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cerc paper on open access

2. In this presentation. The Open Access PaperPricing design objectives Existing ScenarioOpen access transmission tariffMethodology and procedureEnergy accountingOther Discussion Points. Objective(s) of the Paper: To generate a debate on the important issuesIdentification of key issuesUnderstanding the implicationsUnderstanding stakeholder perspectivesFrame regulations.

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cerc paper on open access

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    1. CERC Paper on Open Access Presentation by the MPERC Bhopal At New Delhi 25 September 2003

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    3. 3 Transmission Pricing DesignDefinition of Objectives (3.1) Objectives defined in the Paper Efficiency of operations and trading Efficient use of resources Signal for investment Signal for location of generation/load Compensate owner of the wires Simple and practical

    4. 4 Existing ScenarioRole of the CTU (2.1), CTU Tariffs (2.2) Proposals Current lines based on BPTA’s Open access only for spare capacity “Existing transmission agreements will have to be honored…” for current and future lines built on BPTA’s Comments Agree that open access only for spare capacity Agree that existing arrangements should be honored. Who is the successor entity to SEB – State Trader / STU / DICSOM’s? Division ratio? What when a BPTA expires, say at the end of 5 years? Consider as Open Access. Proposals TSC apportioned based on CGS allocation Spare capacity paid for by beneficiaries Open access will reimburse them partially Comments Need to decide who pays for unapproved expansion of system. Transmission pays: Transmission should not be allowed to take uncovered risks Beneficiary pays: In effect he is subsidizing later users. Preferable. Relevant Commission must approve the excess investment in capacity at a certain margin above what is immediately required

    5. 5 Open Access Transmission TariffAlternatives (4.1) Contract path May be adopted for those transactions where clear line of power flow can be determined. Exhibit.

    6. 6 Open Access Transmission TariffPricing Philosophy (4.2) Proposals Ceiling on an all-India basis: Purpose is to provide a signal for location of lines and transmission system users. Observations Purpose of allowing market forces to operate and create correct economic signals for siting of generation, loads and new lines may not be adequately met

    7. 7 Open Access Transmission TariffPricing Philosophy (4.2) Proposals Levy on capacity reservation Observations Paper proposes that open access ceiling be determined assuming average loading of 500 MW as per Annexure I. This benefits open access users at the cost of “original beneficiaries”

    8. 8 Open Access Transmission TariffSharing of TSC (4.6), LD Charges (4.7) Sharing of TSC among beneficiaries (4.6) Proposals TSC to be apportioned to regions based on CGS generation capacity Comments Inter-regional TSC should be apportioned to regions based on BPTA share from CGS plus share of IPP’s Sharing of LDC charges (4.7) Proposal Total LDC charges to be calculated from the weekly LDC charges divided by installed capacity of CGS = 200 rupees per week per MW = 0.12 P/U Revenue to go to reduce costs to original beneficiaries / successors Comments Treat all as equal Bill original beneficiaries also on a weekly basis Weekly LDC charges should be divided by total generation capacity scheduled to be handled in the week = CGS + IPP + Traded power

    9. 9 Methodology and ProcedureInformation Systems (5.1) Proposals Hourly updating of information Dissemination over the Internet or other dedicated communication channel Comments Incorporate mechanism for advance declaration of available capacity. This will allow users to plan for open access and a move towards the development of a spot and futures market. Frequency of advance declarations: Twelve months ahead spare availability information Week ahead in hourly blocks Day ahead in 30-minute blocks Information updating frequency: 30 minutes for actual values in real time. Dissemination of information: Centrally at NLDC / RLDC’s in tandem Dedicated communication channels connecting central database, traders, distribution licensees, transmission utilities. Information may also be posted on the Internet

    10. 10 Methodology and ProcedureNodal Agency (5.2, 5.4) Proposed: Processes all applications on FCFS In order of priority of service Suggestions: Options may be considered FCFS. Bidding. Beauty Contest. Who judges in case of beauty contest? Mix of the above. What would be an appropriate mix? A pecking order should be defined

    11. 11 Methodology and ProcedureSpecial Energy Meters (5.8) and Creditworthiness (5.11)

    12. 12 Methodology and ProcedureTypes of Service (5.13), Priority of Allotment (5.15) and Penalty for Hoarding (5.16) Types of Service (5.13) Need to clearly define Firm and Non-Firm. Also, consider number of hours per day. What is the treatment for Non-Firm agreement longer than 1 Month? Need to outline difference of charges for Firm and Non-firm power transmission

    13. 13 Methodology and ProcedureCurtailment Due to Constraints

    14. 14 Energy AccountingActive Energy (6.1), Reactive Energy (6.2) and Energy Loss (6.3)

    15. 15 Additional Discussion Points

    16. MP Electricity Regulatory Commission

    17. 17 Open Access Transmission TariffPricing Philosophy – Regional Ceilings

    18. 18 Open Access Transmission TariffPricing Philosophy (4.2) – 1

    19. 19 Open Access Transmission TariffPricing Philosophy (4.2) – 1

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