Power transmission rates to be modified today

In the new method, the country will be divided into five zones and a transmission charge of 12-15 paise per unit will be charged for wheeling power from one zone to the other.

The CERC's order on transmission charges is a prerequisite to the introduction of open access in inter-state transmission, as provided under the Electricity Act, 2003.

Once the interconnect tariffs are in place, distribution companies will be able to source power from outside their respective states by paying the transmission charges.

Consumers will also be able to access a generator or distribution licensee other than his own distribution licensee, once state electricity regulatory commissions specify the norms for allowing open-access in distribution.

Under the postage stamp method, the country would be divided into five zones, namely the north, south, east, west and north-eastern.

For the wheeling power, say from a project in Bihar (in the Eastern zone) to Delhi (in the Northern zone), two zones (Central and North zones) will have to be traversed and hence the transmission charge will be equivalent to three stamps (of around 12 paise for each unit of power transferred).

The CERC will also nominate a nodal agency responsible for overseeing inter-state transmission. In case of long-term access, the nodal agency will be the Central Transmission Utility (presently PGCIL), while for short term access it will be the respective Regional Load Despatch Centre (RLDC) of each zone.

At present, this method is in limited use for calculating transmission charges for state-owned Powergrid Corporation Ltd (PGCIL), the only player into transmission.

In the long run, the CERC will move towards an 'incremental postage stamp method', where the country will be divided into zones of 100 square km and a postage stamp rate (a fixed charge per unit of energy transmitted within a particular zone) would be prescribed.

The transmission charges, as prescribed by the CERC, will have wider implications as the CERC's open access norms in transmission are set to act as the guidelines for state regulators' policy on the introduction of sopen access in distribution.