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KARNATAKA ELECTRICITY REGULATORY COMMISSION

No. KERC-2-TR-2024-25/1805 Date: 26.03.2025

Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access)

Regulations, 2025

PREAMBLE

The Commission, in exercise of the powers conferred under 39(2)(d), 40(c), 42(2, 3), 86(1)(c)

of the Electricity Act, 2003 read with Section 181 of the Act, has notified the Karnataka

Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations,

2004, which is amended from time to time. The Commission had also notified the Karnataka

Electricity Regulatory Commission (Terms and Conditions for Green Energy Open

Access(GEOA)) Regulations, 2022 in line with the ‘Electricity (Promoting Renewable Energy

Through Green Energy Open Access) Rules 2022’ issued by the MoP, which was published

in the State Gazette on 19.01.2023. The Commission also issued the draft of the Karnataka

Electricity Regulatory Commission (Terms and Conditions for Green Energy Open

Access(GEOA)) (First Amendment) Regulations, 2024 which was notified in the State

Gazette on 19.12.2024.

The validity of the ‘Electricity (Promoting Renewable Energy Through Green Energy Open

Access) Rules 2022’ framed by the Central Government and the Karnataka Electricity

Regulatory Commission (Terms and Conditions for Green Energy Open Access(GEOA))

Regulations, 2022 framed by KERC, were challenged in Writ Petition Nos. 11235/2024, C/W

WP No. 22770/2023, 23729/2023 and others before the Hon’ble High Court of Karnataka.

The Hon’ble High Court has struck down the ‘Electricity (Promoting Renewable Energy

Through Green Energy Open Access) Rules 2022’ framed by the Central Government and

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Part – III

2025

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BENGALURU, WEDNESDAY, 26, MARCH, 2025 (CHAITHRA , 05, SHAKAVARSHA, 1947)

. 200

No. 200

also the Karnataka Electricity Regulatory Commission (Terms and Conditions for Green

Energy Open Access(GEOA)) Regulations, 2022. As such the draft of the Karnataka

Electricity Regulatory Commission (Terms and Conditions for Green Energy Open

Access(GEOA)) (First Amendment) Regulations, 2024, is withdrawn.

The Hon’ble High Court of Karnataka has passed Orders in the matter on 20.12.2024 and

has concluded as follows:

“IX. Conclusion:

200. In the result, I allow these writ petitions in part, and hold and direct as follows:

(i)

The impugned Rules as well as the Regulations framed by the Central

Government and the KERC are struck down.

(ii)

The KERC is directed to frame appropriate Regulations if it so desires in

the matter of granting of open access to green energy generators and

consumers.

(iii)

During this exercise, the Commission will only be guided by the National

Electricity Policy and the Tariff Policy framed by the Central

Government, and shall independently consider the interests of all the

stakeholders before framing the Regulations.

(iv) This direction will, however, not mean that the KERC will have to

necessarily frame fresh Regulations and if it so desires, it can continue

with the 2004 Regulations.

201. Taking cognizance of the fact that the order would leave a vacuum till the Regulations

are framed by the KERC independently as observed above, an interim arrangement

would therefore have to be made to ensure that the wheeling and banking facilities

availed hitherto by the petitioners are facilitated.

202. This Court had granted an interim order permitting the petitioners to pay 50% of the

transmission charges determined by the KERC vide its order dated 08.06.2023. In its

view, interest of justice would be met if the petitioners are directed to pay 50% of the

transmission charges as per the interim order dated 05.07.2024 passed in these writ

petitions.

203. The petitioners, under the orders of the KERC pursuant to which they had entered into

Wheeling and Banking Agreements, were also required to pay wheeling charges at

5% till the KERC frames regulations for open access to the green energy generators

pending framing regulations. The petitioners shall continue to pay wheeling charges

at 5%.

204. The petitioners were also permitted to bank their energy annually, subject to payment

of 2% under the Wheeling and Banking Agreement. However, by virtue of the

Regulations which have now been invalidated, they were required to pay 8%.

205. Since these regulations have been struck down and liberty is given to the KERC to

frame regulations for grant of open access to green energy generators and

consumers, the petitioners shall be permitted to avail banking facility subject to

payment of 4%.

206. The petitioners had the benefit of annual banking facility from 2014 in the standard

Wheeling and Banking Agreement. Since the Wheeling and Banking Agreements

have expired, they obviously would not have a contractual right to demand annual

banking facility. Till the KERC frames regulations regarding banking as aforesaid, the

petitioners shall be entitled to a monthly banking facility.”

Further, Hon’ble High Court of Karnataka in Paras 160 & 169 has held as follows:

“160. The Act does not contain any provision which entitles the generating company to

demand a banking facility. The banking facility is, in essence, a process where a

generating company injects the energy that it has generated into the grid and

withdraws the same at a subsequent point in time, as per its choice and

convenience………...”

“169. The statute, as stated above, does not really contemplate banking facility to be

provided to a private generating company. Thus, while the generating company has

the statutory right, subject to the regulations framed by the KERC, to inject the energy

that is generated into the grid and have the same to be transmitted and distributed

to its consumers, it would not have any statutory right to bank its energy. If the statute

does not provide for a statutory right to bank the energy so generated, the private

power generator, such as the green energy producer, cannot demand that he be

provided with banking facility.”

In view of the above decision and keeping in view, the National Electricity Policy and

the Tariff Policy issued by the Government of India and also considering the latest

developments in the sector including large scale integration of renewable sources to the

grid, the Commission, in exercise of the powers conferred under 39(2)(d), 40(c), 42(2, 3),

86(1)(c) of the Electricity Act, 2003 read with Section 181 of the Act, notified the Draft

Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access)

Regulations, 2025, in the Karnataka State Gazette on 19th January, 2025, inviting comments

from the stakeholders, notice of which was published in Deccan Herald, Indian Express,

Prajavani (Kannada) and Vijaya Karnataka (Kannada) on 25th January, 2025 and also

invited the Stakeholders/interested persons to attend the Public hearing on 25th February

2025 in the same newspapers. The Commission conducted the Public Hearing on 25th

February 2025 in the matter. As requested by some of the stakeholders, the draft Wheeling

and Banking Agreement Format for Open Access Projects under the draft KERC (Terms and

Conditions for Open Access) Regulations, 2025 was made available to Public on

Commission’s website, notice of which was published in Deccan Herald, New Indian

Express, Vijaya Karnataka (Kannada) & Prajavani (Kannada) on 11th March 2025 for filing

their views/suggestions and invited interested persons to attend the Public hearing on 19th

March 2025 in the same newspapers. The Commission conducted the Public Hearing on

19th

March

2025

the

matter.

The

Commission,

considering

the

comments/suggestions/objections/views of the stakeholders on draft KERC (Terms and

Conditions for Open Access) Regulations, 2025 and draft Wheeling and Banking Agreement

Format for Open Access Projects under draft OA Regulations, 2025, hereby makes the

following Regulations:

Short Title and commencement. –

These Regulations shall be called the Karnataka Electricity Regulatory

Commission (Terms and Conditions for Open Access) Regulations, 2025.

ii.

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

Official Gazette of Karnataka.

iii.

These Regulations shall be applicable to all Open Access (OA) customers

including Green Energy Open Access customers who have filed applications

before the State Nodal agency from 13.01.2023 in case of STOA (Short Term Open

Access) and from 02.01.2023 in case of LTOA (Long Term Open Access) & MTOA

(Medium Term Open Access) and/or have entered into WBA under GEOA, for

use of Intra-State Transmission System/s (InSTS) and/or distribution system/s of

licensee/s in the State, including such Intra-State Transmission and/or distribution

system/s, which are incidental to Inter-State Transmission of electricity.

Definitions

In these regulations, unless the context otherwise requires –

"Act" means the Electricity Act, 2003 (36 of 2003)

“Banking” means the facility by which electrical energy remaining unutilized by

the OA Consumer or Captive Consumer sourcing power from wind, solar, mini-

hydel or hybrid of the above, out of the energy injected by the Generating

Company

into

the

transmission

and/or

distribution

system

Corporation/Electricity Supply Companies (ESCOM/s), which is allowed to be

utilized for wheeling to such consumers for later use, as per the terms and

conditions set forth in WBA.

“Captive Generating Plant” shall be as defined in Electricity Act 2003 and the

Criteria for the Captive Status shall be as defined in Electricity Rules 2005 as

amendment from time to time.

"Commission" means the Karnataka Electricity Regulatory Commission.

“Consumer” means any person who is supplied with electricity for his own use by

a licensee or Captive Power Plant (CPP) or the Government or by any other

person engaged in the business of supplying electricity to the public including

captive, under this Act or any other law for the time being in force and includes

any person whose premises are for the time being connected for the purpose of

receiving electricity with the works of a licensee, the Government or such other

person, as the case may be;

“Existing Open Access Consumer” means a person already availing open

access to the transmission system and/or distribution system of a licensee in the

State under an existing agreement or GoK policy on the date of coming into

force of these Regulations.

"Injected Energy” means the kilowatt hours of Electricity actually exported and

measured by the energy meters at the Injection Point in a Billing Period after

deducting therefrom 115% of the energy imported from the ESCOM/s for start-up

or any other purposes by the Project as measured at the injection point during a

Billing Period.

“Installation” means the whole of electric wires, fittings, motors and apparatus

installed and wired by or on behalf of the Consumer on one and the same

premises starting from the point of commencement of supply.

“KER Act” means Karnataka Electricity Reform Act, 1999.

“Open Access” means the non-discriminatory provision for the use of transmission

lines or distribution system or associated facilities with such lines or system by any

licensee or consumer or a person engaged in generation in accordance with

the Regulations specified by the Appropriate Commission.

“Open Access Consumer” means any person who is supplied with electricity for

his own use by a licensee or CPP or the Government or by any other person

engaged in the business of supplying electricity to the public including captive,

under this Act or any other law for the time being in force and includes any

person whose premises are for the time being connected for the purpose of

receiving electricity with the works of a licensee, the Government or such other

person, as the case may be subject to following conditions:

(i)

Shall have contract demand of 100kW and above in case of High Tension

(HT) consumers

(ii)

Shall have sanctioned load of 100 kW and above in case of Low Tension

(LT) consumers, either through single connection or through multiple

connections for LT, aggregating to one hundred kW or more located in the

same electricity division of a distribution licensee

Provided that, for Public EV (Electric Vehicle) Charging stations the following shall

apply:

(a) for initial period of two years, the aggregation to one hundred kW or more at

LT voltage level, shall be in the area of the same distribution licensee for

sourcing electricity;

(b) The above aggregation at the distribution licensee level, shall be applicable

for EV charging stations owned by the consumer under same legal entity who

can aggregate to one hundred kW or more at LT voltage level during FY 2025-

26, for a period of two years from the date of first aggregation;

aggregation to one hundred kW or more within the same electricity division

of a distribution licensee and cannot claim aggregation at Distribution

licensee level.

Provided further that, the Captive Consumers shall not have any load limit

“Open Access Customer” means an Open Access consumer permitted by the

Commission to receive supply of electricity from a person other than distribution

licensee of his area of supply, and the expression includes a generating

company and licensee, who has availed of or intends to avail of open access.

“Person” shall include any company or body corporate or association or body

of individuals, whether incorporated or not, or artificial juridical person;

“Premises” includes any land, building or structure;

“Renewable Sources (RE) of Energy/ Green energy” means such sources that

produce/generate electrical energy from renewable sources of energy

including, but not limited to Solar PV Power Project or Wind Power Project or

Hybrid Power Project or Small Hydro Power Project or biomass, biofuel, urban or

municipal waste, Energy Storage Systems including pumped storage hydro

generation using entire electricity generated from renewable energy for

charging / pumping or any other technology as may be notified by the

Government of India from time to time and shall also include any mechanism

that utilises green energy to replace fossil fuels including production of green

hydrogen or green ammonia;

“SLDC” means the State Load Dispatch Centre established under sub-section (1)

of section 31 of the Act.

“Standby charges” means the charges applicable to open access consumers

against the standby arrangement provided by the distribution licensee, in case

the open access consumers are unable to procure power from the generating

sources with whom they have the agreements to procure power due to outages

of generator, transmission assets and the like.

"State Transmission Utility" means the Board or the Government company

specified as such by the State Government under sub-section (1) of section 39 of

the Act;

“System constraint” means a condition or situation under which the electrical

system of the Corporation/ESCOM/s is unable to evacuate and transmit fully or

partly the energy generated from the project due to unforeseen breakdown of

network elements like lines, switchgears or due to frequency/voltage constraints

in the system or for any other reasons beyond the control of the

Corporation/ESCOMs.

"Wheeling" means the operation whereby the distribution system and associated

facilities of a STU or transmission licensee or distribution licensee, as the case may

be, are used by another person for the conveyance of electricity on payment of

charges to be determined under section 62 of the Act;

Words and expressions used and not defined in these Regulations but defined in the

Act or the KER Act, shall have the meanings assigned to them in the said Acts. In case

of any inconsistency in words and expressions between the Act and the KER Act, the

provisions of the Act shall prevail.

Criteria for allowing Open Access:

The long-term open access shall be allowed in accordance with the transmission

planning criteria and distribution planning code stipulated in the State Grid Code

/ Distribution Code.

ii.

The Medium Term /Short-Term open access shall be allowed, if the request can

be accommodated, by utilizing

Inherent design margins

Margins available due to variation in power flows and

Margins available due to in-built spare transmission system capacity and/or

distribution system capacity created to cater to future load growth;

Categorization of Open Access Customer:

The open access customer shall be classified into the following categories based on

the duration of use of the intra- state transmission and/or distribution system:

Long-term OA customer - persons availing or intending to avail the open access

for a period equal to or more than five years.

ii.

Medium-term OA customer - persons availing or intending to avail the open

access for a period more than one year and less than 5 years.

iii.

Short-term OA customer - persons availing or intending to avail the open access

for a period of one year or less.

Provided that the short –term OA customer shall be eligible & re-eligible to obtain fresh

reservation on filing of application after the expiry of his term and subject to

availability. Such eligibility shall be on priority fixed on the basis of the date of

application submission to the nodal agency.

Eligibility Criteria for applying for Open Access:

Subject to the provisions of these Regulations and system availability, OA

customer shall be eligible for open access to the intra-state transmission system

of the State Transmission utility or any transmission licensee/s and distribution

system/s of the distribution Licensee/s within the State.

Provided that notwithstanding anything contained in these Regulations, any

generating company having subsisting Power Purchase Agreement (PPA) with

the Distribution Licensee, shall not be entitled to Open Access for the capacity,

for which PPA is entered into, except in accordance with the terms of such PPA

and also for such capacity (quantum of power) for which Open Access is already

granted.

Provided further that, such open access shall be available on payment of such

charges as may be determined by the Commission from time to time.

ii.

Every person, who has constructed a captive generating plant shall have the

right to open access as per the provisions of Section 9 of the Act.

Provided that other consumers shall have the right to open access as defined in

Regulation 1(k) supra.

Nodal Agency

Karnataka State Load Despatch Centre shall operate as the SNA for grant of long

term, medium-term and short term open access.

ii.

All the applications related to open access shall be submitted to the portal set

up by the State Nodal Agency in the prescribed formats.

iii.

The SNA shall coordinate with transmission licensees including STU and the

Distribution Licensees to ensure granting of open access within the time frame

specified in these Regulations and also to make available all relevant information

regarding open access to the public on the portal of State Nodal Agency.

Treatment for existing entities:

The existing consumer(s)/generators may continue to avail the open access as per the

existing agreements or government policy for the period specified in those

agreements or policies, to the extent they are not inconsistent with the

Act/Regulations.

Provided that, the existing consumers/generators shall continue to pay the applicable

charges as specified in their respective agreements, as may be determined by the

Commission from time to time.

Provided further that, the wheeling and banking agreements already entered into

under GEOA Regulations, 2022 i.e from 13.01.2023 in case of STOA and from 02.01.2023

in case of LTOA/MTOA shall be deemed to be executed under the provisions of these

Regulations, to the extent not inconsistent with the provisions of these Regulations and

the WBA issued under these Regulations. In case of inconsistency, a supplemental

agreement shall be executed to remedy the inconsistencies within fifteen (15) days of

notification of these Regulations,

Provided also that, for the Non-REC based projects that have applied for WBA during

the period 01.04.2018 upto the date of applicability of GEOA Regulations 2022, i.e for

the applications filed before the Nodal agency before 13.01.2023 in case of STOA and

before 02.01.2023 in case of LTOA, the Commission’s Interim Order dated 07.09.2021 is

continued till the matter is disposed of by the Division Bench of the Hon’ble High Court.

Further, for the Non-REC based projects that have applied for WBA during the period

01.04.2018 upto the date of applicability of GEOA Regulations, 2022, i.e for the

applications filed before the Nodal agency before 13.01.2023 in case of STOA and

before 02.01.2023 in case of LTOA, the annual banking facility and banking charges

at 2% of injected energy is continued, subject to final decision of the case pending

before the Hon’ble Supreme Court of India. All other charges as per the applicable

KERC Regulations, orders and terms of the WBA shall be applicable.

Provided also that, open access for the subsequent period in respect of such

consumer/generator shall be governed by provisions of these Regulations, including

any renewal after the completion of initial period of existing WBA.

Provided also that, if Open Access for any additional capacity is sought by such

existing consumer(s)/generators in addition to the capacity already contracted under

open access, shall be treated as new application for open access to the extent of

additional capacity sought.

Allotment priority

The priority for allowing open access shall be decided on the following criteria:

(a)

Distribution licensee for long-term

(b)

OA customers for long-term

(c)

Distribution licensee for medium-term

(d)

OA customers for medium-term

(e)

Distribution licensee for short-term

(f)

OA customers for short-term

Provided that, the decision for allowing the open access shall be on first come first

served basis.

Procedure for grant of Open Access. –

The Open access applicant shall submit an application complete in all respects,

to the State Nodal Agency(SNA) in the format prescribed by the SNA on the State

portal.

ii.

The following time schedules shall be adhered to, for processing the long-term,

medium-term and short-term open access application:

Sl.

No.

Particulars

Time-line

Remarks

Date

which

application along with

WBA duly e-signed by

the applicant is received

by SNA

Zero Date

The applicant shall submit copies of

signed WBA along with the application

to the SNA.

In case the applicant fails to submit the

WBA along with the application, the

Open Access application will not be

processed by SNA.

Acknowledgement

receipt of Application

Zero date.

The

acknowledgement

shall

provided immediately by electronic

mode.

Acceptance

application by SNA after

confirming that all the

relevant documents are

furnished

the

applicant

including

processing fees, BG and

WBA

(signed

the

applicant)

Within

three

(03)

working days from zero

date.

In case the application is incomplete,

the SNA shall inform the same in writing

rejecting the application and

furnishing the details of the defects. After

rectifying

the

defects,

fresh

application shall be made.

Forwarding

application to the STU or

the

transmission

licensee/concerned

Distribution licensee.

Within five (05) working

days from zero date

On acceptance of the application, the

same shall be forwarded to the STU or

the transmission licensee/ concerned

Distribution licensee for ensuring the

system

availability

and

that

the

generators are not having any subsisting

PPA for the capacity for which the OA is

sought, except in accordance with the

terms of such PPA.

Concurrence from the

STU or the transmission

licensee/Distribution

licensee

Within ten (10) working

days from zero date

In case system strengthening is required,

the probable date of granting OA shall

be intimated to SNA within the same

time.

In case concurrence is not received

within the specified time, SNA shall

consider it to be deemed concurrence.

Provided that the system studies at the

drawal point to ascertain the availability

is not required for a consumer of the

licensee availing Open Access, subject

the

applicant

furnishing

undertaking that, he would not exceed

the contract demand specified in his

supply agreement with the licensee

even after opting for Open Access.

Provided further that the system studies

at the injection point to ascertain the

availability is not required for an existing

generator who was already injecting

power into the licensee(s) network under

PPA

otherwise,

subject

the

condition that there is no additional

injection beyond the capacity that was

being injected earlier.

Grant of Open Access or

otherwise

Within

fifteen

(15)

working days from zero

date

The SNA shall intimate the applicant, the

grant of OA within the time specified.

In case OA is not granted, the same shall

be intimated within the above time

furnishing the reasons in writing and also

the probable date from which the OA

can be granted.

In case, SNA fails to intimate the grant of

OA or otherwise, within the above

specified time, the same shall be

deemed to have been granted, which is

subject to system availability.

Submission

signed

copies of agreement by

the

STU

the

transmission

licensee/concerned

Distribution licensee

Within

fifteen

(15)

working days from zero

date

case

STU

the

transmission

licensee/Distribution

licensee

fail

submit the signed copies to the SNA

along

with

the

open

access

concurrence, within the specified time,

the WBA is deemed to have been

approved (Banking allowed only in case

of solar, wind, mini-hydel projects and

hybrid of these sources).

Effective

date

for

wheeling

The effective date for

commencement

operation of wheeling

electricity

the

applicant shall be from

the date of grant of OA

/ deemed grant of OA.

Provided

that

the

above effective date

The applicant is allowed to wheel the

energy from the effective date.

for commencement of

wheeling operation shall

also be applicable for

banking in case of solar,

wind, Mini-hydel plants

and hybrid of these

sources.

iii.

The State Nodal Agency shall ensure that non-refundable processing fee of five

thousand rupees for long-term/medium-term open access and one thousand

rupees for short-term open access is paid by applicant to the nodal agency

along with the application and the nodal agency shall acknowledge the receipt

of the application form.

iv.

An application for a short-term open access, for power plant(s) or its/their

generating unit(s) which are yet to be commissioned, shall be made not before

two months prior to the commissioning date of such power plant(s) or its/their

generating unit(s), to avoid unnecessary blocking of corridor.

An application for long-term/medium-term OA shall be accompanied by a Bank

Guarantee (BG)/ Letter of Credit (LC) of ten thousand rupees per MW, which

shall be kept valid and subsisting till the grant of open access and such BG/LC

shall be encashed by the Nodal Agency, if the application is withdrawn by the

applicant prior to the grant of open access. On grant of open access, the BG/LC

shall be returned immediately to the applicant by the State Nodal Agency.

vi.

In case there is any material change with regards to the location of the injection

point or quantum of power to be interchanged (by more than ten percent) using

the intra-State transmission and or distribution system, a fresh application shall be

made for the entire capacity to ascertain the system availability and such

application shall be accompanied by relevant documents, application fees and

in case of long term/medium term open access with required bank guarantee

for the additional capacity and in case the additional capacity sought for

cannot be accommodated in the existing network, the applicant is entitled for

open access to the extent of his original allotment.

vii.

Where any application is rejected for any deficiency or defect, the BG/LC

submitted, shall be returned to the applicant excluding GST and in such cases a

fresh application to SNA through State portal, shall be made by the applicant

after curing the deficiency or defect.

viii.

The State Nodal Agency shall communicate to the applicant through a

recognized mode of communication, the grant of open access or otherwise.

ix.

Further, during the pendency of application for grant of OA, the applicant shall

not inject any energy to the licensee’s network and the licensee shall not be

liable to pay any charges for the energy injected during such period.

The person seeking open access shall digitally execute the agreement for

wheeling of electricity along with the application, failing which the application

shall be rejected by SNA.

xi.

The STU or the transmission Licensee/s, distribution licensee/s and the SLDC shall

ensure proper coordination while arranging for open access.

xii.

In the case of a new plant as well as addition of new capacity to the existing

plants, the Company shall give written notice fifteen days in advance to the

Corporation/ESCOM before the date of synchronisation, trial operation (other

than wind and solar projects) and commercial operation of the generator. The

same shall also be intimated in writing/email or through any recognized digital

mode of communication to the SLDC duly furnishing time block schedule.

xiii.

The infirm energy injected (not applicable to wind, solar power and wind-solar

hybrid projects as the synchronisation date of these projects coincides with the

commercial operation date (CoD)) during the period from trial operation date

after synchronization up to the commercial operation date shall be deemed to

be sold to the ESCOM in whose jurisdiction the energy is being injected to the

grid and shall be paid for by such ESCOM:

For RE sources (other than wind, solar power and wind-solar hybrid projects):

At the applicable Average Pooled Power Purchase Cost (APPC) or 75% of

the generic tariff determined by the Commission for the relevant year for

the relevant RE source, whichever is lower and

For non-RE / conventional sources: At the variable charges to recover the

fuel costs as determined by the Commission for similar type of non-RE /

conventional power plants for the relevant year.

xiv.

New generating plant(s) or generating Unit(s) seeking long –term/medium term

open access and entering into agreement for wheeling, shall commission such

plant(s) or unit(s) within twelve (12) months from the effective date, failing which

the open access granted shall be deemed to have been cancelled, to avoid

unnecessary blocking of the corridor.

xv.

All the information related to approvals, rejections, revisions, curtailment, etc.

shall be made available to the applicant through the web-based portal for

Open Access hosted by the State Nodal Agency.

xvi.

The State nodal Agency shall prepare formats in line with these Regulations, for

smooth implementation of OA in the State.

xvii.

The Standard format for Wheeling and Banking agreement is as per the

Appendix-1.

xviii.

State Transmission Utility (STU) or Distribution Licensee(s) shall conduct System

Studies annually or as often as required or as directed by the Commission and

the System data including the available additional loading capacity of lines shall

be updated on a continuous basis and shall be made available to the public

and such data shall also be hosted on the licensees(s)’s website.

Provided that where any person makes a request for such studies, the

STU/Distribution licensee shall carry out the system studies by collecting

reasonable charges and such studies shall be completed within ninety days from

the date of receipt of charges towards the studies and a detailed report in writing

shall be provided to such person.

Procedure for applying for Day Ahead OA Transactions. -

The applicant shall apply to the State Portal for Day Ahead OA Transactions in

the standard application format.

ii.

For the applications received by the SNA, before 13.00 hrs of the day immediately

preceding the day of scheduling for day-ahead OA transaction, the State Nodal

Agency shall check for congestion in the system and convey grant of approval

or otherwise to the applicant through e-mail or fax, not later than 15:00 Hours of

the day immediately preceding the day of scheduling for day-ahead

transaction, after ensuring that there is no subsisting PPA for the capacity sought

under OA.

iii.

Non-refundable processing fee of One Thousand rupees for each transaction

shall be paid by the applicant, in cash or by way of a demand draft or proof of

payment through electronic transfer in favour of the State Nodal Agency.

Provided that the actual operationalisation of open access shall be effected

subject to payment by the applicant of the charges as specified in these

Regulations and orders passed by the Commission from time to time, before 17:00

hours of the day immediately preceding the day of scheduling for day-ahead

transaction.

iv.

Where open access is denied, the State Nodal Agency shall furnish reasons

thereof to the applicant.

10.

Non-Utilization of open access service by Open Access Customers:

In the event of inability of the short-term open access customer to utilize for more

than four (04) hours, full or substantial part of the capacity allocated to him, such

a short-term open access customer shall inform the SLDC of his inability to utilise

the capacity, along with reasons therefor and may surrender the capacity

allocated to him. However, such short-term customer shall bear full transmission

and /or wheeling charges based on the original reserved capacity and the

period for which such capacity was reserved.

ii.

A long-tem/medium-term customer shall not relinquish his rights and obligations

specified in the open access agreement without prior approval of the State

nodal agency. The relinquishment of such rights and obligations by a long-term/

medium-term customer or termination of the agreement by the generating

company shall be subject to the payment of compensation, which shall be equal

to 66% of the applicable transmission charges and/or wheeling charges (net

present value) for the remaining period of tenure of the agreement, to the extent

of the capacity relinquished/terminated.

iii.

The SLDC may cancel or reduce the capacity allocated to a short-term open

access customer to the extent it is underutilized, when such a short-term open

access customer under-utilizes the allocated capacity more than two (2) times

in a month with duration of underutilization exceeding two (2) hours each time

or fails to inform the distribution licensee of his inability to utilise the allocated

capacity. Such cancellation shall be resorted to after giving due notice digitally.

iv.

The surplus capacity available as a result of its surrender by the short-term open

access customer under clause 10(i) above or reduction or cancellation of

capacity by the SLDC under clause 10(iii) above, may be allocated to any other

short-term open access customer in the order of pending applications based on

the point of injection and drawal.

11.

Open Access Charges:

(1) The following are the Open access charges payable by Open access customers for

reserving and / or using the network:

Transmission Charges

Wheeling Charges

Cross Subsidy Surcharge (CSS), wherever applicable,

Additional Surcharge (ASC), wherever applicable,

Banking Charges in kind, wherever applicable,

Standby charges, wherever applicable

Losses in kind as determined by the Commission

Other fees and charges such as Load Despatch Centre fees/ charges,

scheduling and system operating charges, applicable parallel operation/ grid

support charges, reactive power charges, deviation settlement charges,

monthly transaction charges, meter reading charges and any other charges, as

per the relevant regulations / Orders of the Commission.

(2) The OA charges listed in Clause11 (1) shall be payable by the OA customers as

follows:

(a) Charges Payable by the Generator: Transmission charges, Banking charges (in

kind), transmission losses (in kind as applicable), Load Despatch Centre fees/

charges, scheduling and system operating charges, applicable parallel

operation/grid support charges, reactive power charges, deviation settlement

charges, monthly transaction charges and meter reading charges;

(b) Charges Payable by the OA consumer: Wheeling charges inclusive of

applicable losses as determined by the Commission, cross subsidy surcharge,

additional surcharge, standby charges and meter reading charges;

Provided that in case of non- payment of specified open access charges by

exclusive or non-exclusive or captive consumers partly or fully, any open access

charges within the due date of the Corporation or ESCOM(s) or SLDC raising the

bills for the said charges, the same shall be payable by the generator within

fifteen days, failing which wheeling shall not be allowed to such generators.

(3) The transmission charges, shall be levied from the effective date i.e from the date

of grant of open access/deemed grant of open access, (whichever is earlier) to

avoid blocking of the corridor.

(4) The OA charges other than listed in 11 (3) shall be levied from the date of

commissioning or date of wheeling of energy, as applicable.

12. Computation of Open Access Charges

12.a. Transmission Charges

(i) For reserving and / or using of inter- State transmission system: As specified by the

Central Commission from time to time.

(ii) For reserving and / or using of intra –State transmission System:

(1) For Long Term and Medium Term Open access, the Transmission Charges shall

be computed as below:

Transmission charges in Rs. per MW per Month = (TTSC x 107) / (TCCx12)

Where, TTSC is the Total Transmission System Charges for InSTS shall be sum

of Annual Revenue Requirement (ARR) of Transmission Licensee(s) in Rupees

Crores approved or adopted by the Commission.

TCC is the Total Contracted Capacity of the Transmission System for all open

access customers including the Distribution Licensee/s, excluding short-term

OA customers, in MW.

Provided that, in case, where a dedicated transmission system used for open

access has been constructed for exclusive use of an open access customer

by the licensee, the transmission charges for such dedicated system shall be

worked out by STU or the transmission licensee for their respective systems

and get the same approved by the Commission. The charges shall be borne

entirely by such open access customer till such time the surplus capacity is

allotted and used for by other persons or purposes.

Provided further that in case, a dedicated line has been constructed by any

open access customer at his cost, for his own exclusive use, no

transmission/wheeling charges shall be paid by such customer for such lines

only.

(1.1) For Co-located Wind-Solar hybrid Power Plants:

(a) A wind-solar hybrid plant can be identified as a hybrid power plant if the

rated power capacity of one of the resource is at least 25% of the rated

power capacity of other resource.

(b) For existing co-located power plant(s),

(i) if solar or wind capacity is added, the transmission charges shall be

limited to the existing transmission capacity contracted with the

transmission licensee, subject to the condition that the installed capacity

of either solar or wind is not more than the existing transmission capacity

contracted.

(ii) In case capacity margins are available at the receiving transmission sub-

station of respective transmission entity, at which the existing wind / solar

project is connected, additional transmission capacity / access may be

allowed subject to its technical feasibility. In such a case, any

transmission augmentation required up to the receiving transmission sub-

station including the cost shall be the responsibility of project developer.

(iii) if solar or wind capacity is added and if the evacuation of solar and

wind combined capacity is higher than the existing transmission

capacity contracted, then the charges shall be to higher of wind or solar

installed capacity or combined evacuation capacity contracted by the

open access customer, subject to clause 1.1 (b)(ii) and subject to

condition that, the generator obtains evacuation approval for the

additional capacity.

higher of either wind or solar installed capacity or combined evacuation

capacity contracted by the open access customer, duly obtaining the

evacuation approval.

(d) The generation from Wind-Solar hybrid project shall not exceed the

contracted capacity. The SLDC shall have all the rights to curtail the

additional injection, keeping in view the security/reliability of the grid

operation, in addition to any penalty that may be imposed.

(1.2) For Non-Co-located Wind-Solar hybrid Power Plants:

The Transmission charges shall be paid for solar and wind projects separately

corresponding to the installed capacity of solar and wind projects

respectively.

(2) For Short-Term Open Access, the Transmission Charges shall be computed as

below:

Transmission charges in Rs. per MWh = ________TTSC in (Rs. Crores) x 104______________

Energy Transmitted by Transmission Licensee

during the year (MU)

TTSC is the Total Transmission System Charges for InSTS shall be sum of Annual

Revenue Requirement (ARR) of Transmission Licensee(s) in Rupees Crores

approved or adopted by the Commission.

12.b. Wheeling Charges: As determined by the Commission in Tariff Orders issued from

time to time, in accordance with the MYT Regulations.

12.c. Cross Subsidy Surcharge: The Cross-subsidy surcharge shall be as per the

provisions of Tariff Policy notified by the Central Government under the Act. The

following formula shall be adopted:

CSS (S) = T – [C/ (1-L/100) + D+ R]

wherein:

S – surcharge,

T – Tariff payable by the relevant category of consumers, including reflecting

the Renewable Purchase Obligation,

C – Per unit weighted average cost of power purchase by Licensee, including

meeting Renewable Purchase Obligation,

L – Aggregate of transmission, distribution and commercial losses, expressed as

a percentage applicable to the relevant voltage level,

D -Aggregate of transmission, distribution and wheeling charge applicable to

the relevant voltage level,

R – Per unit cost of carrying regulatory assets.

Provided that in case the above formula gives negative value of surcharge, the same

shall be zero.

Provided further that the cross-subsidy surcharge shall not exceed 20% of the tariff

applicable to the relevant category of consumer.

Provided also that cross-subsidy surcharge for Open Access shall be computed in

Rs/kWh and shall be charged on the actual energy consumed by the consumer under

Open Access.

Provided also that such cross-subsidy surcharge shall not be levied in case distribution

access is provided to a person who has been availing power from the generation

plant established as a captive plant for his own use.

12.d. Additional Surcharge:

(i) The Additional Surcharge shall be computed as follows:

Additional Surcharge (Rs./kWh) = ___Cost of Stranded Power (Rs. Crores) X 10______

Open Access Energy in MU

Where,

the Cost of Stranded power = (Quantum of power backed down/surrendered in

MW or Quantum of open access power in MW in the previous year, whichever is

lower) * Per Unit Fixed Cost of Power Purchase (Rs. Crore /MW).

(ii) Additional surcharge shall be on a per unit basis, payable monthly by open

access customers based on the actual energy drawn under open access.

(iii) Additional surcharge is not applicable in case distribution access is provided to a

person who has been availing power from the generation plant established as a

captive plant for his own use.

(iv) BESCOM on behalf of all ESCOMs, shall collect the data from SLDC & ESCOMs for

the previous year as per the Forms-1 & 2 and file petition before the Commission

for determination of additional surcharge for ensuing year. The additional

surcharge so determined shall be applicable to all open access customers of

respective ESCOMs as well as the open access customers of the other Distribution

Licensee(s) if they procure power from ESCOMs. The amount of Additional

Surcharge so collected by such Distribution Licensees from their OA customers,

shall promptly transfer the same to respective ESCOMs in the subsequent months.

(v) Cross subsidy surcharge and additional surcharge shall not be applicable in case

power produced from a non-fossil fuel-based Waste-to-Energy plant is supplied

to the Open Access Consumers.

12.e. Banking charges:

i) Monthly Banking shall be allowed for a period of five (5) years from the effective

date, for those WBA entered, under these Regulations.

Provided that, existing WBA’s executed before 13.01.2023 in case of STOA and

before 02.01.2023 in case of LTOA, seeking renewal shall not be entitled for

banking facility from the date of renewal.

Provided further that the unutilized banked energy (as applicable) remaining at

the end of the month, shall not be permitted to be carried forward to subsequent

months. However, the RE generating stations would be entitled to Renewable

Energy Certificates (RECs) for such energy remaining unutilized at the end of the

month, in accordance with CERC Regulations on Renewable Energy Certificate

(REC), if any.

ii) The energy banked during TOD Slot-1 & Slot-3 (Time period of the ToD Slots shall

be as defined in the Tariff Orders issued by the Commission from time to time)

shall be permitted to be drawn during TOD Slot-1, Slot-2, Slot-3 and Slot-4. The

energy banked during TOD Slot-2 & Slot-4 shall be permitted to be drawn during

TOD Slot-2 & Slot-4 only.

iii) The banking charges shall be 8% of the banked energy in kind or as determined

by the Commission from time to time.

iv) The banked energy shall be computed slot-wise and day-wise and summated at

the end of the month.

An illustration is enunciated below to depict the monthly settlement of energy

and daily settlement of charges thereof.

Day

Slot-1

Slot-2

Slot-3

Slot-4

Total

6 am to 9am

9 am to

6pm

6 pm to

10pm

10 pm to

6am

Day 1

Injection

100

120

100

130

450

Drawal

120

100

420

Banking

-20

Day 2

Injection

125

120

455

Drawal

120

100

120

430

Banking

-30

…

Day 30

or last

day of

the

month

Injection

120

100

410

Drawal

125

120

110

445

Banking

-35

-20

-10

-35

Total

Injection

315

330

320

350

1315

Drawal

335

310

320

330

1295

Banking

-20

Computation of Banking charges on daily basis (in kWh)

Total

Banking

during Slot-1

& Slot-3

Total banking

during Slot-2

and Slot-4

Total Charges: Slot 2

& 4 to Slot's-2 or 4

and Slot-1 & 3 to

Slot's 1 up-to 4

Total

banking

Charges to

be paid (in

kind)

Day 1

+20+30=50

50*0.08=4

4.0

Day 2

35+20=55

55*0.08=4.4

4.4

….

Day 30 or

last day of

the month

30*0.08=2.4

2.4

Total

135*0.08=10.08

10.08

Note: where there is net drawal from grid, banked energy is zero.

As illustrated above, at 8% banking charges, for the 135 kWh, the banking charges will

be 10.80 kWh.

[The computation shall be done for all the days in a month and above is illustrative

example only].

12.f. Standby charges

In case of outages of generators supplying to a consumer on open access, standby

arrangements should be provided by the licensee on payment of 125% (normal

energy charges plus 25% of normal energy charges) of energy charges applicable to

that consumer category as determined by the Commission in its tariff orders.

Provided further that the standby charges shall not be applicable, if open access

consumer has given notice, in advance at least a day in advance to the distribution

licensee, before closure time of Day Ahead Market on “D – (minus) 1” day, “D being

the day of delivery of power for standby arrangement.

12.g. Losses

Intra State Transmission losses and or Distribution losses as approved by the Commission

in Tariff orders issued from time to time shall be applicable in kind for all OA

transactions.

12.h. Other fees and charges

Load Despatch Centre fees/ charges as determined by the Commission in Tariff

Orders issued from time to time

ii)

Scheduling and system operating charges, applicable parallel operation/ grid

support charges, reactive power charges as determined by the Commission from

time to time

iii)

Deviation settlement charges as specified under the Regulations as amended

from time to time

iv)

Monthly transaction charges of Rs.3000/- (Rupees Three Thousand only) per

month

Meter reading charges of Rs. 1000/- (Rupees One Thousand only) per month. No

meter reading charges shall be collected, in case of AMR meters having remote

meter reading facilities are being installed and data is transferred automatically

to SLDC/Concerned ESCOM.

vi)

any other charges as specified under the various KERC Regulations and Orders,

if any.

13. Residual Energy:

(1) The residual energy, if any, after deducting the consumption by the consumer from

various open access sources like IEX, wheeling etc., including transmission and/or

Distribution losses and Banking charges shall be deemed to have been met by the

ESCOM in whose jurisdiction such consumer is located and shall be billed as per the

tariff applicable to that consumer category.

(2) If the energy injected (after deducting transmission and/or distribution loss and

banking charges, as applicable) is more than the energy consumption during any

month the excess energy shall be treated as lapsed and in case of RE sources (wind,

solar, mini-hydel or hybrid of these sources), be entitled to obtain RECs for excess RE

energy injected during a month.

14.

Curtailment Priority:

In case due to transmission/distribution system constraints or due to grid security, it is

necessary to curtail the service, the following priority shall be followed:

The short-term Non- RE open access consumer shall be curtailed first.

Next, short-term RE open access consumer shall be curtailed.

Next, medium-term Non- RE OA consumer shall be curtailed.

Next, medium-term RE OA consumer shall be curtailed.

Next long-term Non-RE OA consumer shall be curtailed.

Next long-term RE OA consumer shall be curtailed.

Provided that, in view of Grid Security issues, within a category, the OA customer shall

have equal curtailment priority and shall be curtailed on pro-rata basis.

Provided further that distribution licensees shall be curtailed as a last resort.

15.

Green Certificate: The distribution licensee shall give green certificate on yearly basis

to the consumers for the excess green energy supplied by the licensee to consumer

on his request beyond the renewable purchase obligation of the consumers.

16.

Dispute Resolution:

All disputes and complaints relating to open access shall be raised before the SNA,

which may investigate and endeavour to resolve such disputes and complaints.

If the SNA is unable to redress the complaints/ disputes, a petition may be preferred

before the State Commission for the dispute resolution.

17.

Special Energy Meters/Smart Meters:

Metering shall be done in accordance with the provisions of CEA (Installation and

Operation of Meters) Regulations, 2006 as amended from time to time.

ii)

The meters shall be capable of time-differentiated measurements (15 minutes) of

necessary parameters and shall have ToD facility. These meters shall always be

maintained in good condition and shall be open for inspection by any person

authorized by the State nodal agency.

Provided that for LT consumers seeking open access, the time differentiated

measurement of parameters in the meter in 15-minutes’ time blocks shall be

waived for the present, till such time it is notified by the Commission seperately.

However, such meters shall have ToD facility.

iii)

The meter shall include CTs, PTs and associated accessories and shall be tested

and calibrated at least once in a year.

iv)

The meters shall be sealed by the distribution licensee in whose area the

Generator/Consumer is situated.

In case the meter is provided by the transmission/distribution licensee, the open

access customer shall pay for its rent and also provide meter security deposit.

vi)

The meter shall be capable of communicating its reading to SLDC on real time

basis.

vii)

The metering code prevailing in the State shall be applicable to the open access

customers.

18.

Compliance of Grid Code/Distribution Code/ Regulations

All Open Access customers shall abide by the State Grid Code, Distribution Code and

all other Codes and Standards, DSM Regulations and other Regulations as applicable

from time to time.

19.

Collection and Disbursement of charges

The charges in respect of all Open Access customers shall be payable directly to the

concerned licensee/SLDC in accordance with the terms and conditions of payment

as prescribed by the State Nodal agency or by the licensee/s. The charges payable

to the transmission licensee/ SLDC shall be paid directly to the transmission

licensee/SLDC and charges payable to distribution licensee/s shall be paid directly to

such distribution licensee/s

20.

Information System:

SLDC shall post the following information in a separate web page titled “Open

Access” Information and also issue a monthly and annual report containing such

information;

A status report on long term/medium-term/short term customers.

Peak load flows on EHV and HV lines

Information regarding average loss in the transmission system and

distribution system as determined by the licensee/s on a monthly basis.

The information shall be updated upon every change in status.

All previous reports shall be available in the web-archives.

The SLDC shall host the above information on its website within one month from

the date of notification of these Regulations.

21.

Reports:

The transmission/distribution licensee shall publish a quarterly report on its website or as

often requested by the Commission the information in the following format:

Sl.

No.

Name and

address of the

open access

customer

Whether

OA with

RE or

otherwise

Source

Energy

Point of

injection

Point of

drawal

Capacity

allowed

(MW)

Period of

open

access

allowed

Actual

annual

utilization of

energy in

22.

Communication facility:

All Open Access customers shall have the requisite communication system in place to

facilitate seamless communication of data/orders/ information to/from the State

Nodal Agency, in accordance with the applicable standards / Regulations.

23.

Issue of orders and practice directions:

Subject to the provisions of the Electricity Act, 2003 and these Regulations, the

Commission may, from time to time, issue orders and practice directions with regard

to the implementation of the Regulations and procedures to be followed.

24.

Power to remove difficulties:

In case of any difficulty in giving effect to any of the provisions of these Regulations,

the Commission may suo-motu or otherwise by general or special order, direct the

open access consumers, generators, SNA and the licensees to take suitable action,

not being inconsistent with the provisions of Electricity Act, 2003, which appears to the

Commission to be necessary or expedient for the purpose of removing the difficulty.

Open access customers/licensees may prefer an application before the Commission

and seek suitable orders to remove any difficulties that may arise in implementation of

these Regulations.

25.

Power to amend:

The Commission may from time to time add, vary, alter, modify or amend any

provisions of these Regulations after following the necessary procedures.

26.

Interpretation:

The decision of the Commission regarding the interpretation of these Regulations shall

be final and binding.

Details to be furnished for estimation of Additional Surcharge

Form -1

(A) Available Capacity in MW for the Month_______________

Sources

0000

:0015

0015:0030

0030:0045

0045:0100

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

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

>>>>>>>>>

Average for the

month

1 KPCL Stations

(i)

(ii)

2. CGS sources

(i)

(ii)

3.Major IPPs

(i)

(ii)

4. LTOA

5 MTOA

(A) Total (1 to 5)

for each 15mts

block

A1= Average of

A_______

(B)Scheduled Capacity in MW for the Month------------------------------

Sources

0000

:0015

0015:0030

0030:0045

0045:0100

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

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

>>>>>>>>>

1 KPCL Stations

Average for the

month

(i)

(ii)

2. CGS sources

(i)

(ii)

3.Major IPPs

(i)

(ii)

4. LTOA

5 MTOA

(B) Total for each

15mts block

B1=Average of

B_______

(C)Scheduled Open Access capacity (IEX/3rd party) in MW for the

month_______________

Sources

0000

:0015

0015:0030

0030:0045

0045:0100

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

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

>>>>>>>>>

Average for the

month

IEX

3rd Party

(C) Total for each

15mts block

C1=Average of

C_______

Note:-

1. Data on 15 minutes block wise to be furnished for the previous year ie., if AS is to

be determined for 2025-26, data to be furnished for 2024-25 for the State.

2. Data shall be furnished for all the 12 months

3. The monthly available capacity/scheduled /OA capacity (A1,B1,C1) to be

calculated by taking the average for each month for each 15mts time block

Form -2 : Monthly Average Surplus/Stranded

capacity (MW)

Month 1

Month 2

Month 3

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

--->>>>>>>>>

Month

Overall

Average

D. Average Available

capacity

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

--->>>>>>>>>

A12

D= (Average

of A1 to A12)

XXXXX

E. Average Scheduled

Capacity

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

--->>>>>>>>>

B12

E= (Average

of B1 to B12)

XXXXX

F. Staranded capacity

(D-E)

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

--->>>>>>>>>

F12

F= (Average

of F1 to F12)

XXXXX

G.Scheduled OA

capacity

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

--->>>>>>>>>

C12

G= (Average

of G1 to G12)

XXXXX

H. Stranded capacity

due to OA (Lower of

F,G)

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

--->>>>>>>>>

H12

H= (Average

of H1 to H12)

XXXXX

Note:

The month wise average capacity for each time block is to converted to yearly figures by

taking average of 12 months

Stranded Cost of Power

for the year in Rs. (S)

H * per MW fixed cost of Power for the Stations/sources

mentioned in Form-1 in Rs.Crore

Additional surcharge (AS)

(Rs./kWh)

S* x 10 / OA Energy for the year (3rd party, IEX) in MU

* After adjustments in for demand charges as applicable

APPENDIX-1

WHEELING AND BANKING AGREEMENT FOR OPEN ACCESS PROJECTS UNDER THE KERC

(TERMS AND CONDITIONS FOR OPEN ACCESS) REGULATIONS, 2025

This Wheeling and Banking Agreement is made at …………………… on this day

of …………….. between Karnataka Power Transmission Corporation Limited, a

Company formed and incorporated in India under the Companies Act, 1956, with its

registered office located at Kaveri Bhavan, Kempegowda Road, Bangalore – 560 009,

Karnataka State, hereinafter referred to as the “Corporation” (which expression shall,

unless repugnant to the context or meaning thereof, include its successors and

permitted assigns) and

Electricity Supply

Company / Corporation Limited (where the power is injected) a Company formed

and incorporated in India under the Companies Act, 1956, with its registered office

located at ………………………… (address of ESCOM), Karnataka State hereinafter

referred to as the “ ESCOM" (which expression shall, unless repugnant to the context

or meaning thereof, include its successors and permitted assigns) on one hand and

M/s.……………………………, a generating company and having its Registered Office

at………………………………………………………………………... hereinafter referred to as

the “Company” (which expression shall, unless repugnant to the context or meaning

thereof, include its successors and permitted assigns) on the other, as parties.

The generating company shall obtain all statuary clearances and there is no need for

obtaining any license under the Act for establishing a generation plant and for the

purpose of wheeling of energy.

WHEREAS:

i) The Corporation is a transmission Licensee owning and operating a transmission

system and the ESCOM is a distribution Licensee engaged in the business of electricity

distribution in the State of Karnataka and is under a statutory obligation to provide non-

discriminatory open access (OA), under the provisions of the Electricity Act, 2003.

ii) The Company proposes to/has install(ed) ………………….(energy source) Non-RE /

RE Electric Power Generating Station of ……..kW/MW capacity at/near

……………………… Village in…………………… Taluk, ………………. District and the

Company plans/has to construct(ed), own, operate and maintain the above said Non-

RE/ RE Electric Power Generating Station, hereinafter referred to as the Project.

iii) The generator shall give an undertaking that there is no subsisting Power Purchase

Agreement (PPA) with any of the ESCOMs in the State, for sale of electricity for the

capacity for which wheeling is sought under this agreement.

iv) Pursuant to (i)& (ii) above, the Company desires to wheel upto ……… kW/MW of the

power generated from the project for its captive use or to sell to the Third Party utilizing

the transmission and/or distribution network of the Corporation and ESCOM/s

respectively and for the said purpose intends to enter into an agreement with the

Corporation and the ESCOM where the power is injected.

v) The nodal agency vide their email /letter/soft copy or through any other digital

mode dated …………… has granted Access for wheeling and banking [banking in the

case of Wind, Mini-hydel & Solar and hybrid of the above sources only] of electricity

generated by the Company in the project within the time specified in the Regulations.

In absence of grant of Open Access within the time specified in the Regulations, Open

Access is deemed to be granted.

NOW THEREFORE IN VIEW OF THE FOREGOING PREMISES AND IN CONSIDERATION OF

THE MUTUAL COVENANTS AND CONDITIONS HEREINAFTER SET

FORTH, THE CORPORATION, ESCOM AND THE COMPANY, HEREBY AGREE AS FOLLOWS:

ARTICLE 1

1.1 DEFINITIONS

For the purposes of this Agreement, unless the context otherwise requires, the following words

and expressions shall have the respective meanings set forth below:

“Act” means the Electricity Act, 2003 as amended from time to time.

"Agreement" shall mean and include the Wheeling & Banking Agreement executed herein,

including the schedules hereto, amendments, modifications and supplements made in writing by

the parties from time–to- time in terms of OA Regulations.

“Applicable Tariff/Charge” means the tariff/charges for wheeling and banking as determined by

the Commission from time-to-time in terms of OA Regulations.

“Banking” means the facility by which electrical energy remaining unutilized by the “Exclusive” or

“Non- Exclusive” Consumer or “Captive Consumer ” out of the energy injected by the Company into

the transmission and/or distribution system of Corporation/ESCOM/s, which is allowed to be

utilized for wheeling to “Exclusive” or “Non-Exclusive” Consumers of the Company or captive

consumer for later use, as per the terms and conditions set forth in this agreement.

“Banking cycle” means the period from 00:00 hrs from the first day of a calendar month to 24:00

hrs of last day of the same calendar month.

“Billing Period” means the period from 00:00 hours of the first day of a calendar month to 24:00

hours of the last day of such month. The first Billing Period shall commence from 00:00 hours of

the Commercial Operation date/date of commencement of wheeling in a calendar month and end

with 24:00 hours of last day of such month.

“Captive Generating Plant” shall be as defined in Electricity Act 2003 and the Criteria for the

Captive Status shall be as defined in Electricity Rules 2005 as amendment from time to time.

"Commercial Operation Date” means the date declared jointly by the Company and the

Corporation/ ESCOM on which the project or any of its units is/are declared as available for

commercial operation.

“Commission” means the Karnataka Electricity Regulatory Commission.

“Drawal Point” means the point as specified by the Company to which the wheeled/banked power

is to be supplied, indicating the place of HT/LT installation & RR. No. of HT/LT installation, if any.

“Exclusive consumer” means a consumer identified by the Company for Wheeling Power, who

receives the entire quantum of his power requirement from the Company utilising the

Transmission/ Distribution Network of the Corporation / ESCOMs.

“Financial Year” means year starting from 1st day of April of a calendar year and ending on the 31st

day of March of the following calendar year.

m) "Force Majeure Events” means the events and circumstances as described in Article 9.

"Injection Point” means the point or points at which Electricity is injected by the Company into the

Corporation/ESCOMs‟ network.

"Injected Energy” means the kilowatt hours of Electricity actually exported and measured by the

energy meters at the Injection Point in a Billing Period after deducting therefrom 115% of the

energy imported from the ESCOM/s for start-up or any other purposes by the Project as measured

at the injection point during a Billing Period.

“Installed Capacity” means the capacity of the Project at the generating

terminal(s) and shall be equal to ……kW/MW.

“Metering Date” for a Billing Period, means the midnight (24.00 hours) of the last day of a calendar

month during which energy is injected.

“Metering Point” for purposes of recording of Injected Energy at the Injection Point shall include two

separate sets of Special Energy Meters/ Smart meters as per the KERC (Terms and Conditions for

Open Access) Regulations, 2025, with Automated Meter Reading facility, the main meter installed

by the Company and the check meter installed by the ESCOM, having facilities to record both export

and import

of electricity to/from the grid and, for purposes of recording the Energy drawn at the drawal

Point, shall include a meter installed, having facilities to record both export and import of

electricity to/from the grid.

“Monthly Charge” shall have the meaning as set forth in Article 5.

“Nodal agency” means the agency as defined in KERC (Terms and Conditions for Open Access)

Regulations, 2025.

“Non-Exclusive Consumer” means a consumer who purchases / consumes power from both ESCOM

and the Company.

“Renewable Sources (RE) of Energy/ Green energy” means such sources that produce/generate

electrical energy from renewable sources of energy including, but not limited to Solar PV Power

Project or Wind Power Project or Hybrid Power Project or Small Hydro Power Project or biomass,

biofuel, urban or municipal waste, Energy Storage Systems including pumped storage hydro

generation using entire electricity generated from renewable energy for charging / pumping or any

other technology as may be notified by the Government of India from time to time and shall also

include any mechanism that utilises green energy to replace fossil fuels including production of

green hydrogen or green ammonia;

w) “Water Year” for mini-hydel projects shall mean the year commencing on the first day of June of a

calendar year and ending on the thirty first day of May of the following calendar year.

Any Words and expressions used but not defined in this Agreement shall have the same meaning

as defined in the Act, KERC Regulations and the Grid Code.

1.2 INTERPRETATION

Unless otherwise stated, all references made in this Agreement to “Articles” and “Schedules”

shall refer, respectively, to Articles of and Schedules to this Agreement. The Schedules to this

Agreement shall form part of this Agreement and shall be in force and effect as though they were

expressly set out in the body of this Agreement.

ARTICLE 2

INTERCONNECTION

2.1

Subject to the terms of this agreement, power generated from the Project of the Company shall

be evacuated through the………….kV line constructed and maintained by the Company up to

the………. kV ................................................................................................................ Substation

(Injection Point) of the Corporation/ESCOM.

2.2

Evacuation of power generated by the project, shall be limited to the capacity of transmission/

distribution system as specified by the Corporation/ESCOM in the evacuation approval.

2.3

The generating facility of the project shall be connected to the network of the Corporation and/or

ESCOM in accordance with the Central Electricity Authority (Technical Standards for Connectivity

to the Grid) Regulations, 2007 (as amended from time to time). In case the above regulations do

not specify connectivity standards for a particular voltage level, the same shall be as approved by

the Corporation/ESCOM.

2.4

The Company shall provide suitable relays and protective devices as specified by

Corporation/ESCOM or as per prudent utility practice at the injection point

at ......................... Sub-station and at the HV side of the Generator which shall be

got calibrated / checked by the Corporation/ESCOM before the plant is synchronized.

Calibration of such relays and devices shall also be got done by the Company once in a

year during the operation of the plant to ensure their proper functioning. The Company

shall install, at its own cost, protection equipments like protection relays, communication

system or similar equipment for the protection to the equipment of the

Corporation/ESCOM and the Company. The Company shall obtain the approval of the

Corporation/ESCOM for the specifications of such equipment and shall furnish the test

reports, to the Corporation/ESCOM, as may be required.

2.5

The company shall obtain the following approvals for the project:

a. Approval of the Electrical Inspectorate

b. Evacuation/Synchronization approval from the Corporation/ESCOM.

2.6

The specifications for electrical energy delivered shall be as per Schedule-2.

2.7

The Company shall ensure that the metering and protection facility be, on notice, open for

inspection by the authorized representative of the Corporation/ESCOM.

2.8

In the case of a new generating plant as well as addition of new capacity to the existing plants, the

Company shall give written notice fifteen days in advance to the Corporation/ESCOM before the

date of synchronisation, trial operation (other than wind and solar projects) and commercial

operation of the generator. The same shall also be intimated in writing/email or through any

recognized digital mode of communication to the SLDC duly furnishing time block schedule.

2.9

The Corporation/ESCOM shall not be liable for losses or damages, if any, consequent to any line

outage between the point of generation and the injection point for any reason whatsoever,

consequent to which power is not evacuated.

ARTICLE 3

UNDERTAKIN

3.1 Obligations of the Company:

(i)

The Company shall for setting up/ operation of the project, at all times have statutory approvals,

clearances, and permits as set out in Schedule-1 of this agreement.

(ii)

A. As provided in the Act, the Company shall undertake at its own cost to establish, operate and

maintain the following in accordance with Prudent Utility Practices during the operation of this

agreement:

a) Generating Station;

b) Tie-Line (s);

c) Sub-stations;

d) Dedicated transmission line connected therewith.

The Company shall abide by the State Grid code, Distribution code and other applicable

regulations, rules, Codes and standards.

The Company shall strictly comply with the CEA (Safety requirements for construction,

operation and maintenance of electrical plants and lines) Regulations, 2011 and CEA

(Measures relating to safety and electricity supply) Regulations, 2023, as amended from

time to time.

(iii)

The Company shall be liable to pay all applicable charges to the Corporation/ESCOMs/SNA as per

Article -5 including any Open Access charges (as mentioned in the extant Regulations w.r.t. Open

Access issued by the Commission from time to time) pending to the Corporation/ESCOMs from

exclusive or non-exclusive or captive consumers to whom energy is wheeled, in case such

payments are not made by the due date by such consumers.

(iv)

The Company shall pay any applicable taxes, cess, duties or levies imposed by the Government

or Competent Authority from time to time.

(v)

The Company shall furnish when required, any data necessary for the system studies conducted

by the Corporation or the ESCOM.

3.2 Obligations of Corporation/ESCOMs

The Corporation/ESCOMs shall:

(i)

Subject to system constraints, wheel the Electricity generated by the Company up to the Drawal

Point in accordance with the provisions of the Act, Rules and Regulations in force from time-to-

time.

[Explanation: “System constraint” means a condition or situation under which the electrical system of

the Corporation/ESCOM/s is unable to evacuate and transmit fully or partly the energy generated

from the project due to unforeseen breakdown of network elements like lines, switchgears

or due to frequency/voltage constraints in the system or for any other reasons beyond the control

of the Corporation/ESCOMs.]

(ii)

Provide connectivity to network (by augmentation wherever necessary) and ensure that the

contracted network capacity under open access is made available to the company during the

period of contract.

(iii)

Abide by the State Grid code, Distribution code and other applicable regulations, rules, Codes and

standards.

(iv)

Abide by the CEA (Safety requirements for construction, operation and maintenance of electrical

plants and lines) Regulations, 2011 and CEA (Measures relating to safety and electricity supply)

Regulations, 2023, as amended from time to time.

(v)

Terminate the WBA in case the Company intends to enters into an agreement to sell power to the

Distribution Licensees of the State at-

 The tariff determined by the Commission under Section-62 of the Act or adopted under

Section-63 of the Act Or

 The Average pooled power purchase cost [APPC] or 75% of the generic tariff

applicable to such RE projects, whichever is lower, for obtaining Renewable Energy

Certificates [RECs]

ARTICLE 4

OPERATION OF THE POWER PLANT

4.1

The operation of the Project shall not at any time be in contravention to the Electricity Act, 2003

and Rules, Regulations issued there under and any other applicable provisions of law.

4.2

The Corporation/ESCOM/s shall not impose any restrictions on the manner of generation except

for reasons of safe operation of the grid.

4.3

The operation of the power plant shall be suitably co-ordinated to comply with instructions of

State/Area Load Dispatch Centre.

4.4

The starting current of the Generator shall not exceed 110% of the full load current of the

generator and for that purpose, the generator shall provide necessary current limiting devices.

4.5

The Company shall provide at its cost, protective measures and devices for the safe operation of

the Project with the grid as per the prevailing regulations/codes.

The Corporation or ESCOM/s shall not be liable to pay any compensation for any

damage caused to any part of the generating station resulting from parallel operation with

the grid.

ARTICLE 5

CHARGES

5.1

The Company shall pay all the charges to the Corporation/ESCOMs for using their network as

per the applicable KERC Regulations/Orders issued from time to time.

Such charges shall include:

(i)

transmission charges for the use of the transmission network,

(ii)

wheeling charges for the use of the distribution network/s, if not paid by the consumers,

(iii)

cross subsidy surcharge, if not paid by the consumers

(iv)

additional surcharge, if not paid by the consumers

(v)

Banking charges in kind wherever applicable,

(vi)

stand-by charges wherever applicable, if not paid by the consumers

(vii) Losses as determined by the Commission,

(viii) Monthly transaction charges of Rs. 3000 for maintaining the transaction details,

(ix)

Meter reading charges of Rs. 1000 per month, in case AMR meters having remote

meter reading facilities are not functional,

(x)

Load despatch Centre fees,

(xi)

Scheduling and system operation charges,

(xii)

Grid support / Parallel operation charges, as determined by the Commission from time to

time,

(xiii) Reactive power charges,

(xiv) Deviation settlement charges under DSM Regulations,

(xv) Any other charges as specified under the various KERC Regulations.

Provided that in case of non- payment of specified open access charges, cross subsidy

surcharge or additional surcharge, standby charge or any other charge by exclusive or non-

exclusive or captive consumers partly or fully, any open access charges within the due date of

the Corporation or ESCOM(s) or SLDC raising the bills for the said charges, the same shall be

payable by the generator within fifteen days, failing which wheeling shall not be allowed to

such generators.

5.2

The Company shall pay to the nodal agency before commencement of wheeling, security

deposit equivalent to the estimated charges for two months which shall be retained with the

nodal agency till the expiry of the Agreement. In case of non-payment of monthly Open access

charges, the security deposit shall be encashed by the concerned licensee and the company shall

immediately replenish the security deposit, failing which the wheeling shall not be allowed to

such generator.

5.3

The ESCOM shall recover from the Exclusive Consumer:

a) twice the demand charges as applicable to the relevant category of consumers as

determined by the Commission from time to time, for the over drawal of

demand[kW/MW] beyond the quantum of power contracted under the wheeling

agreement; and

b) twice the energy charges as applicable to the relevant category of consumers for over

drawal of energy from the grid beyond the net injected energy by the Company [injected

energy less the losses in kind].

5.4

The Company shall be permitted to import power from the grid for start-up, maintenance and

other allied purposes duly intimating the ESCOM/s the period for which such supply is required.

In such cases, the 115% of the actual energy drawn from the grid as recorded by the import

meter at the injection point shall be deducted from the total energy generated.

5.5 Charges for infirm power (not applicable for wind, solar power and wind-solar

hybrid projects):

(1) The infirm energy injected during the period from trial operation date after

synchronization up to the commercial operation date shall be deemed to be sold to the

ESCOM in whose jurisdiction the energy is being injected to the grid and shall be paid

for by such ESCOM :

(a) For RE sources (excluding wind, solar and wind-solar hybrid projects): At the applicable

Average Pooled Power Purchase Cost (APPC) or 75% of the generic tariff determined by

the Commission for the relevant year for the relevant RE source, whichever is lower and

(b) For non-RE / conventional sources: At the variable charges to recover the fuel costs as

determined by the Commission for similar type of non-RE / conventional power plants for

the relevant year.

5.6 Banking and energy remaining unutilized at the end of the month (not

applicable for existing WBA’s seeking renewal, which were executed before

13.01.2023 in case of STOA and before 02.01.2023 in case of LTOA):

Monthly Banking shall be allowed for a period of five (5) years from the effective date, for

those WBA entered, under these Regulations.

Provided that the unutilized banked energy (as applicable) remaining at the end of the month,

shall not be permitted to be carried forward to subsequent months. However, the RE

generating stations would be entitled to Renewable Energy Certificates (RECs) for such

energy remaining unutilized at the end of the month, in accordance with CERC Regulations

on REC, if any.

The banked Energy at the end of a month shall be calculated as follows:

Ebi= [ Eg*(1-C)] - Et -B

Where,

Ebi =Banked energy at the end of a month;

Eg = Generated energy injected to the grid at the point of injection in a month as recorded

by the export register of the meter less 115% of energy recorded by import meter at

injection point.

B = Banking charges in kind (in MU)

C = Transmission and/or wheeling losses expressed in percentage.

Et = Actual energy Consumed in a month by the Exclusive Consumers and/or Non-

Exclusive Consumer and/or captive consumers.

Note: Banked energy is zero if Ebi is negative or zero.

5.7 PF penalty:

The exclusive or non-exclusive Consumer or captive consumer shall pay Power Factor penalty

for any reduction in power factor, as per rates determined by the Commission from time to time

in its Tariff Orders.

5.8 Energy Losses:

Transmission and distribution losses for transmission/wheeling of energy shall be applicable and

shall be as per the loss levels fixed for the purpose of transmission/wheeling by the Commission

from time to time, in its Tariff Orders.

ARTICLE- 6

WHEELING AND BANKING OF ENERGY

6.1

WHEELING OF ENERGY:

6.1.1 At least 15 days prior to commencement of wheeling, the Company shall submit in writing, a list of

“Exclusive Consumers”, “Non-Exclusive consumers” and “Captive Consumers” to whom it

proposes to wheel power, indicating the quantum of power to be wheeled to such consumers.

Any addition or deletion to the list of consumers or change in power allocation to the existing

consumers shall be intimated to the Corporation/ESCOM/s, 15 days prior to giving effect to such

change. The duty of the licensee with respect to such wheeling of energy shall be of common

carrier providing non-discriminating open access.

Provided that no supplemental agreement shall be required to be signed, for such addition

or deletion of the consumers.

6.1.2 At the end of each month, the company shall allocate the entire energy generated during the

month ToD slot-wise, to its consumers under WBA.

6.1.3 The residual energy, if any, after deducting the consumption by the consumer from various open

access sources like IEX, Wheeling etc., including transmission and/or Distribution losses and

Banking charges shall be deemed to have been met by the ESCOM in whose jurisdiction such

consumer is located and shall be billed as per the tariff applicable to that consumer category.

If the energy injected (after deducting transmission and/or distribution loss and banking charges,

as applicable) is more than the energy consumption during any month, the excess energy shall

be treated as lapsed and in case of RE sources (wind, solar, mini-hydel or hybrid of these sources),

be entitled to obtain RECs for excess RE energy injected during a month.

6.1.4 The Corporation/ESCOMs/SLDC shall collect from the Exclusive consumers of the Company, only

the applicable open access charges as per KERC Regulations/orders.

6.1.5 All Charges for the quantum of energy drawn by “Non Exclusive Consumers” including energy and

demand charges other than for energy wheeled from the Company, shall be collected by the

concerned ESCOM directly as per the tariff applicable to such consumers. In addition, the

applicable charges for open access transaction as per the Regulations / Orders of the Commission

shall be paid by such consumers to the concerned licensees/SLDC.

6.1.6 In the event of system constraints, captive consumers, Exclusive and Non- Exclusive Consumers

shall be subjected to power cuts or load shedding as deemed necessary by the

Corporation/ESCOMs/SLDC.

6.1.7 Notwithstanding to the Article 5.6, the Corporation/ESCOMs reserve the right to withdraw the

facility of banking and wheeling either wholly or partly in case of any breach of conditions of this

agreement or under force majeure conditions. In such an event, Corporation/ESCOMs shall not

be liable to pay any compensation or damages to the Company.

ARTICLE - 7

BILLING PROCEDURE

7.1

The meters shall be read automatically and the data shall be communicated to SLDC/ESCOMs

online and the bills shall be raised accordingly.

7.2

For the purpose of Open Access, the generator and the consumers shall install AMR meters with

communication facility and no meters shall be read physically.

7.3

All payments of bills issued by the Corporation/ESCOMs/SLDC under this agreement shall be paid

by the Company/Exclusive consumers/Non-exclusive consumers/Captive consumers within

fifteen days from the receipt of such bills.

ARTICLE - 8

METERING AND COMMUNICATION

8.1

Metering: The Energy injected and the energy drawn shall be metered at the receiving sub-station

point and at the drawal point of the Consumers (to be specified clearly by the Company)

respectively.

8.2

Metering equipment: Metering equipment shall be Special Energy Meters/Smart meters (with

Automatic Meter Reading facilities) of accuracy class 0.2S required for the Project (both main and

check meters). The main meter shall be installed and owned by the Company, whereas check

meters shall be installed and owned by the ...ESCOM. The dedicated core of both Current

Transformers [CTs] and Potential Transformers [PTs] of required accuracy shall be made available

by the Company to….ESCOMs. The metering equipment shall be maintained in accordance with

applicable electricity standards and shall be capable of recording quarter-hourly (which can

subsequently be modified to record 5- minutes data), ToD slot-wise and monthly readings. The

Company shall provide online, the metering data to the….SLDC/ESCOM every month. The meters

installed shall be capable of recording and storing quarter hourly readings of all the electrical

parameters for a minimum period of 35 days with digital output.

8.3

Sealing of Energy Meters: All the main and check energy meters (export and import) and all

associated instrument transformers installed shall be of 0.2S accuracy class. Each meter shall be

jointly inspected and sealed by the ESCOM and shall not be interfered with by either Party except

in the presence of the other Party or its authorized representatives.

8.4

Meter Test Checking: All the main and check meters shall be tested for accuracy every calendar

quarter with reference to a portable standard meter owned by the ESCOM which shall be of an

accuracy class of 0.1S. The meters shall be deemed to be working satisfactorily if the errors are

within specifications for meters of 0.2S accuracy class. The cost of such test checking shall be

borne by the Company at the rates specified by the ESCOM from time to time. The consumption

registered by the main meters shall be considered for the purpose of billing as long as the error

in the main meter is within the permissible limits.

(i) If during the quarterly tests, the main meter is found to be within the permissible limits of error

and the corresponding check meter is beyond the permissible limits, then billing will be as per

the readings of the main meter. The check meter shall, however, be calibrated immediately.

(ii) If during the quarterly tests, the main meter is found to show any reading beyond permissible

limits of error, but the corresponding check meter is found to be within permissible limits of

error, then the billing for the month up to the date and time of such test shall be as per the

check meter. There shall be a revision in the bills for the period from the previous billing date

up to the current test date, based on the readings of the check meter. The main meter shall

be calibrated immediately and billing for the period thereafter till the next monthly meter

reading shall be as per the calibrated main meter.

(iii)

If during the quarterly tests, both the main meter and the corresponding check meter are

found to show readings beyond the permissible limits of error, both the meters shall be

immediately calibrated. Corrections shall be applied to the reading registered by the main

meter to arrive at the correct reading of energy supplied for billing purposes. Such correction

shall be applied for the period from the last month's meter reading up to the current test.

Billing for the period thereafter till the next monthly meter reading shall be as per the

calibrated main meter.

(iv)

If during any of the monthly meter readings, the variation between the main meter and the

check meter is more than that permissible for meters of 0.2S accuracy class, all the meters

shall be re-tested for their accuracy immediately.

8.5

Interconnection and Metering Facilities: The Company shall provide at its cost dedicated core for

the metering. Both the main meter and the check meter shall be installed nearest to the PT in the

outdoor yard of the Corporation/ESCOM and shall be housed in a suitable weatherproof cubicle.

8.6

Data Acquisition System (DAS)/ Data Concentrator Unit (DCU) and Communication facilities:

The Company shall install and maintain at its cost, DAS/DCU and communication network facilities

at the Generating Station/Injection Point as well as drawal points to automatically read data and

automatically transfer the data to SLDC/ESCOM as the case may be, with due approval of

technical features by the Corporation or the ESCOM.

8.7

In the case of any tampering of metering cubicle or energy meters at the Exclusive Consumers

/Non-Exclusive Consumers/Captive Consumers premises or at the Company’s power generating

plant being detected or observed, the Corporation/ESCOM/s shall have the right to withdraw the

Wheeling & Banking facilities to the Company without any notice.

8.8

Notwithstanding anything contained in this agreement w.r.t metering, the provisions under CEA

(Installation and Operation of meters) Regulations 2006 and amendments from time to time shall

prevail.

ARTICLE-9

FORCE MAJEURE

9.1

In the event of Force Majeure conditions like war, pandemic, epidemic, flood mutiny, riot,

earthquake, hurricane, strike, tempest, accident to machinery, affecting the wheeling and/or

banking of power, the Corporation/ESCOM/s shall have no obligation to Bank and Wheel the

energy as per this agreement. However, they shall make all reasonable efforts to restore normalcy

within 30 (thirty) days and if the same is not possible, this agreement is to be treated as

temporarily suspended for the period in which Force Majeure conditions continue and in such

case the ESCOM shall also make efforts to supply power to “Exclusive Consumers” of the Company

from its own source subject to availability and payment of charges as applicable to the power

supplied to the relevant category of consumers.

9.2

During the period in which Force Majeure conditions prevail, Corporation/ESCOM/s shall not be

liable to pay any compensation or damage or any claims whatsoever for any direct or indirect loss

that may be suffered by the Company on account of wheeling and/or Banking of Electricity not

being performed during the period.

ARTICLE - 10

TERM, TERMINATION AND DEFAULT

10.1 Term of the Agreement:

This Agreement shall become effective from date of grant of Open Access / deemed grant

of Open Access by the SNA, and unless terminated pursuant to other provisions of the

Agreement, shall continue to be in force for such time (long-term/medium-term/short-term)

until the completion of a period of…….. months from the date of execution.

10.2 Events of Default:

Company’s Default: The occurrence of any of the following events at any time during the term

of this Agreement shall constitute an Event of Default by the Company:

a. Failure or refusal by the Company to perform any of its obligations agreed under this

Agreement.

b. Non-payment of charges/non-replenishment of security deposit as specified in this

agreement within the time specified in clause 7.3. and clause 5.2.

c. Failure of the Company to generate and wheel energy continuously for a period of six months

in case of RE sources and two-months in case of non-RE sources, except under Force Majeure

conditions specified in Article-9.

d. Repeated over drawal of power from the grid by the Exclusive Consumers in any four

consecutive 15-minutes time block.

e. The Company enters into an agreement to sell power contracted under wheeling to any

Distribution Licensee of the State.

10.3 Termination:

(1) Termination for Company’s Default:

Upon the occurrence of any event of default as set out in sub-clause 10.2 above, the

Corporation/ESCOM/s may deliver a Default Notice to the Company in writing, which shall specify

in reasonable detail the event of default giving rise to the default notice and call upon the

Company to remedy the same within a month from the date of notice.

ii.

In case the Company fails to remedy the default(s) notified in the above Notice within the time

indicated in the notice, the Corporation/ESCOM/s shall be entitled to terminate this Agreement

with immediate effect.

iii.

Upon termination of this agreement, the Corporation/ESCOM/s shall stand discharged of all its

obligations undertaken under this Agreement. However, the Parties shall fulfill the payment

obligations arising as per the Agreement prior to the date of termination.

iv.

In the event of inability of the short-term open access customer to utilize for more than four (04)

hours, full or substantial part of the capacity allocated to him, such a short-term open access

customer shall inform the SLDC of his inability to utilise the capacity, along with reasons therefor

and may surrender the capacity allocated to him. However, such short-term customer shall bear

full transmission and /or wheeling charges based on the original reserved capacity and the period

for which such capacity was reserved.

A long-tem/medium-term customer shall not relinquish his rights and obligations specified in the

open access agreement without prior approval of the State nodal agency. The relinquishment of

such rights and obligations by a long-term/ medium-term customer or termination of the

agreement by the generating company shall be subject to the payment of compensation, which

shall be equal to 66% of the applicable transmission charges and/or wheeling charges (net present

value) for the remaining period of tenure of the agreement, to the extent of the capacity

relinquished/terminated.

(2) Exit Clause:

The Company may terminate this agreement by giving prior notice of 90 days subject to

payment of all the charges due, including relinquishment charges to the concerned

licensee(s).

ARTICLE 11

DISPUTE RESOLUTION

11.1 The Parties hereby agree to attempt to resolve all disputes arising hereunder promptly, equitably

and in good faith.

11.2 All disputes or differences between the Parties arising out of or in connection with this Agreement

shall, as far as possible, be settled through mutual negotiations.

11.3 Each Party shall designate in writing and communicate to the other Party its own representative

who shall be authorized to resolve any dispute arising under this Agreement in an equitable

manner and, unless otherwise expressly provided herein, to exercise the authority of the Parties

hereto to make decisions by mutual agreement.

11.4 If the designated representatives are unable to resolve a dispute under this Agreement within

ninety (90) days after such dispute arises, or such other reasonable period as may be mutually

acceptable to the parties then it shall be referred to the Commission in accordance with the

provisions of the Electricity Act 2003, for resolution of the dispute under Section 86(1)(f) of the

Act.

ARTICLE - 12

MISCELLANEOUS PROVISION

12.1 Governing Law:

This Agreement shall be interpreted, construed and governed by the Laws of India including the

Electricity Act, 2003 and the Rules/ Regulations framed thereunder.

12.2 Waivers:

Waiver, including partial or conditional waiver, by either Party of any default by the other Party

in the observance and performance of any provision of or obligation under this Agreement:

a) shall not operate or be construed as a waiver of any other or subsequent default hereof or of

other provisions of or obligations under this Agreement;

b) shall not be effective unless it is in writing and executed by a duly authorised Representative of

the Party;

12.3 Limitation, Remedies and Damages:

Neither Party shall be liable to the other for any consequential, indirect or special damages to

persons or property whether arising in tort, contract or otherwise, by reason of this Agreement

or any services performed or undertaken to be performed hereunder.

12.4 Notices:

Any notice, communication, demand, or request required or authorized by this Agreement shall

be in writing and shall be deemed properly given upon the date of

receipt, if delivered by email, hand or by courier, if mailed by registered or certified mail at the

time of posting, if sent by fax when dispatched (provided if the sender’s transmission report

shows the entire fax to have been received by the recipient and only if the transmission was

received in legible form), to: -

(i) In case of the Company:

Name:

Designation of authorized representative:

Telephone No…………….

Fax No.

E- mail:

(ii) In case of

Corporation:

Name:

Designation of authorized representative:

KPTCL, Karnataka State.

Telephone:

Fax:

E-mail:

(iii) In case of

injecting ESCOM:

Name:

Designation of authorized representative:

ESCOM

Karnataka

State.

Telephone:

Fax:

12.5 Severability:

Any provision of this Agreement, which is prohibited or unenforceable under any law, shall be

ineffective to the extent of such prohibition or unenforceability without

invalidating

the

remaining

provisions

hereof

and

without

affecting

the

validity,

enforceability or legality of such other provisions.

12.6 Amendments:

This Agreement shall not be amended, changed, altered, or modified except by a written

instrument duly executed by the authorized representatives of both the Parties and approved by

the Commission. However, the Commission shall be entitled to modify/alter the conditions of

this contract [agreement] at the instance of either of the parties, or suo-motu, after giving an

opportunity of hearing to all the parties.

12.7 Assignment:

The Company shall not assign this Agreement or any portion hereof without the prior written

consent of the Corporation/ESCOM/s and approval of the Commission.

Provided further that any assignee shall expressly assume in writing the assignor's obligations

arising under this Agreement prior to the assignment.

12.8 Entire Agreement, Appendices:

This Agreement constitutes the entire agreement between Corporation, ESCOM/s and the

Company, concerning the subject matter hereof. All previous documents, undertakings, and

agreements, whether oral, written, or otherwise, between the Parties concerning the subject

matter hereof are hereby cancelled and shall be of no further force or effect and shall not affect or

modify any of the terms or obligations set forth in this Agreement, except as the same may be

made part of this Agreement in accordance with its terms, including the terms of any of the

appendices, attachments or exhibits. The appendices, attachments and exhibits are hereby made

an integral part of this Agreement and shall be fully binding upon the Parties.

In the event of any inconsistency between the text of the Articles of this Agreement and the

appendices, attachments or exhibits hereto or in the event of any inconsistency between the

provisions and particulars of one appendix, attachment or exhibit and those of any other

appendix, attachment or exhibit, Corporation/ ESCOM/s and the Company shall mutually

consult to resolve the inconsistency.

12.9 Further Acts and Assurances:

Each of the Parties after convincing itself agrees to execute and deliver all such further agreements,

documents and instruments, and to do and perform all such further acts and things, as shall be

necessary or convenient to carry out the provisions of this Agreement and to consummate the

transactions contemplated hereby.

SCHEDULE -1

PERMITS, CLEARANCES AND APPROVALS

Evacuation approval for evacuation of power from the generating plant to the substation

of Corporation/ESCOM.

Synchronization approval and Commissioning report from Corporation/ESCOM.

Wheeling and Banking approval by the nodal agency or deemed approval.

Approval of the Electrical Inspectorate, Government of Karnataka for Commissioning of the

transmission line for evacuation of power from the project to the injection point/ substation.

Approvals required under any law for the time being in force.

SCHEDULE- 2

SPECIFICATIONS OF ELECTRICAL ENERGY DELIVERY

1. The generation voltage from the Non-RE / RE plant of M/s….. is

….kV.

It comprises

generators, generator transformer and unit transformer.

2. The generated power at………kV will be stepped up (if applicable) to….kV for the purpose of inter-

connection with the State grid at ………kV. Generators will also be allowed to draw start up power from

the grid.

3. The

injection

point

………receiving

station at……..kV located

in…..ESCOM area.

* * * * * *

[

ಮುದÎಕರು ²ಾಗೂ ಪÎಾಶಕರು:- ಸಂಕಲ£ಾĩಾĸಗಳ…, ಕ£ಾಟಕ ªಾಜÍಪತÎ, ಸಾĸ ೇಂದÎ ಮುದÎžಾಲಯ, ¦ೆಂಗಳˆರು

R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19

Licensed to post without prepayment WPP No. 297

THAMMAIAH

Digitally signed by THAMMAIAH

DN: c=IN, st=Karnataka,

2.5.4.20=be54f34f4e31eae50203ca7fab5ceb3794f20a8460a2582ef28294d43b8f8b16, postalCode=560059,

street=BANGALORE, pseudonym=ca58c76cf7e2445d7a4f3f51407e025e,

serialNumber=4d9b284dcc53d39f1425f50485de07dd86efa302a3fce3729eddea0c1b5098e0,

ou=GOVERNMENT OF KARNATAKA, o=GOVERNMENT OF KARNATAKA, cn=THAMMAIAH

Date: 2025.03.26 19:29:22 +05'30'