KSEBOA - KSEB Officers' Association

Jun 18th
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home News Power Sector News SEBs including KSEB wary of CERC’s transmission fee structure

SEBs including KSEB wary of CERC’s transmission fee structure

Hits smaller text tool iconmedium text tool iconlarger text tool icon
CERCThe state electricity boards and some state-owned power distributors are apprehensive about the Central Electricity Regulatory Commission’s (CERC) proposed revisions to inter-state power transmission regulations. While some of them have opposed the proposed revisions, others have sought certain clarifications on them. The regulatory body believes a new fee structure is integral to the growth of the Indian power grid on account of larger volumes of power to be traded through open access.

Under the proposed plan, higher fees would be charged to those with larger load factors at the end of the line in places like Kerala and Assam, compared to other states and state-owned power suppliers who might be on the receiving end of the transaction closer to power plants and power load stations. Representatives from Kerala and Assam tried to refute the proposal’s logic claiming that the existing system is more practical for all users.CERC officials likened the need for revising the tariff for trading power to the growth of India’s roads and transportation system. “On small village roads, everyone will pay a rupee, but on national highways you are asked how much you are travelling, then you pay a toll,” CERC Secretary Alok Kumar told .

The commission has published an approach paper outlining potential options for getting rid of the existing “postage stamp” system. The current distance-based pay structure would be replaced by a mechanism, which would charge generators and distributors based on their use of the grid, distance of transmission and preconditioned fees. This would depend on forecasts for peak and “other than peak” trading.

“Transmission is a major change, when there is major change made to such a large system, naturally they have apprehension,” Kumar said. “My sense is that most of the stake holders are agreeable that there’s a need to move ahead, but there are some issues with the methodology.”

Along with CERC’s belief that massive power trading requires a new tariff structure in order to protect the grid from clogging and power blockages while promoting growth, the centre mandated an updated fee structure in 2006. Then, the centre had asked CERC to draft a revised power trading fee structure within one year. More than three years later, the policy has yet to be drafted, so the commission is working with a sense of urgency while trying to woo the country’s power generators and distributors.

CERC plans to have the regulation drafted in two months. Satyajit Ganguly, head of operations for Power Exchange India Limited, believes “it will take almost a year,” for the policy to be finalised. It is unclear whether a pilot programme will be installed before implementation or if state electricity boards and private distributors will be asked to assimilate in a short span.

Source - Indian Express

Add comment

Security code

Random Videos

You need Flash player 6+ and JavaScript enabled to view this video.
Title: Power Quiz 2015 Final - Part-1

Latest Comments


Reference Book


Reference Book on Power

Electrical Engineering-- D' 1/4 Size Hard bound-- 1424 Pages-- Just Rs.1000/- only &n...

Visitors Counter

mod_vvisit_counterThis Month78198
mod_vvisit_counterLast Month141147

Online Visitors: 60
Time: 09 : 06 : 23