OA Charges

Understanding the Open Access Charges

 

There are major charges to be paid by open access consumers to distribution licensee, transmission licensees and other related entities, other than the power purchase cost paid to the generator or supplying entity. These charges include:

1.     Wheeling Charges or Distribution Charges

Distribution charges are those charges which are paid to distribution licensee for the use of distribution system and associated facilities by another person for the conveyance of electricity.

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 charges as may be determined by the Commission

Applicability: These charges are applicable to generating stations, captive generating plants and consumers who are connected to discom network i.e, at 11 and 33 kV.

2.     Wheeling Loss or Distribution Loss

Distribution losses are the technical losses for the distribution system. It is determined by the Commission for various voltage levels for the applicable year, based on prudence check of the submissions of the Distribution Licensee during their Tariff determination process and shall be apportioned in proportion to the actual energy drawal by the Open Access consumers and shall be payable in kind at relevant voltage level.

Applicability: This loss is applicable to generating stations, captive generating plants and consumers who are connected to discom network i.e, at 11 and 33 kV.

3.     Transmission Charges or STU Charges

Transmission charges are those charges which are paid to transmission licensee for the use of transmission system and associated facilities by another person for the conveyance of electricity.

Applicability: These charges are applicable to generating stations, captive generating plants and consumers who are connected to state transmission network i.e, at 66 or 132 kV and discom network i.e, at 11 and 33 kV.

4.     Transmission Loss or STU Loss

Transmission losses are those losses which are there in the transmission system. The buyers and sellers shall absorb apportioned energy losses in the transmission system in accordance with the provisions specified by the Central Commission.

Applicability: This loss is applicable to generating stations, captive generating plants and consumers who are connected to state transmission network i.e, at 66 or 132 kV and discom network i.e, at 11 and 33 kV.

5.        PoC Charge & PoC Losses

It is a transmission charge pricing methodology introduced for sharing of Inter State Transmission Systems (ISTS) charges and Losses among the Designated ISTS Customers (DICs) depending on their location and sensitive to their distances from load centers (generators) and generation (customers) and the direction of the node in the grid.

Applicability: This charges and losses are applicable to generating stations, captive generating plants and consumers who are connected to central transmission network or to state transmission network i.e, at 66 or 132 kV and discom network i.e, at 11 and 33 kV.

6.     Cross Subsidy Surcharge

If open access facility is availed of by a subsidising consumer of a distribution licensee of the State, then such consumer, in addition to transmission and/or wheeling charges, shall pay cross subsidy surcharge 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.

Applicability: This charge is paid by open access consumers irrespective of voltage or connectivity level.

7.     Application Fees

A person seeking Open Access shall make an application in the prescribed format to the Distribution Licensee to which it is connected. The application fees in general for short term open access consumer is Rs 5000/application.

8.     SLDC Charge

A composite operating charge @ Rs.2,000/- per day in general  or part of the day shall be payable by a short-term open access customer for each transaction to the SLDC or as determined by the Commission from time to time. The operating charge includes fee for scheduling and system operation, energy accounting, fee for affecting revisions in schedule on bonafide grounds and collection and disbursement of charges.

Applicability: This charge is payable to both injecting and drawing SLDC.

9.     RLDC Charge

A composite operating charge @ Rs.2,000/day/RLDC is payable by a short-term open access customer for each transaction to the RLDC or as determined by the Commission from time to time.

Applicability: This charge is payable to all the RLDC whose network is used.

10   Other Charges

In addition to above mentioned charges there are some other charges which have a very small impact on the final landed cost of electricity through open access, these charges are:

  1. NLDC Application Fees:  Rs 5000/(No. of Successful bidders), applicable for power exchange transactions.
  2. NLDC Scheduling and Operating Charges: Rs 5,000.00 x (Regional Entity Buyers + Regional Entity Sellers) / (No. of Successful Portfolios), applicable for power exchange transactions.
  3. Trading Margin: trading margin exceeding seven (7.0) paise/kWh in case the sale price is exceeding Rupees three (3.0)/kWh and four (4.0) paise/kWh where the sale price is less than or equal to Rupees three (3.0)/kWh.
  4. Exchange Charges: Rs 20/Mwh, applicable for power exchange transactions.
  5. Service Tax: 12.36% of Exchange Charges (Rs/Mwh), applicable for power exchange transactions.

 

For details regarding how these charges are calculated and the procedure involved in availing open access, please see the upcoming articles.

 

Author:

Sumit Kumar

For any query please write to sumit@indianpowersector.com

 

9 Responses to OA Charges

  1. Nishant says:

    sir,
    I want to know the penalties imposed on the over generation and under generation from the wind farm in India of any of the state.

  2. nikkaram says:

    I have captive power plantof 5mw at shimla and consumption at approximately 250 kms.what are the stu charges applicable.

  3. B v Chandrasekhar says:

    Sir, what are the cross subsidy charges applicable for OA industrial consumers connected at 110kv?

  4. ishan PV enthusiast says:

    HI, Reg. Transmission and Wheeling Charges, I recently found out through a friend that, Wheeling Charges are wavered when the captive generating plant is in the same discom region as the end point of use. Is this true?
    How exactly are the transmission losses calculated i.e. are they considered from the plant to the plant metering station, plant to grid, plant to nearest sub-station or lastly plant to endpoint(user).
    What official documents can be found to support the arguments/discussion?
    if they are different from state to state then the state in consideration for my case study would be Rajasthan.
    Thanks.
    Hope to get a quick revert.

  5. Ajay Bhatt says:

    We, M/s. Vapi Waste & Effluent Management Co. Ltd have requirement of Fly Ash in huge quantity for our solid Waste disposal site. Please contact me on 09714008400 for more details.

  6. Divyang says:

    Cross subsidy is charged on actual KWH consumed from Open Access or Net Energy Scheduled from Open Access???

    For e.g. We scheduled 60000 KWH from Open Access where after deducting various regional and state losses it comes to 55000 KWH and we only consumed 40000 KWH out of it. So the cross subsidy would be charged on 40000 KWH or 55000 KWH???

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