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Published:Tuesday, July 02, 2019 1:43 PM

Uttar Pradesh outlines Open Access Draft Regulation, 2019

Uttar Pradesh outlines Open Access Draft Regulation, 2019

Uttar Pradesh outlines Open Access Draft Regulation, 2019
Uttar Pradesh Electricity Regulatory Commission (UPERC) on 13th June 2019, has come up with a draft terms and conditions for open access. UPERC has invited comments of various stakeholders on the proposed draft of Open Access Regulations, 2019. The inclusion of Open Access in state’s power sector has been waited for a long time now by various stakeholders including generators, power traders and consumers.
 
The key highlights of these regulations are elaborated below:
   
Nodal Agency
  • The Nodal Agency for Long-Term and Medium-Term Open Access (LTA & MTOA) shall be State Transmission Utility (STU). 
  • While State Load Despatch Centre (SLDC) on the other hand for Short Term Open Access (STOA).
  • The regulation directs the nodal agency to declare surplus capacity in the system so that it can be ensured that open access is not denied to eligible parties under normal circumstances.
Eligibility and conditions of Open Access
  • The Open Access consumer is permissible to seek Open access for a capacity of 1 MW and above (except generating plants), and shall be connected at 11 KV and above, on payment of transmission charges and/ or Wheeling Charges as may be determined by the Commission.
  • The draft amendment stipulates Distribution Franchisee as a customer for Open Access if sourcing of power from other sources has been authorized by its Distribution Licensee.
  • A captive power plant that opts for Open Access for carrying the electricity to the destination of its own use shall also be eligible for open access and the binding of contracted demand in excess of 1MW shall not be applicable.
  • Consumers with Contract demand of more than 1 MW if fed through mixed feeder (not an independent feeders) subject to the condition that they agree to the system constraints as well as the power cut restrictions imposed on that feeder by the utility serving them.
Categorization of Open Access consumers
  • Long-Term Access (LTA) Customers: An open access customer availing or intending to avail intra state open access for a period exceeding 5 years shall be LTA customer.
  • Medium-Term Open Access (MTOA) Customers: An open access customer availing or intending to avail intra state open access for a period of more than 3 months and up to 5 years shall be MTOA customer.
  • Short-Term Open Access (STOA) Customers: An open access customer availing or intending to avail intra state open access for a period up to 3 months shall be STOA customer while in previous regulation the period was stipulated to one year.
Allotment & Curtailment Priority
  • LTA customers shall have highest priority followed by MTOA customers followed by STOA customers.
  • The regulation gives equal priority on “first cum first serve” basis to all eligible open access entities considering all LTA and MTOA cases must be processed through system planning and augmentation.
  • For STOA cases, the order of highest priority to lowest priority shall be as follows:
                     I.         Distribution Licensee
                     II.       Generating Company
                     III.      Captive power plant
                     IV.      Any Consumer permitted by the Regulations
  • STOA customers shall have highest priority of curtailment followed by MTOA customers followed by LTA customers.
  • Curtailment for short term shall be affected in the following order: -
                      I.       Any Consumer permitted by the Regulations
                      II.      Captive power plant
                      III.    Generating company
                      IV.     Distribution Licensee;
  • For LTA and MTOA transactions, wherever curtailment due to Transmission and/or Distribution system constraint is necessary, the consumers permitted by the Regulations, Captive Power Plant and Generating Company shall be curtailed on pro-rata basis. Subsequent to complete curtailment of these three groups, if constraint still exists then only curtailment will be resorted to upon the Distribution Licensee.
Non-Utilization of Open Access
Type of Customer
Relinquishment/ Cancellation Scenario
Charges payable for Relinquishment/ Cancellation
Short-term Open Access Customer
Cancellation or downward revision shall be addressed on 3rd day from the date of application and not before expiry of minimum period of two (2) days from date of application.
 
·         In case of Cancellation, Operating charges shall be payable for two days or the period of cancellation in days, whichever is less.
·         In case of surrendering the capacity, the customer shall pay 50% of OA charges on surrendered capacity in addition to full OA charges on revised capacity during remaining period of transaction.
Medium-term open access customer
Relinquishment shall be addressed fully or partly by giving at least 3 months prior notice to the Nodal Agency
·         Customer shall pay applicable transmission/ wheeling charges in full for the period of relinquishment or 3 months’ notice period, whichever is lesser
·         In case MTOA customer relinquishes its rights partly, customer shall be liable to pay transmission & wheeling (T&W) charges for the remaining full period of their contract at pro-rated capacity along with 25% of estimated T&W charges on surrendered capacity
·         In case MTOA customer relinquishes its rights fully, customer shall pay 75% & 50% of estimated T&W charges for duration up to mid-point and beyond mid-point of the contract period respectively.
Long-term open access customer
Cancellation shall be addressed by giving at least 1-year prior notice to the Nodal Agency
 
·         Customer shall pay transmission/wheeling charges in full for the period of relinquishment or 1-year notice period, whichever is lesser
·         In case LTA customer relinquishes its rights partly, customer is liable to pay applicable T&W charges for the remaining full period of their contract at pro-rated capacity along with 25% of estimated transmission & wheeling charges on surrendered capacity.
·         In case LTA customer relinquishes its rights fully, customer shall pay 75% & 50% of the estimated T&W charges for the duration up to mid-point and beyond mid-point of the contract period up to the end of contract period respectively.
·         For dedicated transmission or distribution system, the compensation shall be 100% of the estimated transmission and wheeling charges (net present value) payable by such customer for balance period of allocation
 
Charges for Open Access
  • In addition to transmission charges and wheeling charges, a consumer availing open access not being a captive consumer shall pay cross subsidy surcharge.
  • Various other charges include additional surcharge, reactive power charge and imbalance charge etc.
  • Standby charge is the first inclusion in draft regulation. In the event of non-availability of power supply due to any reason including outage of generator supplying the OA consumer, non-clearance of bid on power exchange, it shall be duty of the Distribution Licensee to provide power to such OA consumers. The regulation specifies that a standby arrangement agreement shall be signed between DISCOM and OA Consumer for a certain number of days. The arrangement of standby charges will be applicable to a maximum period of 60 days in a year. 

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