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Landed Cost

Calculation

Understanding of
Open Access
Charges

Understanding the Open Access Charges

There are major charges to be paid by open access consumers to distribution licensee, transmission
licensees and other related entities, other than the power purchase cost paid to the generator or
supplying entity. These charges include:
Wheeling

Charges or Distribution Charges

Wheeling

Loss or Distribution Loss

Transmission

Charges or STU Charges

Transmission

Loss or STU Loss

POC

Charge & POC Losses

Cross

Subsidy Surcharge

Application

Fees

SLDC

Charge

RLDC

Charge

Other

Charges

Wheeling Charge ,Wheeling Loss & Transmission


Charge.
Wheeling Charges or Distribution Charges:

Distribution charges are those charges which are paid to distribution licensee for the use of distribution system and associated facilities
by another person for the conveyance of electricity.

The

licensees, generating stations, captive generating plants and consumers shall be eligible for open access to distribution system of a
distribution licensee on payment of the wheeling charges as may be determined by the Commission.

Applicability: These charges are applicable to generating stations, captive generating plants and consumers who are connected to
Discoms network i.e, at 11 and 33 kV.

Wheeling Loss or Distribution Loss: Distribution

losses are the technical losses for the distribution system. It is determined by the Commission for various voltage levels for
the applicable year, based on prudence check of the submissions of the Distribution Licensee during their Tariff determination process
and shall be apportioned in proportion to the actual energy drawl by the Open Access consumers and shall be payable in kind at
relevant voltage level.

Applicability: This loss is applicable to generating stations, captive generating plants and consumers who are connected to Discoms
network i.e, at 11 and 33 kV.

Transmission Charges or STU Charges: Transmission

losses are those losses which are there in the transmission system. The buyers and sellers shall absorb apportioned
energy losses in the transmission system in accordance with the provisions specified by the Central Commission.

Applicability: This loss is applicable to generating stations, captive generating plants and consumers who are connected to state
transmission network i.e, at 66 or 132 kV and Discoms network i.e, at 11 and 33 kV.

POC Charge & Losses, Cross Subsidy Surcharge &


Application Fees
POC Charge & POC Losses : It

is a transmission charge pricing methodology introduced for sharing of Inter State Transmission Systems (ISTS) charges and Losses among the
Designated ISTS Customers (DICs) depending on their location and sensitive to their distances from load centers (generators) and generation
(customers) and the direction of the node in the grid.

Applicability: This charges and losses are applicable to generating stations, captive generating plants and consumers who are connected to central
transmission network or to state transmission network i.e, at 66 or 132 kV and Discoms network i.e, at 11 and 33 kV.

Cross Subsidy Surcharge : If

open access facility is availed of by a subsidizing consumer of a distribution licensee of the State, then such consumer, in addition to
transmission and/or wheeling charges, shall pay cross subsidy surcharge determined by the Commission. Cross subsidy surcharge determined on
Per Unit basis shall be payable, on monthly basis, by the open access customers based on the actual energy drawn during the month through
open access. The amount of surcharge shall be paid to the distribution licensee of the area of supply from whom the consumer was availing
supply before seeking open access.

Applicability: This charge is paid by open access consumers irrespective of voltage or connectivity level.

Additional Surcharge:
An open access consumer, receiving supply of electricity from a person other than the distribution licensee of his area of supply, shall
pay to the distribution licensee an additional surcharge in addition to wheeling charges and cross-subsidy surcharge, to meet out the
fixed cost of such distribution licensee arising out of his obligation to supply.

Application Fees :A

person seeking Open Access shall make an application in the prescribed format to the Distribution Licensee to which it is connected. The
application fees in general for short term open access consumer is Rs 5000/application.

SLDC,RLDC & Other Charges.


SLDC Charge :A composite operating charge @ Rs.1,000/- per day in general or part of the day shall be payable by a short-term open access customer for
each transaction to the SLDC or as determined by the Commission from time to time. The operating charge includes fee for scheduling and
system operation, energy accounting, fee for affecting revisions in schedule on bonafide grounds and collection and disbursement of charges.
Applicability: This charge is payable to both injecting and drawing SLDC.

RLDC Charge :A

composite operating charge @ Rs.2,000/day/RLDC is payable by a short-term open access customer for each transaction to the RLDC or as
determined by the Commission from time to time.

Applicability: This charge is payable to all the RLDC whose network is used.

Other Charges :In addition to above mentioned charges there are some other charges which have a very small impact on the final landed cost of electricity
through open access, these charges are:

NLDC Application Fees: Rs 5000/(No. of Successful bidders), applicable for power exchange transactions.

NLDC Scheduling and Operating Charges: Rs 2,000.00 x (Regional Entity Buyers + Regional Entity Sellers) / (No. of Successful Portfolios),
applicable for power exchange transactions.

Trading Margin: trading margin exceeding seven (7.0) paisa/kWh in case the sale price is exceeding Rupees three (3.0)/kWh and four (4.0)
paisa/kWh where the sale price is less than or equal to Rupees three (3.0)/kWh.

Exchange Charges: Rs 20/MWh, applicable for power exchange transactions.

Service Tax: 14.5% of Exchange Charges (Rs/MWh), applicable for power exchange transactions.

Landed Cost
Calculation

Treatment of Losses..

Treatment of Losses... for buyer


POC Loss : 1.5 %
S1 (State Loss) : 4.85 %
Buyer X bids for 100 MW at its respective regional
periphery
Schedule
Drawl <=
SLDC
Clearance

Bid
Volume
100 MW
At NR
Peripher
y

POC
loss
1.5%

98.5 MW
at State
Peripher
y

Stat
e
Loss
4.85
%

93.72
MW at
Buyer
End

X
Buye
r

Maximum Bid= Volume in standing clearance + Regional &


State losses

Treatment of Losses... for Seller


POC Loss : 1.5 %
S1 (State Loss) : 4.85 %
Seller Y bids for 100 MW at its respective regional
periphery
Bid
Volume

100 MW
at
Regiona
l
peripher
y

POC
loss
1.5%

101.52
MW at
state
periphery

Stat
e
Loss
4.85
%

Schedule
Drawl <=
SLDC
Clearance

106.69
MW
injected
by seller

Y
(Selle
r)

Maximum Bid= Volume in standing clearance - Regional &


State losses

Landed Cost Calculation for below 66 kV Consumer of


Gujarat
Landed Cost Calculation for below 66 kV Consumer of Gujarat
Sr.N
Parameters
Calculation
Values
Unit
Indicator
o
1 Bid Volume
(2 MW/Hr- Considering RTC Quantum)
2* 24
48
MWh
A
2 Average Exchange Price of IEX
(Assumed)

2060
Rs./MWh
B
3 Obligated Amount
A*B
98880
Rs.
C
Quantum after losses at Regional Periphery
(1.35%4
A-(A*1.35%)
47.35
MWh
D
POC Loss)
Quantum after loss at State Periphery
(4.09%5
D-(D*4.09%)
45.42
MWh
E
STU Loss)
Quantum after loss at Buyer Periphery
(10%6
E-(E*10%)
40.87
MWh
F
Wheeling Loss)
7 MPPL Trading Margin
(10 Rs./MWh) (assumed)
A*10
480
Rs.
G
8 IEX Transaction Fee
(20 Rs./MWh)
A*20
960
Rs.
H
Service Tax
(14.5% of IEX Transaction
9
H*14.5%
139.20
Rs.
I
Fee)
10 CTU Charges
(195.9 Rs./MWh)
A*195.9
9403.2
Rs.
J
2845* NOC Quantum at GETCO Periphery in
11 STU Charges
(2845 Rs./MW/Day)
MW
5689.92
Rs.
K
(E.g for a Particular Client= 2845* 2)
12 Distribuition Charges
(140 Rs./MWh)
D*140
6629.28
Rs.
L
[Rs. 5000 /No. of Successful Portfolio(471)]
13 NLDC Application Fee
7.00
Rs.
M
for whole day
14 NLDC Scheduling & Operating Charge

200.00
Rs.
N
SLDC Scheduling & Operating Charges
(Rs. 2000
15

1000
Rs.
O
for whole day)
Cross Subsidy Surcharge
(1450
16
F*1450
59266.97
Rs.
P
Rs/MWh)
Additional Surcharge
(490
17
F*490
20028.15
Rs.
Q
Rs./MWh)
18 Net Price (power through open access)
(C+G+H+I+J+K+L+M+N+O+P+Q)
202683.7
Rs.
R
Rs./kW
19 Net Landed Cost (excluding RPO Impact)
(R/F)/1000
4.96
S
h
20 Solar
(1.75%) in Rs/Kwh
1.75% * 3.50 Rs./KWh (Solar REC rate )
0.06125
Rs.
T
21 Non solar Wind
(7.75%) in RS/Kwh
7.75% * 1.50 Rs./KWh (Non-Solar REC rate ) 0.11625
Rs.
U
22 Non solar Other than Wind (0.5%) Rs/Kwh
0.5% * 1.50 Rs./KWh (Non-Solar REC rate )
0.0075
Rs.
V

Saving Rs./Unit at IEX


Gujarat Electricity board
Rates (Rs./KWh)
Energy Charges
4.30
Fuel Surcharge
1.44
Peak hour usage
0.28
(0.85)
-0.10
PF rebate
Night Hour
-0.13
Rebate(0.40)

Max. Demand
Charges
Electricity Duty
Total GEB Rate
(Rs./KWh)
Savings Rs/Unit
excluding RPO
impact
Savings Rs/Unit
including RPO
impact

0
0
5.79
0.83
0.64

Open access Matrix of states

High

Medium

Low

Thank You

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