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W y?

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Year Development

1910 Electricity Act 1910

1948 Electricity Supply Act 1910

1950 SEB formation1951 CEA established as a part-

time body

1975 CEA established as a full-time body

1996 First SERC was formed in

the state of Orissa

1998 Electricity RegulatoryCommission Act 1998

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2001 Energy conservationc

2002 The bureau of EnerEfficiency

2005 NEP, Appellate

Tribunal for Electricity

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-POC and PX

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Electricit Act 2003

It facilitates investment by creating competitive environment and reformingdistribution segment of power industry

Entry barriers removed/reduced

No license required for generation

Freedom to captive generation including group captives

Recognizing trading as an independent activity

Open access in transmission already in place Open access to consumers above 1 MW within five years commencing from 27th

J an 2004 (date of enforcement of amendment of Electricity act)

Multiple licenses permitted in same distribution areaRegulatory Commissions-to fix tariff and to regulate

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Objective

Mainly to develop an efficient pricing algorithm fortransmission/distribution use of system charges toencoura e erturbation of new industrial loads andgenerations.

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Vision

To provide technical inputs and develop models in the area

Central Electricity Regulatory Commission (CERC)

State Electricity Regulatory Commission (SERC)

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Network Pricing Issues

--

Cost Allocation -- Technical Issue

Revenue Reconciliation -- Regulatory Issue

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Network Cost Evaluation (Tariff)

CAPITAL COST OF THE PROJ ECT : Rs 100 CrsLOAN : Rs 70 CrsEQUITY : Rs 30 CrsRATE OF INTEREST ON LOAN : 8% PA

Tariff P/AIOL (Interest on loan) : 70 x 0.08 = 5.60 CrsROE (Return on e uit ) : 30 x 0.14 = 4.20 CrsDEPRECIATION : 100 x 0.0297 = 2.97 CrsO & M : 276 x 0.227 = 62.65 Lakhs

(for 276 ckt kms Line): 2 x 28.12 = 56.24 Lakhs ( for 2 bays)TOTAL O&M : 62.65+56.24 = 118.89 LAKHS = 1.19 CrsIOWC(Interest on Working Capital) : 10%WC : 3.42 Crsi) Two months receivables : 2.32 Crs

ii)ii) One month O&M : 0.10 Crsiii)iii) 1% of capital cost as spares: 1.00 CrsIOWC : 3.42 x .10 = 0.34 CrsAAD(Annual average damage) : 5.83 -2.97= 2.86 CrsRepayment of loan @ 5.83 Crs per annum in 12 yrs

TOTAL ANNUAL TARIFF : =17.16 Crs

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Entry & Exit Charges

Entry Charges for Generators, Exit Charges forLoad

Varies With System Voltage Levels Between Entry& Exit Points

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Common Service Charges

Asset Related Costs & Services Ensuring Integrityof Network & Benefiting All

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Network Use of System Charges

Return on Capital Value of Network

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Pricing Methodologies

PSM (Postage Stamp Method)

DRM (Distribution Reinforcement Model)

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PpeakTCRt *=

Rt=transmission price for load t

Pt= peak power of load t

Ppeak= system peak power

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DRM (Distribution Reinforcement Model)

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ong un are ncrementa ost

a new shared and back to future methodology

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From

Bus

To

Bus Xfrmr MW From Mvar From

MVA

From Lim MVA

% of MVA

Limit (Max) MW Loss Mvar Loss

1 5 Yes 394.8 114.3 411 600 68.5 2.53 33.79

4 2 No 303.7 121.5 327.1 1200 27.3 11.84 -17.57

5 2 No 525.7 263 587.8 1200 49 17.5 122.13

3 4 Yes 440 297.5 531.1 1000 53.1 1.92 25.59

5 4 No -133.4 -182.5 226.1 1200 18.8 1.04 -32.18

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Future Scope

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Future Scope

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CAPACITY=1MVA

GSP

LOAD

GSPGSPGSP

CAPACITY=1MVAREAL POWER=1MW

LOAD(1+j0)MVA

CAPACITY=1MVAREAL POWER=0.8MW

LOAD(0.8+j0.6)MVA

CAPACITY=1MVAREAL POWER=0.6MW

LOAD(0.6+j0.8)MVA

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sin

Q

cosP

Q

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Price Elasticity

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ICRP Charging Model

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Framework

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THANK YOU