Complexities in Open Access Billing By Dr.M.S.Kele, CE - - PowerPoint PPT Presentation

Complexities in Open Access Billing

By

Dr.M.S.Kele, CE (Commercial), MSEDCL, Mumbai.

Agenda

Agenda

– Open Access Regulations – Open Access Billing – Conventional Generators – Wind Energy Generators – Hydro Generators – Typical Case Studies

Types of Open Access

Type of OA Type-I Type-II Source

Conventional (CPP/IPP) e.g. Uttam Galva,Khopoli Non-Conventional (Self Use/Third Party Sale) e.g. TATA Motors, Tatyasaheb Kore, Vindhyachal Hydro

Captive

One to One e.g. Finolex, Ratnagiri Group Captive e.g. KSK Wardha

Location

Embedded e.g.Uttam Galva Non–Embedded e.g. RPL Urja, Yavatmal-Buldhana

Quantum

Full OA e.g. Jindal Partial OA e.g. JSW-ISPAT,Pen

State

Interstate e.g. Sterlite Industries Intrastate e.g. All within state

Exchange

IEX e.g. Indorama PXIL

Trader

Interstate trader (License by CERC) e.g. Tata Power Trading Co., Intrastate Trader (License by MERC) e.g. Global Energy, OA through WEG & Conventional generators

Billing Methodology & Billing Parameters for every consumers may vary.

Application & Documentation

• Application in prescribed format
• Demand draft of processing fees
• Recent electricity bill
• Technical Feasibility from field office
• Certificate from Testing dept. for installation of SEM & CT/PT

with required specifications.

• Consent from source generator
• Copy of Trading License in case of source of power is through

trader

• Letter from exchange if source is exchange
• If CPP: Certificate from Chartered accountant showing 26%

stakes

• Tripartite Agreement-(OA Consumer-Generator & Utility)
• EPA with MSEDCL: If utility agrees to purchase over injected units.

Provisions of OA Regulations-2005

Regln Criteria Particulars

3 Eligibility Contract Demand should not be less than 1 MVA 4.2.1/ 4.2.2 Reduction of contract demand The contract demand to be reduced to the extent of open access capacity applied for 5 Agreement Connection and use of distribution system agreement o be executed between DL, Generating company, OA consumer 7 Metering Special Energy Meter is mandatory for both OA consumer & OA generator along with 0.2 S class accuracy CT’s & PT’s 8 Billing Billing parameters to include wheeling charges, transmission charges, cross subsidy surcharge, additional surcharge 9 Security Deposit Security deposit payable for wheeling charges, energy charges 13 Cross subsidy surcharge To be payable by open access consumer other than captive user

Guidelines Issued

Date Particular of Guidelines issued

19.12.11 Installation of SEM for FBSM mechanism (15 min data submission) 04.05.12 Standby charges Rs.20/- in addition with regular demand charges. (30 days) 24.05.12 Billing of OA Consumers at HO level 15.06.12 Installation of SEM to WEG 07.07.12 Issuance of credit notes / way forward in view of MERC interim order 17.07.12 Format for Notice of termination / reduction of CD 12.09.12 No reduction / Enhancement of CD at field level for OA consumers 13.09.12 Corrigendum : CD redn & Temporary charges for excess drawal in 15 min time

Charges Applicable

Charges EHV 33kV 11kV

CSS @ Rs. p.u. as per MERC order dated 21.02.2013 1.63 1.18 0.53 REC reading charges

• Rs. 5000 p.m.
• Rs. 5000 p.m.
• Rs. 5000 p.m.

Transmission Losses 4.24 % 4.24 % 4.24 % Transmission Charges (Per Unit) 0.29 0.29 0.29 Wheeling Losses % 6 9 System Loss in % 4.24% 9.99% 12.86% Wheeling Charges @ Rs. p.u. 0.11 0.60

2% Charges for non SOP consumers on mixed feeder & whichever higher for express feeder. Standby Charges @Temporary tariff of relevant category: Rs.12.82 for HT & 15.07 for LT Cons Electricity Duty depending upon category: R-15%, C-17%, I-9%, Cinema-10% CPP-30 paise /unit. Tax On Sale of Energy depending upon consumer category : 8 paise/unit FOCA variable per month

Load Requisitioned through OA Processing fee per application Operating Charges Operating Charges per month Up to 1 MW Rs.10,000/- Up to 5 MW

• Rs. 10,000/-

More than 1 MW and up to 5 MW Rs.15,000/- More than 5 MW and up to 20 MW Rs.30,000/- More than 5 MW Rs.20,000/- More than 20 MW Rs.50,000/-

OA Consumers Details

Type of Generator Wind Hydro CPP – General OA Year 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 Sale to MSEDCL 105 101 Self Use 90 95 2 1 5 32 Third Party Sale 210 195 1 6 Total 356 391 2 1 6 38 Wind Open Access FY 2012-13:- Sale To MSEDCL:- 101 (65 MW, Short Term, Excluding EPA ) Self Use:- 95 (167 MW) Third Party Sale:- 195 (343 MW) MERC ( Distribution Open Access ) Regulations, 2005 MERC ( Transmission Open Access ) Regulations, 2005 CERC Power Market Regulations, 2010 MERC (SoP), Regulations, 2005 MERC (Supply code) Regulations, 2005 State Grid Code

New CSS (MERC Order No.138 of 21 Feb.2013)

Sr.No. Voltage level Category (Industry) New CSS rate Old CSS rate Difference % Rise 1 EHV Express Feeder

1.63

0.92 0.71 77.17 Non Express feeder

1.20

0.52 0.68 131.47 Seasonal Industry

2.84

2.20 0.64 29.09 2 33KV Express Feeder

1.18

0.61 0.57 93.42 Non Express feeder

0.76

0.21 0.55 261.83 Seasonal Industry

2.39

1.89 0.50 26.45 3 22/11KV Express Feeder

0.53

0.31 0.22 70.97 Non Express feeder

0.10

0.00 0.10 10.00 Seasonal Industry

1.74

1.59 0.15 9.43

Total Nos.

• f OA

consumers Total CD of OA consumers Total OA Capacity of OA cons. MSEDCL Retained CD Amount of Bill prior to availing

• pen access

Amount of Bill after availing

• pen access

Reduction in MSEDCL Revenue

44

854.6MVA 531.0 MVA 323.6 MVA 196.45 Crs 39.17Crs. 157.28 Crs

Impact of OA Consumers on MSEDCL Revenue

Open Access Billing

Sourcing through Conventional Generators (CPP/IPP/IEX)

Conventional OA-Consumer wise Issues

Consumer Capacity Issue

KSK Wardha Power 126 MW Group Captive (23 Cons.)

• i. Wheeling power to 23 Captive users.
• ii. Captive criterion not fulfilled in 2011-12, CSS levied &

stopped & again to be levied from this month

• iii. Scheduling & matching with each gen. & consumer.
• iv. Proportionate billing & No incentives, temporary rate
• v. Levy of Transmission charges , (BPTA).
• iv. Purchase of excess injected units. (Lapsed/ Agreed rate)

JSW Ispat 275 MW CPP (1-2 Cons) i. Previously One to One consumer. ii. Partial Open Access. (220 + 80) MW iii. Proportionate billing, No Incentives, Lapsed units iv. Now, 2 consumers, Pen & Nagpur, v. Standby supply of 30/(42) days with industrial rate.

• vi. 30 days data storage. (Capacity of meter storage)

ISMT 36 MW (CPP with Tripartite consumers)

• i. Three Cons at Jejuri, Baramati & Ahmednagar
• ii. Jejuri consumer has tri-partite agreement with InOx.
• iii. No SEM, Billing on ToD meter, Excess injected units
• iv. Billing issue (No 3% incentive to tripartite consumer)

Sterlite 14 MW (Interstate OA)

• i. Sourcing power from Orissa on 33 KV level.
• ii. Non-SOP consumer, EHV CSS issue
• iii. Consumer in Dist. Franchisee area, Transmission charges.

Conventional OA- Contd……..

• Cons. Capacity

Issue

Indo Rama 7 MW OA (Through IEX) i. 7 MVA CD & 31 MW standby. (How many times?) (Breakdown?) ii. Reduction of CD , No SEM iii. Tripartite agreement iv. Scheduling & Billing problems ( No Regulation for OA through exchanges) Uttam Galva 60 MW (Embeded CPP) i. Self use (27) + EPA(30) + Open Access (3) ii. Issue of EPA units, over-injected units, iii. Double charging of transmission charges. (STOA Tr. Charges by SLDC) RPL Urja 10 MW (Non embeded CPP) i. Yavatmal to Buldhana ii. Self use (4.2) + EPA(4.9) + OA (2.2) iii. Non -Embedded unit plus OA Plus EPA with MSEDCL

Peculiar Cases…..Asking for OA

Heavy Water Board

17 MW (Interdepartmental OA)

i. Plant of Heavy water at Thal is asking power from Gujarat base Kakrapara Atomic stn (NPCL) Gujarat having cap.of 220 MW ii. Both departments are coming under Dept of Automic energy but not fulfilling criteria of 26% equity. Filed Case in MERC

Relian ce (VIPL)

300 MW plant at Butibori

i. IPP Asking power for his cement plant (3 MW) by laying own dedicated line in our license area. ii. CSS is applicable but can we allow lines in our area… iii. Referring APTEL judgment as exclusive preview like CPP

CR

127 MW for 29 Locations

i. Plant of Central Railway in Bihar is not ready ii. Documents are not provided

Dispute Cases in Various Fora /Courts Regarding Conventional OA

Date Case No. Petitioner Particular of Cases Status

Dec, 11 161 Of 2011 & other cases Wardha Power Co. Ltd. Non grant of open access, Compensation for damages, CPP status of generator Captive status challenged by

• MSEDCL. Case going on.

Aug, 11 61 of 2012 Jindal Saw Ltd, Nashik Non – grant of Open access through Exchange Granted permission. MERC order dated 21.11.12 Sept, 11 84 of 2012 Rajrani Steel Casting P. Ltd., Nashik Non – grant of Open access through Exchange Granted permission. MERC order dated 21.11.12 Dec, 12 117 of 2012 Wardha Power Co. Ltd. Refund of CSS Case going on. Dec, 12 138 of 2012 MSEDCL Re-determination of CSS Reserved for order. Jan, 13 4 of 2013 Videocon Industries Ltd Non – grant of Open access through Exchange Granted permission. Jan, 13 10 of 2013 BOC Ltd. Non – grant of Open access thru trader Granted permission. Feb, 13 15 of 2013 Jindal Polyfilm, Nashik Non – grant of Open access through Exchange Granted permission Feb, 13 12 of 2013 Heavy Water Board,

• Dist. Raigad

Grant of long term Open access with captive status and banking Already granted STOA permission.

Case Study: M/s KSK Wardha Ltd.

OA through Group Captive Generator

: (OA Capacity: 186 MW, 14 Captive users ,23 Industrial units)

• I ssues:
• Non fulfillment of CPP criterion in FY 2011-12.
• Charging of Cross Subsidy Charges
• Charging of Transmission charges & BPTA
• Non installation of SEM
• Enhancement of OA capacity by Cons.
• Application for inclusion of additional captive users

– Application of OA to M/ s. Spentex Ind. (its 3 industrial units and M/ s. Cimco its sister concern)

– For this Wardha reduced the previous share holding of its 3 cons & introduced new. – The matter was referred to our Company Secretary and the share transfer is found generally in order. – The application of Spentex is in process & application of Cimco is rejected on the ground that they do not have equity shares in their name. – The consumption pattern prior to share transfer and after change in equity is required to be monitored separately so as to qualify as CPP.

• Applications of Wardha consumer as a group captive Users of M/ s.

Gupta Energy P . Ltd. ( Duplication of Consum ers)

– M/ s. R.L.Steels – M/ s. Sona Alloys – Both are Wardha captive users and have also applied for OA through GEPL.

• Application for enhancement of reduced CD

 Three Cases in MERC are going on … ..

Case Study: M/s Sterlite Industries

• Issues in Billing For Non-SoP Interstate consumer:

– Interstate Consumer with Non-SoP consumer – Transmission Loss (4.24% or 10.24%) – Cross Subsidy Charges –Old (EHV side (0.92) of HV side(0.61)) – Wheeling Charges (Apportionment of charges with franchisee) – Load enhancement was genuine. – 2% additional Charges for Non-dedicated feeders. – Whichever is higher billing for express feeders – Change in generator so many times by consumer & was not known to DL ( Meeting with WRLDC ) – If generator trips, what will be situation? – How many times, consumer can change generator. – What about JMR & tripartite agreement ?

Gam ing: Application for enhancem ent of reduced CD

• OA regulation 4.2.1 & 4.2.2 : For reduction of load as DL can’t purchase

power for those consumers.

• Now Consumers are applying for enhancement of load without

increase in connected load.

• It is gaming: As……

– There is clear cut OA regulations for reduction of CD to the extent of OA capacity applied. – Without increase in connected load they ask for enhancement – MD Calculation sheet & its use should commensurate. – Technical feasibility is not asked, if it is case, then EHV load, T/F & line capacity must increase. – License’s genuine consumers paying demand & energy charges may be deprived from their rights. – It will be just idle capacity sanctioned to save temporary charges of excess drawal units. – There should be additional surcharge on such cases. – Congestion in transmission corridor capacity – My transmission capacity rights will have to be increased unnecessarily. – We should deduct OA capacity from TSU (TCR) capacity

Gaming in Excess Injected Units

Power Project During December- 2012 Cumulative during 2012-13 During Last Year 2011-12

a) Bagasse 1) Total Gen 216.99 734.71 1396.29 2) Sale to MSEDCL 216.99 734.71 1396.29 b) Biomass 1) Total Gen 20.29 180.29 248.65 2) Sale to MSEDCL 20.29 180.29 248.65 c) Wind 1) Total Gen. 208.65 4003.42 3477.31 2) Sale to MSEDCL 149.02 2999.25 2624.63 d) Hydro 1) Total Gen. 14.82 126.72 144.33 2) Sale to MSEDCL 14.82 126.72 144.32 e) Solar 1) Total Gen. 3.64 24.61 10.89 2) Sale to MSEDCL 3.64 24.61 10.89

f) CPP

1) Total Gen. 70.94 760.19 1204.14 2) Sale to MSEDCL 70.94 760.19 1204.14 g) NVVN 1) Total Gen. 6.87 58.47 29.57 2) Sale to MSEDCL 6.87 58.47 29.57

g) Over injected units

1) Total Gen. 74.02 541.53 2) Sale to MSEDCL 74.02 541.53

Total Generation 616.25 6429.98 6511.21 Sale to MSEDCL 556.62 5425.81 5658.52

Over injected units:

 Generators are giving excess schedule for OA consumers. Scheduled energy is not utilised fully by OA consumers. Purchase of Over injected units

• f OA consumers is not

compulsory.  We are purchasing it with low rates, but they are not schedulable.  OA consumers are injecting units in very large extent.  We have purchased 686 MUs @ Rs.277 Crs till date during this year.  It has matched our power purchase (760 MUs) from CPP during this year.

Type of OA Consumer: Issues

• Consumers in franchisee area (DF/MoU Route) : Sterlite
• Consumers connected on lower /Higher voltage level
• Consumer sourcing power from two generators

– With two conventional generators – With one conventional & one Non Conventional generator (Maharashtra Seamless Ltd)

• Multiple generators-Multiple consumers (Vinay Kore Case)
• % share of WEG with two or more consumers.(Serum Institute)
• Consumers changes generator without information to Utility.
• Tripartite consumers (e.g. ISMT, ESSAR, etc)
• Kirloskar- 0.2 S Cons end & 0.5 at substation end (Difference of

22000 units less recorded at Substation end)

• One Consumer has asked 2% refund on OA quantum through

Wind Generator

Scheduling

• Application No. of OA generator should be given to MSEDCL with

seller, trader, buyer with path of power displacement.

• Approval of power injection should be given by generator
• Scheduling of Interstate generators should be at SLDC instead of

WRLDC- Losses are deducted, so we are getting less power. (10 MW

• 100 units)
• Two generators are sourcing power to one consumer.
• WRLDC/SLDC should inform for change of generator.
• Injection point & drawal point should be fixed
• Certified copy of schedule SLDC/RLDC should be submitted to

MSEDCL.

• Total schedule is given by generator instead of consumers. That

copy should be certified.

• State Pool Participant – Billing should be on schedule.
• UI charges are applicable for SPP-JSW, Urjankur, Wardha,Uttam

Galva.

• UI charges are not applicable for ISMT as it is not SPP

Metering Issues

• Installation of SEM Mandatory:
• SEM not installed – Sona alloys, Urjankur-9 Cons,

Mahindra Hinodaya.

• Generally OA permission is taken first & then applies

for extension for SEM installation.

• Specifications are on website.
• Demand data of Secure meter is not available
• Viraj profile- Assessment due to faulty CT PT Meter
• Data Conversion issues – Uniformity in data format is

required for billing

• M/s Ashai Glass: Meter data is with MF & MR-9 is

different.

• Various make meters & data down loading problems.
• Reading of Sub-meters- Should not be allowed.

Billing

• Billing is carried out in 15 min time block basis:
• Treatment for :

– Over injected Units – Purchased by Utility (Whether mandatory????) – Over drawal units-- Temporary Charges /UI charges. – Infirm Power: Before CoD

• Energy Audit & Energy Balance:

– Pen Circle- Zero unit consumption & then+B80 – Vasai, Nagpur Circle- Billing on total Consumption & then –B-80

• Shutdown taken by MSETCL at generator area…….

– whether injected energy will be treated temporary tariff ?

• Breakdown at Generator/MSETCL/MSEDCL end….

– Whose responsibility & way forward in such cases…

• EA issues: Status of OA Consumer units

– Resolved with IR Dept (Considered OA Units & Billed Units)

• Corridor Constraints:

– Frequent change of generators due to corridor constraints.

Major Issues in Billing

• Transmission charges

– Double accounting –Charges by SLDC & MSEDCL – Charges based on MW basis or Unit basis – Whether to be charged on sanctioned OA demand or injected demand or scheduled demand ? – TDS on transmission charges – ED Exemption of Mega projects

– ( This issue is resolved with MSETCL & decided that MSEDCL will recover charges)

• Demand charges on partial OA consumers

– 100% Retained CD – Actual MD recorded < retained MSEDCL CD – Actual MD recorded < retained MSEDCL CD – If MD exceeds OA demand + MSEDCL retained CD – 15 Min CD as per SEM (Excluding Night Period) – As per MERC tariff (Consumers Say)

• New Method for OA Consumers Connected on Dedicated

feeder in between CPP & Substations- Billing will be done

• n substation meter basis.(M/s Laxmi Organic)

Various Charges : Issues

• Load enhancement before OA commencement-Deviation in

total CD in OA permission and HT bill.

• Levy of demand charges on MSEDCL part.
• CSS refund for period dt.0.1.04.2012 to 31.07.2012.
• Bill revision due to transmission loss @4.24% instead of

4.85% for month June & July 2012.

• Tripartite agreement between ISMT,M/s INOX & MSEDCL.
• M/s ISMT meter records power of M/s INOX passing

through it.

• Issue of supplementary bill for the month of June 2012 for

levy of E.D,TOSE on temporary tariff units.

• Stand-by supply charges.-Industrial tariff
• Electricity duty exemption issues.
• Self-installment of RTGS payment.

Issues

• Expiry of OA permission but not informed by Consumer/Field Officer.
• SLDC power schedule to be taken for billing instead of WRLDC

schedule.

• Change in generator without permission : Not known to Utility.
• MF changed during data conversion at circle office.
• Bill revision due to calculation of over injected units & EPA calculation

& OA permission renewal.

• Bill revision due to parallel bill, change in MD data as demand data &

energy data file sent by circle office same.

• Bill revision due to meter CT bypass and circle office proposed

average billing then all bills were revised by considering check meter data.

• Non SOP consumer however check meter consumption is less than

main meter due to Cl.0.5s CT instead of 0.25s.

• Bill to be revised for CSS, demand charges on MSEDCL part,2% extra

consumption.

Double Charging of Excess Units

• UI Charges:
• Applied to Generator by SLDC
• Generator is considered as state

pool participant.

• Charges are applied for under

injection than its scheduled power

• UI charges so collected are

distributed by SLDC to those who suffer loss.

• If power is interstate then SMP &

if intrastate then frequency linked UI mechanism.

• Temp.Charges
• Applied to OA consumer by Utility
• Consumer is open access

consumer.

• Charges are applied for

Overdrawal by OA Cons through Utility

• Temp.charges are recovered by

DL as provision of stand by to OA consumer

• Temporary tariff of relevant

category is applied for excess drawal units. For the same energy to the extent of under injection generator is penalized by SLDC & Consumer is penalized by Utility independently.  Temp. charges can be charged only by utility to consumers &

if required total UI charges may be born by Utility.

MERC in Dilemma State

• Not able to frame new OA regulations.
• No period (Short/Medium/long Term) is decided.
• No firm decision on dispute cases

– OA through exchanges. – OA through trader. – OA through more than one generator

• No comments of MERC on…

– Group Captive OA through generators.

• KSK Wardha ,Gupta Coal, IEPL, Reliance , etc

– SEM/ToD slot (energy accounting) – CD reduction/Standby load

Requirement

• Separate Open Access Cell (O.N.210/Dt.09.02.2012)

– For OA permissions/Renewals/Tech. Feasibility – For monthly billing of OA consumers. – For resolution of OA billing disputes. – For looking after MERC/legal cases

• IT Software for OA billing.

– Not make due to various issues. – New Computers are also required

• Monthly audit of OA bills till procedure settles.

– Internal Audit by Commercial Section. – Quarterly audit required by CGM (I/A)

• Separate accounting codes for OA Consumers.
• FBSM /RPO/Tr. Charges/CD issues.

– Monthly data is required to SLDC in 15 min slot for FBSM

• Separate manpower: IT & account persons with

engineers.

Open Access Through Wind Energy Generators

Efforts Taken For OA Billing Standardization

Date Action Taken Particulars

30.09.11

Cir.No.146, 147

15 Min energy accounting, SEM, CD Reduction (100% for conventional and up to CUF for RE), No Incentives, proportionate billing, lapse of excess units. 15.10.11, 24.01.12 Meetings of SE Implementation of OA and issues thereof 14 & 22.11.11, 12.12.11 Meeting with NCE Implementation of OA and issues thereof 08.12.11, 12.12.11 Meeting with CPP Implementation of OA and issues thereof 23.01.12

• Cir. No. 154,

155, 156

15 Min energy accounting, CD Reduction(100% for conventional and upto CUF for RE), SEM, No Incentives, proportionate billing, lapse of excess units. 13.06.12

Cir.No.169,170

15 Min energy accounting, CD Reduction (100%), SEM, Incentives permitted to partial OA consumers, all Generation units to be credited. Excess units purchased June-July Citizen Charter Framework for OA permissions & billing. August-11 Pune Visit M.S.Kele (SE-CP)---For OA billing Sept-11 Kolhapur, Satara R.G.Sonwane (SE-RUC) Feb-12 Pune Visit Abhijit Deshpande/M.S.Kele 21.08.12, 22.08.12 Ahemadnagar/Pune Waikar/Kulkarni 24 & 25.09.2012 All OA Circles SE(CP)/EE(CP-II)/Manager(Comm) at Pune Regularly Personal Guide Baramati/Nagar/Pune/Nashik /Kolhapur People==

MERC Cases

Date Cases Petitioners / Respondent Particulars

Aug, 10 41 of 2010 Nav Lakha Translines, Grant of open access for TPS of WEG Aug, 10 43 of 2010, MSEDCL Review petition Determination of CSS Dec, 10 68 of 2010, Ispat Industries Grant of OA through energy exchange Dec, 10 83of 20 10, Indo Rama Grant of OA through energy exchange Feb, 11 10 of 2011, REDAM Grant of OA for TPS of wind energy April, 11 19 of 2011, InWEA Grant of OA for TPS of wind energy April, 11 27 of 2011, Indo Rama Contempt petition for not obeying MERC order dated 01.03.11 May, 11 35 of 2011, Bajaj Finserve Grant of OA for TPS of wind energy June, 11 57 of 2011, R-Infra, Seeking exemption in Solar RPO target June, 11 78 of 2011, Tata Power, Release of pending gen.credit notes Dec, 11 161 / 2011, Wardha Power Grant of Open Access Dec, 11 8 of 2012, IWPA Against provisions of Commercial Circular No. 147 and 155

MERC Cases

Date Case No. Petitioners Particulars

Dec, 11 8 of 2012, IWPA Against provisions of Comm. Cir. No. 147 & 155 Feb, 12 18 of 2012 TATA Motors Against provisions of Comm. Cir. No. 147 & 155 Feb, 12 20 of 2012 Enercon Against provisions of Comm. Cir. No. 147 & 155 April, 12 33 of 2012 Ushdev Internat. Against provisions of Comm. Cir. No. 147 & 155 June, 12 59 of 2012, MSEDCL review petition Seeking clarification in the matter of MERC interim order dated 27.04.12 June, 12 50 of 2012 MERC Suo Moto Proceeding Deemed OA, 1 MW & Above June, 12

• Misc. Appl.
• No. 1

IWPA In the matter of non-obeying MERC order dated 27.04.12 July, 12 61 of 2012, Jindal Saw Limited Grant of Open Access through IEX Aug, 12

• -- of 2012, Bajaj Finserve

Contempt petition against MSEDCL Aug, 12

• -- of 2012, Bajaj Auto

Contempt petition against MSEDCL Sept-12

• --of 2012

Arvind Cotson Contempt petition against MSEDCL

APTEL, High Court , Supreme Court

Date Case No. Particulars

March, 11 Appeal No. 36 of 2011, Appeal against MERC order dated 01.03.11 in Indo Rama matter Dismissed on 28.07.11 with costs March, 11 Appeal OP No. 2 of 2011, Appeal seeking directives to MERC Dismissed with costs March, 11 Writ petition No. 553

• f 2011

Seeking directives to MERC for early disposal of CSS Case March, 11 Writ petition No. 666

• f 2011

Seeking directives to MERC for formulation of Regulations in respect of open access thru Exchange, till then refrain from grant of open access such as Indo Rama, stay on order dated 1.3.11 Disposed of on 11.10.11, granted liberty to MSEDCL to submit its concerns to MERC in 4 months May, 11 2 SLPs at Supreme Court SLP No. 14984, SLP No.15048 No OA can be granted without enabling Regulations. Rejected

NCE (Wind) OA-Consumer wise Issues

Name of Cons

• Cons. CD

Generator Details Issues Action from MSEDCL

TATA Motors, Pune 55 MVA 90 MW WEG i. Self Use ii. Global Energy trader iii. Other than Global Withdrawal of incentives created major issues filed petition before MERC unrest i. Proportionate billing ii. Incentives/penal ties issues iii. CUF for CD reduction iv. No banking

• ---- 6 No. of cases

filed in MERC & get stayed

• ---- Given guidelines

for proper billing

• f OA Consumer

ESSAR Steel Baramati 25 MVA 50 MW thru 62 WEG through Global Energy Consumption less than generation, units remained Unadjusted Jindal Poly Film Ltd 25 MVA 25 MW thru 35 WEG through Global Energy shifted from ESSAR Denied credit adjustments, Units remained unadjusted Shrinivas Engg,Pune 25 MVA 25 MW WEG

Chronological Events

Date Action Guidelines on Various issues

09.09.2011 CSS Order in Case No.43/2010. CSS decided & GCN started issued. 30.09.2011 Cir.No.147 CD reduction up to CUF, SEM,15 min. slot billing, excess units lapsed, 25% CSS, Incentives not allowed. Sept/Oct-11 All OA permissions were issued to self use & third party sale. 20.10.2011 BR No.1550 APPC rate for Gr.II WEG with Rs.2.25/- instead of Rs.2.52/- (???) Dec-2011 No.8/2012 IWPA filed case against Cir.No.147 23.01.2012 Cir.No.155 CD reduction to CUF, SEM,15 min. slot billing, excess units lapsed, 25% CSS, No banking, Incentives not allowed. Proportionate billing with temp. tariff for excess consumption. 10.02.2012 No.78/2011 Tata case: Release of GCN 23.02.2012 8,18,20/2012 MERC stayed Cir.No.147 & 155 with immediate effect. 01.03.2012 8,18,20/2012 Stay continued & MSEDCL decided to hold back all operations till MERC order. OA permissions & GCN hold. 03.04.2012

• Conf. Letter

Letter by MD inviting issues in WEG OA /profits of WEG 13.04.2012 BR No.80 Amendment in conditions of OA of CPP & general. No proportionate billing, incentives allowed, SEM extn up to 31st May

Chronological Events

Date Action Guidelines on Various issues

27.04.2012 Interim order Status –quo ante prior to 30.09.2011, took cognizance of MD’s letter. New course of action. Part-I & Part-II (Policy) 19.06.2012 BR No.152 Way forward in view of interim MERC order of IWPA case. ToD will continue till installation of SEM, ToD billing allowed. June-2012 Way Forward Course of action in WEG OA appraised to Board June-2012 59/2012 Clarificatory petition on interim order of MERC June-July-12 Permissions Self Use-75, TPS-150 & Sale to utility-40 Nos 07.07.2012 Guidelines to SE (O&M) Due to interim MERC order…..ToD slot, CD redn, prevaling MERC tariff for excess consumption, incentives allowed. 16.07.2012 Corrigendum Penalty for demand & prevailing tariff for consumption. 17.07.2012 Notice format Format for reduction of CD of OA consumer. Misc App.-1 IWPA filed misc. appl. For implementation of interim order Petition Bajaj Finserve/ Arvind Cotson & others filed petition u/s 142 05.09.2012 Cir.No.174 Schedule of Charges, wheeling charges, & wheeling losses. 12.09.2012 Letter to SE’s Enhancement of CD for OA Cons—Approval of HO required 13.09.2012 Corrigendum Again 15 min time block reading & temp tariff for excess drawal of

• units. Installation of meters before Sept-2012

Typical Case Study

Open Access Bills of M/s TKWSSKL & M/s WSDUSL Sourcing Power From Hydro Projects

Old OA Perm ission granted vide L.No. 3 8 6 0 6 Dt. 2 4 .1 2 .2 0 1 0 . New OA Perm ission granted vide Let. No. 1 7 2 8 Dt. 1 8 .0 1 .2 0 1 2 .

Sr. No. Location of Generator Generator Capacity Period of OA Permission Name of Consumer availing power through OA Percentage of Generation used by consumer

1 Chitri 2MW 25.01.12 to 24.01.13 1) M/s Tatyasaheb Kore Warana Sahakari sakhar Karkhana Ltd, (2.3 MW to 5MW in Nov.2011 ) 2) M/s Warana shakari dudh Utpadak sangh Ltd, Warnanagar (3 MW) 50% each 2 Kumbhi 2.5MW 18.04.12 to 17.04.13

3 Kadvi 1.5MW 14.02.12 to 13.02.13 Sr. No. Location of Generator Generator Capacity Date of commissioning Period of OA Permission (one year from date of Commissioning) Name of Consumer availing power through OA Percentage of Generation used by consumer 1 Chitri 2MW 25.01.11 25.01.11 to 24.01.12 1) M/s Tatyasaheb Kore Warana Sahakari sakhar Karkhana Ltd,Warnanagar (2.3MW) 2) M/s Warana shakari dudh Utpadak sangh Ltd,Warnanagar

( 3 MW )

50% each 2 Kumbhi 2.5MW 18.04.2011 18.04.11 to 17.04.12 3 Kadvi 1.5MW 14.2.2012 14.02.12 to 13.02.13 4 Patgaon 2.5MW Not yet commissioned

Case of Hydro Gen Bills of Mr.Kore

• Typical & Odd OA Case of Hydro generator.
• Multi generators –Multi Consumer (Infirm Power)
• Generation of 3 generators with various capacities is

adjusted with 2 Consumers of different CD.

• Billing in 15 min time block basis/ToD basis.
• After Case No.43/2010, CSS is decided & OA billing concept

is started.

• Applicability of Cir.147 & Cir.155 stayed by MERC due to

following reasons.

– Proportionate billing with generation. – CD reduction to the tune of CUF for RE generators. – No incentives but penalties will be applied. – No banking provision.

• MERC gave interim order to carry out billing with old

methodology.

• Bills of Kore was as per ToD & thereafter 15 min time

Continued……

• Old OA permissions for all 4 generators were for
• ne year from date of commissioning.
• Billing (GCN adjustment) were carried out at field
• ffice level.
• Billing with new OA permissions is started from

Jan, Feb & Apr-12 is started.

• Bill revision were carried due to following
• reasons. (Cir.No.155)

– Proportionate billing to actual billing after MERC

• rder.

– ToD billing as per MERC decision. – Thereafter ToD to 15 Min time block billing.

Continued….

• Meeting on 10.07.2012 with field officers & Generator repre.

– Previously series of meetings of Generator /Consumer. – Commissioning of new generator was not informed by Gen/Field

• ffice.

– Consumer has increased CD from 2.3 MVA to 5 MVA but not informed to HO for proper billing. – No generation in June-July (Temp. charges were applied) – Excess withdrawal of units are charged on temp. basis. – There is no major difference in ToD & 15 min time block billing. – REC were lapsed due his own fault. (As per SE Kolhapur) – Energy injection report of self use was given on 20 Apr 2012 – Consumers has not claimed REC in time i.e. before 30.04.2012.

Name of Consumer Period OA bill Amt. Paid Amt. Balance M/s TKWSSKL Jan to July-12

• Rs. 4.09 Crs
• Rs. 4.34 Crs

Rs.– 0.25 Crs M/s WSDUSL Jan to July-12

• Rs. 6.60 Crs

Rs.5.23 Crs Rs.1.27 Crs Total Rs.10.69 Crs

• Rs. 9.68 Crs
• Rs. 1.01 Crs

Billing Details

Grievances of Generator/Consumer (1/3)

Correspondence by Consumer Issues Raised by them Response by MSEDCL 21.10.2010 Permission for self use from 4 SHP Permissions issued on 24.10.2010 for 1year from date of commissioning of generator for all 4 SHP. 18.01.2012 OA permission renewal Permission issued for Chitri & Kumbhi generators 16.07.2012

• Ref. Letter

No.102

• i. 100% generation of Chitri & Kumbhi was

not considered.

• ii. Application of temp.tariff during Chitri

shutdown period.

• iii. Generation of Kumbhi & kadavi should

also be considered. i. Bills issued from 04.06.2012 ii. (13.01.2012 to 24.01.2012)---100% MSEDCL iii. 25.01.2012 to 13.02.2012----30% CUF & Considered only Chitri. iv. 14.02.2012 to 31.03.2012---Only Chitri geneartion. 16.07.2012 Ref.Let.No.103 For OA bill of April-2012 i. Kumbhi entered in new OA permission from 18.04.2012. ii. CD rise from 300kVA to 675 kVA iii. Units of only 2 SHP are considered instead of 3 SHP iv. In 24 to 30 Apr. shown zero consumption during time period 12.00 to 19.00 for both consumers. Bill is revised as per their request.

Grievances of Generator/Consumer (2/3)

Correspondence by Consumer Issues Raised by them Response by MSEDCL 16.07.2012 Let Ref.No.104 (Period of OA bill May-12) Generation of Chitri & Kumbhi is considered & not of Kadavi is considered while billing. Bills get revised 16.07.2012 Ref.N0.105 (To SE (Kolhapur) Credit notes are not issued by field

• ffice. So Units are not adjusted in OA

bills. Issued directions 09.08.2012 (Ref.No.116) To enter for APPC agreement for three SHP (Chitri -2.0 MW, Kumbhi-2.5 MW, Kadavi-1.5 MW, Pategaon-2.5 MW) from 01.04.2012 to 31.03.2013 Not possible from April-2012 as bills are already issued & paid by consumer. 09.08.2012 Ref.No.117 To enter for APPC agreement for three SHP (Chitri -2.0 MW, Kumbhi-2.5 MW, Kadavi-1.5 MW, ) from 13.01.04.2012 to 31.03.2013 Letter has given by Consumer for APPC after issue & payment of all OA bills. 05.09.2012 Letter with various consolidated issues Separate slide Next

Grievances Raised (Lett.on 5.9.2012) (3/3)

Grievance (13.01.2012 to 31.07.2012) Units involved Suggestions

Over injected Units 16.30,604 Units APPC/Agreed rate (???) Lost of REC for period of Jan to Mar-12 on self use (Filed has certified readings on 20.04.2012) 626 x Rs.3000/- (Rs.18.78 Lacs) His mistake (Not claimed in time) Temporary tariff (Excess Consumption) Rs.4.79 Crs Discussion ??? Applied for APPC in 09.08.2012 for past period (13.01.2012 to 31.07.2012) Billing Completed Can’t Considered

Observations by Mr. Kore

• 1. Some of Consumers are billed without

temporary tariff. Not hydro generators. But wind generators, Yes.

• -- Due to MERC order to in IWPA case.
• 2. OA consumers are billed with CD reduction
• nly. Excess demand is billed at penal rate &

consumption is billed with MERC prevalent rate.

• -- As these consumers are billed at field

level, so there is confusion.

• --Guidelines are issued to field for correct

billing vide. TOL No.26242 dtd.13.09.2012

• 3. Comparison with M/s Vindhyachal Hydro
• -- He has applied for APPC earlier &

stopped OA billing

Abstract of Bill Revisions

Date of issue Period Methodology Date of Revision Reason for Revision 4.06.12

13.01.12 to 24.01.12

100 % MSEDCL Bill 31.07.12 Supplementary Bills prepared from 15.01.12 to 30.06.12 for following reasons : 1.). CD of Warna SSK corrected from 2324 KVA to 5000 KVA. 2) OA C.D.s revised considering commissioning of Chitri, Kumbhi & Kadvi according to commissioning dates as per consumer’s 3 letters dated 16.07.12

25.01.12 to 13.02.12

OA with Chitri generation prepared (as permission was from 25.01.12) as per OA permission issued on 18.01.12.

14.02.12 to 31.03.12

Adjustment of billing cycle up to month end, only Chitri generation considered 4.06.12

1.04.12 to 17.04.12

Chitri generation considered.

18.04.12 to 23.04.12

Kumbhi permission from 18.04.12, hence both Chitri & Kumbhi considered

24.04.12 to 30.04.12

Methodology of billing changed from proportionate billing to actual billing.

Abstract of Bill Revisions

Date of issue Period Methodology Date of Revision Reason for Revision 5.06.12

1.05.12 to 31.05.12

Chitri & Kumbhi generation

• considered. Revised on

29.06.12 as T & D losses were not subtracted from generation 31.07.12 Bills are prepared as per TOD time slot. 3) CUF of 30 % considered upto 23.02.12, after which 100% CUF considered. 4) Revised supplementary bills issued considering 15 minutes time slot instead of TOD time slot. All other revisions of supplementary bills are kept same. 6.07.12

1.06.12 to 30.06.12

Chitri & Kumbhi generation considered 6.08.12

1.07.12 to 31.07.12

Bill prepared for July 2012 3.09.12 1) Bills revised for wrong generation units considered. 2) Wrong pf calculated for Warna SSK 7.09.12

1.08.12 to 31.08.12

Bills for August 2012 10.09.12 EPA done with M/S TSSK, hence bill for August 2012 cancelled

Different Cons: Different Issues

• Vindhyachal: (1x2.5, 1x3MW)

– Date of Commissioning -2002 – Self use for Inox-Air products at various places Jejuri, Thane, Butibori, Igatapuri. – Open access for Self use up to March, 12. – From April, 12 onwards sale to MSEDCL at APPC rate. – Inox at various locations had paid their bills regularly from April-12

• nwards.
• M/S Celerity Power: 2 X 3.5 MW
• Date of Commissioning : 2010
• Since commissioning selling

power through trader i.e. Tata Power Trading Company Ltd (TPTCL), initially sold to Reliance and then BEST.

• October-11: CE, PP placed LOI

for purchase of 7 MW power

• n RTC for 15 days
• From December, 11 to March

12: Sold power to MSEDCL at APPC rate.

• From August, 12 onwards

MSEDCL is going to purchase power at APPC till March, 13.

• Bills of SHP were carried out at HO &

bills of WEG are carried out at Field

• ffice.
• So there was difference. Correction is

in progress.

Thank You