THE

JHARKHAND GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

18 Aashwin, 1941(S)

Ranchi, Thursday, 10^thOctober, 2019

Jharkhand State Electricity Regulatory Commission, Ranchi

--------

Notification

4^thOctober, 2019

JSERC(Framework for sharing of charges for Intra-State

Transmission System)Regulations, 2019

Notifcation no. 71

CHAPTER I:

GENERAL

A1: PREAMBLE

1.1

The State Electricity Regulatory Commission has been entrusted with the duties and responsibilities

under Section 86 (1) and Section 181 (1) of the Electricity Act 2003.

1.2

For the existing State Transmission Licensee, an investment approval process has been provided for

the projects to be executed under Section 61 and Section 62 of the Electricity Act, 2003 and there is a

mechanism in place for allocation of transmission chargesbetween Transmission System Users.

However, in future, the projects may be awarded based on tariff based competitive bidding process

under Section 63 of the Electricity Act, 2003. Such projects might not be executed by the

existing State Transmission Licensee. The developer may be selected through tariff based competitive

bidding process.

No. 796

Jharkhand Gazette (Extraordinary), Thursday, 10^thOctober, 2019

1.3

The successful bidder upon being granted a Transmission Licence by the State Electricity Regulatory

Commission may offer the network for use by various transmission system usersand the transmission

charges will be shared between the Transmission System Users. Therefore, there is a need to have in

place a regulation with a framework for sharing of transmission chargesspecific to cases, which will be

executed under Section 63 of the Act.

1.4

In exercise of the powers conferred under Section 181 of the Electricity Act, 2003 and all other powers

enabling it in this behalf, the Jharkhand State Electricity Regulatory Commission (JSERC) hereby

makes the following regulations for sharing of charges for the intra state transmission system in the

state of Jharkhand.

A2: Short title and commencement

2.1

These Regulations shall be called the Jharkhand State Electricity Regulatory Commission (Framework

for sharing of charges for Intra-State Transmission System) Regulations, 2019;

2.2

These Regulations shall come into force from the date of its publication in the Official Gazette of the

Government of Jharkhand;

2.3

These Regulations shall extend to the entire state of Jharkhand;

2.4

These Regulations shall be applicable to State Transmission Utility (STU), State Load Despatch

Centre (SLDC), Distribution Licensee (s), Transmission Licensee (s), Generating Companies

including Captive Generating stations and Open Access consumers, that are connected or planning to

connect to the Intra-State Transmission System. The Regulations shall be applicable to existing

projects including projectsto be developed under Section 62 and Section 63 of the Act.

A3: Definitions and interpretation

3.1

In these Regulations, unless the context otherwise requires-

“Act” means the Electricity Act, 2003;

“Allotted Transmission Capacity” means and includes the power transfer in MW between

the specified point(s) of injection and point(s) of drawl allowed to a Long and Medium Term

Transmission Customer on the intra-state transmission system under the normal circumstances

and the expression “allotment of capacity” shall be construed accordingly;

Allotted Transmission Capacity to a Long Term Transmission Customer and Medium Term

Transmission Customer shall be sum of the generating capacities allotted to the Long Term

Transmission Customer and Medium Term Transmission Customer respectively.

“Annual Transmission Charges” or “ATC”means the annual transmission charges approved

by the Commission in case of projects under Section 62 of the Act. In case of projects under

Section 63 of the Act, Annual Transmission charges shall be based on the charges adoptedby

the Commission;

Jharkhand Gazette (Extraordinary), Thursday, 10^thOctober, 2019

“Commission”or “State Electricity Regulatory Commission”means the Jharkhand State

Electricity Regulatory Commission referred to in Section 82 of the Act;

“Grid Code” means the JSERC (State Grid Code) Regulations, 2008 and its amendments;

“Guidelines for Competitive Bidding” means the guidelines issued by the Central

Government from time to time in terms of Section 63 of the Act for development of

transmission projects along with the amendments approved by the Commission, if any;

“InSTS” means the Intra State Transmission System;

“Long Term Transmission Customer” means a person having a long-term lien exceeding

twelve years over an Intra-State Transmission System by virtue of paying transmission

charges;

“Medium Term Transmission Customer” means a person having a medium-term lien for the

period exceeding three months and upto three years over an Intra-State Transmission System

by virtue of paying transmission charges;

“Project” means an element or elements of the intra-state transmission system;

“Secretary” means the Secretary of the Jharkhand State Electricity Regulatory Commission;

“Short Term Transmission Customer” in the context of usage of Transmission System

means a person having short term lien for a period upto three months over an Intra-State

Transmission System by virtue of paying transmission charges;

“Total Transmission Capacity” means the total IntraState transmission capacity available in

the State;

“Transmission Licensee” means a Licensee authorised to establish or operate transmission

lines;

“Transmission System” means the network of Intra-State Transmission available in the State;

“Transmission service agreement”or “TSA”means the agreement, contract, memorandum of

understanding, or any such covenant, entered into between the Transmission Licensee and the

Long-Term Transmission Customer(s) for the use of Transmission System;

“Transmission System Users” or “TSU”means the users of the Intra state transmission

system in the State and includes Long Term Transmission Customer, Medium Term

Transmission Customer and Short Term Transmission Customer;

3.2

Words or expressions used and not defined in these Regulations but defined in the Act or the State

Grid Code shall have the meanings respectively assigned to them in the Act or the State Grid Code

respectively.

Jharkhand Gazette (Extraordinary), Thursday, 10^thOctober, 2019

CHAPTER-II:

A4: SCOPE OF THE REGULATION

4.1

Annual Transmission Charges shall be shared amongst the following, who are currently using the InSTSor the

InSTS to be developed through Section 62 and Section 63 of the Electricity Act, 2003.

a) Generating Station (s) in the State;

b) Distribution Licensee (s) in the State;

c) Transmission Licensee (s) in the State;

d) Any other customerincluding Captive Generating Stations and Open Access customers; and

e) Any designated entity representing a physically connected entity as per clauses (a), (b) and (c) above.

4.2

For the existing InSTS in the State, the framework for sharing of charges was given in JSERC (Terms and

Conditions for Determination of Transmission Tariff) Regulations, 2015. With the notification of these

Regulations, the framework given in this regulation shall be applicable for all existing and new InSTS.

A5: framework for SHARING OF transmission CHARGES for INTRA STATE TRANSMISSION SYSTEM

under section 62 of the Act:

5.1

The Transmission Licensee (s) whose tariff is determined based on Section 62 of the Act, shall submit its

Annual Revenue Requirement (ARR) Petition to the Commission in accordance with the JSERC (Terms and

Conditions for Determination of Transmission Tariff) Regulations, 2015 and its amendments or as per new tariff

regulations as applicable at any point in time and seek approval of the ARR thereof from the Commission.The

Annual Transmission Charges (ATC) shall be derived from the ARR as approved by the Commission. Such

approved charges shall be allocated based on the framework given in this Regulation.

5.2

The Annual Transmission Chargesshall be divided between Transmission System Users of the Transmission

System on monthly basis based on the Allotted Transmission Capacity.

5.3

If a Transmission System has been created for a particular Long-Term Transmission Customer including

dedicated transmission line(s) for a generating station, transmission charges for such Transmission System shall

be payable by that Long- Term Transmission Customer based on the Transmission Service Agreement.

5.4

For the Long-Term Transmission Customers and Medium-Term Transmission Customers, the transmission

charges shall be shared in accordance to the share of capacity allotted:

Monthly Transmission Charges for Intra-State system payable by a Long Term Transmission Customer and

Medium Term Transmission Customer of that Transmission System

= [ATC x Allotted Transmission capacity] / [Total Transmission Capacity x 12]

5.5

In the case of Short Term Transmission Customer, the Transmission charges payable shall be calculated in

accordance with the following:

= [ATC x Period availed in Days] / [Total Transmission Capacity x Days in the Year‘t’]

5.6

The State Transmission Utility shall retain 25% of the charges collected from the Short-TermTransmission

Customer and the balance 75% shall be adjusted towards reduction in the transmission service charges payable

by the Long-Term Transmission Customers and Medium-Term Transmission Customers.

5.7

The charges for the first year in case of new projects shall be based on the allotted capacity and as per the

charges determined by the Commission. The charges shall be adjusted in subsequent years based on the actual

capacity usage and in case of any change in charges due to true-up for a particular year, same shall be adjusted

accordingly.

Jharkhand Gazette (Extraordinary), Thursday, 10^thOctober, 2019

A6: framework for SHARING OF transmission CHARGES for INTRA STATE TRANSMISSION SYSTEM

under section 63 of the Act:

6.1

The Transmission Licensee(s) whose network shall be developed as per Section 63 of the Act shall also be

required to allocate the charges to its Transmission System Users based on the framework given in

thisRegulation.

6.2

The principle of sharing shall be based on the Annual Transmission Chargesadopted by the Commission. The

Annual Transmission Charges of the Intra-State Transmission system is to be recovered from the Transmission

System Users.

6.3

The Annual Transmission Charge shall be divided between Transmission System Usersof the Transmission

System on monthly basis as per the Transmission ServiceAgreement.

6.4

If a Transmission System has been created for a particular LongTerm Transmission Customer including

dedicated transmission line(s) for a generating station (s), Transmission charges for such Transmission System

shall be payable by that Long Term Transmission Customer based on the Transmission Service Agreement.

6.5

For the Long Term Transmission Customer and MediumTerm Transmission Customer, the transmission charges

shall be shared in accordance to the share of capacity availed:

Monthly Transmission Charges for Intra-State system payable by a Long Term Transmission Customer and

Medium Term Transmission Customer of that Transmission System

= [ATC x Allotted Transmission capacity] / [Total Transmission Capacity x 12]

6.6

For the long term, in case any new Transmission System User gets added in a year, the sharing shall be re-

worked based on the share of Allotted Transmission Capacity.

6.7

In the case of Short TermTransmission Customer, the transmission charges payable shall be calculated in

accordance with the following:

=[ATC x Period availed in Days] / [Total Transmission Capacity x Days in the Year‘t’]

6.8

100% of the charges collected from the Short-TermTransmission Customer shall be adjusted towards reduction

in transmission service charges payable by the Long Term Transmission Customer and Medium Term

Transmission Customer. In case the scheme is being funded through Government grant, the share of charges

collected from Short Term Transmission Customer shall be adjusted towards reduction in the grant.

6.9

The Annual Transmission Chargesof each Intra State Transmission System to be developed under Sector 63

shall be shared between Transmission System Usersindividually. Each new network developed by a developer

under Section 63 of the Act shall be considered on a standalone basis in order to arrive at the sharing of charges

between the Transmission System Users.

6.10

In case of new Intra State Transmission System developed under Section 62 to be executed by a subsidiary of

State Transmission Licenseeor a SPV, the sharing of transmission charges in such cases shall also be as per the

above framework given. The Annual Transmission Chargesof such projects shall be submitted by the

subsidiary/ SPV before the Commission and same shall be shared as per the above framework.

6.11

The Annual Transmission Charges for the first year in case of new projects shall be based on the allotted

capacity and the same shall be adjusted in subsequent years based on the actual capacity usage and in case of

any changes in transmission charge also, same shall be adjusted accordingly.

CHAPTER- III:

A7: ACCOUNTING, BILLING and collection of charges

7.1

The State Transmission Utility shall be the nodal agency and will be responsible for allocation of

capacities and for billing, collection and disbursement of charges.

7.2

The ATC of the InSTS Licensee is to be recovered as per the TSA.

Jharkhand Gazette (Extraordinary), Thursday, 10^thOctober, 2019

7.3

The monthly transmission accounts applicable for the various Transmission System Users shall be

prepared by the State Transmission Utility based on yearly ATC and the quantum of share which has

been allocated to the TSU.

Chapter IV:

miscellaneous

A8: dispute resolution

8.1

All disputes or differences shall as far as possible, be resolved by mutual consultation and

reconciliation in accordance with the agreements.

8.2

In the event of failure of the parties to resolve the disputes or differences in the manner stated in clause

above, these shall be referred to the Commission for adjudication or arbitration within one month of

recording of such failure.

A9: General power to amend

9.1

The Commission may, at any time and on such terms as to costs or otherwise, as it may think fit,

amend any defect or error in any proceeding before it.

A10: power to REMOVE DIFFICULTIES

10.1

If any difficulty arises in giving effect to these Regulations, the Commission may remove, by general

or special order, consistent with the provisions of the Act, which appears to it to be necessary or

expedient for the purpose of removing the difficulties.

A11: Repeal and Savings

11.1

Nothing in these Regulations shall be deemed to limit or otherwise affect the inherent powers of the

Commission to make such orders for the ends of justice to meet or to prevent abuses of the process of

the Commission.

11.2

Nothing in these Regulations shall, expressly or impliedly, bar the Commission dealing with any

matter or exercising any power under the Act for which no Regulations have been framed, and the

Commission may deal with such matters, powers and functions in a manner it thinks fit.

By Order of the Commission,

Rajendra Prasad Nayak,

Secretary

Jharkhand State Electricity Regulatory Commission.

---------------

Printed & Published by the Superintendent of Jharkhand Government Press, Doranda, Ranchi.

Jharkhand Gazette (Extraordinary) 796-- 50.