Regional Energy Account

1. Regional Energy Account Southern Regional Power Committee Central Electricity Authority

2. Contents • Plant Availability Factor of ISGS. • Percentage of Allocated Capacity Share. • Share of Beneficiaries in ISGS. • Misdeclaration of Declared Capacity. • Ratio of Fees of SRLDC to be Shared. • Ratio in which Transmission Charges to be Shared. • Energy Scheduled to the Beneficiaries from ISGS. • Details of Scheduled Energy Wheeled to Other Region. • Details of Short Term Open Access. • Details of Short Term Open Access Through Power Exchange. • Details of Wheeling Charges. • Availability Certification

3. Components of Tariff • Thermal • Capacity Charge ( for recovery of AFC) • Energy Charge ( for recovery of primary fuel and limestone cost) • Hydro • Capacity Charge ( for recovery of AFC) • Energy Charge ( for recovery of AFC) • Transmission • Transmission Charge ( for recovery of AFC)

4. Annual Fixed Cost Component • Return on Equity • Interest on Loan Capital • Depreciation • Interest on working Capital • O & M Expenses • Cost of Secondary Fuel • Special Allowance in lieu of R & M

5. 1. Plant Availability Factor of ISGS. • PAF-: The Average of the Daily Declared Capacities for all the Days during that period expressed as a percentage of the Installed Capacity in MW reduced by the Normative Auxiliary Consumption. • PAFM/PAFY=10000* DC/(N*IC*(100-AUX) )% • NAPAF ( Normative Annual Plant Availability Factor) for thermal around 85% • NAPAF ( Normative Annual Plant Availability Factor) for hydro around 85-90%

6. Transmission Charge for ISTS • Transmission Charge ( inclusive of incentive) = AFC x (NDM/NDY) x ( TAFM/NATAF) • NATAF (Normative Annual Transmission System Availability Factor) AC System 98% HVDC Bipole 92 % HVDC back to back Stations 95 %

7. 2. Percentage of Allocated Capacity Share. • Allocated Capacity Share – Gadgil Formula. • Un Allocated Share (15%)

8. 3. Share of Beneficiaries in ISGS. • Weighted Average of Percentage Allocation Capacity Decides the Ratio in Which Fixed Capacity Charges is to be share by Beneficiaries. • It takes care of URS power also ( in line with CERC Order dated 11/01/10 on petition No. 134/2009 of NTPC)

9. 3 (b). Misdeclaration of Declared Capacity. As per Regulation 6.4.18, 6.4.19 & 6.4.20 of IEGC , ISGS could be asked to demonstrate the DC . Quantum of penalty 2 days fixed charges for first misdeclaration. Penalty to increase in GP subsequently

10. 4. Ratio of Fees of ULDC to be Shared. • Ratio in Which ULDC fees are shared is based on Weighted Average of Total Entitlement of a Beneficiaries with Different ISGS and LTOA

11. 5. Ratio in which Transmission Charges to be Shared. • Postage Stamp Method- Based on Entitlement. • Point of Connection Method- Based on Hybrid Method ( from 1.7.2011)

12. 6. Energy Scheduled to the Beneficiaries from ISGS • Variable Charges of a Station Recovered through Scheduled Energy. • Concept of Un-Requisition Energy (URS Power). • Concept of Unscheduled Interchange.

13. 7. Wheeling Of Power • From Goa SR-Goa WR • From ER-WR Via SR. • Jeypore - Gajuwaka (ER) • Bhadravati - Chandrapur (WR)

14. 8. Short Term Open Access. • Short Term Open Access. • Short Term Open Access through Power Exchange • PXI & IEX.

15. 9. Wheeling Charges for State Transmission Network. • ISGS Embedded in State Transmission network KGS & MAPS. • State Transmission network Connecting Different States.

16. UN SCHEDULE INTERCHANGE OF ENERGY • Declared Capacity • Requisition • Schedule • Drawl • Losses • Frequency • Least count of 0.02 Hz Freq= 49+Code/50 • UI • De incentive UI • Capped UI (4.03 Rs/kwh) • Capping Under APM (4.03 Rs/kwh) • Additional UI (49.5-49.2)(49.2-49)

18. Criteria for UI Rates

19. UI Cap Rates • Generating stations under APM UI Cap Rate 403 paise/kwh • U/D Beneficiary and buyer - in excess of 10% of the schedule or 250 MW whichever is less shall be 403 paise/kwh • Injection by seller in excess of 120% of schedule ( subject to 105%/101% block/day limits of IC ) shall be 403 paise/kwh

20. Limits on UI Volume • O/D by beneficiary/ buyer shall not exceed 12% of scheduled drawal or 150 MW whichever is lower and 3 % on daily aggregate basis for all the time blocks when F < 49.7 Hz • Under Injection by GS/ seller shall not exceed 12% of scheduled drawal and 3 % on daily aggregate basis for all the time blocks when F < 49.7 Hz • Presently no rates are notified but can be notified by the Commission

21. UI 105%/101% • Generating Stations (other than hydro) injection in excess of 105% of DC in a time block or 101 % of average DC over a day shall not exceed UI charges corresponding to frequency ‘ below 50.2 Hz and not below 50.0 Hz’ • Seller injection in excess of 105% of IC in a time block or 101 % of IC over a day shall not exceed UI charges corresponding to frequency ‘ below 50.2 Hz and not below 50.0 Hz’

22. Additional UI • Frequency is less than 49.5 Hz and up to 49.2 Hz • Over Drawal = 40% of UI Rate 873 paise/kwh • Under injection by seller = 20% of UI Rate 873 paise/kwh • Under injection by GS = 20% of UI Rate 403 paise/kwh • Frequency is less than 49.2 Hz • Over Drawal = 100% of UI Rate 873 paise/kwh • Under injection by seller = 40% of UI Rate 873 paise/kwh • Under injection by GS = 40% of UI Rate 403 paise/kwh

23. Reactive Energy Account • No Generators Involved. • Penalty for injecting Reactive Energy at 103% of Voltage Level and Incentive for Drawing . • Penalty for drawing Reactive Energy at 97% of Voltage level and Incentive for Injecting • Reactive charges Ps 10.5/KVARH . • Payment for Interstate Lines.

24. Reactive Power & Voltage Control (6.6) VAR Charges under Low Voltage VAR Charges under High voltage Q Q Q Q EHV grid EHV grid Voltage: < 97% Voltage: > 103% Beneficiary1 Beneficiary2 Beneficiary1 Beneficiary2 VAR charges VAR charges Pool Account Pool Account 24

25. VAR charges between two beneficiaries on interconnecting line owned by them singly or jointly Can agree mutually not to have any charges. Can mutually agree to adopt any payment rate / scheme. Or can adopt rate specified by CERC. In case of disagreement, they have to adopt scheme specified by CERC in Annexure -3 (given below) Payment to be made if one is to pay and other is to receive and will be min(x1,x3)+min(x2,x4). IN SR it is min(x1+x2,x3+x4) Payment will be between the two beneficiaries on one to one basis X1 X2 V > 103% V < 97 % X3 X4 State B State A 25

26. Congestion Account If F > 50.0 Hz Congestion Charge for Under Drawal and for over injection Rate = Max UI – UI rate at 50.0 Hz Rs . 5.45/Unit If F < 50.0 Hz Congestion Charge for Over Drawal and for under injection

27. Regional Transmission Account • 50% based on PoC + 50% based on Uniform • PoC Charges in Rs/MW/Month • Injection and Withdrawal Charges • Approved Withdrawal and Approved Injection • LTA and MTOA • STOA Charges in Rs/KWhr • Generators with LTA – the charges to be borne by beneficiaries

28. Regional Transmission Deviation Account • Charges in Rs/MW/Block • Deviations upto 120% normal rate • Beyond 120% Transmission rate at 125% • Negative withdrawal/injection applicable withdrawal and injection rates *1.25 • Injection deviation (generators having LTA) upto 120% and RPC approved to be borne by LTA beneficiary

29. Mechanism of Renewable Regulatory Fund wef 01.01.2012

30. Thanks