy wolates {he order of the Hon'ble APTEL and therefor, Ee eads to contem ting of the order of the Horble APTEL, in having made spit up narration or WEG with banking and WEG without Benking. On tis score alone, the Petition in B.P. No. 24 of 2021, needs to be either withdrawn BY the Petitioner orto be dismissed by the Hane Commision ‘The Petition in M.P. No, 24 of 2021 directly violates the principles laid down under Section-2(471 read with Section 9 of the ‘lecincity Act 2003; Without prejudice tothe above i stated that f the scheme of Flory of Adjustment Is modied of aftered in the manner os prayed for by the Pttoner CFC-Revenue, K would take anay the accrued rights of the Captive Users of the ON power ard would make the whole arrangement made inthe Elecety Act 2003, completely discriminatory. When the OR Bower has to be allowed for Open Acces, without any dicimnaion os provided under Section 2(47) read with Secon ® of the Elecrly At 2003, attempting to bring cecrmination sn availing of the OA power, irety violates the princes set down in the Electrcty Aet 2003 aso. For the purpose of beef understaning, Section 2(87) and Secon 9 ofthe lectcity Act 2003 ae reproduce below ‘Section 2(47) “open access” means the non-dlscriminatory provision for the use of tranamision nes oF itebution stern OF ‘seocited faces with such nes or system By any leensee_ oF “consumer ora person engaged In generation in accordance wth the Feguitons sped by the Aporoprate Commisson?= Section 9. (Captive generation): (2) Notwithstanding anything contained in this Act, 2 person may. ‘ona manton or apente 8 aptve generating pnt ond23. TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION mec areata Proved tnat the supaly of elactricty fam the cactive generating fant through the grid shal be regulated in the same manner a8 the (Generating station eF2 generating company. Provided further that no cence shall be required under this Aet for Supaly of electricity generates am a captive generating plant fo any licences in accordance with the provisions of tie Act and the ree hd regulations made thereunder and to ony consumer Sub/2tt9 eRe ‘regulations made under subsscton (2) af socton 42 ‘rom his contive generating pant ta the destination Of Biss Provided that such open access shal be subject to avasblty of ‘adequate transmission facley and such avalabilty of vansmisss icity shel be determined sy the Central Transmission Us’ oF the State Transmission Ut, asthe case may be Provided further enat any dispute regarding tne svaiabity of ssmision facty shal! Be adjudicated upon by the Aoproprate Therefore, by stterptng to itroduce a system as prayed for, the Potioner cPL-fevance i taking © completely dierminarory ve 1 the fatter of alowing the Open Accassn te vn fasion, mithove any rhyme Gr reason. On the alegetion of tre TANGEDCO ncuiring lasses aus to ‘ovowing the present system of Proc of Acjussment, TECA has dearly Gemonstrated, a: Row the presett system is benefzing the TANGEDCO to fhe extent of Ae 2. 70/Une even without any srgle pase stra nvestioens ‘Therefore, the sllegaton of losses to the TaNGEDED i comeletay und fo be not ue and cevola of mart, Except to Houble the Open Access Consumers, fom sovtinuing to avall the present syster of Protty oF ajustment, tere no mative bund demenatsnted i the potivon in ony ‘manner Therefore, the peiton fale to Gemonsvete auifcent cause oF [chon ana the whole pticon fag to pejulclaly stfecr ene nares oF {Se Ga soncumers in te Sete 1 the proposed system of Priority of Adjustment, if approved by the Hon'ble Commission, would prejudicially and financially affect the interest ofall captive userst 65y the prayer made in arg 11 af the Petition fled by the CRC-Reverve, te Pettone” Warts fo get aapoval to enfore the folowing Prty of AgustmentTAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION a th en ee ane ‘Non-captive category: bee Power 3% Party from Thermal Generator 5. 3s Fat rom Slr Generator 5° Party from Wind Energy Generator 4. 3 Party trom Bagias Generator 3 Party fom Biomass Generator ‘cantive Category: 2. Biomass (75% payment for surplus unt) Wing eneray wits tanking (Higher Cot frst ane lower cost tater) Wind energy withost Banking (Higher cost Fst and lower «ot loer) 75% payment for surplus unis). 4. Salar poner (highe cost frst loner cost 75% payment for Surplus uns) fe, Bagasse co-gen (surplus units lapsed) fmermal energy (Salus unit lapsed) 24, As for as the Prony of Adjustment is concern in respect of the Non- Captive Category (ue) Third Party. TECA has no ference of opinion, TANGEDCO would be gretiy benefited by wey of collecbon of Open ‘cess ana cther Crass Subsidy sed Adational Surcharges and therfore, TECA expresses Its consent to-g0 wth tre Non-captive Category 8 prayed for by the Pettione 25. However, only with reference te the Captive Category, the changes proposed are not acceptable to TECA, The fst of tte spt up of wind ‘nergy generators, based on Daekng and without banking, should be merges together as wind energy alone and there sno need to sub ‘ategorze wth Bonuing snd wthout banking, wie of the exprese ‘Srde's provided by the Hon'ble AVTEL In Appesi No. 191 of 2018 dated 25.01.2021 a5 explained supra. Therefore, the Sub-Categories of BAC eed fo be merged together and should’ be placed nthe lat of the Priory of ajustment, ab thes benting scheme mvnable and ensured By the Honble APTEL als, 26, Accordingly, the Thermal Energy (Surplus Unt lapsed), now found Inthe lost under Sub-Category No. f,stould be placed st Sub-Category No. a der the main Category of Captive Category. Accordingly, TECA proposes n@ 2. 20 TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION Regd Ne |8/-259¢/1998- NN LA7I0=T2 poganPoDe?2+| "ihe Seva Stang, foe Coan xtc eal O76 ron GH sa20 mee Sarat tna ada tote, Cantve Category in te flowing order of Ponty of ‘captive category: 1, Thermal energy (surplus unt lapses) ©, Biomass (75% payment for surpis units) ©. Soler power (highes cost frst loner cost 75% payment for surplur unt). 4. Bagesseco-gen (surplus uns apse) © Wind energy witha banking (Higher cost frst and lower cost later) 7886 payrnen or surplus uns) We enery ws Ekg (Higher Cot Prt and loner cot ven though, TECA suggested not to spit up the wind energy vin or hit benking, forthe sake or convenience of reference, te noid with spit ps under e& Sub-Category ‘The Henle Commission has aso mentioned Io the Dally Order cated 28.05.2021 thee the Hon'ble Cemmissin would be weaning © brat equation fer tne comments znd" accordingly, the comments Sled by TEER ay the later would rot anyusy be prelesions for aling Comments ‘on the iat Raguations # proposed to be" webhost by Hon'ble Commission in tis regerd. However, I iste the purview OF the Hon'sle Commission, ahetner Such maitrs of Party of Adjustment have tobe reguted Inte form ota Reguaion The Priority of Adjustment row proposed by the CFC-Revenue in ‘the Petition also violates the Regulations under Grid Connectivity land Intra-state Open Access Regulations 2018: ach energy, sourced from each Cetegory is fang ether under the folowing twee main Categories 1. short Term Open Access (STOA\ i lam Term Gpen Aeceat (MTOR) 1, Long Term Opes Access (708) ‘The energy from the Renewable Sources mast Instandy fom the WEGE is Elasined as LTOA Power. Novrally, the Thermal Captive Powe:, omer linger the Category of NTOA Tower, Therefore, even By the Seno Prasty, Lang Tarm Open Access Power, covered by the banking scheme; has tobe pushed fo the ast ofthe Povey and therefore, onthe letter and spit of the [SOR Reguaions 2014 ago, the Priory of Aajustnent has to2. ‘TAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION apd Me 18-8521/1998— Ohne UIP ooRCAPDORSE one 0473 381400 MeN 9797890000 Ema casein be regulated in a manner wihautsfecting the interes of any stakeholder Involved Inthe proces, the Petition in M.P. No. 24 of 2024 completely violates ‘of the Hon'ble APTEL in Appeal No. 366 of 2017 dated 26.11.2018, ‘The matter of Ponty of Adjustment was already analysed crtcally by the Hone APTEL In Appeal No. S06 of 2017 and an order was passed on 28.11.2018, vnich mede the mottr of Poy of Rajustmant fulysetioe, ‘his order was. based on an Apeal fled by the Maharashtra State Elecricty Distribution Company Limited against the order of Nonble Maharashtra State Elecrcty Regulatory Commission in Order in Case NNos139 of 2016: Therefore, Whos become sleagy 2 seted matter, ‘The Hon'ble APTEL has already sbserved that any fim thermsl power needs to be frst adjustes over the Insfem power hom Renewable Sources. Tae Operative Portons cf te order In Ropes! Hor 366 0f 2017 Gated 26.11.2016 i eproauced Delon, "43. Its slgniteant to note that, the concept of banking has been Imcroducea tor me sole purpose encourage generation of elect through renewable sources avaiable Inthe sate and we & when needed. Since, renewable sources of anagy ars not avatobe oto hours ofthe time and in order to maintain efient supply of power, the consumers are supplied sletraty generated Irom convertors sources of energy. Ie mandatary for al consumers t0 consume Dercentage of thir taal consumption as fed by the Appropriate ‘nergy first. 11s at-this point of time when the bankingTAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION "RagdNe 1 -3554/1998 ON Ne, U271072 098GAPD 261400 Ne he. 9787599000 et aes Therefore, on 2. matter alreaty settled by the Hon'ble APTEL on 25.11.2018 Weep Appeal No.3 of 2037, te present Pastion fl the Betisoner CFC-Revenue has necome totaly Infrucuaus ana terefore ‘the Patios reaures none asuseaton at al accordingly he Petter Ine. No. 24 oF 2021 may be Gosed as suck by levying Reavy cost on the Pttloner for having wastes he time of the Howale Commission. Ciencias ss ot ene Tre PO Ifo be darvd cer ne aoe te re Su oh the pone orgs Seta ons Cony seat sagd Iacono! eae, eon amy va ay Teagan ose" by enone Conan Ssh cy EEATAMIL NADU ELECTRICITY CONSUMERS’ ASSOCIATION Titan SMA bt, foe Cun Combos 6a O18 Pon 20 nee ir evtbo enc aucnnla has demonstrated bath an legal grounds as well a= on factual mate, 36 hom the patven s not maintanatle both on lava wall a on cners and Becordingy, TECA nos demonstrate tat the existing system of Prasey oF Aejustmant requires no intervention in any manner on thy reason 35. We submits thet the instant Patton in M.P. No. 24 of 2024 is iste for hearing on 27.07.2021 under Item No. 15, as per the Cause Uist netied by the Hon'ble Commission and scoring, the Honble Commission may be pleased to ree the Pettione to mithdrow toe Petton on hearing the matter on 27.07.2021 ao 1. Conclusion: 36. For al the reasons and grounds as explained above in the comments 25 fe'by Tamil Nadu Electricity Consumers” Association He psy that the Hee'ble Commission: may be pleased to direct the’ Petconer to ‘ithaai the petition and in the case of fallure to withdrew the peston, the Montble Commission may be plased to dais the same, by Imposing heavy cost on the pettonr, Tor having wasted the te of te Hon ble Commission bringing such untenable pation, secking forthe orders of the Hon'ble Corvmission whieh seready seed matter ane whine bey supported efter by iW orb Tact ana secorangy, tor te reasons ‘dated above, the petlon ‘led by the CFC-Revenve in MP. No. 24 of 2021 may be dismissed or slloned to be withdrawn one thus render ‘tn Warm Regards Dr. €8 Senthikumar ‘Secretary Copy to: The Secretary, ‘Tami Nod Electricity Regulstory Commission, 4th Flor, SIDcO Corporate Offre Building, Thiu.vik Industral estate Guin, Chennai-600 022 (EMail: tneee@nicin ‘hanty.erodet@omalom,Arnncxvit 3 ‘The Southern india Mills’ Association “Sorolna Manan 4 Re Cours, Corio 651 O18 Thana azine ra: Diz2 «2068 Ces20¢0, 28 Jay 2023 eon Ss ee wena za : faa ferent sian, See Revere = nace fo os ieee Bay eee | Sub: MP No.2 of 2021 ing pty of eustmont in respecte (OR Consume Fling four eaters eo Ret) Hort TNERC webhosinga nts at 8072021 nM waz 2) ait Sr of TNERC MPNe 242021 etc 29 8.2021 ‘yn rtrenee tthe pen te by TANGEDCO to fic the cy ot “hsevant mong wove sees 3 power purchase undo pen acxse SERS it conmargton under MP No24202" we ebm ou remarks a ‘some Con perusing the peton le sar MP, No 24 of 2024, wo found tat nec were 29 many Hgstone fn epact of pty of aghstnent nao RES Schnee and Kew-RPe mastines: wn mil anu fails ar ‘Meso Sang fais, wed recasting Mier arf ond wer ai “SrA ipeion took pac defo na-aproae of TANGEDCO beire 5 Comment, Hovover te comanaity na tote orders was that he ‘Soeur shoul tute ‘We woul ie 1 rng your kn terion tat the Hole Carision sido te rdor RP No YOO dod 107 2015 had suck down the YANGEDEO' leer dod 149.242 in espct of sort of eaurmest Tate by TANGEDCO. The Commision told tet the deoson ot TANGEECO mung such a irs to lopay vad apd spans the Proslons of Seton 48 of he Beit cl, 200, Furr, be Commision ‘Geol nati ones oapvoach to Commis fo ny suo sue ‘etsy wh efron to nent or ara the pny of asker never the TANGEDCO navn fad forthe tt fe yee, row alone ave moved bfre the Cmmissi orthepty of autre. @"HE SOUTHER INDIA MILL ASSOCIATION, COMIBATORE Inspiron onote tat nh pent patan of TANGEDCO, under |8N0 8a anna ft he Hee Carmien fe aur gules fon the orcedue of taneng of wd enesy avery oer abe or Wind “= Teter gory dung Aaa baste ans onuton ‘om aa ebay tS eto bard erage unr hy sha Ge ra ants aga a nung fe conomatan srsace the genenton ang fe lay honey Stabe be nung shal be wn fe gute eet Serre aur tt as goes aye “This orton ofthe TNERG ore clany nos how the wind erey anata evry mot i ob mtd resent contagton a ho ‘he eros geerton woul! be tata no he baking he Common ‘Pought of-esticing the ctor suze of power puchase Sy he wing ereators ding the wins saan he Commission would Rave deat wt it [peice An bsaciminata Ohl slewey yn’ te Elect ht 2008, 178 on there Is ro veticton oe tart onder ont putas of ower fom ota ure dng te tl aston, Henn te present petion ures, the cures pation, TANGEDGO had alse rons that. the sapve wine generar aia purchasing IEX power dng te Whe Seaton forth crest coreumptn a king the wid ganeon ls ner bank fr tte tse probe nthe mote of Janay. Feb 4nd March evry oar. To aja he vanes uit oe cape ceersin he Sd mon he TANGEDCO Me puonace sewer Rafer cst sd ot {euch TANGEDCO neurng os To soi, now the TANGEDCO has fet» peion change he pty acter arcu wh fren le captoe consumer ve huni sunt ta, sn 2012 the TANGEDCO was ni in 8 sosten torus ts poaten wth ha fecal gues nou ees on scout of slowing bark Tally On the oer hand we have. ee suited oe Commission tng a vrs af detenraon proces fet (he TANGEDCO ie sivaye makrg ott en acount of lowing. banking facies. (copy cf tenance id aeay been ate yoo“THE SOUTHERN INDIA WILLS" ASSOCIATION, COMBATORE ‘forthe Commislon ana ih came's enesd or rea ttre). ‘he Carmien nie ice of ind Tai ung 2018 Nad poes ot ‘Stree nto cts aed by he Wess oma udu eee ‘Tmettee, he ea 2! TANGEDCO thy louing of Banking tity TANGEDEO wit nor on snl eorest Dung tne power ptied up 1 shine 20%5, tba TANGEDCO was putetaning rove at ight eoet Howe, “ibrequent oho rear pow re as no such igh oa poe! puronas by the TANGEDCO ond one cortey based on the nak rd, ‘he TANGEDCO is purchasing rough somelive Bd an also fom ne ‘rchange lhe compebtive pie. Theiss 0 TANGEDCO on scout OF redorpton of banka nit snl sort an tere motel ee TANGEDGO pston staan se 4 baring. Wie aso submit tat undor tho oresent ptton. the pony of sejustmont in respect of sourcing varus powers fr HT consumers comet bea question ater TANGEDCO sopslng tte Commision esr De Win pve consumers eto source th EX paves pursaae or hr pay ower prchaoe during th wr season vile a row ak tt iS {I TANGEDEO wil amour o etiretl a aowng indectmeate open Sees under to Elecly Act 2008" Theette,tne TANGEDCO = tng the peton In an ioc ey, whieh sagan the law and cant be eran, ie watts to big to the nocache Commision retain coder TP No.12017 ated 1.2017" hacosghy, fort ya 2017-18 he Serape cost of supply! Yeclzaton was Re. S85 par unt Thro, TANGEDCO canpat make'a car Yt they ae curing huge tat oo account fing Book a baka ery tthe wie cape conser Besides he stove, we wou hot bing tothe etalon me Oder of ‘he Hane ROTEL appeal No 6017 ded 29 11.2019 when the [APTEL hes aeady ain he sue port of aust nd pasted nero The evant pion under ore ohe eid Orr oo @“THE SOUTHERN BIDIA MILLS’ ASSOCIATION, COMMBATORE “1s ote dona nt a core of ang haba end ‘ines neone tea grron of ey gh amd Iatean sent sn) of poe he conumar on asp este {ened tom sma tucae ot aay mandy fat Eesumars 9 conn» oecge a art onsun a Bed Irececie of waar he 06 faye 6 sohered or mot te sab ‘Sores cova te a coaats confuse io pome eerd ‘reg rnania reso ew I's te po oe er Be te scans eon ata aban ean ch a TATA Pr {pl end RetansIenterre Ute aretha reece emit "re Opa aocas Raptr 18 were he seesuid pone (mt ‘Rpinon 20" Open Soo Rapa 2018 on cet ann ‘Treen. oe) and cotarioe! sey ie aie tat Sanvetonsstegy sande be aguaed ae” Sse) be sond sspanaon bag Goive csr Ie cpive sina asst 98 Se erro th so ne sus fo ee onsen Bese ovat whiehoevanaie aegy ans sod mat nthe ‘Suse! poe ha anaes fet sane ay ei ‘yoo arias Taig a eared eotc ea Seen oe Sait mre ope wh ‘nonrSta Repay Caemann Ne ity ste tea ‘rougeos Orbe There no ean cae vw tl hares Srl re gpmSEDG sry eno ate a ey ee nt ey re. gay ering! try o party ha mec ‘row pesos by het Ressnsentis Repay ‘Comin ‘moa nes, e Nate a pad 9 ho Appa, ‘aot fo ce dae ae crv of wari Aor arava i 'Sue satiate ence, i 3 seed paston of aw that in respect of pity of scjusment as nel by APTEL en It ceaat be reopened lore te Common ue ne paren pation Hanon fe cura atin MP2 2024 ae coi otras“THE SOUTHERN NDIA ILLS‘ ASSOCIATION, COMBATORE Fares we woul tet submathat he Hone TNERC inh wind tant onder No 6 of TaGAZOT8 hav ve the Sng le fr he ‘in mil commislcning star OVE420%6 and alee revised puedo “arour corps rl to th wind energy ganerton and consumption ‘his over ofthe TNERC was challerges uno the APTEL (AP NO. 181 a 2018 are he APTEL on 25.0% 2021 hal tat any logo, elves an pb pay > The vowing taitysholecominue ant atthe same tne he be of banking shout nt ost Realy on he TANGEDCO. > Noe to eone frrasa 20 ht each takshoder to an fom nom: ‘enowable vesouces and cone 3 winain soeano Boh fo be enor ana he abuts toenaas > Floquet he Cntal Govermant to et upon he Cota Etectiy Actor to underiskenecisay sy ad recomend fr and suitable elon for tn wind sit baking balcng the fompetng ieect legiatve schome nd pie paley of he > The TNERG should ensue al necessary consquanta ae 0 be passed and thece sreaone ve 10 fe eoupuusly conplad > The APTEL has ego eld ti woul! oot allow Kher adhe spproac on the cule ans mporany, TNERC shout pling Secu change inthe Rus f ark ales bya ure rt out urderatirg @ sud bad on te raga sata pope tatoed and rae. > ste contol period iusto laren ero 222, are es aticart fine avaible for such 8 ly and crected the Commission stcotdingy a rest THERE sod ens evn (nde respect of banking end oer cages. Wii so, the TANGEDCO wats pening the APTEL order ars row coring forwar f fl e pres pein erates A er the TTANGEDCO version thre ao so ay odes of APTEL unde calenge fo the Supreme Cour Whi to, tout iesing al ica scver“HE SOUTHERN INDIA MILES: ASSOCIATION. COMBATORE ‘slow own sening a Super® Gout binging such Kd of patton trio the Carinion mous agar en to frne” eoston ang complete theme Fume eo submit tht every vine eaptve consumars hve sored ne ory wing agrarant with ANGEDCO forte rato ot 125125 oars fom te ate common fhe ong. Ins wong Speamert thre eno ucyrestran yy of pry of aster ae {hie ther hone an ena fh Lonestar he Bang on {sng banking ohargee ae ed fy be Cormasan Even a SIA, oF 'Sra resricion anise tha! dng te win seaon, De cape consumers fouud nt pumese and use De oan source poner Thar, he wd ‘otom snkumeeunr be ut da oar ered whereby cutie ‘fe phase 0 EX pone rung 1X poner dung ihe wing eestor £2 longa he exising pty fasunnent sacapabe and fo sue among tne sonaunere, asd no 38 ost under te felon of Te FangeDCO neuring ee and seating to shange st the. ly of “Taro we appeal ote Commision alamiss the patton of TANGEDED aed perm io eortnue the easing pals of Prony of aaron elon: ete £2 eons ee 2 SSes enous eee ee anasening 5. Setar we Slane Tengu Your iy Bihar coucseiyheany a SeSyenctWind Banking Faty no les o THE in fc profitable to MESAreocus 2 TAMIL NADU POWER PRODUCERS ASSOCIATION “Through: EM Ref No.: TNPPA/MP24 of 2021 /COMMENTS. ate: 29.07.2021 To, ‘The Financial Controller/Revenue TANGEDCO, NKKKR Maligal, #144, Anna Salai, Chennai-600 002 ‘Subject: Comments on behalf of TamilNadu Power Producers Association (TNPPA) to the Public Notice dated 08-07-2021 inviting Suggestions/ objections on the Petition filed by TANGEDCO being Petition No. 24 of 2021 before the Ld. Tamil Nadu Electricity Regulatory Commission (“NERC”) seeking fixation of adjustment priority among various sources of Open Access energy against HT consumption Ref: Hon'ble TNERC Notice Dt.08-07-2021 webhosted petition to Invite public comments on the M.P.No. 24 of 2024, ear Sir, “This is with reference to the above subject, wherein the Ld. Tamil Nadu Elocrety Regulatory Commission, by way of web-hosting te Petition files by TANGEDCO being Petition W.P. No. 24 of 2021 on 08-07-2021 invited suggestions) objections cf the stakehelder on the priority lst proposed by TANGEDCO for austment of energy drawal by Open Access consumers inthe State of Tamil Neds. Therefore, In terms ofthe foregoing, TAPPA being a Stakeholder on account cof being @ Castive Generating Company/ Association submis its comments to the Petition M.P. No. 24 of 2021, forthe consideration of the Ld. TNERC. 2s enclosed in ANNEXUREsL This is submited for your kind consideration. Yours aihfuly, For TamiiNaduy Power Producers Aesocistion Angee Authorised Signatory@ a ‘TAMIL NADU POWER PRODUCERS ASSOCIATION ANNEXURE-1 ‘That, Tamil Necu Generation and Distribution Corporation Limited (TANGEDCO) has flee @ Miscellaneous Petition being MP No, 26 of 2023 before this Hor’sle Commission urging It to fx the adjustment priority ‘amongst various sources of Open Access energy against HT ‘consumption. The said petition I placed in public domain by way of web- hosting, seeking objections/ suggestions/ comments from the stakeholders at large, The undersigned is therefore fing its objections suggestions’ comments for consideration by this Hon'ble Commission. In this regard, (ts submitted tat TANGEDCO has prayed for issuance Of requisite guidelines on sequence of adjustment, to be achered ‘amongst various open access sources, while taking into consideration, various financial aspects viz. open access charges, Cross Subsidy ‘charges (CSS), et, lelable for these aajustments. TTANGEDCO has In fact contended that this Hon'ble Commission has ‘generously granted concessions to Renewable Energy (RE) generators {qua Open Access charges, 25 well as CSS and also extended banking faclity for the Wind Energy Generators (WEG). Ae a result of these concessions, TANGEDCO Is facieg a negative impact on its financials. In view of te above, TANGEDCO has sought 2 clear order of ‘adjustment, so as to streamline the adjustment of energy wheeled purchased from different sources by the HT Consumers under Open ‘Access. For ths, TANGEDCO has provided a sequence of acjustment before this Hon'ble Commission wherein the order of priority proposed Dy It, Is formulated on the bask of the Open Access charges and CSSR TAMIL NADU POWER PRODUCERS ASSOCIATION leviable qua the Open Access sources, which defeats the scheme ane intent of the lectriety Act, 2003, 4. In terms of the foregoing, It is submitted that the said prionty ist ‘proposed by TANGEDCO Is divided Into two categories viz. captive and ‘non-ceptive and the same is reproduced hereinbelow for ready reference ‘ofthis Hon'ble Commission (however, the undersigned is only concerned vith tne proposed category of captive power): ‘Non-Captive Category: 1 Tex Power Tee party from thermal 3 Party from wind eneray generator <4. 3° party trom bagasse generator €. 3 party from biomass cenerator ‘captive Category: 2. Blomass (75% payment for surplus units) . Wind energy with bankng (Higher cost fist and lower cost later) . Wind energy without banking (Higher cost fist and lower cost later) (75% payment for surplus units) 4. Solar power (Higher cost fst and lower cost 75% payment for surplus units) fe. Bagasse co-gen (surplus units lapsed) Thermal eneray (surplus units lapsed)@ ze TAMIL NADU POWER PRODUCERS ASSOCIATION [As such, ifthe aforesaid proposal of TANGEDCO, prioritizing the order ‘of adjustment (inthe State of Tamil Nadu) Is accepted by this Hon'ble ‘Commission, then the same would contravene and volte the lelsiative ‘framework ofthe Electricity Act, 2003 (readwith various statutory policy ‘ocuments, Isued thereunder from time to time) which eatagorically ‘emphasizas on impetus and thnist tobe accorded to the captive sector In the country. In fact, such proposal would be detrimental to the secrosanct abject envisioned under the Electricky Act, 2003 que Promotion of the captive sector, and, therefore, it would lead to stagnation and rot in the captive Industry In the State of Tamil Nadu (enumerated In detail nereinafter), ‘Current Allotment Method for Adiustment of Eneray Credit: 5. In ide to the above, itis petinent to note the present method of Allotment followed by TANGEDCO, s¢ provided in the petition at paragraph ro. O8 , wherein the adjustment of energy credit by the HT Users, having Open Access and procuring power from multiple sources 's done inthe following order: i TEX Power i, 3 party power Wl Coptive Thermal Eneray Iv. Captive Solar power v. Captive Wing energy without banking Vi. Wind energy with banking (due to the principle that Higher cost energy frst and lower erst energy later so as to minimum the payout for the unutiized quantum of energy)® « TAMIL NADU POWER PRODUCERS ASSOCIATION If there is any remaining cznsumption, then it wil be acjusted in ‘TANGEDCO tanif 66. Inthe wholesome submissions mede on behalf ofthe undersigned inthe present stakeholder comments, detalled emphasis is placed on the scheme of the Electricity Act, 2003 and the statutory policies framed thereunder winich expressly call for the promotion of the concept of "Captives" + SOR of the Electricity Act. 2003 and various statutory policy ltiatives of the Government: 7. In furtherance to aforesaid, reference is drawn to the Statement of ‘Onjects and Reasons (SOR) of the Electricity Act, 2003 wherein, ane of the main features ofthe Act sto delicense the generation of power and to freely permit captive generaticn. The relevant extract of the SOR is reproduced hereinbelow: "4, The main features ofthe Bil are as follows: = (}) Generation s being delicensed and captive generation Is being freely permitted. Hydro Projects would, need approval Of the State Government and clearance from the Central Electricity Authority which would go Into the issues of dam safety and optimal utlzation of water resources, (Underline suppiee) 8. Further, reference may also be mage to the National Electricty Paley, 2005 (NEP), National Tarif Policy, 2006 (NTP) and revised NTP, 2016, ‘The relevant extract of the NEP, 2005 is reproduced hereinbelow:TAMIL NADU POWER PRODUCERS ASSOCIATION ‘ational Electricity Policy, 2005 “5.2. GENERATION 5.2.2 The Government of India has initiated several reform measures to create a fevourable environment for adctton ‘fnew generating capacty in the country. The Electricity ‘Act 2003 has putin place a highly liberal framework for generation. There ig no requirement of licensing for ‘generation. The requiremant of techno-econamic clearance ‘OF CEA for thermal generation project is no longer tere. For hydroelectric generation also, the limit) of captal expenatture, above which concurrence of CEA Is required, would be raised suitably from the aresent level. Captive generation has-been freed from all contro, Captive Generation 5.2.24 The liberal provision inthe Electricity Ac, 2003 mith ‘Sua via in na anly-eseuting ealabla, quailty and caste sffecive power but also tc faciltate creation af emplovment 5.2.26 A large number of captive and standby generating Stations in India have surplus. capacty that could. be Supplied to the gré continuously oF during certain time perfods ‘competitive canacity that could be hamessed for mesting ‘demand for power. Under the Act captive generators haveds i= & ‘TAMIL NADU POWER PRODUCERS ASSOCIATION ‘accoss to lcensees and would get access to consumers who are alawed open access, Grid inter-connectons for captive ‘Senerators shall be focliated as per section 30 of the ACL. ‘This should be done on srionty. basis to enable captive {generation to become avalable as dstiduted generation ‘along the ord, Towards this end, non- conventional energy Sources including co-generation could aleo play. 8 role ‘Appropriate commercial arrangements would need to be Instiuted between licensee: and the captive generators for hhamessing of spare capacty energy from captive power plants. The appropriate Regulatory Commission shall exercise regulatory ovesight on such" commercial arrangements between captive generators. and licensees {and determine tariffs when a licensee 1s the off-tker of ower from captive plant." (underine supplies) ational Tart Policy, 2006: "6.3 Harnessing captive generation ive aoa roots Commi Shoule_create-an-ehablng environment that-encourages ‘eptive power plants fo be cnnected to the arid, me reaulsion 8 appl erti ‘companies. Frm suppies may be bought from captive plants By distribution licensees using the guidelines issued by the Centra! Government under section 63 of the Act. ‘The prices should be diferetiated for peak and off-peak supply and. the tariff should. Include’ variable ‘cost of ‘Generation at actual levels an reasonable compensation for ‘epacty charges. ‘Alternatively, a frequency tased real time mechanism can be used and the captive generators can be allowed to inject Into the gid under the ABT mecranism.‘TAMIL NADU POWER PRODUCERS ASSOCIATION Wheeling charges and other terms ane conditions for ° Iinplementstion should be determines in advance sy che Yespectve State Commesion, uly ensuring tat. che Charges are reasonable ard fa Grd connected captive plants could also supply power to Don-captive users canneced to the gr through avaiable {ransmissin facies based on negotiated tars. Such sale of electricty would be subject to relevant regulations for pen access.” (Uncerine supaties) Revised National Tariff Policy, 2016: '5.0 GENERAL APPROACH TO TARIFF 5.22 while is recognizedthat the State Governments have the right to. Impose ditles, taxes, cess on sale. oF consumption of electricity, tese could potentially distor Competition and optimal use of resources especially if such levies are used selectively and on @ non-uniform bass In come races, the ditiacete. an ennamption of electricity Is lnkee to sources of generation (like captive generation) {and the evel of cuties levied l= much nigne” a= compared { that being leved on the same category of consumers who draw power from gris. Sich @ distinction 'S Invgious nd Inappropriate. The sole purpose of freely allowing captive Generation isto enable infustries to access valabe, qualty and. cost-effective power. articular, the orovisk 7 ive paver plants when can be st rs 7 nt is recognition of th ‘Ber that cient expansion of smal end medium industries ‘ross the country wil jead-fo fester escnomie grav 2n Sesto of avger employment opporuntles, For realizing the goal of making avaliable electricity 22 Consumers at reesanable ane compettive prices, if recessary that such duties are kept at reasonable level” (6.3 Hamessing cantivegenerationa de & ‘TAMIL NADU POWER PRODUCERS ASSOCIATION Captive generation is_an_important_means to_making competi le. Approar ‘ghabling environ rages ‘Such captive plants could supply surplus power through grid Subject to the same regulation as applicable to generating ‘Companies. Firm supplies may be O0Ught from captive Diants by distrioution licensees using the guidelines isued by the Central Governmert under section 63 af the Act taking nto account second prowso of para 5.2 ofthis Policy ‘The prices should be differentiated for peak and off-peak supply and the tariff should Include variable cast of ‘generation at atual levels and reasonable compensation for Capacity charges, Wheeling charges and otter terms. ané conditions for Implementation should be determined in advance by the ospectiva State Commision, auly ensuring thatthe ‘charges are reasonable and fi Grd connected captive plants could also supply power ta on-captive users connected to the grid through avaliable transmission faciies basec on negotiated tariffs, Such sale of electricity would be subject to relevant regulations for ‘pen access including compliance of relevant provisions of ‘le 3 ofthe Electricity Rules, 2005." (Underline supplied) ° Its Imperative to note that the aforesaid polcies ssued by the Central Government are statutory in nature, The Seid principle i aid down by the Hon'ble Supreme Court in the judgment of Energy Watchdog v. CCERC reported in (2017) 14 SCC BO (Please refer to Para 57). Further, from the perusal of above provisions of the Statutory Policies Issued under the Act, its quite evident tat the intention ofthe legislature has been to promote Captive Generation, and has stressed upon the@ de A 10. ‘TAMIL NADU POWER PRODUCERS ASSOCIATION Regulatory Commissions to bring aut the necessary promotional parameters which incentive Captive Generation in the country. As such, the proposal of TANGEDCD to place all sort of CGPS at the end ot the prorty list qua adjustment of drawl of power by Open Access Consumer, would explcly defeat the Intent and mendate of the ‘abovementioned statutory Policies issued under the Electricity Act, 2003, From the above, It evident that one ofthe primary objects towards the enactment of the Electricity Act, 2003 and the statutory policies framee thereunder, Is to promote captive generation of power. However, the aforesaid propesa of TANGEDCO diluting the priority que Various CGPS in their order of adjustment of energy drawal by Open ‘Access consumer, vanquishes te foregoing discussed Intent under the statutory policy framework. In fac, the same would render the concept of captives a unviable, wien woule do violence to the vari provisions ofthe Electricity Act (discussed hereinafter). ‘Statutory_provisions under the Electricity Act_enviseaina ‘eramotion of the captive sector: “That, the intent of the Legislature envisioning promotion ofthe captive sector can be evidenced rom a perusal ofthe folowing provisions under the Electricity Act, 2003 viz, fourth proviso to Section 38 (2) (d), fourth Proviso to Section 39 (2) (4), Furth proviso to Section 40 (¢) and fourth proviso to Section 42 (2), which categerically provide for exemption from levy of CSS upon the CSPS. The relevant extract of the sala provisions are reproduced hereinbelow:i aD TAMIL NADU POWER PRODUCERS ASSOCIATION (Central Transmission UUlity and (@) Te functions of the Certral Transmission Uti shall be (@) to provide non-dlserminatory open access to Its transmission system for use by (0) any licensee or generatng company on payment of the transmission charges; oF (any consumer as and when such open access is provided by the State Commission under sub-section (2) of ection 42, on payment of the transmission charges ond 2 surcharge thereon, as may be species by the Central Commision Provided that such surcharge shall be utilised for the purpose of meeting the requirement of curren level eross= Subsiay shall be progressively reduced 1[=*™] nthe manner 35 may be specified by the Central commission: ey Provided also that the manner of payment and utilisation of the surenarge shall be spectied by the Central Cammission Provided ai leviable 19 ‘2se_open_access_is_piswidet) fo_a_person_who has slectvicy to the destinatior of his own vse, Section 39. (State Transmission Utility and functions): (2) The functions of tne State Transmission Utity shall be (a) to provide non-discrminatory open access to its transmission system for use DyG2 TAMIL NADU POWER PRODUCERS ASSOCIATION (0 any licensee or generating company on payment ofthe transmission ehargesy or (i) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and = surcharge thereon, as may be spaciied by the State Commission Provided that such surcharge shall be utlised for the purpose of meeting the requirement of current level cross- Subd Provides further that such surcharge and cross subsigles shall be progressively reduced 1[+*"] in the manner as may be specified by the State Commission: ae Provided also that the manner of payment and utilisation of the surcharge shall be specfied by the State Commission Provided also that such surcharge shall not be leviale in Fass anon eres is -aeavided ta a-eneson wha hae i a ng oan fo feel ination of hi Section 40, (Duties of transmission licensees): I shall be the duty of a bansmission licensee ~ (©) t0 provide non-disciminatory open access to its transmission system for ise BY- (0) any licensee or generating company on payment of the transmission ehargesy or (1) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on. payment of the transmission charges and = surcharge thereon, as may be specified by the State Commission[aay TAMIL NADU POWER PRODUCERS ASSOCIATION Provided that such surcharge shall be utilised for the purpose of meeting the requirement of curren level crass Eubeley Provided further that such surcharge and cross subsicies ‘shall be progressively reduced 1[°™*]n the manner as may be specified by the Approprate Commission aren Provided aso thatthe manrer of payment and wtilsation of the surcharge shall be speciied by. the Appropriate Commission wided al surcharge shall jable in §s2_open rove rt sh /_gensratin ovina th ity 20th his awn us Section 42. (Duties of distribution licensee and open access): (2) The State Commission shall Introduce open access in Such phases and subject to such coneltions,(iluding the ross subsides, and other operational constraints) as may be specified within one year oF the appointed date by it and in spectying the extent f open access in successive phases ‘and in determining the cha-ges for wnesing, it shal have ‘due regard to all relevant factors including. such cross ‘subsidies, and other operational constraints Provided that L[such open access shall be allowed on payment of @ surcharge] In adaition to the charges for ‘wheeing as may be determned by the State Commision Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply ofthe alstrbution licensee! Provided also that such surcharge and cross subsidies shall be progressively reduced 2[***] in the manner as may be specified by the State Commission 8@ a8 a Fr 13 proviging such promotion and thrust; ‘TAMIL NADU POWER PRODUCERS ASSOCIATION D ice jrson_ho-has ‘ssablisned a ceptive generating plank for-cacving the Slstincty co the destination of his an use" In terms of the foregoing, fs evidently clear that the Pariamant while enacting the Electrcty Act, 2003 consciously provided concession to (CGPS/ Captive Users, who have established a captive generating plant for carrying the electricity to the destination of his own use, by ‘exempting them from payment of any CSS. The aforesaid provisions of law are starkly clear in this regara Implication of the proposal of TANGEDCO: 1 Is submitted that, if the proposal of TANGEDCO Is accepted the faliewing implications shall envelop the captive Industry inthe State: TTANGEDCO has proposed to dissincentivise all species of CGPS ‘existing in the State of Tamil Nadu by relegating them to the bottom of the order of adjustment of power drawal by Open Aces consumers: [As discussed hereinbefore, the unwarrantes consequence of such proposal woulé be that the entre jursprudence envisaging promotion oF the captive sector would stand extinguished and ibates ‘Such @ consequence would also be In contravention of various statutory policies of the Government, 25 well as the numerous specific provisions under the Electric Act, 2003, mandating and 4@ e TAMIL NADU POWER PRODUCERS ASSOCIATION 1. The propesal shal alsa lead to an anomaly, whereby In case, an Open Access consumer ¢awing power from various sources Including CGPs, draws lesser power than its schedule, then the CGPS being proposed to be placed at the bottom of the order of ‘adjustment lst and_ given ast priority for setting-of such power {raw by the sald Open Access consumer, would csincentvize an (Open Access Consumer from avaling captive power, asthe setof ‘would result In adjustment of non-captive power thereby leaving out the benefits of captive power at cheaper rates for the consumer and exemption from CSS would stané nullified and sures; @. The aforesaid situation is inevitable, as an Opan Access Consumer avaling power from various sources including captive power would never be In a positon to accurately eater to its power schedule in a time block, a5 there would always be a situation of under drawal (apart from over drawal) Im such a scenario, an Open Access Consumer would be discouraged to avall capte power all together in view of the Droposed priorty list of TANGEDCO, which would also severely hamper the growth and prejudice the captive Industry in the State; and 9. Accepting the proposal of TANGEDCO would also lead to @ situation where the State of Tamil Nadu would be swimming ‘against the currents, not being in ine with the printy protocol ‘adopted by other States nthe Country, wherein the captive sector@ ® ‘TAMIL NADU POWER PRODUCERS ASSOCIATION has been given weightageand prion in thelr order of adjustment list. Undersianed: 14. In the view of the foregoing detailed submissions it isthe case of the UUndersigned that in order to preserve and full the benevolent object under the Electricity Act, 2003 and the Statutory Policies framed under i, towards promotion of the captive sector especially in the State of ‘Tamil Nad, thet this Hon'ble Commission ought to coneloer the faliowing pronty ist qua the order of adjustment, thereby, proposing the adjustment of energy drawl by an open access consumer from different sources in the sequence of priority and be Implemented for leach time biock, upon adjustment of applicable losses: (2) Captive Thermal Generating Plant (©) Captive Renewable Generating lant {c) Renewable Energy Geners:ors (@) Banked Energy (@) Long term third pany (8) Medium term third party (g) Short term Inter-State open access Inclucing power ‘exchange transactions (g) Short term intra ~ State third party. 15. In adgition to the above, i Is also submited thet TANGEDCO while ‘attempting to Introduce @ completely new system for adjustment of ‘energy drawal by the Open Access Consumers under the present Petton, ts taking @ discriminatory view inthe matter of allowing Open 16fi 16 TAMIL NADU POWER PRODUCERS ASSOCIATION Access as per its ovhims and fancies, without any substantial ar cogent reasoning, ‘The only purported reason on the basis of which TANGEDCO has Proposed to present the aforesaid adjustment priority ie that it ls sulfering alleged losses as per the curren priority Uist In this regard, reference Is mace to the table provided hereinbelow ‘demonstrating the fact that TANGEDCO at presant isnot Incurting any losses at al Si. | Source of [Nature of Revenue [Revenue] No. | Power eed TANGEDCO with no fforts/Unit [87] Gress Subsidy [RST exchange | Surcharge / 0.70 + 0.36 Power ‘dations =Rs.2.73 Surcharge / Intra | State OACharges 2 [Third Party [Cross —-Subsidy [Rs 67 power Surcharge / 0.70 + 0.36‘TAMIL NADU POWER PRODUCERS ASSOCIATION aetna] = 82273) | | | surcharge / intra | | r | ae cross Subaay RTT) ‘Surcharge / ]o70+0.36 | Adlon = 5.273 Surcharge / Intra | 14% of | | | [psunte sonics “5. Total revenue to TANGEDCO while | oF wing Power || the WEG captive user banks the | wing energy and goes for 1X / In view ofthe cetals enumerates hereinbefore, itis cleary evident that ‘the present system of adjustment being followed in the State of Tamil Nagu is benefiting TANGEDCO to the extent of RS.3.70/ Unit even without Infusion of any extra investment on its part. Therefore, the allegation of losses raised by TANGEDCO In the present Petition, Is baseless, bereft of any merits and deserves rejection at the outset. In edo i- v7. 18, ® TAMIL NADU POWER PRODUCERS ASSOCIATION fact, the very foundation ofthe proceedings intated by TANGEDCO falls ‘ace-fist in view of the above data, In furtherance, the intention of TANGDCO behind proposing such cryptic {and flawed methodology qua acjustment of energy drawal by open ‘2ecess consumers is only to create unnecessary hindrance and trouble to the Open Access Consumers, from continuing to avall the present system of Priory of Adjustment. In fact, It is apparent that TANGEDCO ' leaving no stone unturned to discourage the growth and operations of the captive sector in the State of Tamit Nadu. Therefore, the petition fails to demonstrate sufcient cause of action end instead reveals the Uiterior motive ofthe State DISCOM, wherein the purpose of preferring ‘the same 1 to prejudically affect the interest of the open access ‘consumers and the captive thermal generators plants in the State of In furtherance to the above, a proftable reference is made to the Judgment of the Hon'ble APTEL dated 28.11.2018 passed in Appeal No. [366 of 2015, whereby the Hon'ble APTEL categorically settled the fam With regard to Priority of Adjustrent by holding that any firm thermal Power needs tobe fist adjusted over the In-firm power from Renewable Sources, The relevant extract of the said order is reproduced hereinbelow 743. Ils significant to note that, the concept af banking has been introduced. forthe sole purpose to encourage Generation of electricity through "renewable "sources fvallable in the state ond utlize tt when needed. since, Fenewable sources of energy are not available at ail hours ‘of the time and in order to maintain efficient supply of ower, the consumers are supplled electricity generated from conventional sources of eneray. Its mandatory forall 0@ ‘TAMIL NADU POWER PRODUCERS ASSOCIATION sn sar Pinn ny, hens Pe stestees eae ped consumers to consume a percentage of thelr total Consumption 2s fixed by “he Appropriate Commission from Fenewable sources of energy. Howavec. \respachive of ‘nether the set target is achieves or no the distinution licensee cannot force tre consumers to continue fo use the ‘ough renewable sources o eneray fret ig-at this ooint of tine wnen the Danking provision ecomes operative andthe dstroutlon igensses 5 reaured fe bank the energy and supply iin the time of need, Is {he_case of the second Respondent that other dstinution licensee suchas TATA Power and Reliance rructure Umited have thelr procedure in ling win tne pen Access Reculations. 2016, wherein the scheduled ‘Dower (Firm) is credited before the non-scheduled aower. ‘hls is fer the sole reason that scheduled frm power canaot be storeg Its pertinent to note tha: since Regulation 20 Sf tre Oper Access equations. 2016 only deals wun banking of renewable eneray-and not conventiona. enecoy ‘His implied that conventional eneray ageds to be adiusted firs,_Since._the second Respondent. peing a captive ‘consumer, the captive suaphy needs to be adiasied rior to ‘he ret of te sources ‘rom the total consumation, Basices, ity-o- legal infirmity-or_perversty in the impucned i “on. Mumbai net_the in ‘Appeal ise by the Appelante ie lable to be dlemissed 22 evo of merits sccarinal. We ananerec ne Isis ‘against ine Anoaliant (Ungertne supalies) 202S TAMIL NADU POWER PRODUCERS ASSOCIATION 19. In view of the above setted postion of law, itis evident that the issue pertaining to priority ist for adjustment of energy drawal by open access consumers is already crystallised to the effect that any frm thermal power needs tobe fist adjusted ever the in-frm power from Renewable ‘Sources and ths legal mandate cannot be deviated from by this Hon'ble ‘Commission in the manner being proposed by TANGEDCO in Its priorty list for adjustment of energy drawal by open access consumers ‘Therefore, the present Petition lacks merits and deserves to be rejected, Wronaful Prioritization of Power Exchange: 20. It Is submitted that TANGEDCO by proposing befere this Hon'ble Commission thet the power procured by Open Access Consumers from Power Exchange should be accorded the top priority in the order of ‘aaustment, nas completey ratac to consider the following points 2) That, power being traded at the power exchange is procured at ‘cheaper rates on shortterm bass; b) The entire framework of power exchange Is opportunistic in nature ‘when compared with other sources of power; ©) The settlement order qua power procured from exchange can never be equated and it would always be at a lower pedestal, when ‘compared to crystallised bilateral contracts executed for sourcing (of power lke done n a captive arrangement 1) The monthly energy adjustment being made to the HT Users should be prioritised based on their type of Open Access availed. ‘The Interstate collective /biatera transactions should be adjusted‘TAMIL NADU POWER PRODUCERS ASSOCIATION In 15 minutes block wise instene of being adjusted In slot wise ‘monthly cumulative manner; 2) That, it Is pertinent to note that DSM Regulations are not implemented in the Stzte of Tamil Nadu for Intrastate OA ‘wansactions. AS such, for Interstate transactions, 25 minutes Dock wise adjustments eught to be carried out In accordance with the aforesaid CERC Regulations, As the collective transaction at the power exchange are alvays cared out under short-term Open Access, therefore, the energy transacted and purchased from such Exchange ought to be adjusted in least priority; and 1) The consideration of IEX power must be on least prierity basis while calelating adjustments for the purpose of energy adjustment At the outset, it's submitted that et present, there are no requiste Regulations promulgated by this Hon’nle Commission or orders issued ‘therein, governing the facets of adjustment order que energy drawal ‘mandated tobe followed by the Open Access Consumer in the State of ‘Tamil NaGu, In fact, there is no arity on this aspect, and the practice followed by TANGEDCO for allocating priority to such adjustment order 's completely done as per its own accord, volition and desir. In this context, the Undersignes places reference to the extant regulations prevaling in the State of Manareshtra viz, MERC (Cistrioution Open Access) (First Amendment) Regulations, 2019, UnderTAMIL NADU POWER PRODUCERS ASSOCIATION No task Cy heen Pe LH Ea eee the sald Regulations, the promotional mandate of the Electricity Act, 2003 and the Statutory Policies framed under It que CGPs has been ‘amply provided for by giving them the requisite priory. The relevant extract is reproduces hereinbelow: 0, Priority for adjustment of energy credit ‘The priority for adjustment of energy draw! by an open ‘access consumer rom diferent sources shall be 95 per the fcllowing sequence of reducing priority and shall Ee Implemented for each tire block, upon adjustment of applicable losses, (@) Renewable Energy Generators (©) Captive Generating Plant (© Bankes Eneray (6) Long term Bilateral purcnase (©) Medium term open access (O Short term Inter-State open access including power ‘exchange transactions () Short term intra ~ State Open access (©) Distribution Licensee Provided that in ease of energy crest from more than one source from the similar category shal be acjusted on pre- ‘ata basis ofthe contracted generation capacky from Such 23. In addition to the above, tis alo relevant to note that other State Commissions have also enacted similar provisions under their open ‘2ccess regulations whereby, the renewable energy generators along with CG=S are given priority qua the energy adjustment. In tis regard, reference be made tothe fllowing regulation: 2‘TAMIL NADU POWER PRODUCERS ASSOCIATION 2) Rajasthan Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2018 ~25. Adjustment of Energy (2) The pronty of acjustment of energy éraval by an open fetes consumer from diferent sources shall be ae per the following sequence of recucing priorty ané shall be inmplemented for each tire Block (i) Renewable newer generation; i) gee; (ii) Banked Energy to be settied In 15 min time block =Banked energy available at the end of previous month in kwh / (96time blocks* Actual no. of days In current sont); (0) Long Term Blaterat purchase; (¥) Medium Term Open Access; (i) Short term inter-state open access Including Power Exchange Transaction; (i) Shore term intra-State open access: (uli) Distribution Licensee.” ) Assam Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2018 "32. Adjustment of Energy 32.1 The prioty of adhstment of energy drawal by an open access customer from afferent sources. shall be as per the following sequence of recucing priority and snall be Implemented for each time black: (1) Renewable power genaration; co gee: 24RE 24, 2s, TAMIL NADU POWER PRODUCERS ASSOCIATION (it) Bankes Energy tobe sets in defined time block; (iv) Long Term Bilateral purchase; (W) Meaium Term Open Access; (7) Short term Inter-State open access including Power Exchange Transaction; (i) Short term int-2-State open access; (iy Distribution Licensee." In view ofthe above detalle submissions, itis urged before this Hon'ble ‘Commission that the proposal put forth by TANGEDCO be refected, as the same attempts to undermine the legislative mandate of the Electricity Act, 2003 and the impertance the Act places on the aspect of ‘Generation of electricity being deicensed and CGPs bringing In a more ‘competitive environment to the sector. Most importantly, the thrust ‘alven by tne said Act to the CGPS cannot be diluted by the state DISCOM in such a manner. ‘Therefore, the suggestions forwarded by the undersigned in Para 14 ‘2bove by way of the prasent comments be considered and accepted by this Hon'ble Commission and sultable orders be passed in tis regard.Annee 5 S. Narayanaswamy, Former Member (Generation), Ramana Shree, Od 12, New 10/1, Anandan Street, 098400 97512. ‘The Chiet Financial Controller (Revenue), ‘Tamil Nadu Electricity Generation and Distribution Corporation 7 Foor, NPKRR Maligal, 144, Anna Sala, CChennat - 600.002 Date 29d July 2021, Dear ir, Sub:-- Notification on TANGEDCO petition MP 24 of 2021 08-06-2021, calling for comments on order on the Petition Calling for Comments on “Adjustment ‘among various sources of open access energy against HT Consumption” = Comments and suggestions. submitted. Ref TNERC Notification dete 05-07-20 [AS notified by Honorable Tamil Nadu Elecicly Reguletory Commiston“in ts order ted 08-07-2021, enclose erewth my cormens and suagestins on the noliicaton of THERC caling for comments on “Adjustment among various sources of open access energy against HT Consumption” for the kind consideration of the Honerable Commission. "enaly request Honorable Commission to cosicer the suagestons please ‘Yours truly, ‘5. Narayanaswamy. ‘Comments in duplicate witha soft copy by e mz= U 70) ‘COMMENTS ON THE CONSULTATIVE PAPER OF THE HONORABLE TAMIL NADU ELECTRICITY REGULATORY COMMISSION ORDER ON PETITION MP 26 ‘OF 2021 DATED 08-07-2021 CALLING FOR COMMENTS ON "ADDUSTMENT [AMONG VARIOUS SOURCES OF OPEN ACCESS ENERGY AGAINST HT ‘CONSUMPTION By 5. Narayanaswamy. | kindly submit my parawar comments on the consutave paper of the Honerabie Tam Necu Elecricty Reguatory Commision oer on the paper MP 24/2021 dated 08-07-2021 caling for comments on "Adjustment areng various sources of open zccess energy aginst HT Consumers” and pray forthe kind consideration of the Honorable Tart Nad Eecty Reguiatry Commision 1. Preamble. Before going into the minor point of adustment of open access energy against HT Consumers, 1 weuld tke to touch upon the major pont of reformation in Tan of “TANGEDCO to adress tis minor port, TNEB was formed In uty 1957 a fam that date onwards, one simple queston asked by several economists s "Is the Board 2 Commecial Organization or Socal Servce crganizaton". Ts question Is stl to be (use 4 (1 of Blectcty Act 2003 stipules tat “It shal be the duty ofthe Lensee an effcert,cordratd ard economia cstrbution system in his area of suppl.” {Cause 42(2) stipulates spout conations an which open acess shal be granted, but Surcharge ard Coss Subs ae aliinatat in due couse (use 61 (Cask for encourage competion, efcency, economical se of resources, () the tarit progressively reflects tre cost of supply of electricity and also ‘reduces and eliminates cross subsides. (use 85, 2. () states that Commisson stall advise prometion of competion, eicency 2 economy in actvtes of the sec industy. [lus time tat Goer ttesoction to acres these causes ofthe ACT. “The average cost of generation Incudng power purchase In 2016-17 works out to RS 5.8 per une (Tri oder 3 of 2017 Page 292) What right Soar nas got to sel energy below this cost to consumers. In my ophle, considering the dectons gven in the ecrity Act 2003, Boe’ has no right 19 sll energy below tis average Cost of Is energy and say that Soar is running into loss meaningless. Pease read para 5.7.2 ofthe Tart orcer on Page 301 in this regard. I suggest to immediatly submit tart revision propsel in which nane ofthe taf stall be below the cost of generation and@ Aistibuion, If Tamil Nadu Government wants reduced tan to poor people, let subsiise to that extent, Fst Board shall prove tobe @ commercial eganizaten, “The Tarif was ese in TO No.1 of 2017 cated 11-08-2017 with the conton ln pare 1.81 thatthe Generation and Retall Tarif contain inthis ode wil be valid ntl sue of next Order. Ths is ise is agains the Act As per clase 64.1. (6) of the Act, "a anf ‘order sal, sles amended or revoke, cornu to bef fore fer such period 35 may be specie in the taf ard. The phrase "until issue of next order” is nt 2 ered 25 specified in the ttf order. humbly suggest to submit propasal for reson of tariff immediate to refet the curentstuston and take remedial measures to avers loss to Boar. Ono reve, al ther tates rave submited proposal forthe yer 2021- 22 ae got approves by ther Commission, “The HT taf to Industries in Tamil nad ancother netby states is 2 belo. ‘S[Sate—[Dernand Chae [Unt Cost [Remaris No Ine. por KVR | energy ins, 1._[Tami Weds [350 635 2 [Maharastra am 702 3 Remote 20 75 [Madhya Pradesh [350 7355 5. | Kes 350 a0 | Anahra Pradesh [475 ~[730 7. Telangana 330 ~f585 1 may please be Seen that the Industrial arf sow in Tams Nad compared to other states around us. Then why HT industnes <0 infor ather sources of pose than fom ‘Boar Any Industry wil goin for cheaper energy to survive nthe market than making prof. I suggest to TANGEDCO to immedalely submit Tantf Revsson proposal rang the Demand Charge by Rs.15-toRS.500 por KVA and reduce the nt charge by RS lone t9R55.35/- This wl prevent industries to go infor pate power. In my opinion, ‘ere wl nor be any os to board in this regar by this increase in Demand Charge and rection in Unt charge 2. Fixing priority Regarding xing pronty among various pate and captive power, humbly suggest to ‘Commission thatthe priory may be fed inthe order as below: