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7/28/2019 IEX Bulletin June'13
1/8www.iexindia.com | 1
OpenAccessCharges
a Rate of Charges applicable for the FY 2013-14 shall
be:
b Transmission losses : 1.85%
c Distribution losses : 17%
d Cross subsidy surcharge: Rs 0.40/kWh
(For more details:http://www.uerc.gov.in)
REGULATORYNEWS
Bulletin
JUNE2013,ISSUE65
News and Information
INTHISISSUE
On May 6, UERC issued tariff order for the period from FY-14
to FY-16. The key highlights of the Order are as follows:
HTIndustrialTariff
- Energy charges increased by ~6% and fixed charges
were increased by Rs. 10/kVA/month of billable
demand
HT Industry having contracted load above 88kVA/75 kW (100 BHP)
Contracted
Load More than
1000 kVA
Existing TariffRevised Tariff approved
by the Commission
Energy
Charges
(Rs./kVAh)
Fixed
Charges
(Rs./kVA)
Energy
Charges
(Rs./kVAh)
Fixed
Charges
(Rs./kVA)
Upto 33% 2.85 Rs. 260/
kVA of the
billable
demand
3.05 Rs. 270/
kVA of the
billable
demand
Above 33% and
upto 50%
3.10 3.30
Above 50% 3.40 3.60
Approved for FY 2013-14 Rs./MW/day Per unit values
Transmission charge 3022.77 ~ 12 paise/kWh
Wheeling charge 7302.22 ~ 30 paise/kWh
UERCissuesMYTOrderforUPCLforFY2013-14toFY2015-16
REGULATORYNEWS1
UERC issues MYT Order for UPCL for FY 2013-14 to FY 2015-16
KERC issues tariff orders for the electricity supply companies in Karnataka
GUVNL files petition under GERC for determination of Additional Surcharge to be levied on open access consumers
INDUSTRYNEWS3
May Paradox: Peaking temperature and falling electricity prices at the exchange
Ten States show willingness to adopt debt recast plan for Discoms
FOCUSOFTHEMONTH 4
Ancillary Market in the Indian Context
RENEWABLENEWS5
Weak RPO Compliance continues to decelerate the Renewable Energy Certificate Market
Germany to allocate Euro 1 Billion towards building green energy corridors in India
IEXTRADEINFOMAY13 6
In this Issue
http://www.uerc.gov.in/ordersPetitions/orders/Tariff/Tariff%20Order/2013-14/UPCL%20MYT%20order%2006.05.13.pdfhttp://www.uerc.gov.in/ordersPetitions/orders/Tariff/Tariff%20Order/2013-14/UPCL%20MYT%20order%2006.05.13.pdf7/28/2019 IEX Bulletin June'13
2/8| www.iexindia.com2
On 6 May, 2013 KERC issued Tariff Orders for BESCOM,
CESC, MESCOM, HESCOM, GESCOM & KPTCL. The
highlights of the tariff order are as follows:
The Commission has increased the price cap to Rs.4.50
per unit for power procured by ESCOMs on short term
basis as against the cap of Rs.4.00 per unit imposed
earlier.
Tariff
- Green tariff has been reduced by 50 paise per unit
against the earlier rate of Re.1.0 per unit.
- HT Tariff: For the HT industrial users in BBMP and
other City Municipal Corporation areas, the new tariff
will be Rs.5.35 per unit for the first one lakh units and
Rs 5.75 per unit for consumption beyond one lakh
units. In all other areas, the new rates will be Rs 5.35
and Rs 5.65 respectively with a demand charge of Rs
170 per kVA of billed demand per month.
OpenAccesscharges:
a Cross subsidy surcharge for HT industries:
- 66 kV and above: 64 paisa per unit
- HT level (11 kV/33 kV): 31 paisa per unit
b Wheeling charges to range from 33 paise per unit to
75 paise per unit
c Transmission charges for short term open access
consumers
KERC has mandated time of the day tariff for installations
under HT2 (a) and HT2(b) with contract demand of 500KVA
and above.
(For more details: http://www.kerc.org/)
Category TransmissionCharges
(Rs/MW)
More than 12 hrs & upto 24 hrs in
a day in one block
784.46
More than 6 hrs & upto 12 hrs in a
day in one block
392.23
Upto 6 hrs in a day in one block 196.11
GUVNL has filed a petition before the Commission to
determine the additional surcharge payable by the open
access customers to meet the fixed cost of distributionlicensees arising out of their obligation to supply. An oral
order was issued on 10 May 2013 by GERC for next hearing
and suggestions required from concerned stake holders.
GUVNLfilespetitionunderGERCfordeterminationofAdditionalSurchargetobeleviedon
openaccessconsumers
GUVNL has proposed to impose addition surcharge of
Rs.1.35 on open access consumers on quantum of power
purchase through open access. GUVNL has been asked topublish the petition in the newspaper and on their website for
comments from stakeholders.
(For more details:http://www.guvnl.com)
KERCissuesTariffordersfortheelectricitysupplycompaniesinKarnataka
http://www.kerc.org/_website/_/_/_/_/_/Tariff%20Order%2013-14.htmlhttp://www.guvnl.com/DownloadFiles/File/GUVNL/2013%20files/Petition%20for%20determination%20of%20additional%20surcharge%20in%20respect%20of%20consumers%20availing%20open%20access%20.pdf.http://www.guvnl.com/DownloadFiles/File/GUVNL/2013%20files/Petition%20for%20determination%20of%20additional%20surcharge%20in%20respect%20of%20consumers%20availing%20open%20access%20.pdf.http://www.kerc.org/_website/_/_/_/_/_/Tariff%20Order%2013-14.html7/28/2019 IEX Bulletin June'13
3/8www.iexindia.com | 3
INDUSTRYNEWS
In India, the total installed capacity of 211 GW is in excess of
35% of the total peak demand in the country which was close
to 135 GW for the year 2012-13. Whereas the peak demand
actually met was only to the extent of 123 GW, thereby leading
to an Unserved Demand of 12 GW. Evidently, the issue is
not with the availability of adequate generation capacity but
with the non-availability of generation capacity due to the
prevailing fuel shortages and then followed by non utilization
due to inadequacy in the evacuation system and inability of
the cash strapped discoms to purchase power to serve theneeds of the consumers.
Analysis of the Day-Ahead Market at IEX shows the same
phenomenon where the total monthly sell bids received were
3887 MUs, higher than the total buy bids of 3271 MUs in
the market indicating an over-supply situation. As a result the
prices of electricity discovered at IEX came down substantially.
The prices discovered on the exchange in the recent months
are lower than the prices that prevailed earlier this year as
well as prices in the last summer. The unconstrained price
has come down from Rs 3.42 per unit in May 12 to Rs. 2.73
in May 13. Similarly the area prices showed a downward
trend as compared to the same month last year.
As compared to the last month the unconstrained price fell
down by 15% from Rs 3.16 per unit in April 13. The area
prices were also lower than the values in the previous
month. Even the constrained regions of south experienced
lower prices this month, with average area price falling from
Rs. 8.41 per unit in April 13 to 6.47 Rs per unit in May 13, a
drop of 23%.While no Discoms are utilizing cheaper power from the
exchange as an alternate to load shedding, many industries
are utilizing the exchange as an alternate to costly power
BidArea May13 May12%
changeApril13
%
change
North-East
(A1,A2)
2.32 4 -42% 2.75 -16%
East (E1,E2) 2.31 3.21 -28% 2.6 -11%
North (N1,N2) 2.36 3.21 -26% 2.67 -12%
North (N3) 2.36 3.21 -26% 2.67 -12%
South (S1) 6.47 8.13 -20% 7.83 -17%
South (S2) 6.47 8.13 -20% 8.41 -23%
West (W1,W2) 2.36 3.21 -26% 2.67 -12%West (W3) 2.36 3.21 -26% 2.67 -12%
UN_MCP* 2.73 3.42 -20% 3.16 -14%
*UN_MCP: Unconstrained market clearing price refers to the price discov-
ered before accounting for any congestion in the transmission corridor
through diesel generator sets. In the month of May, the
average participation at IEX in the day-ahead electricity
market was 1297, higher from 1244 in the month of April 13,
whereas the maximum participation of 1394 was observed
on May 24 which was the hottest day of the year, with the
average daily traded volume hovered around 80.6 MUs in
May 13.
There was also a substantial decrease in the congested
volume in May 13 as compared to the previous month
primarily due to more wind generations in Tamil Nadu which
relieved the shortages in the state. The volume lost due
to congestion in May13 was close to 362.8 MUs whereas
in April13 the same touched 521.4 MUs, a drop of 30%.
TenStatesshowwillingnesstoadoptdebt
recastplanforDiscoms
The financial restructuring scheme formulated by the
Government of India for restructuring of the short term loans
of the state owned Discoms facing difficulty in financing
operational losses has received confirmation from 10
states so far. The states to have conveyed their in-principle
willingness to participate in the scheme are: Andhra Pradesh,
Bihar, Haryana, Himachal Pradesh, Jharkhand, Kerala,
Meghalaya, Rajasthan, Tamil Nadu and Uttar Pradesh.
Major outline of the scheme includes:
1 Restructuring of outstanding short term liabilities of
the discoms.
- 50% to be converted to bonds backed by state
government guarantees, rest to be rescheduled
by the lenders with moratorium on principle
repayment.
2 The scheme also focuses on measures required to
ensure long-term financial and commercial viability
by way of Financial Restructuring, Tariff Setting &
Revenue Realization, Subsidy, Metering, Audit &
Accounts and Monitoring at state and centre level.
(For more details: http://pib.nic.in/newsite/erelease.aspx)
May 13 May 12(Same month
last year)
April 13
Avg. daily cleared
volume (MUs)
80.62 44.78 83.85
MayParadox:Peakingtemperatureandfallingelectricitypricesattheexchange
http://pib.nic.in/newsite/erelease.aspxhttp://pib.nic.in/newsite/erelease.aspx7/28/2019 IEX Bulletin June'13
4/8| www.iexindia.com4
The grid disturbance episodes on 30 and 31 July, 2012 have
drawn the attention of the policy makers to a very relevant
issue of ensuring grid stability and reliability in the country.
With the restructuring of the power sector, the responsibility
of ensuring grid stability has been entrusted upon the system
operators i.e. the Load Dispatch Centers at the state, regional
and national levels.
For any power system to operate efficiently, two unique
requirements which must be continuously and exactlysatisfied in order to maintain overall system stability and
reliability is to maintain a constant balance between
generation and load and to adjust generation to manage
power flows within the constraints of individual transmission
facilities. Therefore, system operators need some resources
to balance grid during contingencies at short notice. These
resources are commonly known as ancillary services. In
cost-plus regulated regime, these resources can be built
and operated under the instructions of system operators.
However, in competitive, de-regulated regime, developing
markets for such resources is a need.
A general classification of ancillary services is given below:
FOCUSOFTHEMONTH
capacity due to un-dispatched surpluses and the un-cleared
bids in the day-ahead market at the two power exchanges
operating in the country can be aggregated to create the
Ancillary Market.
As such we need to create a market place to equip the system
operator to aid in ensuring grid reliability by providing support
services. The broad principles to govern the operations of
such a market would entail:
1. Maintain grid frequency / voltage and other qualityparameters within band as specified in Indian Electricity
Grid Code (IEGC).
2. Encourage qualified resources to support system by
participating in the market
3. Resource pricing should be market-based
The recent staff paper by Central Electricity Regulatory
Commission (CERC) on April 13 on Introduction of Ancillary
Services in Indian Electricity Market touches upon the
nuances and issues associated with the ancillary market
design. Although the finer peculiarity of the operations of
AncillaryServicesMarketintheIndianContext
Presently, in the Indian context, it is envisioned that a
Frequency Support Ancillary Service (FSAS) would
help in improving the reliability of the operating system by
harnessing the unutilized generation units with capabilities of
ramping up in about 30 minutes. Currently, over 20,000 MW
of bottled up generation is estimated to be present in the
country and close to 1000 MW of capacity is left unutilized in
the Day-Ahead Markets at exchanges. Such idle generation
such a market needs to be worked out, the overall market
is perceived to operate through the exchanges approved by
CERC. Once implemented, the ancillary services will serve
as an insurance product which would help in maintaining
system reliability & security available directly to system
operators at regional and national level.
(For more details:http://www.cercind.gov.in)
http://www.cercind.gov.in/2013/whatsnew/SP13.pdfhttp://www.cercind.gov.in/2013/whatsnew/SP13.pdf7/28/2019 IEX Bulletin June'13
5/8www.iexindia.com | 5
RENEWABLENEWS
Non-solar
REC
Solar
REC
Trade Volume (REC) 18,543 669
Sale Bid (REC) 12,80,605 2,113
Purchase Bid (REC) 18,543 862
Price discovered (Rs/REC) 1,500 11,490
No of Participants 517 113
The second Renewable Energy Certificate (REC) trading
session of FY 14 held on 29 May, 2013 at IEX featured the
trade of 18,543 N-Solar and 669 Solar RECs. The session
witnessed participation largely from the open-access
consumers. Whereas, the key obligated entities viz. the
distribution companies and captive power generators were
very low on participation in the market despite the fact that
many of these entities are yet to fulfill a large share of their
obligation. As a result, of the large inventory of 22.45 lacsavailable in the market over 21.9 lacs RECs were left unsold,
the traded price of non-solar continues to remain at floor price
i.e. 1500/REC for the tenth consecutive month. The solar
REC traded at Rs 11,490/REC in this session vis--vis Rs
12,206 per REC in the April 13 session. This trading session
featured 630 market participants of which 517 participated
in non-solar segment while 113 participated in the solar
segment. Overall participation showed a 5% increase over
the previous session owing to 45% increase in participation
in the solar segment.
ParticipationDetails(ason31May13)
TotalNo.ofregisteredparticipants 1,675
ObligatedEntity 1,222
DISCOMs 27
Open access consumers 1,130
Captive Consumers 65
Voluntary 13
EligibleEntity(PrivateGenerators) 440
Highestparticipationinasinglemonth
sinceinception(March13)1,135
An overview of participation in the REC Market at IEX:
During the recent high level delegation visit to Berlin led by
the Minister of Power, Shri Jyotiraditya Scindia, Germany
has committed to provide developmental and technical
assistance of Euro 1 Billion to India for building green energy
corridors. As per the statement, the Green Energy Corridors
will enable evacuation of over 30,000 MW of renewable
energy generated from wind and solar power during the 12th
Five Year Plan in India into the national grid. Shri Scindia
WeakRPOCompliancecontinuestodeceleratetheRenewableEnergyCertificateMarket
GermanytoallocateEuro1BilliontowardsbuildinggreenenergycorridorsinIndia
had detailed discussions with Germanys Minister of State
for Economic Co-operation & Development Gudrun Kopp
on the implementation of the Joint Declaration of Intent on
Establishment of Green Energy Corridors signed during
Prime Minister Dr. Manmohan Singhs visit to Berlin last
month.
(Read More:http://pib.nic.in/newsite/erelease.aspx)
Summary of the REC trading session held on 29 May, 2013
at IEX is as below:
http://pib.nic.in/newsite/erelease.aspxhttp://pib.nic.in/newsite/erelease.aspx7/28/2019 IEX Bulletin June'13
6/8| www.iexindia.com6
Area Min Max RTC*
(0-24hr)
Peak*
(18-23hr)
NonPeak*
(1-17&24hr)
Night*
(1-6&24hr)
East 1.00 3.76 2.31 2.37 2.30 2.27
North East 1.00 3.76 2.32 2.37 2.30 2.27
North/West 1.03 3.76 2.36 2.39 2.34 2.34
South 2.38 16.00 6.47 7.99 5.97 5.75
* Simple Average of Area Clearing Prices for specified duration of time
ParticipationDetails(ason31May13)
Total No. of registered participants 2,114
Open access consumers 1,902
Private Generators 172
Highest participation in a day since inception (24 May, 2013) 1,394
IEXTRADEINFO-MAY2013
Total Volume (MUs) 2499.31 Average Daily Volume (MWh) 80,624
DAY-AHEADMARKET
DAMSnapshot
Volume(inMUs)
Purchase Bids 3,271
Sale Bids 3,887
Unconstrained Market Cleared Volume 2,862
Constrained MCV 2,499
Cumulative Market Clearing Volume (April 13
onwards)
5,015
Maximum Unconstrained Volume in a day 108.99
Daily Constrained Average Volume 80.6
AverageDailyVolume(inMW)
Purchase Bids 4,397
Sale Bids 5,225
Unconstrained Market Cleared Volume 3,847
Constrained Market Cleared Volume 3,359
MCP(Rs/kWh)
Average 2.72
Minimum 2.00Maximum 3.7
7/28/2019 IEX Bulletin June'13
7/8www.iexindia.com | 7
TERM-AHEADMARKET
Contracts Weekly Intraday Day-aheadContingency Daily
Total Volume (MUs)* 1,500 3,362 - -
Max price (Rs/kWh) 3.35 3.40 - -
Min price (Rs/kWh) 3.35 2.15 - -
*Scheduled Volume in the month
RECMARKET:PRICES&VOLUME29MAY2013
PurchaseBids(REC) SellBids(REC) Cleared(REC) Price(Rs./REC)
Non-Solar 18,543 1,280,605 18,543 1,500
Solar 862 2,113 669 11,490
1REC=1MWh
CONGESTIONPROFILE-MAY2013
NUMBEROFPROJECTSUNDERTHERECMECHANISM
Accredited 810
Registered 738
*No congestion between S1 and S2 for the month as the corridor
availability for short-term was increased due to non-commissioning of
Kudamkulum Unit- I
7/28/2019 IEX Bulletin June'13
8/8| i i di8
IndianEnergyExchangeLtd.CorporateOffice: 100A/1 Ground Floor, Capital Court, Olof Palme Marg, Munirka, New Delhi - 110067, India.
TelNo.:+91-11-43004000FaxNo.:+91-11-43004015
RegisteredOffice:1st Floor, Malkani Chamber, Off Nehru Road, Vile Parle (E), Mumbai - 400099.
Dear Team,
Team IEX has put in indelible efforts to share the new concept of Power Exchange with all its stakeholders in Indias Power
Sector through this bulletin and thereby imparting knowhow on the power trading. Very good work, easy to comprehend and
enables better decision making in electricity industry. Looking forward to IEXs growth.
DrShreeRamanDubey
Hinduja Group
FEEDBACKFORTHEMONTH
Dear Team IEX,
Every single IEX bulletin provides valuable insights about the Power market. Keep up the good work!!!
RishuGarg
Associate Manager- Strategic Planning Group
GMR Energy
Dear Readers,
We thank you for the encouraging response and support towards the IEX bulletin. In our effort to make this bulletin as informativeas possible, we request you to please mail us your suggestions and valuable feedback on: [email protected] or
alternately you could also write in to us at our corporate address given below.
Warm regards,
TeamIEX
SolarMarketsinIndia
7-8 May, New Delhi
Mr. Rajesh K. Mediratta, Director (BD) chaired the
session on Solar RPO, REC Framework and
Financing
PoweringtheFuture-Solutionsfor
reformingdistribution
8 May, Patna
Mr. Rajesh K. Mediratta, Director (BD) made a
presentation on Power market scenario - Bihar
Perspectives
RenewableOptionsforCaptive
Power
27 May, New Delhi
Mr. Bikram Singh Guram, AVP (BD) made a presentation
on PowerSaleandotherrevenueopportunity
GridWorld2013
28-29 May, New Delhi
Mr. Bikram Singh Guram, AVP (BD) made a presentation
on PowertradingthroughPowerExchanges
EVENTS
Disclaimer
The information featured in this bulletin has been compiled from sources deemed reliable and to the best of our knowledge. Whilst every effort has been made to ensure the accuracy of
the information, IEX will not be held responsible for any errors or omissions neither will it be liable for damages nor losses suffered, personal or otherwise, due to the information contained