CERC to ease norms for power trading

The Central Electricity Regulatory Commission (CERC) has proposed to revise its regulations on open access in inter-state transmission in order to ease power trading.

Open access in transmission creates power-buying options for distribution companies and bulk customers, thus facilitating competition in the power generation industry.

In a staff paper circulated for public discussion, the CERC has proposed that beneficiaries having inter-regional allocations from central generating power stations and customers with long-term bilateral contracts should pay transmission charges proportionate to their allocations plus the contracted capacity vis-a-vis the capacity of the inter-regional link.

All long-term, inter-regional customers should also pay reliability support charges in addition to usage based charges, it has suggested.

Regional Load Despatch Centres may decide to keep a certain degree of capacity as reserve margin. The remaining capacity (after accounting for allocations from central generating stations), long-term contracts and the reserve margin, should be available for short-term open access.

In uncongested corridors, the floor rate for short-term open access customers for inter-regional links is proposed to be increased to 50 per cent of the effective rate for long-term users, as against the current norm of charging them 25 per cent of the rate.

Short-term customers "" those who want to avail of transmission services for a period of up to a year "" would continue to be charged on a per-day basis for transmission. Long-term customers are those wanting transmission access for 5 years or more.

The paper has also suggested that open access reservations in which applications are received till the 19th of a month will be processed together on a monthly basis. In case no congestion is anticipated, applicants will be granted short term access by the 25th of a month.