TAMIL NADU ELECTRICITY REGULATORY COMMISSION (GRID CONNECTIVITY AND INTRA-STATE OPEN ACCESS) REGULATIONS, 2014

TAMIL NADU ELECTRICITY REGULATORY COMMISSION (GRID CONNECTIVITY AND INTRA-STATE OPEN ACCESS) REGULATIONS, 2014[1]

PREAMBLE

WHEREAS under the Electricity Act, 2003 (Central Act 36 of 2003), the State Electricity Regulatory Commission shall specify the terms and conditions for intra-State open access within the State;

AND WHEREAS the Tamil Nadu Electricity Regulatory Commission has specified the Tamil Nadu Electricity Regulatory Commission (Intra-State Open Access) Regulations, 2005 in Notification No.TNERC/ISOA/11/1 dated 24.06.2005 and the same has been published at pages 1-21 of Part VISection 2 of the Tamil Nadu Government Gazette, dated the 2nd August 2005;

AND WHEREAS various Orders have been issued by the Tamil Nadu Electricity Regulatory Commission from time to time and taking cue from such orders and from the past experience, it is decided to repeal the said Tamil Nadu Electricity Regulatory Commission (Intra-State Open Access) Regulations, 2005 and notify a new comprehensive Regulation governing the Grid Connectivity and Open Access;

NOW THEREFORE, under Section 181 of the Electricity Act, 2003 (Central Act 36 of 2003) and all other powers enabling in that behalf, the Tamil Nadu Electricity Regulatory Commission hereby makes the Tamil Nadu Electricity Regulatory Commission (Grid Connectivity and Intrastate Open Access) Regulations, 2014, the draft of the same having been previously published as required under sub Section (3) of the said Section 181.

CHAPTER 1 PRELIMINARY

Regulation - 1. Short Title, Extent and Commencement.

(1)     These Regulations may be called the Tamil Nadu Electricity Regulatory Commission (Grid Connectivity and Intra-State Open Access) Regulations, 2014;

(2)     These Regulations shall come into force on the date of publication in the Tamil Nadu Government Gazette.

Regulation - 2. Scope.

These Regulations shall apply to open access for use of intrastate transmission system and or distribution systems in the State of Tamil Nadu, including when such system is used in conjunction with inter-State transmission system.

Regulation - 3. Definitions.

(1)     In these Regulations, unless the context otherwise requires,

(a)      "Act" means the Electricity Act, 2003 (Central Act 36 of 2003);

(b)      "Allotted Capacity" means the power transfer in MW between the specified point of injection and point of drawal allowed to a long-term/medium-term open access customer on the intra-State transmission system and the expression "allotment of capacity" shall be construed accordingly;

(c)      "Applicant" means a consumer, trader, distribution licensee or a Generating company who has applied seeking connectivity or open access, as the case may be;

(d)      "Central Commission" means the Central Electricity Regulatory Commission referred to in sub-section (1) of Section 76 of the Act;

(e)      "Commission" means the Tamil Nadu Electricity Regulatory Commission constituted under sub-section (1) of Section 82 of the Act;

(f)       "Contracted demand" means the load in kW/kVA (kilo Watt/kilo Volt Ampere) which the distribution licensee has agreed to supply from time to time, subject to the governing terms and conditions and is different from the connected load;

(g)      "Day" means a day starting at 00.00 hours and ending at 24.00 hours;

(h)     "Distribution System" means the system as defined in sub-section (19) of Section 2 of the Act and operates at the voltage of 33 kV and below;

(i)       "IEGC" means Indian Electricity Grid Code specified by Central Electricity Regulatory Commission under Clause (h) of sub-section (1) of Section 79 of the Act;

(j)       "Intra state Transmission System " means the system as defined in sub-section (37) of Section 2 of the Act and operates at the voltage of 66 kV and above;

(k)      "Imbalance" in a time block for a generating station means its total actual generation minus its total scheduled generation and for a consumer or buyer means its total drawal minus its total scheduled drawal;

(l)       "Long-term open access" means the right to use the Intra-State transmission system or distribution system for a period exceeding 12 years but not exceeding 25 years;

(m)    "Medium-term open access" means the open access for a period exceeding three months but not exceeding three years;

Explanation: Open access Applications for a period more than 3 years and up to 12 years shall be considered under medium term open access only and shall be allowed for a period exceeding 3 months, but not exceeding 3 years at a time.

(n)     "Month " means a calendar month as per the Gregorian calendar;

(o)      "Nodal agency" means the agency specified in column (4) of the Schedule 1 & 2 of these Regulations;

(p)      "open access " means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with these Regulations and includes long-term open access, medium-term open access and short-term open access;

(q)      "open access customer" means a consumer, trader, distribution licensee or a generator who has been granted open access under these Regulations;

(r)      "Reserved Capacity" means the power transfer in MW between the specified point(s) of injection and point(s) of drawal allowed to a short-term open access customer on the transmission/distribution system depending on availability of transmission/distribution capacity and the expression "reservation of capacity" shall be construed accordingly;

(s)      "Short-term open access " means open access for a period up to one month at a time;

Explanation: Open access Applications for a period more than 1 month and up to 3 months shall be considered under short term open access only and shall be allowed for a period up to 1 month at a time.

(t)       "SLDC" means the State Load Dispatch Centre established under sub-section (1) of Section 31 of the Act;

(u)     "State Grid Code" means the State Grid Code specified by the Commission under Clause (h) of sub-section (1) of Section 86 of the Act;

(v)      "State Transmission Utility (STU) " means a Government Company specified as such by the State Government under sub-section (1) of Section 39 of the Act;

(w)     "Transmission System Segment" means a part or whole of the transmission system from the point of injection to the point of drawal;

(x)      "Wheeling" means the operation whereby the distribution system and associated facilities of a transmission Licensee or distribution Licensee, as the case may be, are used by another person for the conveyance of electricity on payment of charges to be determined under Section 62 of the Act.

(2)     Words and expressions used and not defined in these Regulations but defined in the Act or IEGC or the State Grid Code or any other Codes/Regulations made by the Commission shall have the meaning assigned to them under the Act or the IEGC or the State Grid Code or any other Codes/Regulations made by the Commission, as the case may be.

(3)     The General Clauses Act, 1897 (Central Act X of 1897), as amended from time to time shall apply for the interpretation of these Regulations as it applies for interpretation of an Act of Parliament.

(4)     In the interpretation of these Regulations, unless the context otherwise requires

(a)      Words in the singular or plural term, as the case may be, shall also be deemed to include the plural or the singular term, respectively;

(b)      The terms "include" or "including" shall be deemed to be followed by "without limitation" or "but not limited to" regardless of whether such terms are followed by such phrases or words of like import;

(c)      References herein to the "Regulations" shall be construed as a reference to these Regulations as amended or modified by the Commission from time to time in accordance with the applicable laws in force;

(d)      The headings are inserted for convenience and may not be taken into account for the purpose of interpretation of these Regulations;

(e)      References to the statutes, Regulations or guidelines shall be construed as including all statutory provisions consolidating, amending or replacing such statutes, Regulations or guidelines, as the case may be, referred to;

(f)       In case of inconsistency between any provisions of these Regulations and any other Regulations or order passed by the Commission the provisions of these Regulations shall prevail.

CHAPTER 2 CONNECTIVITY

Regulation - 4. Connectivity.

(1)     Any consumer having contracted demand of 10 MW and above or a consumer availing supply at 66 kV and above or a Generating Station having capacity of 15 MW and above or a Generating Station requiring connectivity at 66 kV and above shall be eligible to obtain connectivity to the intra-State transmission system, unless already connected, and shall apply for connectivity, in accordance with the provisions in this chapter.

(2)     Any consumer having contracted demand of less than 10 MW or a consumer availing supply at 33 kV and below or a Generating Station having installed capacity less than 15 MW or a Generating Station requiring connectivity at 33 kV and below shall be eligible to obtain connectivity to the Distribution system and shall apply for connectivity as per the provisions of these Regulations, unless already connected, in accordance with the provisions in this Chapter.

(3)     Fossil fuel based generating stations shall be given connectivity at HT/EHT level. Generating stations generating energy based on new and renewable energy sources shall be provided with connectivity at any voltage, subject to the provisions of the Commission's Regulations/Orders in force.

Regulation - 5. Application procedure for Connectivity to intra-State transmission system.

(1)     An Application for connectivity to intra-State transmission system shall be made to the STU in the Form prescribed by the STU.

(2)     Every Application shall be accompanied by a non-refundable fee as specified below in the manner as mentioned in the procedure to be issued by the STU. The said fee is inclusive of the charges for any load flow/system studies to be conducted by the STU.

(3)     In case of co-generation and generation of electricity from renewable energy sources, the Application fee shall be 50% of the normal fee.

(4)     The Application for connectivity shall contain details such as, geographical location of the Applicant, quantum of power to be interchanged, that is, the quantum of power to be injected in the case of a generating station including a captive generating plant and quantum of power to be drawn in the case of consumer, with the intra-State transmission system and such other details as may be laid down by the State Transmission Utility in the detailed procedure:

Provided that in cases where once an Application has been filed and thereafter there has been any material change in the location of the Applicant or change by more than 10 per cent in the quantum of power to be interchanged with the Intra-State transmission system, the Applicant shall make a fresh Application, which shall be considered in accordance with these Regulations:

Provided further that an Application by the collective generators shall be considered by STU, only if all the generators, whose aggregate capacity is connected at the single connection point, formalize a written agreement among themselves that the lead generator shall act on behalf of all the generators to undertake all operational and commercial responsibilities for all the collective generators connected at that point in following the provisions of the Indian Electricity Grid Code or Tamil Nadu Electricity Grid Code as the case may be and all other Regulations of the Commission, such as grid security, scheduling and dispatch, collection and payment/adjustment of Transmission charges, Unscheduled Interchange (UI) charges, congestion and other charges, etc., and submit the Application of connectivity with a copy of the Agreement to the STU and also send a copy of the Application to the SLDC:

Provided also that the STU shall suitably incorporate the requirement of formal Agreement amongst such generators in the detailed procedure and Connection Agreement signed with such lead generator.

Regulation - 6. Processing of Application and Grant of connectivity to STU.

(1)     On receipt of the Application, the STU shall, in consultation and through coordination with other agencies involved in the intra-State transmission including the Distribution Licensee, process the Application and carry out the necessary inter-connection study as specified in the Central Electricity Authority - (Technical Standards for Connectivity to the Grid) Regulations, 2007, (Grid Standards) Regulations, 2007 and (Technical Standards for construction of electrical plants and electric lines) Regulations, 2010.

(2)     While granting connectivity, the STU shall specify the name of the sub-station or pooling station or switchyard where connectivity is to be granted. In case connectivity is to be granted by looping-in and looping-out of an existing or proposed line, the STU shall specify the point of connection and name of the line at which connectivity is to be granted. The STU shall indicate the broad design features of the dedicated transmission line. The timeframe for completion of the dedicated transmission line may be informed by STU or the generating company as the case may be.

(3)     The Applicant and all intra-State transmission licensees including the State Transmission Utility shall comply with the provisions of Central Electricity Authority - (Technical Standards for Connectivity to the Grid) Regulations, 2007, (Grid Standards) Regulations, 2007 and (Technical Standards for construction of electrical plants and electric lines) Regulations, 2010.

(4)     The Applicant shall sign a connectivity Agreement with the State Transmission Utility or intra-State transmission licensee owning the substation or pooling station or switchyard or the transmission line as identified by the STU where connectivity is being granted:

Provided that in case connectivity of a generating station, including captive generating plant or connectivity to a customer is granted to the intrastate transmission system of an intra-State transmission licensee other than the State Transmission Utility, a Tripartite Agreement as provided in the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations, 2007 shall be signed among the Applicant, the State Transmission Utility and such intra-State transmission licensee.

(5)     The grant of connectivity shall not entitle an Applicant to inter-change any power with the grid unless the Applicant obtains long-term open access, medium-term open access or short-term open access, as the case may be, in accordance with the provisions of these Regulations:

Provided that any interchange of power with grid without any type of valid open access shall not warrant any payment to be made by any licensee. Such inter-change of power shall be violation of these Regulations and shall be dealt with in accordance with the provisions of the Electricity Act, 2003:

Provided further that provisions of these Regulations shall not be applicable to energy exchange taking place under sub-regulation (6).

(6)     Notwithstanding anything contained in sub-regulation (5) and any provision with regard to sale of infirm power in the relevant PPA, a unit of a generating station, including a captive generating plant which has been granted connectivity to the grid shall be allowed to inject infirm power into the grid during testing including full load testing before its COD for a period not exceeding six months from the date of first synchronization after obtaining prior permission of the concerned State Load Despatch Centre:

Provided that the Commission may allow extension of the period for testing including full load testing, and consequent injection of infirm power by the unit, beyond six months, in exceptional circumstances on an Application made by the generating company at least two months in advance of completion of six month period:

Provided further that the concerned State Load Despatch Centre while granting such permission shall keep the grid security in view:

Provided also that the onus of proving that the injection of infirm power from the unit(s) of the generating station is for the purpose of testing and commissioning shall lie with the generating company, and the respective SLDC shall seek such information on each occasion of injection of power before COD. For this, the generator shall provide SLDC sufficient details of the specific testing and commissioning activity, its duration and intended injection etc. Such details shall be shared with the distribution licensee who has to pay for the infirm power, before effecting connectivity. Commercial treatment including the tariff for such infirm power from a generating station or a unit thereof will be governed by the concerned Regulations/Orders in force issued by the Commission from time to time.

(7)     An Applicant shall be required by the State Transmission Utility to construct a dedicated line to the point of connection to enable connectivity to the grid. In cases where augmentation of the STU/Transmission Licensee's sub-station is involved, the generator shall also bear the cost of bay extension, data communication system and initial testing & commissioning.

(8)     The STU shall convey its decision on grant of connectivity or otherwise within a period of 30 days from the date of receipt of Application in complete shape.

Regulation - 7. Application procedure for Connectivity to distribution system for a generating station.

(1)     All eligible generating stations including a captive generating plant, seeking connectivity to the distribution system, shall apply to the distribution licensee for connectivity in the Form prescribed by the Distribution Licensee.

(2)     The Application shall be accompanied by a non-refundable fee of Rs. one lakh in the manner prescribed by the Distribution Licensee. In case of co-generation and generation of electricity from renewable energy sources, the Application-fee shall be 50% of the normal fee. The Application-fee is inclusive of the charges for any load flow or system studies to be conducted by the Distribution Licensee.

(3)     The Application for connectivity shall contain details such as, geographical location of the generating station, quantum of power to be injected and such other details as may be prescribed by the Distribution Licensee:

Provided that in cases where after filing of an Application there has been any material change in the location of the Applicant or change by more than 10 percent in the quantum of power to be interchanged with the distribution system, the Applicant shall make a fresh Application, which shall be considered in accordance with these Regulations:

Provided further that the Application shall be considered by the Distribution Licensee only if all the generators, whose aggregate capacity is connected at the single connection point, formalize a written Agreement among themselves that the lead generator shall act on behalf of all the generators to undertake all operational and commercial responsibilities for all the collective generators connected at that point in following the provisions of the Indian Electricity Grid Code or Tamil Nadu Electricity Grid Code, as the case may be, and all other Regulations of the Commission, such as Regulations relating to grid security, scheduling and dispatch, collection and payment/adjustment of wheeling charges, UI charges, congestion and other charges, etc., and submit the Application for connectivity with a copy of the Agreement to the Distribution Licensee and also send a copy of Application to the SLDC:

Provided also that the Distribution Licensee shall suitably incorporate the requirement of formal Agreement amongst such generators in the detailed procedure and Connectivity Agreement signed with such lead generator.

Regulation - 8. Processing of Application and Grant of connectivity to distribution system for a generating station.

(1)     On receipt of the Application, the distribution licensee shall, in consultation and through coordination with State Transmission Utility, process the Application and carry out necessary inter-connection study as specified in the Central Electricity Authority -(Technical Standards for Connectivity to the Grid) Regulations, 2007, (Grid Standards) Regulations, 2007 and (Technical Standards for construction of electrical plants and electric lines) Regulations, 2010.

(2)     While granting connectivity, the distribution licensee shall specify the name of the sub-station or pooling station or switchyard where connectivity is to be granted.

(3)     The distribution licensee shall indicate the broad design features such as switch-yard and inter-connection facility up to the point of injection into the Sub-Station of the distribution licensee and the timeframe for completion of the same. The cost of creation of these facilities shall be borne by the Generating Company. In cases where augmentation of the distribution licensee's sub-station is involved, the generating station shall also bear the cost of bay extension, data communication system and initial testing & commissioning.

(4)     The Applicant and the distribution licensee shall comply with the provisions of Central Electricity Authority - (Technical Standards for Connectivity to the Grid) Regulations, 2007, (Grid Standards) Regulations, 2007 and (Technical Standards for construction of Electrical Plants and Electric Lines) Regulations, 2010.

(5)     The Applicant shall sign a connectivity Agreement with the distribution licensee where connectivity is being granted.

(6)     The grant of connectivity shall not entitle an Applicant to inter-change any power with the grid unless it obtains long-term open access, medium-term open access or short-term open access, as the case may be in accordance with the provisions of these Regulations:

Provided that any interchange of power with grid without any type of valid open access shall be violation of these Regulations and shall be dealt with in accordance with Section 142 of the Electricity Act, 2003:

Provided further that provisions of these Regulations shall not be applicable to energy exchange taking place under sub-regulation (7).

(7)     A generating station, including captive generating plant which has been granted connectivity to the distribution system shall be allowed to undertake testing including full load testing by injecting its infirm power into the grid before being put into commercial operation, even before availing any type of open access, after obtaining permission of the State Load Despatch Centre and the distribution licensee, who shall keep grid security in view while granting such permission. Commercial treatment including the tariff for such infirm power from a generating station or a unit thereof will be governed by the concerned Regulations or Orders in force issued by the Commission.

(8)     Every Applicant shall construct a dedicated line to the point of connection to enable connectivity to the distribution system.

(9)     The Distribution Licensee shall convey its decision on grant of connectivity or otherwise within a period of 30 days from the date of receipt of Application in complete shape.

CHAPTER 3 GENERAL PROVISIONS FOR OPEN ACCESS

Regulation - 9. Eligibility for Open Access and conditions to be satisfied.

(1)     Subject to the provisions of these Regulations, the licensees, generating companies, captive generating plants and consumers shall be eligible for open access to the intra-State transmission system of the State Transmission Utility or any transmission licensee on payment of transmission and other charges as may be determined by the Commission from time to time.

(2)     Subject to the provisions of these Regulations, the licensees, generating stations, captive generating plants and consumers shall be eligible for open access to distribution system of a distribution licensee on payment of the wheeling and other charges as may be determined by the Commission from time to time.

(3)     Subject to the provisions of these Regulations, open access shall be permissible to the consumers seeking open access capacity up to which the Commission has introduced open access and are connected through an independent feeder emanating from a sub-station of licensee:

Provided that the consumers, who are not on independent feeders, shall be allowed open access subject to the restrictions in the feeders serving them in line with the Commission's Regulations/Codes/Orders:

Provided further that duties of the distribution licensee with respect to such open access customers shall be of a common carrier providing nondiscriminatory open access as per sub-section (3) of Section 42 of the Act.

(4)     An un-discharged insolvent or a person having outstanding dues against him for more than two months billing of distribution/transmission licensee at the time of Application shall not be eligible for open access.

(5)     In case a person, to whom open access has already been allowed, is declared insolvent or is having outstanding dues for more than two months billing of transmission or distribution Licensee, he shall not be eligible for open access from the day he is adjudged as insolvent or failed to clear the amount outstanding for more than two months billing.

(6)     Open Access shall be allowed to the intra state transmission system subject to the satisfaction of the conditions contained in the Act and in these Regulations. Having regard to operational constraints and other relevant factors, open access shall be allowed to all EHT & HT consumers within their contracted demand subject to the terms and conditions of supply. In case of generation of electricity from new and renewable sources, open access shall be allowed as specifically permitted by the Commission in its relevant Regulations/Orders in force.

Regulation - 10. Criteria for granting long-term open access or medium-term open access or short term open access.

(1)     Before awarding long-term open access, the State Transmission Utility shall have due regard to the augmentation required for the intra-State transmission system.

(2)     Medium-term open access or short-term open access shall be granted if the resultant power flow can be accommodated in the existing transmission system or the transmission system under execution:

Provided that no augmentation shall be carried out to the transmission system for the sole purpose of granting medium-term open access or short-term open access:

Provided further that construction of a dedicated transmission line shall not be construed as augmentation of the transmission system for the purpose of this Regulation.

CHAPTER 4 APPLICATION PROCEDURE AND APPROVAL

Application Procedure and approval for Open Access to Consumer

Regulation - 11. Categories of Open Access Customers.

The Application procedure, Application-fee and the time frame for processing the request of the eligible consumers seeking Open Access shall be based on the following criteria:

(1)     System to which connected;

(a)      Intra-State transmission system; and

(b)      Distribution system;

(2)     Inter-se location of drawal and injection points;

(a)      Both within the same distribution system;

(b)      Within the State but in different distribution systems;

(c)      Injection/Drawal at the intra-State transmission system and injecttion at the intra-State transmission system and drawal at the distribution system and vice versa in the same State and in different States;

(3)     Duration of Open Access;

(a)      Long term access;

(b)      Medium-term open access; and

(c)      Short-term open access.

Regulation - 12. Application procedure for Open Access.

(1)     An Application for open access shall be made in the prescribed Form and submitted to the Nodal agency in accordance with these Regulations. The Application-fee is inclusive of the charges for any load flow or system studies to be conducted by the STU.

(2)     The Application shall be accompanied by an undertaking of not having entered into Power purchase agreement (PPA) or any other bilateral agreement with more than one person for the same quantum of power for which open access is sought.

(3)     Subject to the provisions of these Regulations, the Nodal agency, Application-fee, Documents to accompany the Application and time frame for disposal of Application are specified in the Schedule 1 & 2.

Regulation - 13. Procedure for Long Term Access.

(1)     Involving inter-State transmission system: Notwithstanding anything contained in sub-regulations (2) & (3), procedure for inter-State long-term open access shall be as per Central Electricity Regulatory Commission's Regulations or Orders issued for this purpose as amended from time to time:

Provided that in respect of a consumer connected to a distribution system/transmission system, seeking inter-State long-term open access, the SLDC, before giving its consent to the RLDC as required under the Central Commission's Regulations or Orders, shall require the consumer to submit the consent of the distribution licensee or the transmission licensee concerned.

(2)     Involving only intra-State transmission system.

Subject to the provisions of sub-regulation (1), intra-State long-term open access involving intra-State transmission system shall be in accordance with the provisions below:

(a)      Every Application for grant of long-term open access shall contain details such as name of the entity or entities from whom electricity is proposed to be procured along with the quantum of power and such other details as may be laid down by the State Transmission Utility in the detailed procedure specified in Regulation 43:

Provided that in case augmentation of transmission system is required, the Applicant shall also have to bear the transmission charges for the same as per these Regulations:

Provided further that in cases where there is any material change in location of the Applicant or change by more than 10 percent in the quantum of power to be inter-changed using the intra-State transmission system, a fresh Application shall be made, which shall be considered afresh in accordance with these Regulations.

(b)      The Applicant shall submit any other information sought by the Nodal agency including the basis for assessment of power to be interchanged using the intra-State transmission system and power to be transmitted to or from various entities or regions to enable the Nodal agency to plan the intra-State transmission system in a holistic manner.

(c)      The Application shall be accompanied by a Bank guarantee at the rate of Rs. 10,000/- (Rupees Ten thousand only) per MW or part thereof the total power to be transmitted. The Bank guarantee shall be in favour of the Nodal agency, in the manner laid down under the detailed procedure.

(d)      The Bank guarantee shall be valid and subsisting till the execution of the long-term open access agreement, in the case when augmentation of transmission system is required, and till operationalization of long-term open access when augmentation of transmission system is not required.

(e)      The Bank guarantee may be encashed by the Nodal agency, if the Application is withdrawn by the Applicant or the long-term open access rights are relinquished prior to the operationalisation of such rights when augmentation of transmission system is not required.

(f)       The aforesaid Bank guarantee will stand discharged with the submission of Bank guarantee required to be given by the Applicant to the State Transmission Utility during construction phase when augmentation of transmission system is required, in accordance with the provisions in the detailed procedure.

(g)      On receipt of the Application, the Nodal agency shall, in consultation and through coordination with other agencies involved in intra-State transmission system to be used, process the Application and carry out the necessary system studies as expeditiously as possible and ensure that the decision to grant long-term open access is arrived at within the timeframe specified in Schedule 1 & 2:

Provided that in case the Nodal agency faces any difficulty in the process of consultation or coordination, it may approach the Commission for appropriate directions.

(h)     Based on the system studies, the Nodal agency shall specify the intrastate transmission system that would be required to give long-term open access. In case augmentation to the existing intra-State transmission system is required, the same will be intimated to the Applicant.

(i)       While granting long-term open access, the Nodal agency shall communicate to the Applicant, the date from which long-term open access shall be granted and an estimate of the transmission charges likely to be payable based on the prevailing costs, prices and methodology of sharing of transmission charges specified by the Commission.

(j)       The Applicant shall sign an agreement with the State Transmission Utility in case long-term open access is granted by the State Transmission Utility, in accordance with the provision as may be made in the detailed procedure. While seeking long-term open access to an intra-State transmission licensee, other than the State Transmission Utility, the Applicant shall sign a tripartite long-term open access agreement with the State Transmission Utility and the intra-State transmission licensee. The long-term open access agreement shall contain the date of commencement of long-term open access, the point of injection of power into the grid and point of drawal from the grid and the details of dedicated transmission lines, if any, required. In case augmentation of transmission system is required, the long-term open access agreement shall contain the time line for construction of the facilities of the Applicant and the transmission licensee, the Bank guarantee required to be given by the Applicant and other details in accordance with the detailed procedure.

(k)      Immediately after grant of long-term open access, the Nodal agency shall inform the State Load Despatch Centre so that it can consider the same while processing requests for grant of short-term open access, received under these Regulations.

(l)       On the expiry of the period of long-term open access, the same shall stand extended on a written request by the consumer, to the Sate Transmission Utility, submitted at least six months prior to such expiry, mentioning the period for which extension is required:

Provided that in case no written request is received from the consumer within the timeline specified above, the said long-term open access shall stand terminated on the date up to which it was initially granted.

(3)     Within same distribution system: The procedure specified in sub-regulation (2) above shall, mutatis mutandis, apply to cases of long-term open access when the point of injection and the point of drawal are located in the same distribution system.

Regulation - 14. Procedure for medium-term open access.

(1)     Involving interstate transmission system: Notwithstanding anything contained in sub-regulations (2) & (3) the procedure for inter-State medium-term open access shall be as per Central Electricity Regulatory Commission's Regulations or Orders in force for this purpose as amended from time to time:

Provided that in respect of a consumer connected to a transmission system or distribution system seeking inter-State medium-term open access, the SLDC, before giving its consent to the RLDC as required under the Central Commission's Regulations, shall require the consumer to submit the consent of the transmission licensee/distribution licensee concerned.

(2)     Involving only intra-State transmission system: Subject to the provisions of sub-regulation (1), intra-State medium-term open access involving intra-State transmission system shall be in accordance with the provisions of Clauses (a) to (f) :

(a)      The Application for grant of medium-term open access shall contain such details as may be laid down under the detailed procedure and shall, in particular, include the point of injection into the grid, point of drawal from the grid and the quantum of power for which medium-term open access has been applied for;

(b)      The Application shall be accompanied by a Bank guarantee of Rs. 2,000/- (Rupees two thousand) per MW or part thereof for the total power to be transmitted. The Bank guarantee shall be in favour of the Nodal agency, in the manner laid down under the detailed procedure;

(c)      The Bank guarantee shall be kept valid and subsisting till operationalization of medium-term open access;

(d)      The Bank guarantee may be encashed by the Nodal agency, if the Application is withdrawn by the Applicant or the medium-term open access rights are relinquished prior to the operationalisation of such rights;

(e)      The start date of the medium-term open access shall not be earlier than 5 months and not later than 1 year from the last day of the month in which Application has been made;

(f)       On receipt of the Application, the Nodal agency shall, in consultation and through coordination with other agencies involved in intra-State transmission, process the Application and carry out the necessary system studies as expeditiously as possible and ensure that the decision to grant or refuse medium-term open access is made within the timeframe specified in Schedule 1 & 2:

Provided that in case the Nodal agency faces any difficulty in the process of consultation or coordination, it may approach the Commission for appropriate directions;

(g)      On being satisfied that the requirements specified in Regulations 9 and 10 are complied with, the Nodal agency shall grant medium-term open access for the period stated in the Application:

Provided that for reasons to be recorded in writing, the Nodal agency may grant medium-term open access for a period less than that sought for by the Applicant:

Provided further that the Applicant shall sign an agreement for medium term open access with the State Transmission Utility, in accordance with the provision as may be made in the detailed procedure. While seeking medium-term open access to an intra-State transmission licensee, other than the State Transmission Utility, the Applicant shall sign a tripartite medium-term open access agreement with the State Transmission Utility and the intra-State transmission licensee. The medium-term open access agreement shall contain the date of commencement and end of medium-term open access, the point of injection of power into the grid and point of drawal from the grid, the details of dedicated transmission lines required, if any, the Bank guarantee required to be given by the Applicant and other details in accordance with the detailed procedure;

(h)     After the grant of medium-term open access, the Nodal agency shall inform the State Load Despatch Centre for processing requests for short-term open access received under these Regulations;

(i)       On expiry of the period of the medium-term open access, the medium-term consumer shall not be entitled to any overriding preference for renewal of the term.

(3)     Within same distribution system: The procedure specified in sub-regulation (2) shall, mutatis mutandis, apply to cases of medium-term open access when the point of injection and the point of drawal are located in the same distribution system.

Regulation - 15. Procedure for short-term Open Access.

(1)     Involving inter-State transmission system.

Notwithstanding anything contained in sub-regulations (2) to (3), the procedure for inter-State short-term Open Access shall be as per Central Electricity Regulatory Commission's Regulations or Orders issued for this purpose as amended from time to time:

Provided that in respect of a consumer connected to a transmission system or distribution system seeking inter-State short-term open access, the SLDC, before giving its consent to the RLDC as required under the Central Commission's Regulations, shall require the consumer to submit the consent of the transmission licensee or distribution licensee concerned.

(2)     Involving only intra-State transmission system: Subject to the provisions of sub-regulation (1), intra-State short-term Open Access shall be in accordance with the provisions of Clauses (a) to (f):

(a)      Open Access in advance.

(i)       Application may be submitted to the Nodal Agency seeking short-term open access up to the fourth month, considering the month in which an Application is made being the first month;

(ii)      Separate Application shall be made for each month and for each transaction in a month;

(iii)     Every Application to the Nodal agency shall be in the specified format [FORMAT ST-1] containing such details like capacity needed, generation planned or power purchase contracted, point of injection, point of drawal, duration of availing open access, peak load, average load and such other additional information as may be required by the Nodal agency. The Application shall be accompanied by a non-refundable Application fee as per Schedule 1 & 2 in cash or by demand draft in favour of the officer so notified by Nodal agency;

(iv)    An Application for grant of open access commencing in any month may be submitted in a cover marked "Application for Short-Term Open Access" up to 15th day of the preceding month. For example, Application for grant of open access commencing in the month of July shall be received up to 15th day of June;

(v)      Nodal agency shall acknowledge receipt of the Application by indicating time and date on "ACKNOWLEDGEMENT" to the Applicant;

(vi)    A consumer of distribution licensee intending to avail open access shall also furnish a copy of his Application to the distribution licensee of his area of supply;

(vii)   Based on the type of transactions, Nodal agency shall take a decision on the Applications for short-term open access in the manner provided herein below;

(viii)  All Applications received under sub-clause (iv) shall be taken up for consideration together and processed as per allotment priority criteria specified under Regulation 19 of these Regulations;

(ix)    Nodal agency shall check transaction for congestion of any element (line or transformer) of transmission and distribution system involved in transaction;

(x)      Nodal agency shall convey grant of open access or otherwise in the specified format [FORMAT-ST2] along with schedule of payments to the consumer latest by 19th day of such preceding month;

(xi)    Nodal agency shall assign specific reasons if open access is denied under sub-clause (x).

(b)      Day-Ahead Open Access.

(i)       An Application for grant of day ahead open access may be received by Nodal agency within three days prior to the date of scheduling but not later than 13.00 Hours of the day immediately preceding the day of scheduling for day-ahead transaction. For example, Application for day-ahead transaction on 25th day of July shall be received on 22nd day or 23rd day or up to 13.00 hours on 24th day of that month;

(ii)      Nodal agency shall check for congestion and convey grant of approval or otherwise in the same format [FORMAT-ST2] as provided in sub-clause (x) of Clause (a). All other provisions of Application for short-term open access shall apply.

(c)      Procedure for scheduling transaction in a contingency.

In the event of a contingency, the buying utility may locate a source of power to meet short-term contingency requirement even after the cut-off time of 13.00 hrs of the preceding day and apply to the Nodal agency for open access and scheduling and in that event, the Nodal agency shall endeavour to accommodate such request as soon as and to the extent practically feasible, in accordance with the detailed procedure.

(d)      Bidding Procedure.

(i)       If the capacity sought by the consumers for Open Access for the following month is more than the available capacity or SLDC perceives congestion of any element of transmission and/or distribution system involved in the transaction, the allocation shall be made through electronic bidding procedure;

(ii)      The decision of SLDC in respect of an expected congestion shall be final and binding;

(iii)     SLDC shall convey information of congestion and decision for invitation of bidding indicating floor price on format [FORMAT-ST3] to the Applicants;

(iv)    SLDC shall also display bidding information on its website;

(v)      The floorprice of transmission and wheeling charges determined on the basis of relevant Order of the Commission shall be indicated in FORMAT-ST3;

(vi)    The Bids shall be accepted on format [FORMAT-ST4] up to the "bid closing time" as indicated in bidding invitation FORMAT-ST3. Modification/amendment to a bid, once submitted shall not be entertained;

(vii)   If any consumer does not participate in bidding process, his Application shall be deemed to have been withdrawn and shall not be processed;

(viii)  SLDC shall not entertain any request for extension of time or date for submission of bids;

(ix)    The bidders shall quote price (rounded-off to whole number) in denomination in which floor price has been determined;

(x)      The quoted price shall be arranged in descending Order and allocation of available capacities shall be accorded in such descending Order until the available capacity is exhausted;

(xi)    In case of equal price quoted by two or more consumers, the allocation from the residual available capacity at any stage under sub-clause (x) shall be made in proportion to capacity being sought by such consumers;

(xii)   All consumers, in favour of whom full capacities have been allotted, shall pay the highest price obtained from bids;

(xiii)  The consumers, who are allotted less capacity, shall pay the price as quoted by them;

(xiv)  SLDC shall reject bid which are incomplete, vague in any manner or not found in conformity with bidding procedure;

(xv)   The successful bidder, in favour of whom the capacities have been allocated, shall pay transmission charges, wheeling charges, as the case may be, determined by bidding under sub-clause (xii) or (xiii);

(e)      The reserved capacity by a short-term open access customer is not transferable to others;

(f)       The capacity available as a result of surrender or reduction or cancellation of the reserved capacity by the State Load Dispatch Centre, may be reserved for any other short-term open access consumer in accordance with these Regulations;

(g)      On expiry of the period of the short-term open access, the short-term customer shall not be entitled to any overriding preference for renewal of the term;

(3)     Within same distribution system: The procedure specified in sub-regulation (2), mutatis mutandis, shall apply to cases of short-term open access when the point of injection and the point of drawal are located in the same distribution system.

Regulation - 16. Consent by STU, SLDC or Distribution Licensee.

(1)     Inter-State open access.

STU in the case of Application for grant of long-term open access and SLDC in the case of grant of medium-term open access and short-term open access shall convey its consent or otherwise as per the provisions of Central Electricity Regulatory Commission's Regulations or Orders in force. In case of Applicant connected to the distribution licensee, the said distribution licensee shall convey its consent or otherwise within 3 days of receipt of the request of the Applicant.

(2)     Intra-State Open Access:

(a)      In respect of a consumer connected to a distribution system seeking Open access, such consumer shall be required to submit the consent of the distribution licensee concerned. The distribution licensee shall convey its consent to the Applicant by e-mail or fax or by any other usually recognized mode of communication, within three (3) working days of receipt of the Application;

(b)      While processing the Application from a generating station seeking consent for open access, the distribution licensee shall verify the following, namely

(i)       Existence of infrastructure necessary for time-block-wise energy metering and accounting in accordance with the provisions of the State Grid Code in force; and

(ii)      Availability of capacity in the distribution network; and

(iii)     Availability of Remote Terminal Unit (RTU) and communication facility to transmit real-time data to the SLDC or Distribution Control Centre (DCC);

(c)      Where existence of necessary infrastructure and availability of capacity in the distribution network has been established, the distribution licensee shall convey its consent to the Applicant by e-mail or fax or by any other usually recognized mode of communication, within three (3) working days of receipt of the Application;

(d)      In case the distribution licensee finds that the Application for consent is incomplete or defective in any respect, it shall communicate the deficiency or defect to the Applicant by e-mail or fax or by any other usually recognized mode of communication, within two (2) working days of receipt of the Application;

(e)      In case the Application has been found to be in Order but the distribution licensee refuses to give consent on the grounds of non-existence of necessary infrastructure or unavailability of surplus capacity in the distribution network, such refusal shall be communicated to the Applicant by e-mail or fax or by any other usually recognized mode of communication, within the period of three (3) working days from the date of receipt of the Application, along with reasons for such refusal;

(f)       Where the distribution licensee has not communicated any deficiency or defect in the Application within two (2) days from the date of receipt of Application, or refusal or consent within the specified period of three (3) working days from the date of receipt of the Application as the case may be, consent shall be deemed to have been granted:

Provided that the Applicant shall submit to the Nodal agency a copy of the acknowledgement, if any, given by the Distribution licensee, or any other evidence in support of delivery of the Application to the Distribution licensee.

Regulation - 17. Consideration of Applications from defaulters.

Notwithstanding anything contained in these Regulations, the Nodal Agency shall be at liberty to summarily reject an Application for Open Access on the ground of non-compliance of the provisions of these Regulations, more specifically the provisions relating to timely payment of the charges leviable hereunder.

Regulation - 18. Application by eligible entities other than consumers.

The procedure for submission of the Application and processing the same as laid down in this Chapter in respect of the consumers shall, mutatis mutandis, be applicable to the electricity trading licensees, distribution licensees and the generating companies.

Common provisions for Open Access

Regulation - 19. Allotment Priority.

(1)     The priority for allotment of open access in intra-State transmission system shall be decided on the following criteria:

(a)      A distribution Licensee shall have the highest priority in allotment of open access capacity irrespective of whether the open access request is for long-term, medium-term or short-term;

(b)      The long-term open access Applicants shall have the priority next to the distribution licensee;

(c)      The medium-term open access Applicants shall have the priority next to the long-term open access Applicants;

(d)      The short-term open access Applicants shall have the priority next to the medium-term open access Applicants;

(e)      Allotment priority for short-term open access Applicants shall be decided subject to capacity availability;

(f)       Subject to Clauses (a) to (e), the decision shall be based on first come first served;

(g)      An existing open access customer shall have the priority higher than new open access Applicants under respective category provided the former applies for its renewal thirty days prior to the expiry of existing term of open access;

(h)     When the requirement projected by an Applicant is more than the available capacity and the said Applicant is not able to limit his requirement to the available capacity, the request of Applicant having next lower priority shall be taken up for consideration;

(i)       During capacity availability constraints, the allotment can be made available to the next senior Applicant, provided that the first senior is not able to limit his requirement to the available capacity and so on.

CHAPTER 5 OPEN ACCESS CHARGES

Regulation - 20. Transmission Charges.

Open Access customer using transmission system shall pay the charges as stated hereunder:

(1)     For use of inter-State transmission system.

As specified by the Central Commission from time to time.

(2)     For use of intra-State transmission system.

(a)      By Long-Term, Medium-Term and Short-Term Open Access Customers.

Existing Long-Term Open Access and Medium-Term Open Access customers (including existing distribution licensees and generating companies) shall share the Annual Transmission Charges (ATC) of the State Transmission Utility or transmission licensee, as determined by the Commission in the ARR for the relevant year, in the ratio of their allotted capacities. Transmission charges payable by other Long-Term Open Access, Medium-Term Open Access and Short Term Open Access customers to the STU or Transmission Licensee shall be determined as under:

Transmission Charges = ATC/(ACs X365) (in Rs./MW-day)

Where

ATC = Annual Transmission Charges determined by the Commission for the transmission system of the STU/Transmission Licensee for the relevant year.

ACs = Sum of Capacities allocated to all Long-term and Medium-term Open Access customers in MW:

Provided that where a dedicated transmission system used for open access has been constructed for exclusive use of an open access customer, the transmission charges for such dedicated system shall be worked out by transmission licensee for their respective dedicated systems and got approved by the Commission and shall be borne entirely by such open access customer till such time the surplus capacity is allotted and used for by other persons or purposes:

Provided further that transmission charges for Short-Term open access shall be payable on the basis of capacity reserved for such customer.

(3)     In case intra-State transmission system or distribution system is used by an open access customer in addition to interstate transmission system, transmission charges and wheeling charges as fixed and approved by the Commission shall be payable for use of intra-State system in addition to payment of transmission charges for inter-state transmission.

(4)     The transmission charges payable by the Open Access Customer utilizing the Intra-State Transmission system for part of a day shall be on pro-rata basis.

Regulation - 21. Scheduling and system operation charges.

Scheduling and system operation charges shall be payable by the Open Access customers at the following rates:

(1)     In respect of inter-State open access.

(a)      Long-term open access and Medium-term open access:

(i)       Regional Load Despatch Centre fees and charges including charges for the Unified Load Despatch and Communication Scheme as specified by the Central Commission under subsection (4) of Section 28 of the Act;

(ii)      State Load Despatch Centre charges as specified by the Commission under sub-section (3) of Section 32 of the Act;

(b)      Short-term open access:

(i)       Regional Load Despatch Centre and State Load Despatch Centre charges as specified by the Central Commission.

(2)     In respect of intra-State open access.

(a)      Long-term, medium-term and short-term open access:

(i)       The scheduling and system operation charges payable to State Load Dispatch Center by open access customer shall be such as determined by the Commission under Section 32 of the Act;

(ii)      The scheduling and system operation charges collected by the State Load Dispatch Center in accordance with Clause (a)(i) shall be in addition to the other fees and charges approved by the Commission under these Regulations;

(iii)     The Scheduling and system operation charges shall be payable even when the open access customer happens to be a generating company or trading Licensee, availing open access under these Regulations.

Regulation - 22. Wheeling Charges.

(a)      Wheeling charges payable to Distribution Licensee, by an open access customer shall be as determined by the Commission;

(b)      Where a dedicated distribution system used for open access has been constructed for exclusive use of an open access customer, the wheeling charges for such dedicated system shall be worked out by the Licensee and got approved by the Commission and shall be borne entirely by such open access customer till such time the surplus capacity is allotted and used by other persons or for other purposes;

(c)      In case intra-State transmission system or distribution system is used by an open access customer in addition to interstate transmission system, transmission charges and wheeling charges as fixed and approved by the Commission shall be payable for use of intra-State system in addition to payment of transmission charges for inter-state transmission.

Regulation - 23. Cross subsidy surcharge.

(1)     If open access facility is availed of by a subsidizing consumer of a Distribution Licensee, then such consumer, in addition to transmission and/or wheeling charges, shall pay cross subsidy surcharge as determined by the Commission. Cross subsidy surcharge determined on Per Unit basis shall be payable, on monthly basis, by the open access customers based on the actual energy drawn during the month through open access. The amount of surcharge shall be paid to the distribution licensee of the area of supply from whom the consumer was availing supply before seeking open access.

Regulation - 24. Additional Surcharge.

(1)     An open access customer, receiving supply of electricity from a person other than the distribution licensee of his area of supply, shall pay to the distribution licensee an additional surcharge on the charges of wheeling, in addition to wheeling charges and cross-subsidy surcharge, to meet out the fixed cost of such distribution licensee arising out of his obligation to supply as provided under sub-section (4) of Section 42 of the Act.

(2)     This additional surcharge shall become applicable only if the obligation of the licensee in terms of power purchase commitments has been and continues to be stranded or there is an unavoidable obligation and incidence to bear fixed costs consequent to such a contract. However, the fixed costs related to network assets would be recovered through wheeling charges.

(3)     The distribution licensee shall submit to the Commission on six monthly basis, a detailed calculation statement of fixed cost which the licensee is incurring towards his obligation to supply. The Commission shall scrutinize the statement of calculation of fixed cost submitted by the distribution licensee and obtain objections, if any, and determine the amount of additional surcharge:

Provided that any additional surcharge so determined by the Commission shall be applicable only to the new open access customers.

(4)     Additional surcharge determined on per unit basis shall be payable, on monthly basis, by the open access customers based on the actual energy drawn during the month through open access:

Provided that such additional surcharges shall not be levied in case distribution access is provided to a person who has established a captive generation plant for carrying the electricity from such plant to the destination of his own use

Regulation - 25. Charges for Startup Power Supplied by the Distribution Licensee.

(1)     The generators connected with the state grid are eligible to get start up power after declaration of CoD. The demand shall be limited to 10% of the highest capacity of the generating unit of the generating station or the percentage of auxiliary consumption as specified in the Commission's Tariff Regulations, whichever is less. The supply shall be restricted to 42 days in a financial year. Drawal of power for a day or part thereof shall be accounted as a day for this purpose. Power factor compensation charges are not applicable for start-up power. The generator shall pay the Distribution Licensee for the supply of startup power at the rates as specified by the Commission in its Tariff Order issued from time to time. Start up supply beyond 42 days in a financial year may be provided by the Distribution Licensee at the rate of one and half times of the normal rate as specified by the Commission. However, no start up supply shall be provided beyond 120 days in a financial year. In case of new and renewable energy based generator, the Commission may add/vary/delete certain criteria in the specific order issued for that category of new and renewable energy based generation. In case of Independent Power Producer (IPP), start-up power transactions shall be governed by this Regulation only if it is not covered by the Power Purchase Agreement.

Regulation - 26. Parallel Operation Charges.

If the Captive Generating Plants (CGPs) opt for parallel operation with the licensee's grid for safe and secure operation of their generators and to provide quality, reliable power supply to their load, the CGPs shall pay a parallel operation charges of Rs. 30,000/- per month for each MW capacity (or part thereof) of the generator. This charge is applicable to the generators availing only parallel operation with the grid without availing open access. The Application fees and procedure for parallel operation of generators with grid shall be same as that of grid connectivity of generators.

Regulation - 27. Restoration Charges.

Any default in payment of the various charges specified in these Regulations, within the time stipulated by the Commission will result in the discontinuance of the open access to the consumer. Restoration of such discontinued open access shall be subject to the payment of reconnection charges applicable to that voltage level of the customer as approved by the Commission in the Order on "Non-tariff related Miscellaneous charges" issued from time to time.

Regulation - 28. Other Charges.

The regulatory charges, congestion charges and any other charges imposed by Central Commission and/or State Commission shall be payable by all the open access customers.

CHAPTER 6 SCHEDULING, METERING, REVISION AND LOSSES

Regulation - 29. Scheduling.

(1)     Notwithstanding anything contained in these Regulations, scheduling of inter-State open access transactions shall be as specified by the Central Commission.

(2)     Intra-State open access transactions in respect of consumers and all generating stations irrespective of the capacity shall be scheduled by SLDC in accordance with the provisions of the Tamil Nadu Electricity Grid Code.

Regulation - 30. Metering.

(1)     Special Energy Meters (ABT compliant interface meters) shall be installed as specified in the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006 irrespective of allotted capacity. The meters shall be provided by the STU or the Distribution Licensee as the case may be, at the cost of open access customers both at the injection and drawal points. The open access customers can opt for supply and installation of meters as per the standards recommended by the STU or the Distribution Licensee, as the case may be and approved by the Commission. The cost of meters and installation have to be borne by the open access customers and the readings shall be taken by the Licensee as per the CEA Regulations.

(2)     Special Energy Meters shall be open for inspection by any person authorized by the State Transmission Utility or the State Load Despatch Centre or the Distribution Licensee.

(3)     The STU or Distribution Licensee may provide Check Meters of the same specifications as that of the main meters.

(4)     The open access customer can have a standby meter of the same specification, tested and sealed by the STU/Distribution Licensee.

(5)     Main and Check Meters shall have facility to communicate its readings to State Load Dispatch Centre/Distribution Control Centre on real time basis or otherwise.

(6)     The Main and Check Meters shall be periodically tested and calibrated by the generators/Licensee as the case may be in the presence of other party involved. Both parties shall seal Main and Check meters. Defective meter shall be replaced immediately. The periodicity of testing, checking, calibration, etc. will be governed by the Regulations issued by the Central Electricity Authority in this regard.

(7)     Reading of Main and Check meters shall be taken periodically at appointed day and hour by authorized officer of the STU/Distribution Licensee in the presence of the open access customer or his representative.

(8)     Check meter readings shall be considered when Main Meters are found to be defective or stopped:

Provided that, if difference exists between the readings of main and check meters, viz. main meter reading exceeds twice the percentage error applicable to relevant class, both meters shall be tested and the defective meter shall be immediately replaced and reading of other will be considered.

(9)     If during test or calibration, both the main meter and the check meter are found to have errors beyond permissible limits, the bill shall be revised for the previous 3 (Three) months or for the exact period if known and agreed upon by both the parties, by applying correction as determined by the STU or Distribution Licensee to the consumption registered by the meter with lesser error.

(10)   The open access customer shall check the healthiness of metering arrangement by superficially checking indicator lamps or by taking readings as frequently as possible. If both the main meter and the check meter fail to record energy either due to the blowing of the P.T. fuses or due to any other causes, the energy imported or exported may be arrived at based on the standby meter, if available, or by mutual agreement of the parties involved.

Regulation - 31. Revision.

Revision of scheduled energy shall be permitted in accordance with the provisions of IEGC or the Tamil Nadu Electricity Grid Code, as the case may be.

Regulation - 32. Losses.

(1)     Transmission losses.

(a)      Inter-State transmission.

The open access customers shall bear the energy losses in the transmission system in accordance with the provisions specified by the Central Commission.

(b)      Intra state transmission.

The open access customers shall bear average energy losses in the transmission system as estimated by the State Load Dispatch Centre. The information regarding average energy losses for the previous fifty two weeks shall be posted on the website of the State Load Dispatch Centre. Fortnightly average transmission loss in the system on all open access customers shall be monitored by the SLDC.

(2)     Distribution loss.

In case of distribution open access, the Licensee shall estimate the losses for each category of voltages and furnish to the Commission. These losses as approved by Commission shall be borne by the open access customer.

CHAPTER 7 IMBALANCE AND REACTIVE ENERGY CHARGES

Regulation - 33. Imbalance Charge.

(1)     Scheduling of all transactions pursuant to grant of long-term open access or medium-term open access or short-term open access shall be carried out on day-ahead basis in accordance with the relevant provisions of IEGC/CERC Open Access Regulations for inter-State transactions and in accordance with State Grid Code or Commission's Regulations/Orders for intra-State transactions.

(2)     Deviations between the schedule and the actual injection/drawal in respect of an open access consumer who is not a consumer of the distribution licensee and the generator, shall come under the purview of the intra-State ABT, as notified by the Commission and shall be settled based on the composite accounts for imbalance transactions issued by SLDC on a weekly cycle in accordance with the UI charges specified by the Commission. Billing, collection and disbursement of any amounts under the above transactions shall be in accordance with the Commission's orders on intrastate ABT, as may be applicable from time to time. Till the implementation of intra-State ABT, the imbalance charge shall be at the UI rate of CERC. Standby support shall not be available for the open access consumer who is not a consumer of the Distribution Licensee.

(3)     In case of deviation between the Schedule and the actual injection/drawal in respect of an open access consumer who is a consumer of distribution licensee and the generator shall come under the purview of the intra-State ABT, as notified by the Commission and shall be settled based on the composite accounts for imbalance transactions issued by SLDC on a weekly cycle in accordance with the UI charges specified by the Commission. Billing, collection and disbursement of any amounts under the above transactions shall be in accordance with the Commission's orders on Intra-State ABT, as may be applicable from time to time. Open access consumer of the Distribution Licensee is eligible for standby support from the Distribution Licensee. Till the implementation of intra-State ABT, the standby support and charge shall be regulated as below:

(a)      In case of actual energy/demand drawl by the OA consumer in a billing cycle is equal to or less than the permitted energy/demand (based on contracted demand and energy or quota demand and energy as applicable), the OA consumer shall pay at the applicable tariff rates of that category of consumer as determined by the Commission from time to time;

(b)      In case of actual energy drawl/demand by OA consumer in a billing cycle is more than the permitted energy/demand (based on contracted demand and energy or quota demand and energy as applicable), payment for the energy/demand over and above the permitted energy/demand shall have to be made at the excess energy/demand charges as specified by the Commission for such categories of consumers in the Regulation/Order issued from time to time.

(4)     In case of underdrawal as a result of non availability of the distribution system beyond the norms specified in the Commission's Tamil Nadu Electricity Distribution Standards of Performance Regulations 2004 or unscheduled load shedding, the open access customer shall be compensated by the distribution licensee at the average power purchase cost of the distribution licensee.

Explanation.

(1)     "Average Power Purchase Cost" means the weighted average pooled price at which the distribution licensee has purchased the electricity including cost of self generation in the previous year.

(2)     "Unscheduled load shedding" means, load shedding during hours other than the hours for which load shedding has been announced by the distribution licensee or approved by the SLDC.

(5)     Payment of imbalance charges shall have a high priority and the concerned constituents (including the licensees or the open access customers as the case may be) shall pay the indicated amounts within 10 (ten) days of the issue of the statement, into a State Imbalance Pool Account operated by the SLDC. The person who has to receive the money on account of imbalance charges would then be paid out from the State Imbalance Pool Account, within three (3) working days.

(6)     If payments against the above imbalance charges are delayed by more than two days, i.e., beyond twelve (12) days from the date of issue of statement, the defaulting party shall have to pay simple interest @ 0.06% for each day of delay. The interest so collected shall be paid to the person who had to receive the amount, payment of which got delayed. Persistent payment defaults, if any, shall be reported by the SLDC to the Commission, for initiating remedial action.

(7)     The detailed energy accounting procedure shall be prepared by the SLDC and submitted for approval to the Commission within 60 days from notification of this Regulations.

Regulation - 34. Reactive Energy Charge.

The payment for the reactive energy charges by open access customers shall be in accordance with provisions stipulated in the Commission's State Grid Code or Regulations or Orders in force.

CHAPTER 8 COMMERCIAL MATTERS

Regulation - 35. Billing, collection and disbursement.

Billing in respect of the charges payable under these Regulations shall be made as per the following procedure:

(1)     Inter-State transactions.

(a)      Short-term Open Access.

(i)       Collection and disbursement of transmission charges for use of CTU and STU systems and operating charges payable to RLDCs and SLDCs towards short-term open access shall be made by the Nodal RLDC in accordance with the procedure specified by the Central Commission;

(ii)      The short-term open access customer connected to distribution system of a distribution licensee shall pay to such distribution licensee the charges payable to the distribution licensee within 3 days from the grant of the short-term open access by the Nodal agency.

(b)      Long-term open access and medium-term open access.-

(i)       Billing, collection and disbursement of charges payable to RLDC including Unified Load Despatch and Communication Scheme shall be in accordance with the procedure specified by the Central Commission;

(ii)      Bills towards the charges payable to SLDC shall be raised by the STU/SLDC directly to the open access customer connected to STU and to the distribution licensee in respect of the customers connected to the distribution system, before the 3rd working day of the succeeding calendar month by e-mail or fax or by any other usually recognized mode of communication;

(iii)     Distribution licensee shall raise the bill with the open access customer connected to it within 3 days of receipt of bill from SLDC;

(iv)    Open access customer connected to the distribution licensee shall pay the charges within five days of receipt of bill from distribution licensee. The distribution licensee shall disburse the amount payable to STU/SLDC on a monthly basis;

(v)      Open access customer connected to the STU shall pay the bills within five working days of receipt of the bill.

(2)     Intra-State transactions.

(a)      Short-term Open Access.

(i)       The short-term open access customer shall deposit with SLDC the transmission charges and operating charges for the entire period of open access within three working days of grant of the short-term open access by SLDC, but before the commencement of open access;

(ii)      In addition to the above, the short-term open access customer connected to distribution system of a distribution licensee shall also pay to SLDC, the charges payable to the distribution licensee for the entire period of open access within three days from the grant of the short-term open access by the Nodal agency, but before the commencement of open access. Such charges would be disbursed to the distribution licensee on a weekly basis.

(b)      Long-term and Medium-Term open access.

SLDC, transmission licensees and distribution licensee, where applicable, shall communicate to STU the details of the bills due to them by the 3rd day of the succeeding calendar month. STU shall separately indicate the above charges and raise the bill with the open access customer, together with the charges receivable by it, if any, before the 5th day of the above month. The open access customer shall pay the charges within seven days from the date of receipt of the bill. STU shall disburse the charges payable to SLDC, transmission licensee and distribution licensee on a monthly basis.

Regulation - 36. Late payment surcharge.

In case the payment of any bill for charges payable under these Regulations is delayed by an open access customer beyond the due date, without prejudice to any action under the Act or any other Regulation thereunder, a late payment surcharge at the rate of 1.5% per month shall be levied.

Regulation - 37. Default in payment.

(1)     Non-payment of any charge or sum of money payable by the open access customer under these Regulations including imbalance charges shall be considered non-compliance of these Regulations and shall be liable for action under Section 142 of the Act in addition to action under Section 56 of the Act. The STU or any other transmission licensee or a distribution licensee may discontinue open access after giving customer an advance notice of fifteen days without prejudice to its right to recover such charges by suit.

(2)     In case of default in payment of charges due to the State Load Despatch Centre, the State Load Despatch Centre may refuse to schedule power to the defaulting open access customer and direct the licensee concerned to disconnect such customer from the grid.

Regulation - 38. Payment Security Mechanism.

In case of long-term open access and medium-term open access, the Applicant for open access will open an irrevocable Letter of Credit in favour of the agency responsible for collection of various charges for the estimated amount of various charges for a period of two months.

CHAPTER 9 INFORMATION SYSTEM

Regulation - 39. Information system.

The State Load Dispatch Centre shall post the following information on its website in a separate web page titled "Open access information" and also issue monthly and annual report containing such information:

(1)     A status report on long-term open access or medium-term open access customers indicating:

(a)      Name of customer;

(b)      Period of open access granted (date of commencement and date of termination);

(c)      Point of injection;

(d)      Point of drawal;

(e)      Transmission system/distribution system used; and

(f)       Open access capacity used.

(2)     A status report on the current short-term open access customers indicating:

(a)      Name of customer;

(b)      Period of open access granted (date of commencement and date of termination);

(c)      Point of injection;

(d)      Point of drawal;

(e)      Transmission system/distribution system used; and

(f)       Open access capacity used.

(3)     A status report on the Limited short-term open access customers indicating:

(a)      Name of customer;

(b)      Period of open access granted (date of commencement and date of termination);

(c)      Schedule of open access period for each day;

(d)      Point of injection;

(e)      Point of drawal;

(f)       Transmission system/distribution system used; and

(g)      Open access capacity used.

(4)     Peak load flows and capacity available including the reserve capacity on all EHV lines and HV lines emanating from EHV sub-stations.

(5)     The information regarding average loss in transmission and distribution system as determined by respective licensees.

CHAPTER 10 MISCELLANEOUS

Regulation - 40. Under-utilization or non-utilization of open access capacity in intra-State transmission system.

(1)     Long-term open access.

A long-term open access customer may relinquish the long-term open access rights fully or partly before the expiry of the full term of long-term open access, by making payment of compensation for stranded capacity as follows:

(a)      Long-term open access customer who has availed access rights for a period of and exceeding 12 years

(i)       Notice of one (1) year-If such a customer submits an Application to the State Transmission Utility at least 1 (one) year prior to the date from which such customer desires to relinquish the access rights, there shall be no charges;

(ii)      Notice of less than one (1) year-If such a customer submits an Application to the State Transmission Utility at any time lesser than a period of 1 (one) year prior to the date from which such customer desires to relinquish the access rights, such customer shall pay an amount equal to 66% of the transmission charges for the stranded transmission capacity for the period falling short of a notice period of one (1) year.

(b)      Long-term open access customer who has availed access rights for a period less than 12 (twelve) years.

such customer shall pay an amount equal to 66% of the estimated transmission charges (net present value) for the stranded transmission capacity for the period falling short of 12 (twelve) years of access rights:

Provided that such a customer shall submit an Application to the State Transmission Utility at least 1 (one) year prior to the date from which such customer desires to relinquish the access rights:

Provided further that in case a customer submits an Application for relinquishment of long-term open access rights at any time at a notice period of less than one year, then such customer shall pay an amount equal to 66% of the estimated transmission charges (net present value) for the period falling short of a notice period of one (1) year, in addition to 66% of the estimated transmission charges (net present value) for the stranded transmission capacity for the period falling short of 12 (twelve) years of access rights.

(c)      The discount rate that shall be applicable for computing the net present value as referred to in sub-clauses (a) & (b) of Clause (1) above shall be the discount rate to be used for bid evaluation in the Central Commission's Notification issued from time to time in accordance with the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by distribution Licensees issued by the Ministry of Power, Government of India from time to time.

(d)      The compensation paid by the long-term open access customer for the stranded transmission capacity shall be used for reducing transmission charges payable by other long-term open access customers and medium-term open access customers in the year in which such compensation payment is due in the ratio of transmission charges payable for that year by such long-term and medium-term open access customers.

(2)     Medium-term Open Access customers.

A medium-term open access customer may relinquish rights, fully or partly, by giving at least 30 days prior notice to the Nodal agency:

Provided that the medium-term open access customer relinquishing its rights shall pay applicable transmission charges for the period of relinquishment or for 30 days whichever is less.

(3)     Short-term open access customer.

(a)      On an Application made to the Nodal agency by the short-term open access customer, the short-term open access schedules already accepted by the Nodal agency in advance or on first-come-first-served basis may either be cancelled or revised downwards:

Provided that such cancellation or downward revision of the short-term open access schedules shall not be effective before expiry of a minimum period of two (2) days:

Provided further that the day on which Application for cancellation or downward revision of schedule is served on the Nodal agency and the day from which such cancellation or downward revision is to be implemented, shall be excluded for computing the period of two (2) days.

(b)      The person seeking cancellation or downward revision of short-term open access schedule shall pay the transmission charges for the first two (2) days of the period for which the cancellation or downward revision of schedule, as the case may be, has been sought, in accordance with the schedule originally approved by the Nodal agency, and thereafter in accordance with the revised schedule prepared by the Nodal agency during the period of such cancellation or downward revision.

(c)      In case of cancellation, operating charges specified in Regulations 21 of these Regulations shall be payable for two (2) days or the period of cancellation in days, whichever is less.

Regulation - 41. Computation of capacity availability for open access.

(1)     The capacity available for the open access shall be computed for each transmission segment and for every sub-station by the STU following the methodology given below:

(a)      Available open access capacity of a transmission system segment: = (DC-SD-AC) + NC-ND

Where,

DC = Designed capacity of the transmission segment in MW,

SD = Sustained demand (peak load experienced) in MW recorded in the segment,

AC = Already allotted capacity, but not availed in MW,

NC = New capacity in MW expected to be added and

ND = New Demand expected to be added;

(b)      Available open access capacity of a sub-station: = (TC-SP-AC) + NC-ND

Where,

TC = Transformer capacity of the sub-station in MVA,

SP = Sub-station peak in MVA,

AC = Already allotted capacity but not availed in MVA,

NC = New transformer capacity in MVA expected to be added and

ND = New Demand in MVA expected to be added;

(c)      The STU shall update these values on monthly basis on the first calendar day of the month and publish it in their website.

(2)     The appropriate distribution licensee shall determine the available capacity for allotment for the portion of the distribution system over which open access has been requested for.

Regulation - 42. Curtailment Priority.

When circumstances warrant and it becomes necessary to curtail the open access service of the customers, subject to the requirements of State Grid Code, the open access to a distribution licensee shall be the last to be curtailed. Among others, short-term open access customers shall be curtailed first, followed by the medium-term open access customers, followed by long-term open access customers. SLDC shall frame guidelines for curtailment of open access customers.

Regulation - 43. Detailed Procedure.

(1)     Subject to the provisions of these Regulations, the State Transmission Utility and the Distribution Licensee shall submit the detailed procedure to the Commission for approval within 60 days of notification of these Regulations in the Official Gazette:

Provided that prior to submitting the detailed procedure to the Commission for approval, the State Transmission Utility and the Distribution Licensee shall make the same available to the public and invite comments by putting the draft of the detailed procedure on their website and giving a period of one month to submit comments:

Provided further that while submitting the detailed procedure to the Commission, the State Transmission Utility and the Distribution Licensee shall submit a statement indicating as to which of the comments of stakeholders have not been accepted by it along with reasons thereof.

(2)     The detailed procedure submitted by the State Transmission Utility and Distribution Licensee shall, in particular, include

(a)      The proforma for Application of connectivity and the connection agreement;

(b)      The proforma for Application of long-term, medium-term and short term open access and LTOA/MTOA agreements;

(c)      Any other points, including payment mechanisms for Application fee, agreement fee, Bank guarantees, etc., necessary for implementation of these Regulations.

Regulation - 44. Redressal Mechanism.

(1)     All disputes and complaints relating to open access shall be made to the respective Nodal agency, which may investigate and endeavour to resolve the grievance within thirty days; and

(2)     Whenever the Nodal agency is unable to resolve a grievance, the matter may be referred to the Commission.

Regulation - 45. Powers to Remove Difficulties.

If any difficulty arises in giving effect to any of the provisions of these Regulations, the Commission may by general or special Order, direct the State Transmission Utility, State Load Dispatch Centre, intra-State licensees and the open access customer, to take such action, as may appear to the Commission to be necessary or expedient for the purpose of removing difficulties.

Regulation - 46. Force Majeure.

(1)     Any event which is beyond the control of the parties to the open access agreement which they could not foresee or with a reasonable amount of diligence could not have foreseen or which could not be prevented and which substantially affect the performance by either party such as, but not limited to, the following shall be classified as force majeure events for the purpose of these Regulations.

(i)       natural disasters (earthquakes, hurricane, floods);

(ii)      wars, riots or Civil Commotions and other upheavals; and

(iii)     grid/distribution system's failure not attributable to parties hereto.

(2)     Both the parties to the open access agreement shall ensure compliance of the terms and conditions of the Agreement. However, no party shall be liable for any claim for any loss or damage whatsoever arising out of failure to carry out the terms of the open access Agreement to the extent that such failure is due to force majeure. But, any party claiming the benefit of the force majeure shall satisfy the other party of the existence of such event(s).

Regulation - 47. Power to amend.

The Commission may, at anytime, vary, alter, modify or amend any of the provisions of these Regulations.

Regulation - 48. Repeal and Savings.

(1)     Save as otherwise provided in these Regulations, "Tamil Nadu Electricity Regulatory Commission-Intra State Open Access Regulations, 2005" shall stand repealed from the date of commencement of these Regulations.

(2)     Notwithstanding such repeal, anything done or purported to have been done under the repealed Regulations so far as it is not inconsistent with these Regulations shall be deemed to have been done or purported to have been done under these Regulations.

(3)     Open access customers to the intra-State transmission system and the distribution system in the State on the date of coming into force of these Regulations under an existing agreement or contract shall be entitled to continue to avail such access to the transmission and distribution system on the same terms and conditions, as stipulated under such existing agreement or contract except Regulations 25 & 26 of this Regulations. Regulations 25 & 26 are applicable to all open access customers. Such persons shall on expiry of such existing agreement or contract be eligible to avail long-term open access or medium-term open access under these Regulation by making Applications at least thirty days prior to the expiry of the existing agreement/contract.

(4)     These Regulations are in addition to and not in derogation of the other Regulations/Codes issued by the Commission.

(5)     The provisions in these Regulations are subject to the Commission's orders on Restriction and Control of power issued from time to time.

 

SCHEDULE 1

 

SCHEDULE 2