Settlement system for Collective Transactions Power Exchange

Settlement system for Collective Transactions (Power Exchange)

Philosophy • • • To avoid pan-caking of charges Reduce cost of power/ burden on end user Encourage transactions Reasonable levy of charges for the usage Fair compensation to the Long term user of Tr. System • Fair compensation to the Owner of Tr. System • Reasonable charges to RLDC/SLDCs

Collective Transaction charges 1) Application fee Rs. 5000 per day – – irrespective of no. of individual transactions. Non-refundable Within 3 working days To be retained by NLDC entirely 2) Standing clearence/ No objection Certificate issue fee by SLDC (quarterly basis) – Rs. 5000 per certificate 3) Transmission Charges a) Regional/CTU Tr. Ch. Rs. 30/MWh (ps 3/u) for each point of Injection Rs. 30/MWh (ps 3/u) for each point of Drawl b) STU/SEB/Tr. Licencee Tr. Ch. Rs. 30/MWh (ps 3/u) for each point of Injection Rs. 30/MWh (ps 3/u) for each point of Drawl To be paid only if the Tx is not internalised. as specified by SERC or Rs. 30/MWh (ps 3/u) No retrospective revision by STU

Collective Transaction charges 4) Operating Charges – Rs. 5000/day/entity involved • NLDC • SLDC for all export entity • SLDC for all import entity – All Buyers within a state to be clubbed in one group and called one entity – All Sellers within a state to be clubbed in one group and called another entity – NLDC to count each Buyer group and Seller Group for levying operating charges – Charges exempted if internalised

Internalisation • Mostly in case where unbundling has not take place ( ex. SEBs, vertically integrated utilities etc. ) • For own use, Tx is internalised • For use by a third party, Not internalised. If internalised • Certificate to be submitted • No transmission charges for concerned STU/Tr. Licencee • No operating charges for concerned SLDC

Mode of payment to NLDC • Bank draft/ at par cheque/ electronic money transfer • No outstation cheque • Within 3 working days

Sharing of charges with RLDCs • CERC left it to CTU to decide • CTU decided : 1) Application fee – to be retained by NLDC entirely 2) Operating Charges : NLDC to retain – Rs. 2000 to be retained by NLDC – Rs. 600 to each RLDC

Default • 0. 04% simple interest for each day of delay/default • NLDC may not – schedule the Transaction – Entertain further application in future till dues are cleared

Other Charges • 1) Energy charges • As evolved in Price discovery meachanism based on market conditions, demand-supply position • Double sided Auction • Rate will be put on Px web after the bidding • Px to collect and disburse

Other Charges • Power Exchange marigin • 1 ps/u

Revision in OA schedule • Normally not revised except in case of Tr. Constraint • First Bilateral Tx to be curtailed and then only Collective Tx • OA charges corresponding to Downward revision to be refunded • To be reconciled for previous month and refunded within 15 days of current month

Disbursement NLDC to • Reconcile all charges for previous month • Disburse to all stake holders within 10 days in current month Disbursement of • CTU charges to concerned RTS • STU charges to concerned STU/SEB • Operating charges to concerned RLDCs • Operating charges to concerned SLDCs

Disbursement RTS • to retain 25% of CTU transmission charges • Balance 75% to give credit in their Transmission Bill (as per weighted Average entitlement to each Long term customer)

Refund When to refund ? • Incase of curtailment due to transmission constraints How much to refund ? • A) Pro-rata charges for the energy curtailed and Refund balance OA charges (transmission charges and operating charges) for the reduction in Energy Deadline for Refund : • Within 15 days of current month for Tx curtalied/revised in previous month

Indemnification No responsibility to Nodal RLDC • In case of Default Indemnify RLDC/ SLDC harmless from All damages/ losses/ claims/ costs etc.