CERC announces regulations for implementation of Interstate Transmission System in the country

The Central Electricity Regulatory Commission (CERC) recently announced a regulation called the Central Electricity Regulatory Commission (Planning, Coordination and Development of Economic and Efficient Inter-State Transmission System by Central Transmission Utility and other related matters) Regulations, 2018 which came into effect from July 2018. The objectives of the regulation are to:

(1) Lay down the broad principles, procedures, and processes to be followed for planning and development of an efficient, coordinated, reliable and economical system of an inter-State transmission system (ISTS) for smooth flow of electricity from generating stations to the load centers;

(2) Ensure wider participation of stakeholders in the planning process and specify the procedures for stakeholders consultation and participation;

(3) Specify procedures to bring about transparency in the planning process; and

(4) Demarcate the roles and responsibilities of various organizations in line with the Act for meeting the above objectives;

The regulation states responsibilities of the concerned entities like the Central Transmission Utility, Transmission Licensees, Regional Power Committee (RPC), RLDCs, NLDCs & SLDCs respectively and their roles in implementing the above-stated objectives of the regulations. This regulation is in accordance with other CERC regulations like Central Electricity Regulatory Commission (Procedure, Terms, and Conditions for grant of Transmission License and other related matters Regulations), 2009; Central Electricity Regulatory Commission (Grant of Regulatory Approval for execution of Inter-State Transmission Scheme to Central Transmission Utility Regulations), 2010; and the Tariff Regulations issued by the Central Commission from time to time under section 61 of the Act.  

Further, the regulation has mentioned the process for the planning of the inter-state transmission and lastly, there are details provided for the process to be followed by CTUs and transmission licensee for application filing in order to start inter-state transmission.

The regulation has come well in time as there have been recent solar PV auctions with Interstate Transmission System connected solar projects. The regulations have also considered the augmentation of renewable capacity addition and Renewable Purchase Obligation with respect to each state in the country.

HERC announces a combined order for multiple matters

Haryana Electricity regulatory commission recently announced an order on multiple matters including Suo Motu for amendment and/or modification of HERC (Terms and Conditions of Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010 and its subsequent amendments (hereinafter referred to as RE Regulations, 2010). The Commission invited views and comments from the stakeholders and answered to them individually. The order also talks about the following:

Suo-Moto proceedings on RPO compliance

If an Obligated entity fails to comply with the obligation to purchase the required percentage of power from renewable energy sources or the renewable energy certificates, it shall also be liable for penalty as may be decided by the Commission under section 142 of the Act. Provided that in case of genuine difficulty in complying with the renewable purchase obligation because of the limited availability of renewable energy or non-availability of certificates, the obligated entity can approach the Commission for relaxation or carry forward of compliance requirement to the next year. However, in normal circumstances, the renewable purchase obligation shall not be waived off. Provided further that where the Commission has consented in writing on an application made by the obligated entity to carry forward of compliance requirement, the provision of regulation 58 (1) of these regulations or the provision of section 142 of the Act shall not be invoked.

The petition filed by Amplus seeking implementation of exemption or waiver of  wheeling charges, cross-subsidy charges, transmission and distribution charges and surcharge for ground-mounted and rooftop solar power projects

Waivers/concessions shall be applicable till the aggregate installed capacity of 500MW of Solar PV Plants in the State is achieved, where after the Commission shall review the provision of waivers/concessions taking into account the financial impact on the Distribution Licensees. Further, provided that waivers/ concessions once provided to any project shall be applicable for a period of 10 years,

The petition filed by Haryana Power Purchase Centre (HPPC) on behalf of the Haryana Distribution Licensees seeking a relaxation of Renewable Purchase Obligation

The Commission has considered the above submissions and is of the considered view that, after considerable deliberation, the RPO targets have been fixed. Further, even the Discoms have raised the issue of these targets being on the higher side. Further, it has been submitted by the Discoms / HPPC procurement of RE power in the peak hours will not only add to the demand-supply gap but also add to the surplus and backing down of cheaper conventional power putting an avoidable financial burden on the electricity consumers of Haryana. Hence, the Commission finds no reason to change the RPO targets as appearing in the draft Regulations as the same in the considered view of the Commission attempts to balance the interest of all the stakeholders.

Read the complete order here.

EXTENSION ON WAIVER OF INTER-STATE TRANSMISSION CHARGES AND LOSSES FOR ELECTRICITY GENERATED FROM SOLAR AND WIND SOURCES

The Ministry of Power has released an order  which provides extension on the waiver of intra-state transmission charges and losses for transmission of electricity generated from solar and wind sources. As per the last order dated 14 June 2017, MoP had provided an extension on the waiver of transmission charges for electricity procured from solar and wind sources till 31.12.2019. This waiver has been further extended to 31 March 2022 for electricity transmitted both the sources of renewable energy.

 

The waiver shall be applicable for 25 years from the date of commissioning of the projects and only on those projects entering into PPAs with distribution licensees for sale of electricity for compliance of their RPO. The order also states that the waiver shall be applicable to projects awarded through competitive bidding process.

 

This order continues to encompass the same issues present in the previous orders. It is only applicable to solar projects from which the electricity will be sold to the DISCOMs. Secondly, it will only be on those solar projects entering PPAs for the compliance of RPO.

TSERC DETERMINES RETAIL TARIFF FOR FY 2017-18

The Telangana State Electricity Regulatory Commission (TSERC) has determined its retail tariff in an order dated 26/08/2017 for FY 2017-18. The tariff has been determined as follows:

 

The change in tariff from in the past 3 years can be understood with the graph below:

 

The wheeling loss for NPDCL has been determined as 4.40% and that for SPDCL as 4.20% at a voltage level of 11 kV.

A separate order was released for the determination of cross subsidy surcharge. The change in CSS  for industrial category is as follows:

 

The order can be accessed here. The order determining CSS can be accessed here.

TAMIL NADU DETERMINES DISTRIBUTION AND TRANSMISSION TARIFF FOR FY 2017-18

The Tamil Nadu Electricity Regulatory Commission (TNERC) has determined the distribution and transmission tariff for FY 2017-18. The last time they had determined tariff was in 2014 which means that the tariff has changed after 3 years. The energy charges for different categories is as follows:

 

 

The tariff for industrial and domestic categories hasn’t changed at all. Same is the case with domestic tariff.

 

Wheeling Charges: 21.06 Paisa/Unit

Wheeling loss: 2.45%

Cross subsidy surcharge: 1.67 Rs/kWh

The transmission tariff was also determined by the TNERC. It is as follows:

 

Transmission charges: 3037.30 Rs/MW/day

Transmission loss: 3.81%

 

The distribution and generation tariff can be accessed here. The transmission tariff can be accessed here.

TSERC DETERMINES TRANSMISSION TARIFF FOR FY 2017-18:

The Telangana State Electricity Regulatory Commission (TSERC) has determined the transmission tariff for the FY 2017-18 and FY 2018-19 in its order dated 1/05/2017. The order states the transmission charge and loss as follow:

 

As per previous years, the transmission charge has followed a trajectory as depicted in the following graph:

The order can be accessed here.

MOP WAIVERS TRANSMISSION CHARGES AND LOSSES ON ELECTRICITY FROM SOLAR SOURCES

This is an attempt to encourage solar and wind  energy in the country, the Ministry of Power (MoP) had waived off the inter-state transmission charges and losses on the electricity generated by wind and solar sources of energy in September last year. That order has now been amended by the MoP  and as per the new order, transmission charges and losses are wavered off only on solar projects.  The MoP, after consultation with MNRE, CEA, CERC and POSOCO, has notified the following:

For generation projects based on solar resources, the waiver will be on projects commissioned till 31/12/2019. The waiver will be available till 25 years of date of commissioning of such projects and on solar  projects entering PPAs for sale of electricity to DISCOMs for compliance of RPO. The remaining of the terms and conditions remain the same as the 2016 order.

As per our analysis, this order by the MoP has a number of limitations. First of all, it is only applicable to solar projects from which the electricity will be sold to the DISCOMs. Secondly, it will only be on those solar projects entering PPAs for the compliance of RPO.

The order released in 2016 can be accessed here.

AERC releases retail tariff for FY 2017-18

The Assam Electricity Regulatory Commission (AERC) in an order dated  31st March released tariff for FY 2017-18 for the Assam Power Distribution Corporation Limited (APDCL). The change in energy charge from last year to this year has been depicted in the following table:

 

 

The tariff has increased since the last year specially for HT II industries and commercial users for who the tariff has increased significantly. There has been an increase in the CSS as well this year.

The open access charges are as follows:

 

Cross Subsidy Surcharge: The CSS for FY 2017-18 is Rs 1.31/kWh

Wheeling Charge : The wheeling charge applicable for FY 2017-18 is Rs 0.23/kWh

 Wheeling Loss: The wheeling loss at 11 kV is 11% and that at 33 kV is 5%

Transmission Loss: The transmission loss for Assam has been determined as 3.49%

 

The order can be accessed here.

KSERC RELEASES TARIFF ORDER FOR FY 2017-18

KSERC (Kerala State Electricity Regulatory Commission) has released a tariff order determining the retail tariff for FY 2017-18 for the state. Salient features of the order are as follows:

 

 

Transmission Charge: The transmission charge for FY 2017-18 is Rs 0.37/unit

Wheeling Charges: The wheeling charges determined for the FY 2017-18 are Rs 0.31/unit

Cross Subsidy Surcharge: The cross subsidy surcharge is  Rs 0.91/unit.

 

The order can be accessed here.

Odisha Declares Open Access Charges for 2014-15

Odisha Electricity Regulatory Commission (OERC) has determined the Open Access charges through a notification dated 11thApril 2016.

The new charges determined are applicable for FY 16-17 with effect from 11th April 2014. The details of the charges are in the table below:

 

 

The normative transmission loss at EHT (3.70%) and normative wheeling loss for HT level (8%) are applicable for the year 2016-17.

Additional Surcharge: No additional surcharge over and above the Cross-Subsidy Surcharge needs to be given to the embedded licensee.

No Cross-subsidy surcharge are payable by the consumers availing Renewable power.

20% wheeling charge is payable by the consumer drawing power from Renewable source excluding Co-generation & Bio mass power plant.

The order can be accessed here.

 

 

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