Date:15/12/2004 URL: http://www.thehindubusinessline.com/2004/12/15/stories/2004121502270200.htm

Back Inter-State transmission — CERC to revise open access regulations

Our Bureau

New Delhi , Dec. 14

THE Central Electricity Regulatory Commission (CERC) has said it would revise regulations on open access in inter-State transmission for enabling smoother trading of power between States.

As part of the consultation process with various stakeholders, the CERC has circulated a `staff paper' on the amendments to Open Access Regulations in Inter-State Transmission on which it will accept comments by this year-end, before holding a public hearing in January 2005, an official release said on Tuesday.

The paper flags off a debate on whether the existing transmission pricing scheme for short-term customers should continue for power trading within a region or whether it should be replaced by a new scheme with no transmission charges within the region but "incremental" transmission losses being applied to traded power.

It also delves on finding a methodology for levying transmission charges for the use of inter-regional links so that the charges are equitably shared among the actual users and those with an obligation to pay full charges of inter-regional links to Power Grid Corporation Ltd, irrespective of its use.

Another debate is whether, in case of congestion or when the demand of open access customers on a corridor is more than the available transmission capacity, transmission capacity should be rationed or reserved through electronic bidding on a month-to-month basis. The staff paper suggests a structured procedure for open access reservations in which the applications received till the 19th day of the month shall be processed together on a monthly basis.

In case of congestion on a particular corridor, bidding shall be carried out on the 26th day of the month.

The paper also proposes to levy proportional usage-based charges on inter-regional links for central allocations and long-term use. The floor rate for short-term open access customers for inter-regional links is proposed to be increased to 50 per cent of the effective rate for long-term use.