Chhattisgarh State Electricity Regulatory Commission

Shanti Nagar, Irrigation Colony, Raipur - 492 001 (C.G.)

Ph. 0771-4048788, Fax: 4073553
Website: www.cserc.gov.in, E-mail: cserc.sec.cg@nic.in

Suo-Motu Petition No. 36 of 2014(M)

In the Matter of implementation of Availability Based Tariff

(ABT) along with Deviation Settlement Mechanism (DSM) on the
power purchase from the Chhattisgarh State Power Generating
Company Limited (CSPGCL) by Chhattisgarh State Power
Distribution Company Limited (CSPDCL).

1. M/s Chattisgarh State Power Generation Company Limited, Raipur

2. M/s Chattisgarh State Power Transmission Company Limited, Raipur
3. M/s Chattisgarh State Power Distribution Company Limited, Raipur
4. M/s Chattisgarh State Load Dispatch Center, Raipur
and others

…. Respondents

Present: Narayan Singh, Chairman

Vinod Shrivastava, Member

ORDER
(Passed on 29/09/2014)

Presently CSPDCL is purchasing power under long term Power Purchase

Agreement from CSPGCL on the basis of monthly meter reading of the actual

energy injected into the grid. Fixed cost and energy charges are billed without

applying ABT and deviations from schedule is also not taken into

consideration.

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 National Electricity Policy states as under:

“The ABT regime introduced by CERC at the national level has had a

positive impact. It has also enabled a credible settlement mechanism for

intra-day power transfers from licenses with surpluses to licenses

experiencing deficits. SERCs are advised to introduce the ABT regime at the

State level within one year.” (Clause 5.7.1 (b) )

“A two-part tariff structure should be adopted for all long term

contracts to facilitate Merit Order dispatch. According to National Electricity

Policy, the Availability Based Tariff (ABT) is to be introduced at State level by

April 2006. This framework would be extended to generating stations

(including grid connected captive plants of capacities as determined by the

SERC). The Appropriate Commission may also introduce differential rates of

fixed charges for peak and off peak hours for better management of load.”

(Clause 6.2 (1))

2. As mandated in National Electricity Policy and Tariff Policy, Commission

has to implement the intra state ABT along with DSM in Chhattisgarh state.

Deviations for entities of the State supplying power under interstate open

access are already been governed by prevailing DSM as notified by Central

Electricity Regulatory Commission.

3. In tariff orders for FY 2011-12, FY 2012-13 and FY 2013-14 the State

owned power utilities along with SLDC were directed to start mock billing in

accordance with ABT mechanism so that the implementing agencies get

acquainted with mechanism before commercial billing is started. During the

mock billing, the utilities had raised various difficulties being faced .The

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Commission convened various meetings between CSPGCL, CSPTCL, CSPDCL

and SLDC and issued suitable directions from time to time. It is pertinent to

mention here that Commission has also initiated process of implementing

DSM to all short term power purchase by CSPDCL from conventional

generation sources simultaneously.

4. While monitoring the mock billing for DSM billing, Commission has

observed that even after elapse of more than 3 years when first directive

were issued for mock billing, CSPGCL has requested to continue mock billing

as per ABT and DSM for some more period. But the suggestions of CSPGCL

cannot be agreed upon as sufficient time has been given to CSPGCL before

starting commercial billing as per ABT.

5. Accordingly, Commission initiated a suo-motu petition and registered

the same on 13th Aug 2014 as petition no. 36 of 2014. A notice for inviting

comments and suggestions from stake holder on the proposal for

implementation of ABT and DSM was published on 15th Aug 2014 in

Haribhoomi, Deshbandhu and Hitvada. Above notice was also uploaded in the

Commission’s website along with a copy of the brief note of proposal.

Suggestions and comments were invited from all stake-holders including State

owned power utilities till 4th Sep 2014.

6. M/s CSPGCL, M/s CSPDCL and M/s SLDC have submitted their written

submission by last date 4th Sep 2014.

7. Hearing was also conducted on the subject on 9th Sep 2014.

Representatives of all the utilities participated in the hearing. In addition to

earlier written submission, M/s CSPGCL submitted additional submission on

the date of hearing i.e. 09th Sep 2014.

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8. CSPDCL vide letter no 1623 dated 07/08/2014 submitted that as per

Central Commission’s prevailing regulations for DSM, a deviation of 12% of

schedule contributes heavy penalty on over drawl condition of the CSPDCL.

CSPDCL further stated that in case when grid frequency is more than 50.1 Hz

no entity is permitted to under drawl and in case if it is happened the entity is

liable to pay compensation @ Rs.1.78 for the entire under drawl quantum

beyond 12% schedule. CSPDCL added that due to non-implementation of ABT

regime in the State, the injection of generators is controlled through backing

down process and many times it happens that it takes too much time for

backing down. Consequent upon, CSPDCL has to pay penal charges mostly in

both the cases i.e. over drawl and under drawl.

9. As CSPDCL meet its major power requirement from State owned power

company i.e. CSPGCL, it is felt necessary that for maintaining grid discipline,

ABT and DSM should be implemented in the State for supplied by CSPGCL.

Looking to the urgency of the matter, Commission has decided to adopt the

regulations issued by Central Commission, vide notification dated 06.01.2014

notified Central Electricity Regulatory Commission (Deviation Settlement

Mechanism and related matters) Regulation 2014 (here in after called “DSM

Regulation 2014”) along with subsequent amendments and enactments for

DSM settlement with effect from 1st October 2014 on the power purchased

from CSPGCL by CSPDCL subject to provisions mentioned in this order.

10. In view of the above facts, Commission decides that CSPGCL shall raise

monthly bill of capacity charge and energy charge for thermal generating

stations of CSPGCL shall be done as per clause 42 of the “Chhattisgarh State

Electricity Regulatory Commission (Terms and Conditions for determination of

tariff according to Multi-Year Tariff principles and Methodology and Procedure

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for determination of Expected revenue from Tariff and Charges) Regulations,

2012” except for 1X500 Korba west extension plant. Approved annual fix

charges as specified in Table 241 of Tariff Order 2013-14 for FY 2014-15 shall

be applicable for billing capacity charges. Approved energy charges shall be

applicable as specified in Table 242 of above tariff order. Deviations from the

schedule energy shall be governed through DSM Regulations 2014.

11. Though CSPGCL is using coal/lignite under Administered Price

Mechanism (APM) as fuel, Commission has decided not to apply any cap rate

as specified at Clause 5 (1) (i) of DSM regulation 2014 because of the reason

that injection pattern of CSPGCL power stations puts considerable impact on

drawl pattern of CSPDCL for the power drawn by it from the regional grid and

also effects in load management in the State. The Commission is conscious of

the fact that CSPGCL is a regulated entity but at this stage, it does not

appear reasonable to apply cap rate for CSPGCL’s thermal stations. ABT

mechanism is enforced to maintain grid discipline and CSPGCL thermal power

stations shall be treated equally as other power stations of the State.

12. Commission is aware that sent out energy of DSPM plant is not metered

one but the same is being calculated from the different meters reading. In this

context, Commission has decided to permit CSPGCL to calculate sent out

energy of DSPM according to present practice but simultaneously, Commission

directs CSPGCL to install ABT meters as per CEA metering regulations 2006 by

March 2015 so that sent out energy of DSPM may be taken directly from the

new ABT meters from next financial year.

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13. SLDC shall prepare a statement of Charges for Deviations including

Additional Charges for Deviation on power transactions between CSPGCL and

CSPDCL on monthly basis.

14. As the Commission has approved single part tariff for 1X500MW Korba

extension so to implement ABT and DSM on this plant, Commission shall issue

separate direction/order.

15. At present, FCA for CSPGCL power stations are being calculated on

actual energy supplied by CSPGCL to CSPDCL as per the provisions of the

order passed in suo-motu petition no. 26/2013. Commission decides that

same methodology shall continue even after issue of this order.

16. Commission makes a provision that CSPGCL and CSPDCL shall have 7

days time to make any representation to SLDC to point out any discrepancy in

DSM bill supported by relevant documents and SLDC is directed to resolve

such representation and rectify the bills if required.

17. Commission directs the CSPGCL to provide the data downloaded from SEM

by 3rd day of the next month in the format (protocol) which is appropriate for

preparation of DSM bill. It will be responsibility of the CSPGCL to ensure

authenticity of the readings/consumption as recorded in meters. The CSPGCL

shall maintain the connectivity for online transmission of meter reading data

in the format as mentioned above through AMR to SLDC so that SLDC may

use this data as back-up for cross check of the data and to acquire data of

missing blocks, as submitted by metering department through e-mail.

18. For preparation of DSM Statement, the SLDC shall consider Implemented

schedule as available SLDC websites. SLDC shall be responsible for timely (as

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per Grid Code) updation and uploading of the implemented schedule in the

SLDC website.

19. For preparation of DSM Statement, the SLDC shall consider frequency as

considered by WRPC in the DSM Statement issued to CSPDCL, as available in

the WRPC websites.

20. It has to be noted that CSPGCL power stations are regulated and are

supplying its entire power to single beneficiary i.e. CSPDCL therefore,

Commission decides that SLDC shall prepare bill for deviations at 100% rate

of deviation as specified in DSM regulations.

21. Accepting the suggestion of SLDC, Commission decides that to avoid any

error, before processing of the DSM bill, SLDC shall again obtain confirmation

from CSPGCL by sending the data of schedule and energy-injection to

CSPGCL. CSPGCL shall the required confirmation within 2 working days from

the date of receipt of such data form SLDC though email.

22. SLDC shall prepare DSM bill within 3 working days after the receipt of all

requisite data from CSPGCL as above. Further SLDC shall issue the DSM bill to

CSPGCL and CSPDCL both in hardcopy and softcopy. The DSM bill shall be

made available in the SLDC website immediately after issue of bill. Any

amount payable/receivable on account of deviations from schedule by CSPGCL

thermal power stations shall be adjusted in the monthly power purchase bill of

power purchased by CSPDCL from CSPGCL. Late payment surcharge shall be

applicable as per MYT Regulations 2012.

In addition to above directions and order, Commission may issue such

additional orders or directions which may deem fit for removing difficulties to

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give effect to this order and directions. Commission shall review the impact of

the implementation of this order from time to time.

Sd/- Sd/-
(Vinod Shrivastava) (Narayan Singh)
Member Chairman

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