W.

BENGAL
BIHAR
JHARKHAND
ORISSA
Sikkim
132 kV Sahupuri-Karmanasa S/C -
132 kV Rihand - Sonenagar
220 kV Dehri -Sahupuri
220 kV Balimela (Orissa) -Upper
Sileru
220 kV Birpara-Salakti D/C line
1999
132 kv Rihand-Garwah
220 KV Korba (MP) Budhipadar
(Orissa)
Tala
Allahabad
Bnggon
Raipur
Vizag
Kolar
Rourkella
Talcher
YEAR ISGS Thermal
GEN
(MU)
EXPORT
(MU)
TOTAL
SAVING
(RS. CR)
1995-96 9584 854 69
1996-97 10628 652 75
1997-98 13585 2389 309
1998-99 14063 3438 461
1999-00 16381 5931 735
2000-01 18228 6773 755
2001-02 18279 8721 943
2002-03 20460 9382 961
Savings of ER Constituents Due to Export
National Grid
CTU INTER REGION
CTU_WEST
CTU_SOUTH
CTU_NORTH
CTU_EAST
CTU_NE
STU
STU
STU
RLDC
NLDC
RLDC
RLDC
RLDC
RLDC
ERLDC:POWERGRID
BULK POWER
TRANSACTION
W.R
N.R
NER

SR
C.S.GENERATORS
STATE
SYSTEMS
STATE SECTOR
GENERATORS
Operating Frequency
49 to 50.5 Hz
Frequency band for safe operation of
Steam Turbine as
recommended in IEGC
Pre ABT Settlement system
The payment to Central Generating Station by a
constituent - proportion to total energy drawal
Recommendation of K.P.Rao Committee Report.
Both Fixed and Variable charge was payable as per
energy drawal
Based on Monthly Regional Energy Account- REA
Conventional Meter Readings
Fixed cost recoverable with deemed generation
( generation not made available)
Incentive payable after accounting for deemed
generation
Although a two part tariff- Single part for
constituent

Inadequacies
Non-utilization of Utilities Surplus Power
No incentive for Maximization of own/ IPP/captive generation within a State as the
cost of power paid is based on pooled rate of ISGS stations.
No effective commercial mechanism for pricing deviations from schedule.
Dumping of surplus power at High Freq
Forced Backing down/ Reserve Shut down
Deemed generation for backing down
Non-utilization of embedded IPP/Licensee surplus Power.
Administrative problems and no commercial arrangements for utilization of this
power. Any surplus remains unutilized.
Non-utilization of Pumped Storage Scheme
No commercial mechanism to draw cheap off peak power for pumping. Bhira
PSS/Kadamkadai is not being utilized in the pumping mode.
Contd..
Inability to Despatch Generation according to
Grid requirement.
Generation of Licensees cannot be despatched as per Grid requirements due to
commercial problems.
Curtailment of Bilateral Transactions due to
Grid Indiscipline.
Overdrawing State(s) deliberately increase drawls and cause frequency to dip
below 48.5 Hz so that inter-regional transactions are terminated.
Absence of Merit Order Operation
As payments are based on drawls and not on shares/schedules, fixed
cost are not perceived as sunk costs.




Inherent Disadvantage
No incentives for generators /utilities to respond to
dispatch orders for issues like frequency control
No Incentive for helping the grid
No disincentive for hurting the grid
No signal to generators to match availability with
system needs
Did not promote Grid Discipline
No signal for trading of power.

Overall economy was lost.
EFFECT
Backing down of cheaper CS generation
Caused high per unit cost
Dumping of energy by other utility at high
frequency/off peak hours-
additional fixed cost liability for
generation & transmission.
More payment Liability
- Even when helped the grid
Ultimate Effect
Grid Indiscipline-
Low Frequency during peak
High Frequency during off peak
Control Instructions
Subjective decisions
Not based on overall economy
Perpetual Operational & Commercial
Dispute amongst Utilities/Central
Generators
Poor Supply quality to
consumers/industries
Damage to equipments
Shifting of Industries/Investments

Why ABT?
Promote competition, efficiency and economy-
Merit order dispatch

Competitive market based system

Possibility of trading on a non-firm basis-
selling of capacity entitlement

Facilitating Grid discipline- Incentive and
disincentive for deviation


Capacity Ch. + Energy Ch. UI

A + B C
TOPICS DEALT IN THE ORDER
TARGET AVAILABILITY
CRITERIA FOR INCENTIVE
PROCEDURE FOR PREVENTION OF GAMING
PROLONGED OUTAGES
UI CHARGES AND FREQUENCY VARIATION
SETTLEMENT OF UI ACCOUNT
TREATMENT OF UNALLOCATED CAPACITIES
Availablity Based Tariff (ABT)
Links commercial mechanism & Grid Operation
Promotes grid operation
ABT Structure 3 parts of tariffs
A. Capacity charges
Proportionate to entitlements (not actual drawals)
Full recovery at target availability (not PLF)
Incentives linked to Availability (80%) and PLF (77%)
Incentives half of per KWh fixed charges at target availability /
capped at 21 p/u

B. Energy charges
Payable for schedules (not as per actual drawals)

C. Unscheduled Interchange
Payable for deviations from schedules
Linked to average frequency for 15 minute time block (graph
enclosed)
.

Central Govt. CEA

CERC REB State Govt SERC
CTU RLDC SEB/STU SLDC








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