Uttar Pradesh Electricity Regulatory Commission announces Open Access Regulations, 2019

Uttar Pradesh Electricity Regulatory Commission has recently announced the Open Access regulations for inter and intrastate transactions. The regulations are called “Terms and Conditions for Open Access Regulations, 2019. Uttar Pradesh announced its first Open Access regulations in 2005 and the first amendment was announced in 2010. Apart from this, the state also has a Grant of Connectivity to intra-State Transmission System Regulations announced in  2010.
The latest Open access Regulations are yet to be notified in the gazette and will only be applicable later. The key points from the regulation are as below: 
Application: The regulations will be applicable for Open Access to all the intra-state transactions and distribution licensees in the state including the ones connected to inter-state connections.
Eligibility: Any generating company, captive consumer, eligible licensees and distribution licensees which owns or operates generating station in the state with a contracted capacity of 1 MW or above with connection 11 kV and above can participate in the Open Access transactions.
Categories: 
Long-term: An Open Access consumers availing or willing to avail the intra-state Open Access facilities for a period of 5 years and above.
Medium-term: An Open Access consumers availing or willing to avail the intra-state  Open Access facilities for a period not less than 3 months and not exceeding 5 years
Short-term:  An Open Access consumers availing or willing to avail the intra-state  Open Access facilities for a period of not more than 3 months at a time. 
There is also an option of a recurring transaction, wherein a short-term consumer can extend a previously approved transaction in blocks of three months for a period of one year at a stretch.
Non-utilisation of Open Access:
Short-term consumers (STOA): In case of cancellation of a short-term transaction, the consumer will have to pay operating charges for 2 days or period of cancellation in days whichever is less.
Medium-term consumers (MTOA): A consumer partially surrendering the Open Access capacity will have to pay transmission and wheeling charges at applicable rates for the remaining period
Of their contract at pro-rata basis along with 25% of estimated transmission and wheeling charges on the surrendered capacity.
In case the consumer surrenders the Open access capacity fully will have to pay an amount equivalent to 75% of the estimated transmission and wheeling charges at applicable rates for the duration of the midpoint of the contract period and 50% of the estimated transmission and wheeling charges at applicable rates for the remaining duration up to the end of the contract period.
Long-term consumers (LTOA): A consumer partially surrendering the Open Access capacity will have to pay transmission and wheeling charges at applicable rates for the remaining period
Of their contract at pro-rata basis along with 25% of estimated transmission and wheeling charges on the surrendered capacity.
In case the consumer surrenders the Open access capacity fully will have to pay an amount equivalent to 75% of the estimated transmission and wheeling charges at applicable rates for the duration of the midpoint of the contract period and 50% of the estimated transmission and wheeling charges at applicable rates for the remaining duration up to the end of the contract period.
Open Access charges: 
The consumers availing Open access facilities will have to pay the transmission & wheeling charges, cross-subsidy surcharge, Additional Surcharge, Standby charges (to the distribution companies), imbalance charges (if applicable) as described in the regulation and amended from time to time.
Payment Security deposit: This amount needs to be paid to the SLDC as stated below: 

• INR 0.5 Lakh/MW/Month: For transactions involving transmission facility only.
• INR 1.5 Lakh/MW/Month: For transactions involving both Transmission and Distribution facilities.
• INR 1.0 Lakh/MW/Month: For transactions involving only distribution facilities.

As mentioned above, these regulations will come into effect only after getting notified in the gazette.