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Emerging Transco’s -The New Role Managing Director Karnataka Power Transmission Corporation Ltd., Bangalore, Karnataka
Karnataka – Down the Age’s • Pioneer State to set up first Hydro Generation in Asia – 1902 • Electricity Department formed – 1903 • Formation of Electricity Board – 1957 • First State to bifurcate Generation from Transmission & Distribution – 1970
Power Sector Reforms - Karnataka • Karnataka Electricity Reforms Act enacted – August 1999 • Electricity Board Unbundled into KPTCL, VVNL – August 1999 • Karnataka SERC constituted – November 1999 • MoA with GoI signed for time bound reform program – Feb.2000 • IPP Policy announced – Dec.2000 • Detailed Power Policy statement announced – Jan 2001 • Anti-Theft Law promulgated – 10th April 2002 • T&D Unbundled – KPTCL for Transmission and 4 Distribution Companies – June 2002
Role of KPTCL • The important role of KPTCL at present are • Power Purchase • Transmission of Power • Bulk Power supplier • Power system operation
Customers of KPTCL • Bangalore Electricity Supply Company Ltd • Mangalore Electricity Supply Company Ltd • Hubli Electricity Supply Company Ltd • Gulbarga Electricity Supply Company Ltd • Hukkeri Co-operative Society
Electricity Act 2003 • Electricity Act 2003 is effective from 10th June 2003 • The Act envisages • Formation of a Board or Govt. Company as a State Transmission Utility (STU) • STU shall not engage in business of trading in Electricity • In effect, STU will be a Power Transmission Service Provider
Function of STU • The main functions of STU are • To undertake transmission of Electricity through Intra-State transmission system • To discharge all functions of Planning & Co-ordination relating to Intra-State transmission system • To ensure development of an efficient, coordinated and economical system of Intra-State transmission lines for smooth flow of electricity from Generating Stations to the load centers • To provide non-discriminatory open access to its transmission system
Transco’s • The transmission companies shall not trade in Electricity • The Transco’s are the service providers to the Generators, Traders, Discoms and other consumers • The operation of State Load Despatch Centers may also be taken away from Transcos
Genco Transco Transco Discom Discom Consumer Consumer Trader Genco/ Captive Emerging Model (Flow of Energy) Present Future
Genco Transco Transco Discom Discom Consumer Consumer Trader Genco/ Captive Emerging Model (Flow of Revenue) Present Future Transmission Charge
Transco’s - Issues & Concerns • Sec.40(c) makes it duty of transmission utility to provide open access • Sec.39 debar Transco’s from Power trading with a view to prevent discriminatory practices and free access
Transco’s - Issues & Concerns • The Transco shall have to declare total transmission capacity and available transmission capacity in advance as per the approved system of information • The misapprehension on part of Transco on the issue of power trading is totally misplaced
Transco’s - Issues & Concerns • Transco’s & Discom’s are at present owned by the respective State Govt. and only the urban sectors of Discom’s may be privatised leaving the rural areas under Govt. control • In such a scenario, the State Govt. may like to have Power Trading by one of its existing entity to take care of its obligations rather than multiple entities • This will also avoid confusion and rigmorale of the existing agreements like PPA, BPSA with Generators and Discom’s
Conclusion • Since Transco’s does not have any stake in other systems which may be detrimental to the planning process • Concerns of some players for sharing their data due suspicion that they could be providing a competitive advantage to their affiliated power marketers may derail the process of system planning and operation
Conclusion • Thus it may be necessary to permit Transco’s to Trade in power including system operations for integrated, efficient and economic system operation of the power system.