Settlement systems under ABT

WHAT IS SETTLEMENT ?• Settlement means “Entire process of

payment/ receipt/ adjustment/ reconciliation for the commodity/ services bill

for the period under consideration”

• To be FAIR and EQUITABLE• To RECOVER DUES at the EARLIEST (Billing Cycle)• TRANSPERANCY• Dispute Resolution• Reconciliation

Settlement PrinciplesAs per Regulations• What charges to be settled ? ….• Who will collect ?• Billing @ What periodicity? (Billing Cycle)• Bill date • Due Date for allowing Rebate• Due Date for Levying Surcharge • Rebate Rate• Surcharge rateAs per BPSA/ PPA/ BPTA / Regulations• Payment Security Mechanism• Arbitration • Dispute Resolution • Legal Jurisdiction

Receipts by the GeneratorA. Capacity Charge based on declared generation

availability.

B. Energy charges for the energy requisitioned/

scheduled.

C. UI charges (at low frequency operation):

If UI is positive generator will receive. AG >

SGIf UI is negative generator will pay. AG < SG

(This will be worked out for each time block)Receipts = A+B±C+incentive..

Payment by the beneficiariesA. Capacity charge in proportion to the Entitlement

(shares) of the declared availability.

B. Energy charge for the energy scheduled by the

constituent.

C. UI charges (During low frequency operation):

If UI is negative beneficiary will receive. AD < SD

If UI is positive beneficiary will pay. AD > SD

(This will be worked out for each time block )

payments=A+B±C+ proportionate incentive.

Unscheduled Interchange (UI)

• A generator generates more than the schedule, thereby increasing the frequency.

• A generator generates less than the schedule, thereby decreasing the frequency.

• A beneficiary overdraws power, thereby decreasing the frequency.

• A beneficiary underdraws power, thereby increasing the frequency.

SETTLEMENT SYSTEMTotal capacity charge payable to CGS-1 for the day

= x1 * capacity charge rate of CGS-1

Total Energy charge payable to CGS-1 for the day= x1’ * Energy charge rate of CGS-1 4

Total capacity charge payable by SEB-A for the day= a1 * capacity charge rate of CGS-1

+ a2 * -do- CGS-2

+ a3 * -do- CGS-3

Total Energy charge payable by SEB-A for the day= (a1’) * Energy charge rate of CGS-1 ( 4 )

+ (a2’) * -do- CGS-2 ( 4 )

+ (a3’) * -do- CGS-3 ( 4 )

All capacity charge and Energy charge payments to be made by SEBs directly to CGS.

SRLDC/Comml/IEGC/38

SETTLEMENT SYSTEMActual (metered) injection of CGS-1 in the time block = X1 MWh.

Excess injection = (X1 – x1’ ) MWh.

4

Amount payable to CGS-1 for this =(X1-x1’) * pool price for the block.

4

SEB-A’s scheduled drawl for time block = a1’+a2’+a3’ = a’ MW (ex-CGS Bus)

SEB-A’s NET drawal schedule = (a’ – Notional Transm. Loss) MW

= (a’ – Notional Transm. Loss) = A’ MWH

4

Actual (metered) net drawal of SEB-A during time block = A MWH

Excess drawal by SEB-A = (A-A’) MWh.

Amount payable by SEB-A for this = (A-A’) * pool price for the block.

All above payments for deviations from schedules to be routed through a pool A/C operated by RLDC

SRLDC/Comml/IEGC/39

UI - A RATIONAL AND SCIENTIFIC VECTOR

BALANCING MARKET

MERIT ORDER OPERATION

TRANSPARENCY

NEUTRALITY

SIMPLICITY

PRICE SIGNAL EASILY AVAILABLE

NO NEED TO NEGOTIATE ANY PRICE

EASY SETTLEMENT

EASY TO UNDERSTAND AND IMPLEMENT

EASE OF REGULATION

Energy Charges

Energy Charges =Rate of Energy Charges x Schedule.Generation (Ex-Bus)

Unscheduled Interchange (UI)Variation in actual Generation / Drawal and Scheduled

Generation / Drawal shall accounted for through U.I

UI for Generator = Actual Generation – Scheduled Generation

UI for Beneficiaries = Total Actual drawal – Total Scheduled Drawal

UI worked out for 15 minutes time block.

1000MW

800

600

400

200

00 6 12 18 HRS 24

Forecast ex-bus capability of power plant

SEB - A’s entitlement (40%)

Entitlement for which Capacity chargesAre payable by SEB-A

Schedule for which Energy chargesAre payable by SEB- A

Declared Capability for which Capacity chargesAre recieveable by ISGS

Gen.Sched. for which Energy chargesAre recieavable by ISGS

Schedule, Actual & UI

Unscheduled Interchange

UI vector w.e.f 03-05-10

0

100

200

300

400

500

600

700

800

900

1000

Frequency in Hz.

UI r

ate

in P

s/u

49.7Hz 403ps/u

49.5Hz 873ps/u

50.2Hz 0 ps/u

50.0Hz 155 ps/u

Rationale in fixing the rate

UI rate @50Hz= 155ps/u

Median of of Average cost of Coal/ Lignite for 08/09-01/10

UI rate @49.7Hz= 403ps/u

sufficient incentive to the generating station based on coal including imported coal

UI rate @49.5Hz=

873 ps/u

highest of the average energy charges of generating stations for 08/09-01/10

UI rates specified for 49.5-50.2

Slope 15.5 ps/ u

Slope 47.0 ps/ u

Billing and Payment of UI• UI charges inherent part of Tariff – not a

penalty

• UI charge is settled through on weekly basis

• RPC issues the account statement every Tuesday for previous 2 week period

• Due date for payment 10 days after issue of a/c

• Disbursement to receivables within 2 days thereafter

Energy transactions of UI from/to Pool

Over Gen. By ISGS-1

Under drawl by SEB-A

UI import from IR-1

Under gen. By ISGS-2

No one to one correspondence

System frequency UI

RateRegional Pool

Over drawl by SEB-BUI Export to IR-2

Operation of Pool

Separate Pool a/cs operated by RLDCs on behalf of REBs for UI, IRE and Reactive charges

Regional Pool

Payable by ISGS-2

Payable by SEB-BPayable by IR-2at its UI rate

Receivable by ISGS-1 (up to DC) Receivable by SEB-A Receivable by IR-1

at its UI rateNo one to one correspondence

No cross adjustments allowed between the constituents

Sl. No.

Charges Component Collected by Paid by Periodicity As certified in monthly REA / weekly UI/

Weekly Reactive a/c

1 Generation Capacity Ch. Generator States Monthly Ent.

Energy Ch. Generator States Monthly Requisition

Incentive Generator States Monthly Requisition

UI charges * RLDC All payable const.

Weekly Deviations

2 Reactive Ch. Drawl from 400kV Grid RLDC States Weekly Reactive a/c

Drawl on Inter-state 220kV lines

Among themselves

States Weekly Reactive a/c

3. Transmission ch.

CTU owned RTS States Monthly Wt. Avg. Ent.

State owned RTS States Monthly Wt. Avg. Ent.

4. ULDC Charges

Central RTS States Monthly Wt. Avg. Ent.

State portion RTS States Monthly Wt. Avg. Ent.

5 STOA charges

Energy Ch. Trader Buyer Monthly Schedule

ST charges Nodal RLDC Trader (Buyer)

Immediate Approval

CTU portion -RTS ch. -do- -do- -do- -do-

-IR link ch. -do- -do- -do- -do-

STU ch. -do- -do- -do- -do-

RLDC operating . Ch. -do- -do- -do- -do-

SLDC operating. Ch. -do- -do- -do- -do-

Note : All the above charges except UI charges are based only on paper calculations. Only UI charges are based on actual meter readings

OVERVIEW

• TOTAL UI TURNOVER :- 27,275 MU

• TOTAL UI AMOUNT DISBURSED:- 9,832 CR

• AVG WEEKLY TRANSACTION:- 63 MU

• AVG WEEKLY UI AMOUNT DISBURSED:- 23 CR

UI IN SR (FROM 01/01/03 TO 01/05/2011)

AP KAR KER TN PONDY

Net UI exported(-) /

Imported(+) in MUs

-4004 9069 1638 5876 -898

Net amount paid in Crores Rs. Recv.(-)/Paid(+)

-16 2787 211 2685 -312

Average rate of UI in paise/unit 4

Recv307 Paid

129 Paid

457

Paid

348

Recv.

SUMMARY OF SR UI – 435 WKS(FROM 01/JAN/03 TO 01/MAY/11)

7455MU

2607MU

2117MU

4827MU

254MU

384

-356

500

310255

420

-244

-341-373

-305-400

-300

-200

-100

0

100

200

300

400

500

600

RA

TE

(PA

ISE

/UN

IT)

OVER DRAWAL (PURCHASE) UNDER DRAWAL (SOLD)

9704MU

7769MU

635MU

1760MU

1177MU

AP KAR KER TN

3765MU

PON

3396MU

7755MU

279MU

1879MU

UI EXCHANGES AND AVG. RATES IN RESPECT OF DIFFERENT CONSTITUENTS IN SR

TRANSACTION WITH WR

TRANSACTION WITH ER

Energy Imported/ Exported

3275 MU (IMPORT BY

SR)

1307 MU (EXPORT BY

SR)

4525 MU (IMPORT BY

SR)

1047 MU (EXPORT BY

SR)

Net Saving due to UI assistance

consequent to opportunistic with

Neighboring Regions

Rs. 978 Cr. Rs. 1154 Cr.

Note: From 03.05.10, SRPC is computing the inter-regional UI of SR on NEW grid frequency.

IR EXCHANGES OF SR IN THE FORM OF UI TILL 05-DEC-2010 (414 WEEK)