IEX Bulletin June'13

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.pdf


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.html



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.aspx



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.pdf



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.aspx



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



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


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

IEX Bulletin June'13

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Transcript of IEX Bulletin June'13