Availability Based Tariff

Previous DSM Rule & DSM 4th

Amendment comparison
History :
 In 1994 ABT mechanism Excepted by Govt. of
India.
 The Govt. of India referred to CERC in 1999.
 In 2002-2003 Various Grids (Eastern/Western/
Southern/Northern) Excepted.
 Current DSM regulation implemented on 06
Jan-2014.
 I- Amendment Effective from 31.12.14
 II – Amendment Effective from 01.11.15
 III - Amendment Effective from 30.05.16
 IV - Amendment Effective from 01.01.19
Why ABT is Required ?
 Grid Stability
 Brings about Grid discipline by maintaining
frequency in prescribed band. Current Frequency
band (49.85hz to 50.05Hz) as per 4th DSM
amendment.
 Ensures optimum utilization of available
generation capacities.
 Enhances opportunities for Open access, and
Trading of electricity.
 Scope for encouraging competition among
generators.
ABT Required to control
   Low frequency during peak time.
 High frequency during off-peak time .
 Rapid and wide changes in frequency
( approx. 1 Hz in 5-10 minutes) .
 Frequent grid disturbance resulting in tripping
of generating stations, interruption of supply
to large blocks of consumers and
disintegration of regional grid.
ABT Provides Grid Stability:
 Deviation from Scheduled Generation Charged
according to Grid Conditions which provides
stability .
 Reward and Penalty:
 All the action which enhances grid stability will
be rewarded.
 Overdrawal / Under injection under low freq.
(Penalty)
 Overdrawal / Under injection under high freq.
(Nil or low reward)
 Overdrawal / Under injection under high freq.
(Nil or low Penalty)
 Overdrawal / Under injection under low freq.
Possible Solution
 Maximization of generation along with load
restriction during peak hours.
 Backing down of generation to match low
demand during off-peak hours .
 Imposing suitable incentives/disincentives to
ensure efficient grid operation.
 Enhancing generation and transmission
capacity
 Demand side management.
Benefits to the Generator
 Encourages maximization of Generation during peak
hours with incentives and discourages the same
during off-peak hours with penalties linked with
frequency.
 Enables systematic scheduling in terms of long
term, short term as well as day ahead, duly
considering plant availability and maintenance.
 Ensures better life of equipment's due to efficient
management of Demand Vs Supply. Thereby the
‘Hidden Costs’ due to damage is avoided.
 The three-part Tariff under ABT provides for proper
recovery of fixed and variable costs of Generator.
 TARIFF STRUCTURE: THREE PART TARIFF:
 Total Charges =Fixed Charges+ Variable Charges+/-
UI charges
 1. FIXED CHARGE(Capital Charges):
 Generators assigned target availability
 Total fixed cost payable to a generator over the year is linked to
the average annual availability(DC).Current Normative DC
is 85%.Fixed Charge /unit is calculated based on Return on
Equity, Return on Interest, O&M Expenses, Interest on working
capital.
 2. VARIABLE CHARGE(Energy charges): Charged to
beneficiaries to the extent of their schedule. Variable Charges
rate are derived from fuel Charges .
 Variable cost=Normative Heat rate x Cost of fuel /1000

(Note-NHRin kcal/kWh,Fuel cost in Rs/kkl,VC in Rs/unit)

 3.UNSCHEDULED INTERCHANGE(UI) CHARGE:
 Deviation Charges=(Actual Generation – Scheduled
Generation)*Unscheduled Injection Charges
 Various provision of Incentive and Penalty done in
actual UI computation.
 Worked out for each 15 min time block
 Based on average frequency of the relevant time block
 UI rates=Normal UI rates+ Additional UI for Deviation
more than 12% +Penalty of Over injection /Under
Injection +Penalty for sustained deviation
 Note-LPGClL tariff is Decided by Commission and UI
rates cap is limited to Energy charges of Previous
month.
SCHEDULING:
 Each day of 24 hours starting from 00.00
hours be divided into 96 time blocks of 15
minutes each
 Each generating station is to make advance
declaration of its capacity for generation in
terms of MWh delivery ex-bus for each time
block of the next day
 Based on the above declaration, concerned
SLDC shall communicate to the various
beneficiaries their respective shares of the Ex
bus generation.
PRELIMINARY PROCESS SCHEDULING:
 After the beneficiaries give their requisition
for power based on the generation schedules,
the SLDC shall prepare the generation
schedules and drawal schedules for each time
block after taking into account technical
limitations and transmission constraints
 The schedule of actual generation shall be
quantified on ex-bus basis for generators
 Scheduled drawals shall be quantified at their
respective receiving points for beneficiaries.
SCHEDULING:
 In case of any forced outage of a unit, or in case of any
transmission bottleneck, SLDC will revise the schedules.
 Revision will be effective from Next time block
 Any beneficiary/generator may also request SLDC for
revision of Schedule. Revision will be effective from Next
time block .
 SLDC is also entitled to revise (if need be), the schedules
during the day in the interest of better system operation.
 Revision will be effective from Next time block
 In the event of any grid disturbance, the schedules of
both generation and drawl shall be deemed to have been
revised to be equal to their actual generation/drawal
 UI ACCOUNTING –METERING AND
METERDATA PROCESSING:
 ABT complaint Special Energy Meters (SEM of
appropriate accuracy class) to be installed
 All outgoing feeders (For Generators)
 Auxiliary and Station Transformers (For
Generators)
 CTU-State interface including state end (For
States/beneficiaries)
 Both ends of inter-state tie lines (For
States/beneficiaries) Inter-regional interfaces
 UI ACCOUNTING
 Energy Meter (SEM) MRI Extraction. SLDC and
Respective Generator will take MRI reading
from sealed ABT meters.
 15 min time block wise Actual energy
drawl/injection starting from 00 hrs. for 96
blocks
 Cumulative Whr
 Reactive energy drawl/injection for the entire
day at HV condition
 Reactive energy drawl/injection for the entire
day at LV condition
 UI Rate Computation :
 Day Ahead ACP will be available in available
on NRLDC Site
 UI Rate Computation :
 UI Charges Computation Additional
charges :
 UI Charges Computation Additional
charges :
 :
 UI Charges Penalty for Sustainable
Deviation:
 The additional charge for violation of sign
change stipulation shall be liveable for
each such violation during a day. Violation
of the requirement under this clause shall
attract an additional charge of 20% on the
daily base DSM payable / receivable as the
case may be.
 UI Charges Penalty for Over Injection and
Under Injection:
 Generator has to maintain AG/SG between
+/- 1%.Also additional charge of 20%
of the daily base DSM payable /
receivable shall be applicable in case
of said violation.”
Operation Strategies:
 Break Even Frequency Band : The Frequency
Band for Which UI charges of frequency band
Equals to variable Energy cost of the Month.
 Above Break even Frequency under injection to
be Done to ensure fuel saving .Above Break even
frequency UI charges are less than variable cost
hence under injection is preferable operation.
 Below break Even frequency Schedule
generation to be maintained as Max charges
receivable is cap to variable cost.
 -AG/SG ratio to be continued monitored & to be
maintained with in +/- 1.
S.N Previous DSM rule 4th AMENDMENT
1 UI rates in various Determination of UI rates in various
frequency bands are fix frequency bands based on “Area
as per regulation . Clearing Price (ACP)” of previous
Day in Exchange . Day ahead ACP
will be available in NRLDC site. As
per Current AMENDMENT UI rates
are Dynamic and Subjected to
change daily Basis based on ACP.
2. Previous Frequency Current Frequency band 49.85 HZ
band 49.70 HZ to to 50.05 Hz
50.10 Hz.
3. Daily AG/SG not liable Generator has to maintain AG/SG
for penalty. between +/- 1%.Also additional
charge of 20% of the daily base
DSM payable / receivable shall
be applicable in case of said
violation.”
S. Previous ABT rule
N
4 In the event of sustained
deviation from schedule in one
direction (positive or negative)
by any regional entity (buyer or
seller), such regional entity
shall have to change sign of
their deviation from schedule,
at least once, after every 12
time blocks.
5 No penalty on Sustained
Deviation Imposed.
4th AMENDMENT
In the event of sustained
deviation from schedule in
one direction (positive or
negative) by any regional
entity (buyer or seller), such
regional entity shall have to
change sign of their deviation
from schedule, at least once,
after every 6 time blocks.
The additional charge for
violation of sign change
stipulation shall be liveable
for each such violation during
a day. Violation of the
requirement under this
clause shall attract an
additional charge of 20% on
the daily base DSM payable /
S. Previous ABT rule
N
6. The Cap rate for the charges for
deviation for the generating
stations whose tariff is
determined by the Commission
shall be equal to 303.03
Rs/kWh.
4th AMENDMENT
The Cap rate for the charges
for deviation for the
generating stations whose
tariff is determined by the
Commission shall be equal to
its energy charges as
billed for the previous
month