THE INDIA ELECTRICITY MARKET

TIME LINE

LONG TERM POWER PURCHASE SHORT TERM

LOAD FORECAST AGREEMENTS LOAD FORECAST

FUND CAPACITY DAY-AHEAD

MOBILISATION COMMITTMENT SCHEDULING

WEEK TO DAY REAL TIME

10-5 YEARS 1-5 YEARS AHEAD 15 MT BLOCKS
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 Components of inter-utility tariff
(Pre – ABT Mechanism)
 Fixed charges
 Interest on loans
 Depreciation
 O & M charges
 Return on equity
 Interest on Working Capital
 Energy charges (fuel cost)
 Incentives
 Surcharge & other levies
 No charge for reactive energy
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Payment to Inter State Generating Stations (ISGS)
from beneficiaries under
Availability Based Tariff (ABT)

 Capacity charges
 Energy charges

 Unscheduled Interchange (UI)

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 SCHEDULING

1000
Forecast ex-bus capability of Power Plant
900
Net Injection Schedule
800

700
MW
600

500
SEB - A's Entitlement - (40% )
400
SEB - A's Requisition
300

200

100

0
0 2 4 6 8 10 12 14 16 18 20 22 24

Hours 4
CAPACITY CHARGE

Capacity charge will be related to

‘availability’ of the generating station and
the percentage capacity allocated to the
state. ‘Availability’ for this purpose means
the readiness of the generating station to
deliver ex-bus output expressed as a
percentage of its rated ex-bus output
capability.

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ENERGY CHARGE
Energy charges shall be worked out on the
basis of a paise per kwh rate on ex-bus
energy scheduled to be sent out from the
generating station as per the following
formula

Energy charges = Rate of energy

charges (paise/kwh) x
Scheduled Generation (ex-bus MWh)
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UNSCHEDULED INTERCHANGE (U I) :

 Variation in actual generation / drawal with respect

to scheduled generation / drawal shall be accounted
for through Unscheduled Interchange (UI).

 UI for generating station shall be equal to its total

actual generation minus its scheduled generation.

 UI for beneficiary shall be equal to its total actual

drawal minus its total scheduled drawal.

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UNSCHEDULED INTERCHANGE (U I) :

 UI shall be worked out for each 15 minute

time block.
 Charges for all UI transactions shall be based
on average frequency of the time block.
 UI rates shall be frequency dependent and
uniform throughout the country.

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 UI RATE
650
600 Rate of Unscheduled Drawal/Injection
Below 49.0 Hz UI rate =570 p/u Frequency (Hz) Rate (p/u)
550
Above 50.5 0
500
50.0 150
450
UI rate ----------------->

49.8 210
400
49.0 and below 570
350
300 At 49.8 Hz UI rate =210 p/u
250
200
150
At 50.0 Hz UI rate =150
100 p/u
Above 50.5 Hz UI rate =0
50
p/u
0
48.9 49 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 50 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 51

Frequency ----------->
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 AVAILABILITY BASED TARIFF
(A) CAPACITY CHARGE
(B) ENERGY CHARGE
(C) ADJUSTMENT FOR DEVIATIONS
(U I CHARGE)
(A) = a function of the Ex-Bus MW availability of Power
Plant for the day declared before the day starts x
SEB’s % allocation from the plant
(B) = MWh for the day as per Ex-Bus drawal schedule for
the SEB finalised before the day starts x Energy
charge rate
(C) = Σ (Actual energy interchange in a 15 minute time
block – scheduled energy interchange for the time
block) x UI rate for the time block
TOTAL PAYMENT FOR THE DAY = (A) + (B) ± (C) 10
FEATURES :
 (A) and (B) do not depend on actual plant
generation / drawal. No metering required for this
as they are based on off-line figures. All deviations
taken care of by (C)

 No complication regarding deemed generation.

 Perpetual incentive for maximizing generation and

reducing drawal during deficit, but no incentive to
over generate during surplus.

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