CERC Proposes Changes to ISTS Burden and Loss Sharing Regulations

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The Central Electricity Regulatory Commission (CERC) has proposed amendments to the 2020 Interstate Transmission Cost and Loss Sharing Rules.

Some of the important amendments are listed here.

Increase bills

The annual transport costs will be shared between the ISTS drawn customers of the receiving region in proportion to their quantity of RNG. Previously, annual transmission costs had to be shared between ISTS customers drawn from the receiving region and designated ISTS customers with untied long-term access in the receiving region, prorated to the amount of LTA plus access medium-term open and unbound LTA, respectively.

RNG

According to another important amendment, the “T-GNA rate (in ₹/MW/block) will be published for each billing month by the executing agency, which will be calculated per state as follows: Transmission fee for GNA for entities located in the State, for the billing month, for the first bill X 1.10 / (number of days in a month X 96 X GNA quantity, in MW, for the corresponding billing period).

Previously, the short-term open access tariff (in paise/kWh) for each billing month had to be calculated as follows: State transmission charge for the billing month/(7,200 X the quantity, in MW , long-term access plus free medium-term government access for the corresponding billing period).

Transmission charges for T-GNA will be payable by Drawee Entities located in the State, in accordance with the latest published T-GNA Tariff for the State. According to the previous clause, the transmission costs for short-term open access were to be paid by the plants located in the State, according to the latest published tariff.

Transport costs in case of delay

Another amendment stipulates that when the date of commercial operation of a beneficiary of connectivity is delayed and the associated transport system has reached commercial operation, the beneficiary of connectivity must pay annual transmission charges corresponding to the connectivity capability that has not reached commercial operation. Previously, when the operation of the plant was delayed and the associated transmission network had reached commercial operation, it had to pay transmission costs corresponding to the LTA granted to the plant which had not reached commercial operation. .

Where only some of the Transmission Elements of the Associated Transmission System have reached commercial operation prior to the Operation of the Associated Transmission System, the annual Transmission Charges of those Transmission Elements will be included in determining the Transmission Charges for ISTS Customers. Previously, if only some of the transmission elements reached commercial operation and the central wanted partial LTA operationalization, the central transmission department could authorize it. Annual transportation costs had to be included for the determination of ISTS customer transportation costs.

Another amendment stipulates that when connectivity is granted on existing margins and the commercial operation of such a beneficiary is delayed, he should, corresponding to the delayed capacity, pay transmission charges from the date of the start of connectivity at the rate of ₹3000 (~$38.37)/MW/month. Whereas the previous clause provided that when long-term access is granted and the date of commercial operation of the plant is delayed, the plant must pay a transmission charge at 10% of the transmission charge per MW for the State where it is located, corresponding to the ability that is delayed.

In addition, where a transmission line has already been constructed by an ISTS licensee, annual transmission charges should be payable by the plant to the ISTS licensee. Previously, when a dedicated transmission line had already been built, the annual transmission costs of the plant had to be paid to the licensee from the commercial operation of the transmission line until the operationalization of the LTA of the central.

According to another amendment, regional entities taking energy at start-up or during shutdown after commercial operation or for renewable power plants taking energy outside production hours should pay transmission costs for the injection or withdrawal beyond its T-GNA at the transmission deviation rate. According to the pre-amendment clause, plants drawing their start-up power from SIST had to pay transmission charges at the rate of the transmission gap in the state where they were located.

The CERC stated that the executing agency should, within 45 days of notification of the amendments, publish the revised procedures for implementing the provisions of this amendment after consultation with stakeholders.

Last November, the Department of Energy announced that ISTS fees would be levied on renewable energy projects, including solar, wind, pumped hydro storage and projects with energy storage systems. by battery (BESS) put into service after June 30, 2025.

In 2019, the CERC published draft regulations on interstate transmission load and loss sharing.

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