1

KARNATAKA ELECTRICITY REGULATORY COMMISSION

Date: 26
th
December 2005
Action Plan for Implementation of Intra-state Aaila!ilit" #ase$ Tari%
&A#T'
() Intro$*ction
For the purpose of transmission of electricity, India has been divided into fve
regions namely, astern, !estern, "outhern, #orthern and #orth$astern
%egions& 'hese regions have been interconnected to form a (#ational )rid*
+ith a vie+ of bringing reliability and stability in po+er transmission across
the nation along +ith e,cient usage of available resources& -rior to
introduction of inter$state ./', there +as a lot of indiscipline in the grid
operation in these regions resulting in fre0uent blac1outs and islanding& 'here
+as lac1 of balancing bet+een generation and demand for po+er on real time
basis& 'his +as mainly due to e2cessive generation in the northern and
northeastern regions resulting in higher fre0uencies in these regions and over
loads in +estern and southern regions resulting in lo+er fre0uencies in these
regions& In this conte2t 34s 55, 6"., after a study in 7889$8: recommended
to )oI to introduce .vailability /ased 'ari; <./'=, in all the regions to bring
about grid discipline& >o+ever after the constitution of 5%5 in 788?, the
matter came under the purvie+ of the 5%5& In 7888, the 5%5 issued
necessary orders and regulation for implementation of Inter$state ./' in India
and ./' has been implemented region by region during 2002 and 2009& ./'
+as implemented in the "outhern region +ith e;ect from 7
st
@anuary 2009&
'he implementation of inter$state ./' has brought about substantial
improvement in the grid operation resulting in )rid discipline and optimal
utiliAation of the generation capacities&
'he implementation of Inter$state ./' has brought about the follo+ing
improvements in the operation of the regional grid as indicated in the FBI%
sub$committee report:
a= )rid fre0uency has dramatically improved from :? C 52 >A range to :8&0 C
50&5 >A range for most of the time&
Action Plan for implementation of Intra state ABT
2
b= . higher consumer demand is being met, due to built$in incentives to
ma2imiAe generation in pea1$load hours&
c= )eneration stations are being operated according to real merit order, on
region$+ide basis, through decentralised scheduling&
d= >ydro$electric generation is being harnessed more optimally than done
previously&
e= "tateDs share in central generating stations have ac0uired ne+ meaning
and grid discipline is encouraged&
f= Bpen access, +heeling of captive generation and po+er trading has been
enabled by placing in position the mechanism <6I= for handling deviations4
mismatches&
g= "tates meet their occasional e2cess demand by over dra+ing from the
regional grid and paying applicable 6I charges to the under$dra+ing states&
+) Intra-state A#T
Eeeping in vie+ the advantages of ./', the #ational lectricity -olicy issued
under the provisions of the lectricity .ct 2009 envisages introduction of intra$
state ./'& 'he said policy, under clause 5&F&7<b= states as follo+s:
('he ./' regime introduced by 5%5 at the #ational level has had a
positive impact& It has also enabled a credible settlement mechanism for
intra$day po+er transfers from licensees +ith surpluses to licensees
e2periencing defcits& "%5s are advised to introduce ./' regime at the
state level +ithin one year*&
'he Forum of Indian %egulators <FBI%= constituted a sub$committee to
recommend measures for implementation of intra$state ./' and the said sub$
committee included "ri /hanu /hushan, 3ember, 5%5 and "ri "&D&61l1ali,
3ember, E%5 amongst others& 'he FBI% sub$committee has furnished its
recommendations to the FBI% in #ov 2005, a copy of +hich is enclosed&
E%5 is bringing out this .ction -lan for implementation of intra$state ./' in
the "tate&
,) Stat*s of ener-" allocation to ESCOMs
Action Plan for implementation of Intra state ABT
3
"ince E-'5G has been barred from engaging in trading electricity +ith e;ect
from 70&6&2005 in terms of section 98<7= of the lectricity .ct 2009, )BE in
)B #o # 797 -"% 2009 dated 70
'>
3ay 2005, has allocated the --.s of
E-5G, HH#G, 5entral )enerating "tations and conventional I--s to the "5B3s
on the basis of share of each "5B3 in total energy consumption in 200:$05
and the --.s of rene+able sources to the respective "5B3 based on
geographical location of the proIect& E-'5G has indicated the "5B3 +ise
allocation of the installed capacity of conventional sources as follo+s in its
letter dated 79&F&2005:
ESCOM . Of capacit"
allocation
/"5B3 :5&8:82
3"5B3 8&080?
>"5B3 20&958?
)"5B3 75&26F?
5"5B3 8&992:
In the %5 for FJ06, the proIected energy availability has been allocated to
the "5B3s considering demand forecast made by each "5B3, gro+th rate
etc& %egarding po+er purchase cost from conventional sources, a uniform per
unit rate has been +or1ed out considering entire po+er purchase cost <f2ed
charges K energy charges K 6I charges= from all the sources i&e& from 5)",
")", I--s etc and the same has been applied to the "5B3s uniformly& <-o+er
purchase cost from non$conventional sources vary amongst "5B3s in vie+
of allocation of --. to the respective "5B3=,
'he estimated po+er purchase from conventional sources in FJ06 includes
dra+al from 6I source to an e2tent of 7062 36 as indicated by
E-'5G4"5B3s in the %5& 'he 6I charge has also been included in the total
po+er purchase cost and a uniform po+er purchase rate has been +or1ed out
for the "5B3s& !hile one "5B3 may be responsible for causing the 6I due
to overdra+al, the 6I charges are being met by all the "5B3s since a
uniform po+er purchase rate has been +or1ed out& <It is also true that if one
"5B3 is saving the 6I charge by e,cient management, the beneft is being
shared by all the "5B3s=&
Action Plan for implementation of Intra state ABT
4
'herefore in the present system there are no incentives for the individual
"5B3s for e,cient management of the demand, nor there are penalties for
ine,ciency since the state as a +hole is considered in the inter$state ./' and
all the 6I charges are being shared by them&
.s indicated by E-'5G, the above capacity allocation is in proportion to the
actual energy dra+al by the "5B3s in 200:$05& 5onsidering this as a
transition arrangement, the capacity allocation should be made to each
"5B3 after a systematic study considering various parameters including
demand4pea1 load re0uirement, consumer profle etc in each "5B3&
'hereafter, the capacity charges <f2ed charges= of the generating stations
have to be allocated to the "5B3s according to the capacity allocation and
energy charges in proportion to the actual energy dra+al in order to provide
economic signals and e,cient management of po+er purchase by the
"5B3s&
/) A#T0 Intra-state A#T an$ its !ene1ts2
a' 34at is A#T2
!hat is ./' and the mechanics of its operation are ade0uately e2plained in
the premier (./5 of ./'$ . premier on .vailability 'ari;* +ritten by "ri /hanu
/hushan, a copy of +hich is enclosed for reference&
!' Intrastate A#T Components2
Intra$state ./' is a techno$economic tool for bringing rational tari; structure
for supply of electricity from "tate generators to the distribution Gicensees
apart from the fact that it is a mechanism for enforcing discipline in the )rid&
'he generation tari; under the ./' regime has three components namely the
f2ed charge, the variable charge and the 6n$scheduled Inter$change charge
<6I 5harges= as follo+s:
&i' 5i6e$ c4ar-e covers capacity charges of the generators, +hich is payable
by each benefciary on the capacity allocated to them, irrespective of the
amount of po+er they dra+ or scheduled to dra+&
&ii' 7aria!le c4ar-e <to+ards fuel cost4variable e2penses of generation= is
payable by each benefciary on the scheduled energy irrespective of actual
dra+al&
Action Plan for implementation of Intra state ABT
5
&iii' UI c4ar-e is payable by the benefciaries4 generators for the deviations
from the schedule and is dependent on the fre0uency prevailing at that time&
c' #ene1ts of Intra state A#T2
Intra$state ./' has the follo+ing benefts:
• #ene1ts to t4e Po8er S"stem2
I& /rings about grid discipline by maintaining fre0uency in technically
feasible narro+ band&
II& nsures optimal utilisation of available resources and generation
capacities&
III& nhances opportunities for Bpen access, 5aptive generation +heeling
and 'rading of electricity&
IH& "cope for encouraging competition among generators&
• #ene1ts to Generators2
I& ncourages ma2imiAation of generation during pea1 hours +ith
incentives and discourages the same during o; pea1 hours +ith
penalties&
II& 5ompels dra+al of po+er by the utilities as per the scheduled dra+al
failing +hich )enerators stand to gain by applicable 6I charges&
III& nables systematic scheduling in terms of long term, short term as +ell
as day ahead, duly considering plant availability and maintenance&
IH& nsures better life of e0uipments due to e,cient management of
Demand Hs "upply& 'hereby the L>idden 5ostsD due to damage is
avoided&
H& 'he three$part 'ari; under ./' provides for proper recovery of f2ed
and variable costs of )enerator&
• #ene1ts to t4e Licensees2
I& conomic e,ciency dictates that the least cost po+er should be
dispatched in preference to costly po+er <3erit Brder Dispatch=& ./'
provides for the same&
II& Gicensees can plan their re0uirement, both for pea1 and o; pea1
demands&
III& nables e,cient Goad 3anagement through their o+n .rea Goad
Dispatch 5enters&
Action Plan for implementation of Intra state ABT
6
IH& -rovides for economical po+er and better accounting procedures&
• #ene1ts to En$ Users2
I& nables open access, captive generation, +heeling and trading of
electricity&
II& nsures better 0uality and reliable po+er supply&
III& "cope for reduction in cost of po+er due to licensees opting for merit
order dispatch in their scheduling&
9)A#T : Retail Po8er Tari%2
'he 5ommission had also proposed introduction of di;erential tari;, i&e&
separate tari; in each of the "5B3s area to reMect the cost of supply in each
"5B3 duly considering the consumer profle and revenue stream in such
"5B3& >o+ever, considering the suggestions received from the
sta1eholders, the 5ommission has introduced separate tari; for urban and
rural areas in the 'ari; Brder 2005 and intends to move to+ards "5B3$+ise
di;erential tari; in future& 5ost of po+er purchase being the maIor input cost
<more than F5N of the cost of supply=, implementation of intra$state ./' may
have substantial impact on cost of supply and the tari;s in each of the
"5B3s& 'he operational e,ciencies in each "5B3 including e,ciency in
po+er purchase management under ./' +ould get reMected in the tari;s
+hen such di;erential tari;s are determined&
In vie+ of the established benefts that have accrued under inter$state ./',
the 0uestion +hether intra$state ./' is re0uired does not arise since the same
benefts as in inter$state ./' are e2pected to accrue to the
"5B3s4consumers& 'he 0uestion is only ho+ soon intra$state ./' can be
implemented& 'he general consensus4 recommendation is that the
methodology adopted for inter$state ./' should be replicated for intra$state
./' +ith modifcations as may be re0uired&
#o doubt, implementation of intra$state ./' is a comple2 e2ercise involving a
number of "5B3s, a large number of generating stations, a huge number of
interface points, etc, but the e2ercise must begin&
OO
;) Mec4anism of Intra-state A#T
Action Plan for implementation of Intra state ABT
7
6nder the intra$state ./', all the "tate generating stations <+hich are subIect
to scheduling by "GD5= shall declare their 75$minute schedule of e2pected
output capability for the ne2t day to "GD5& /ased on the information available
to the "GD5 in respect of all sources of po+er viA ,
<i= 2pected output capability from 5)" as furnished by %GD5
<ii= 2pected output capability from "tate )enerating stations
<iii= Bther sources, if any <5--s= and
<iv= Gosses in the system,
'he "GD5 conveys the entitlements to each of the "5B3s for the ne2t day on
the basis of allocated capacity& Immediately thereafter, the "5B3s
considering the entitlement and the forecasted demand +ould convey to
"GD5 their schedule of po+er dra+al for the ne2t day& <'he "5B3s shall
prepare their forecast for the ne2t day systematically after considering the
demand in the previous year, previous month, previous day etc duly
considering changes in demand, seasonal variations, +eather conditions etc&=&
"GD5 +ill aggregate the re0uisitions from the "5B3s and prepares the
dispatch schedule 1eeping in vie+ the merit order and ho+ best to meet the
schedule given by the "5B3s& .fter the e2ercise, the "GD5 +ill issue,
<i= Dispatch schedule to %GD5 for communication to the 5)"
<ii= Dispatch schedule to the state generators
<iii= Dispatch schedule to others <5--s= and
<iv= Dra+al schedules to the "5B3s&
'hese schedules issued by "GD5 +ill become the basis for ./'& In case of
any contingencies, both the generators and "5B3s can revise their
re0uisitions and schedules and the same shall be revised correspondingly by
the "GD5 +ithin the stipulated time&
'he schedules form the basis for payment of energy charges and any
deviations from the schedule +ould attract fre0uency dependent 6I charges&
. typical Mo+ diagram under the intra$state ./' is given belo+:

INTRASTATE A#T
Action Plan for implementation of Intra state ABT
IPPs ( Tied up
with interstate
dispatch
!entral "eneratin#
$tations
%&"I'(A) )'A*
*I$PAT!+
!&(T%&
,
IN<E=2
Flo+ of 5onfrmed Day ahead Dispatch schedule for )enerators 4 I--s 4 5--s
P Day ahead Dra+al "chedule for Gicensees 4 Bpen access consumers by
%GD54"GD54.GD5&
Flo+ of Day ahead .vailability of )enerators4 I--s 4 5--s P Day ahead
%e0uirement of Gicensees4 Bpen access consumers to .GD54"GD54%GD5&
<Bn similar lines long term and short term scheduling is also prepared&=
>) Applica!ilit" of Intra-State A#T2
Intra$"tate ./' shall be applicable to all generators that are connected to the
)rid and are scheduled and dispatched by "GD5& .s per the )rid 5ode being
issued by E%5 all )enerators Qe2cluding +ind and minihydelR +ith installed
capacity above 25 3! need to be scheduled and dispatched& .ll such
generators shall come under the purvie+ of ./'& It is to be noted here that
Action Plan for implementation of Intra state ABT
$tate
"eneratin#
$atations
IPPs
$TAT& )'A*
*I$PAT!+
!&(T%&
P'-&%
T%A*&%$
!PPs
A)*!
B&$!'.
A)*!
.&$!'.
A)*!
+&$!'.
A)*!
"&$!'.
A)*!
!&$!'.
!'($/.&%$ 0 'P&( A!!&$$ !'($/.&%$0 &(* /$&%$ '1 *I$!'.$
A)*!
+/22&%I
3
FBI% has recommended generators of 70 3! P above to be scheduled& Intra$
state ./' shall be applicable to the follo+ing:
i= .ll "5B3s and >u1eri "ociety
ii= .ll "tate o+ned generating stations
iii= I--s
iv= /io$mass and 5o$generation plants above 25 3!&
v= 5--s supplying po+er to the grid
?) Iss*es for implementation of Intra-state A#T2
i' Meterin-2 FBI% sub$committee has rightly pointed out that for
implementation of ./' and 6i mechanism +ithin the state, the activity on
the critical path +ould be installation of special energy meters on the
periphery of all entities +hich are to be covered by ./' and 6I& 'he meters
should be capable of recording all the parameters such as demand in 3!,
reactive po+er, po+er factor, fre0uency etc in a 75 minute bloc1&
'he status of metering at interface points as indicated by E-'5G is
furnished belo+:
• #o& Bf interface points of "5B3s +ith E-'5G: (+>;
• #o& Bf inter "5B3 interface points: 9@
• .u2iliary: 9A+
• 'otal: (A(?
• 3etered procured Q0&2 classRS (;9@
• /alance re0uiredS +;?
• 3etered so far installed: ?+A<as on 90&08&2005=
• .s per the current status, +;? meters are yet to be procured and
(@?A meters need to be installed at interface points&
<ETAILS O5 INTER5ACE POINTS &as at t4e en$ of Oct-+@@9'
Interface
Points
7olta-e
&K7'
#ESCO
M
MESCO
M
GESCOM
BESCO
M
CESCO
BUKKE
RI
SOCIET
Y
TOTA
L
Action Plan for implementation of Intra state ABT
14
ESCOMS
8it4 KPTCL
(( :6: ?7 776 758 7:? : A>+
,, : 2F :6 707 5 9 (?;
EBT ;; 92 0 2 7 7: 0 /A
((@ 0 6 8 2 0 0 (>
++@ 6 7 2 7 0 0 (@
IPP (( 5 2 : 7 70 0 ++
,, 0 0 8 70 0 7 +@
Total No) of
Interface
Points
((> (?? +>9 (>> ? (+>;
AU=ILARY +;> 9; ;A (@? ?A , 9A+
"ince the re0uired number ./' compliant meters have already been
procured by E-'5G for interface metering +ith "5B3s and already ?28
such meters have been f2ed, it is e2pected that all the other interface
points +ould be f2ed +ith ./' compliant meters 0uic1ly& 'his should be
completed before the end of 3arch 2006&
.ll the )rid connected generators that are scheduled and interface points
of "5B3s shall be provided +ith ./' compliant meters latest by 90
th
3arch 2006& 'he respective )enerating stations and E-'5G shall ta1e
action accordingly&
%egarding metering of >'4open access consumers including 5aptive
users, the same shall be ta1en up by respective "5B3s and completed
before the end of 3arch 2006&
ii' Comm*nication facilit"2 For e;ective implementation of intra$state
./', metering data should be transferred form the ./' compliant meters
to .GD54"GD5 on a real time basis& >ence ade0uate P reliable
communication facilities should be established& "5B3s have stated that
the communication facility +ill be established by E-'5G& !hile E-'5G has
stated that there is no communication lin1 at present to ac0uire data on
real time basis and hence ne+ leased lines are re0uired& "ince .GD5s have
to be established by the respective "5B3s in order to provide load
forecast to the "GD5 on a daily basis, communication facility from the ./'
Action Plan for implementation of Intra state ABT
11
compliant meters at the interface points to the .GD54corporate o,ce of
the "5B3s should be established& !hen such facility is provided, the
same lin1age could also be e2tended to the "GD5 parallelly for monitoring&
iii' 5inalisation of Capacit" allocation to eac4 ESCOM2
.s discussed earlier, the capacity allocation from various generating
stations including 5)" to the "5B3s shall be made in a systematic
manner& 'his re0uires a detailed study and careful analysis as this is being
attempted for the frst time in the state& E-'5G4"5B3s shall ta1e up a
Ioint e2ercise in this regard&
i' Tari%2 'he basic re0uirement for implementation of ./' is a three$part
tari; comprising of f2ed charges, variable charges and 6I charges in
comparison +ith the e2isting single4t+o$part tari;& FBI% has also
recommended adopting this tari; structure& .s already stated, the f2ed
charge +ould be lin1ed to availability and variable charges to the
scheduled energy& 'he 6I charges shall be applicable for the deviations
from the schedules&
. three$part tari; for the central generating stations is already in force
under the inter$state ./'& !hen the intra$state ./' is implemented, the
f2ed charges of the 5)" have to be allocated to the "5B3s according to
the capacity allocation, energy charges according to the scheduled energy
and 6I charges for variation in the schedule given by each "5B3&
%egarding the tari; for the generating stations in the state, the position is
as follo+s:
'he 5ommission has already approved --.s as follo+s:
<i= . t+o part tari; for E-5G thermal station <%'-"= comprising of f2ed
charges based on normative -GF, energy charges for actual generation and
incentive for actual generation beyond normative -GF&
Action Plan for implementation of Intra state ABT
12
<ii= . t+o part tari; for all E-5G hydro stations comprising of f2ed
charges lin1ed to normative station availability, variable charges <only
+ater royalty= for actual generation and incentive for higher availability of
the stations&
<iii= . t+o part tari; for HH#G diesel station <Jelahan1a Diesel station=
comprising of f2ed charges based on normative -GF, energy charges for
actual generation and incentive for actual generation beyond normative
-GF&
>o+ever, the tari; approved by the 5ommission in all the above cases are
yet to be implemented since the generating stations have appealed
against the orders of the 5ommission& .s indicated by E-'5G4"5B3s in
the %5 for FJ06, a t+o$part tari; is being follo+ed only in respect of %'-"
units 5,6 and F as per the draft --. and in respect of all other
units4stations cited above, a single part tari; is being follo+ed&
2= %egarding I--s in the "tate, a t+o$part tari; is being follo+ed in respect
of all the three I--s <'anirbavi, 'ata and %ayalseema=&
9= --.s of HH#G hydro stations have not yet been placed before the
5ommission for approval& .s indicated by E-'5G4"5B3s in the %5 for
FJ06, a single part tari; is being follo+ed at present&
'herefore, in order to implement intra$state ./', a t+o$part tari; should
be implemented for all the generating stations +ithin the state&
E-'5G4"5B3s shall ta1e action accordingly to convert the e2isting single
part tari; to t+o$part tari; in respect of all the stations&
%egarding the third part of the tari; i&e& 6I charges, the 6I rate determined
by the 5%5 is already in force for inter$state ./' and it has been
recommended by various e2perts including the FBI% sub$committee to
adopt the same 6I rate for intra$state ./' also& 'he 5ommission endorses
this vie+ and considers it appropriate to adopt the same till 6I rate is
determined by the 5ommission for intra$state transactions separately&
Action Plan for implementation of Intra state ABT
13
.ccordingly, 6I rates and threshold fre0uencies for 6I rate as determined
by 5%5 shall be adopted for the present&
'he FBI% sub$committee has recommended that incentives for generating
stations shall be lin1ed to higher availability instead of to -GF& .t present,
the incentives in respect of 5)" are lin1ed to actual -GF and not to
availability as per the e2isting 5%5 norms& E%5 +hile +elcoming the
suggestion of the FBI% sub$committee to lin1 the incentive to station
availability so that the generating stations are better available for
generation, it is of the vie+ that during this transition period, it +ould,
perhaps be better to continue the incentive to actual -GF achieved only as
other+ise, the "5B3s may be re0uired to pay higher amounts even +hen
the station availability is not fully utiliAed& If incentive is provided to the
generating companies lin1ed to availability, the generators may recover
incentives by declaring availability even +ithout generating a single unit,
specially so in the case of high cost energy sources& 'herefore, the
5ommission +ould continue the incentive lin1ed to actual -GF for the
present&
' Settin- *p of Area Loa$ <ispatc4 center &AL<C'2 ach of the
"5B3s have to set up an .rea Goad Dispatch 5entre to monitor and
control the dra+al of po+er +ithin the "5B3, as per the schedule& .s
discussed earlier, real time communication from the ./' compliant meters
to the .GD54corporate o,ce of the "5B3 is crucial for implementation of
the ./'& 'hese .GD5s shall be established before "eptember 2006&
i' Up--ra$ation of SL<C2 In order to handle the increased volume of
data under Intra$state ./' and also to perform the functions of monitoring
and energy accounting, the state load despatch centre needs to be up$
graded suitably by providing necessary soft+are, hard+are, human
resources and other infrastructure&
ii' Sc4e$*lin- : Ener-" Acco*ntin-2 'he "5B3s, the generators
+ithin the state and >'4open access consumers should ma1e day ahead
Action Plan for implementation of Intra state ABT
14
forecast for every 75 minutes time bloc1s under the ./' schedule, +hich
re0uires e2pertise& 'he schedules +ould be fnaliAed by "GD5 for "5B3s
and generators and by the 5oncerned .GD5Ds for >'4Bpen access
consumers&
iii' Gamin-2
)enerators may overstate their availability under ./' regime as the
recovery of f2ed charges is lin1ed to availability& "imilarly, the generators
may under declare the capacity to ta1e advantage of 6I charges& In either
case there +ould be gaming by generators +hich need s to be avoided&
.vailability tests needs to be conducted through third party& If the
units4station fails to demonstrate the declared capacity, penalty needs to
be imposed& Further, the capacity charges should be reduced to the actual
availability until the generator demonstrates higher availability& "imilarly, if
availability is under$declared, the 6I charges due to the generator has to
be credited to 6I pool& In addition, a penalty shall also be levied& In addition
to the penalties, o,cer in charge of the generator shall be made
responsible for misdeclaration&
"GD5 shall prepare a standard procedure for availability testing and
maintain record of all such tests carried out& %egarding time bloc1 for 6I,
FBI% sub$committee has recommended a 75$minute time bloc1& >o+ever,
FBI% has stated that as an interim arrangement 6I charges can be on 90$
minute bloc1&

A) Trainin- an$ 5amiliariCation:
6nder intra$state ./', energy accounting +ould be comple2 and re0uires
computeriAation and trained human resource for e,cient data
management& For e;ective implementation of the intra$state ./', the sta;
of "GD5 and the "5B3s need to be trained e2tensively& 'he sta; of "GD5
have already gained e2perience in operating the inter$state ./', but they
have to be further trained on intra$state transactions& E-'5G and "5B3s
Action Plan for implementation of Intra state ABT
15
shall send their concerned sta; for appropriate training& 'his activity needs
to be prioritsed and completed as per the time schedule indicated in
forthcoming paras&
(@) Responsi!ilit" for implementation2
It shall be the Ioint responsibility of E-'5G and "5B3s for implementation
of intra$state ./' as it involves f2ing ./' compliant meters at interface
points, establishing communication facilities and monitoring and control of
the operations under ./'& .s discussed earlier, E-'5G has already
procured ./' compliant meters and installed a large number of them&
"ince E-'5G is e2clusively in the business of transmission of electricity and
"GD5 being continued under E-'5G, E-'5G is in a better position to ta1e
care of the activities re0uired for implementation of ./' because of its
vast e2perience& 'herefore, E-'5G shall ta1e the responsibility to complete
the interface metering +ith all the generating companies, +ith the "5B3s
and also inter$"5B3 metering irrespective of voltage level, +ith due
coordination +ith the concerned "5B3s& 'he ultimate responsibility for
implementation of intra$state ./' shall be that of the "GD5&
(() Cost S4arin-:
.s far as the costs involved are concerned, the cost of interface metering
+ith the "5B3s shall be borne by E-'5G only since E-'5G has already
procured the meters and is in the process of its installation& "imilarly the
cost of up gradation of "GD5, upgradation of "5.D., re0uirement of
hard+are and soft+are at "GD5 etc shall be borne by E-'5G only& >o+ever,
the cost of providing real time communication of the interface points +ith
the .GD54"5B3s <corporate o,ce=, along +ith re0uired hard+are and
soft+are, establishment of .GD5 etc shall be borne by the respective
"5B3s& 'he cost of providing interface metering at inter$"5B3 points
shall be borne by the "5B3, +hich is feeding the other "5B3& In the
case of e2change of po+er bet+een the "5B3s, the "5B3 that has
supplied a higher 0uantity in the preceding 6 months shall be responsible
Action Plan for implementation of Intra state ABT
16
to install ./' compliant meter and shall bear the cost& 'he cost of
providing ./' compliant meters at the generating stations shall be borne
by the respective generating companies only& In a nutshell, it +ould not
greatly matter +ho bears the cost of various activities under the ./' since
ultimately, all the e2penses are passed on to the consumers through tari;&
(+) P4ase-8ise implementation of intra-state A#T2
In vie+ of the constraints in implementation of the intra$state ./', it is
proposed to implement the intra$state ./' in the follo+ing phases:
5irst P4ase: 'he 5ommission e2pects that the ./' compliant meters at
the interface points before end of 3arch 2006 and the re0uired real time
communication facility shall be in place before the end of 3ay 2006& From
7
st
@une 2006, a pro2y intra$state ./' shall be implemented for a period of
si2 months& In this phase the generators and the licensees +ould
participate in a pro2y implementation of ./'& In this phase the e2isting
meters available as on 7
st
@une 2006 should be used and the data +ould be
considered for half an hour period& 'he generators and "5B3s +ould
furnish a day ahead schedule to "GD5, +hich +ill fnalise the schedule duly
matching the generation and dra+al schedule& It +ill also carry out energy
accounting and +ould also compute the 6I charges on a +ee1ly basis&
'hese charges are computed only notionally and "5B3s4generators need
not ma1e any payment for violating the schedule& .ll the )enerators,
E-'5G and "5B3s should ma1e necessary arrangements to implement
the same from 7
st
@une 2006&
Secon$ P4ase: In this phase, the same procedure as in the frst phase
+ould be follo+ed for period of ne2t si2 months e;ective from 7
st
December 2006& >o+ever the generators4"5B3s shall have to pay the
./' charges for the generation4dra+al of po+er on half hourly basis&
T4ir$ P4ase: In this phase the )enerators and "5B3s +ould implement
the Intra$"tate ./' in 'oto, duly facilitating all the re0uirement of
implementation of intra state ./', +ith e;ect from 7
st
@une 200F& 'he
monitoring, energy .ccounting and billing +ould be on a 75 minutes basis&
Action Plan for implementation of Intra state ABT
17
In all the above phases, fnaliAation of schedule, monitoring and energy
accounting +ould be carried out by "GD5&
Intra-state A#T for B"$ro-stations
'he 5ommission notes that the average po+er purchase cost from hydro
sources in FJ06 from E-5G is about 5: paise per unit as per the %5,
+hich is far less than the energy charges from thermal sources&
'herefore, the hydro sources are not generally under the merit order&
Further, FBI% sub$committee has pointed out that certain issues have
come up recently in ./' for hydro stations particularly in #orth astern
%egion and have suggested that "%5s may e2ercise caution +hile
e2tending ./' to intra$state hydro stations or +ait for resolution of these
issues issues by 5%5 for central stations& In vie+ of these factors, the
5ommission proposes to postpone implementation of intra$state ./' to
hydro stations for a period of one year& >o+ever, such stations shall
complete all preparatory +or1 for implementation of intra$state ./' as per
the .ction -lan and also provide day ahead availability 4 output schedule to
"GD5&
(,) Action Plan:
. bar chart P 'ime "chedule indicating the .ction plan for implementation
of the intra$state ./' is given belo+:
I
->."

II

III

Dec06 @un0F
'I3 GI#
Action Plan for implementation of Intra state ABT
SECOND PHASE Dec06 to end of May 07
THIRD PHASE From Ist Jne 07 on!ards
FIRST PHASE
1,
• TIME SCBE<ULE
"ta1eholders are re0uested to o;er their comments&
TTTTTTTTTT
Action Plan for implementation of Intra state ABT
PHASE TIME LINE ACTIVITY
I /y the end of 3arch
2006
7& -roviding ./' compliant meters at all
interface points including generating stations&
2& Impart necessary training&
/y the end of 3ay
2006
stablishing suitable communication net+or1
for recording data on real time basis +ith
5orporate o,ce "5B3s4"GD5&
/y the end of
"eptember 2006
"etting up of .GD5s in each "5B3s4>u11eri
"ociety&
@une06 to Dec 06 7&-ro2y Implementation of ./'
2&./' based daily accounting and billing for
half an hour&
9&)enerators and Gicensees to comply +ith
./' based availability and dra+al schedules
for half an hour&
:&%GD5 4 "GD54.GD5 to co$ordinate on real
time data management&
5&)enerators and Gicensees need not pay as
per ./' billing&
II Dec 06 to end of 3ay
0F
7&)enerators 4 Gicensees to pay ./' charges
on half an hourly basis&
III @une 0F Bn+ards Final Implementation of ./'&