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3.4 The components of the charges for permitting import of power by Indal from PTC would essentially cover the charges for usage of the transmission system of KSEB and compensation for transmission losses. As per sub-section 2(d) of Section 39 of the Act, any consumer provided with open access to the transmission system by a licensee is required to pay the transmission charges and a surcharge thereon, as may be specified by the State Commission and the surcharge shall be utilized for meeting the current level of cross subsidy. The Commission has to keep the above provision in the Act also in mind, while deciding the charges for permitting import of power by Indal.

3.5 As regards charges for usage of the transmission system, the petitioner has argued in favour of a transmission charge of Ps 2.5/kWh. In support of this, the petitioner has cited certain instances where similar charges were levied. The matter was examined in detail by the Commission. The Commission has found that the details of arriving at a transmission charge of Rs. 2.5/kWh, viz; the various components of the cost of transmission system, energy handled, distance of transmission, etc., have not been

furnished. Further, it appears that the transmission system. The Commission is on the basis of historical cost alone, as





calculation is based on historical cost of the not in favour of deciding transmission charges this approach will hamper development of the view, a combination of historical cost and

opportunity cost the transmission

need to charge

be of

followed in deciding the transmission charges. As regards Ps 1.98/kWh for 100 KM usage of 400 kV transmission

system worked out this is arrived at on actual loading on

by Central Electricity Regulatory Commission, it has been found that the basis of a uniform loading of 500 MW on all the 400 kV lines. As most of the lines would be much lower than this figure, the

transmission charge may in the form of a concept finalization. The CERC which is on pooled cost

undergo an upward revision. Further, the proposal of CERC is paper in draft stage, which may undergo many changes before has issued an interim order based on the existing tariff norms basis.

In view of the above, the Commission is not in a position to accept the proposal of the petitioner for fixing a transmission tariff of Ps 2.5/ kWh.

The Board, on the other hand, has stated that the transmission charge should be fixed on the basis of the charges for Kayamkulam transmission of POWERGRID which averages out to Ps 35/kWh. On scrutiny, the Commission has found that this figure has been arrived at by dividing the monthly transmission service charges by 100 million units. However, the average monthly generation at Kayamkulam power station is about 200 million units. This clearly shows that while working out the transmission charges, the Board has not taken into account the supply of 50% of the energy generation at Kayamkulam Station to Tamil Nadu. If this supply is also taken into account, the transmission charges on the basis of generation at Kayamkulam could workout Ps 17.5/kWh. The Commission notes that out of the two 220 kV double circuit transmission lines from Kayamkulam station, one line has been constructed with 400 kV parameters. On this basis, the total transmission capacity of the Kayamkulam transmission system would work out to about 800 MW. Thus, the monthly energy handling capacity of the transmission system, on a moderate scale, would be 400 million units per month. The

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