The Central Electricity Regulatory Commission (CERC) notified fresh regulations under which the point of connection would be used as the method of sharing cost of inter-state transmission charges and losses.These regulations, finalised after consultaions that extended to a year and a half, will replace the present system of regional postage stamps, (ie, all states in the region will share the transmission charges and transmission losses on a regional pooled basis, in the ratio of the quantum of power drawn through the Inter-state transmission system) an official release said.
Under the new proposed mechanism, all the users will be default signatories to the Transmission Service Agreement (TSA), which also requires these users to pay the point of connection charge, which covers the revenue of transmission licensees. This commercial arrangement would also facilitate financial closure of transmission investments, the release said.
At present the transmission investments are faced with the uncertainty in generation. Also, the process of getting the bulk power transmission agreements (BPTAs) signed by all the expected beneficiaries of the transmission system remains cumbersome.
The regulations would facilitate solar-based generation by allowing zero transmission access charge for the use of inter-state transmission system (ISTS) and allocating no transmission loss to solar-based generation. Solar power generators shall be benefited in the event of use of ISTS.
Since such generation would normally be connected at 33 kV, the power generated by such generators would most likely be absorbed locally. This would cause no or minimal use of 400 Kv ISTS network and may also lead to reduction of losses in the 400 Kv network by obviating the need for power from distant generators.