Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions of Open Access) Regulation, 2005
(Regulation No. 2 of 2005)
Last Updated 14th September, 2019 [ap585]
(a) "Act" means the Electricity Act, 2003 (36 of 2003);
(b) "applicant" means a person who makes an application to the Nodal Agency for open access and includes any person engaged in generation, a licensee or any consumer eligible for open access under this Regulation;
(c) "available capacity" means the capability in megawatts (MW) or kilowatts (kW) of a transmission or distribution network to transfer power from one point to the other, after deducting the power requirements of already committed users;
(d) "Commission" means the Andhra Pradesh Electricity Regulatory Commission;
(e) "contracted capacity" in the context of open access for supply to consumers means the capacity contracted in megawatts (MW) or kilowatts (kW)for transmission and /or wheeling to a consumer under open access ;
(f) "open access agreement" means an agreement entered into between a licensee and the applicant to avail open access to the licensee's network for transmission and / or wheeling of electricity;
(g) "entry point" means a point at which electricity is injected into the electricity transmission network or the electricity distribution network ;
(h) "exit point" means a point at which electricity is drawn from the electricity transmission network or the electricity distribution network ;
(i) "Nodal Agency" means the entities referred to in clause 5 of this Regulation;
(j) "user" or " open access user" means a person using or intending to use the transmission system and / or the distribution system of the licensees in the state for receiving supply of electricity from a person other than the distribution licensee of his area of supply, and the expression includes a generating company and licensee.
(k) Words and expressions used and not defined in this Regulation but defined in the Act shall have the meanings as assigned to them in the Act, or in absence thereof, shall have the same meaning as commonly understood in the electricity supply industry.
3. Extent of application. - This Regulation shall apply to open access to intra-state transmission and distribution systems of licensees in the State, including when such systems are used in conjunction with inter-state transmission system(s). 4. Categorization of open access users. - The open access users of the transmission and/or distribution system(s) shall be classified as follows:(a) Long-Term Open Access User. - Any user of the transmission and/or distribution system(s) entering into an open access agreement with the concerned licensee(s) for a period of two years or more shall be categorised as a Long-Term Open Access User.
(b) Short-Term Open Access User. - Any user other than a long term user of the transmission and/or distribution system(s) entering into an open access agreement with the concerned licensee(s) shall be treated as Short-term open access user, but open access shall not be allowed at a time for a period of more than one year.
5. Nodal Agency. - 5.1 For all long-term open access transactions, the Nodal Agency for receiving and processing applications shall be the State Transmission Utility (STU). 5.2 For short-term open access transactions, the Nodal Agency for receiving and processing applications shall be the State Load Dispatch Centre (SLDC). The SLDC shall, however, allow short-term open access transactions only after consulting the concerned transmission and/or distribution licensee(s) whose network(s) would be used for such transactions: Provided that for short-term transactions with duration of less than one week, the SLDC may not consult the concerned licensees for permitting such transactions. The SLDC and Licensees shall devise procedures for coordination among themselves for allowing such short-term transactions. 6. Criteria for allowing open access to transmission and/or distribution systems. - 6.1 The long-term open access shall be allowed in accordance with the transmission planning criterion and distribution planning criterion stipulated in the State Grid Code and/or the Distribution Code and / or Indian Electricity Rules as the case may be. 6.2 The short-term open access shall be allowed, if the request can be accommodated by utilizing:(a) Inherent design margins;
(b) Margins available due to variations in power flows and unutilised capacity, if any; and
(b) Margins available due to in-built spare capacity in transmission and/or distribution system(s) created to cater to future load growth
7. Provision for existing users. - 7.1 Existing distribution licensees: The existing distribution licensee (s) shall be deemed to be the long-term open access user (s) of the Intra-State transmission system (s) and / or the distribution system (s) for the term specified in / under the existing agreement (s) or arrangement (s) and shall make payment of transmission charges, wheeling charges and other charges, as applicable, and as may be determined by the Commission from time to time. The existing distribution licensee (s) shall, within 60 days of coming into force of this Regulation, furnish details of their use of intra-state transmission system (s) and/or distribution system (s) to the STU, SLDC and the Commission. 7.2 Existing users other than the distribution licensees. - The existing user (s) other than the existing distribution licensees may continue to avail themselves of the wheeling facility as per the existing agreements for the period(s) specified in those agreement(s), to the extent they are not inconsistent with the Act and this Regulation: Provided that such existing user (s) shall pay the transmission charges, wheeling charges and other charges as may be determined by the Commission from time to time : Provided also that any additional capacity sought by such existing user (s) in addition to the capacity already contracted, shall be treated as new application for open access to the extent of additional capacity sought. 8. Phasing of Open Access. - 8.1 Where open access to the Transmission and/or Distribution systems is sought by any user, the Nodal Agency shall permit such open access strictly in accordance with the following phases:
Phase |
Eligibility criteria |
Commencement date |
1. |
Consumers availing of power from NCE developers irrespective of the quantum of contracted capacity |
September, 2005 |
2. |
Contracted capacity being greater than 5 MW |
September, 2005 |
3. |
Contracted capacity being greater than 2 MW |
September, 2006 |
4. |
Contracted capacity being greater than 1 MW |
April, 2008 |
Duration for which open access is required |
Maximum processing time |
Up to one day |
12 hours |
Up to one week |
Two days |
Up to one month |
Seven days |
Up to one year |
Thirty days |
(a) An amount equivalent to 50% of current application fee for Long-Term or Short-Term users, as the case may be, if all the capacity surrendered or reduced/cancelled is fully re-allotted to other applicants within the notice period so given by the user or the licensee, as the case may be.
(b) If the capacity surrendered or reduced/cancelled could not be fully re-allotted to other applicants within the notice period, then -
(i) In case of Long-Term users, the user shall, as a one-time exit fee, pay 25% of the transmission charges and / or wheeling charges as the case may be, and the scheduling and system operation charges in force at that point in time, applied on the capacity that could not be re-allotted for the remaining term of the agreement; and
(ii) In case of Short-Term users, the user shall bear the full transmission charges and / or wheeling charges, as the case may be, and the scheduling and system operation charges in force at that point in time, applied on the capacity that could not be re-allotted for the remaining term of the agreement.
16. Flexibility to change entry and exit points. - 16.1 The Long-Term users shall have the flexibility to change entry and/or exit points twice a year subject to the results of system impact studies to be carried out by the concerned Licensees at the behest of such users. All expenses incurred by the Licensees to carry out such studies shall be reimbursed in full by such users. 16.2 A Short-Term user availing of open access for one full year may also change entry and/or exit points twice, subject to feasibility. 17. Open Access charges. - 17.1 The charges for the use of the transmission and / or distribution system by an open access user shall be regulated as under:(i) Open Access users connected to the transmission/distribution system shall pay the transmission charges and / or wheeling charges and any other applicable charges as determined by the Commission from time to time, and notified in the relevant Tariff Order or otherwise, and as per the conditions stipulated therein:
Provided that the wheeling charges so payable shall be subject to a minimum level , as fixed by the Commission in the relevant Tariff Order or otherwise.(ii) In case of utilization of inter-state transmission system in addition to the intra-state transmission system and/or distribution system by an open access user , the transmission charges and / or wheeling charges shall be payable for the use of intra-state system in addition to the charges for utilization of the inter-state transmission system
(iii) The Open access users of the Transmission and / or Distribution System where such open access is for delivery of electricity to the consumer's premises in the area of supply of a distribution licensee, shall pay to the distribution licensee the (cross-subsidy) surcharge as determined by the Commission from time to time under Section 42 (2) of the Act :
Provided that no (cross-subsidy) surcharge shall be payable if the open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.(iv) The Open Access user shall also be liable to pay additional surcharge on charges of wheeling as may be specified by the Commission from time to time under section 42(4) of the Act, in case open access is sought for receiving supply from a person other than the distribution licensee of such consumer's area of supply, to meet the fixed cost of the distribution licensee arising out of his obligation to supply.
(v) Where an electrical plant or electrical line is to be constructed by the Licensee in order to extend power supply to an open access user, the Licensee may recover such expenditure as per the Andhra Pradesh Electricity Regulatory Commission (Licensee's Duty for Supply of Electricity on Request) Regulation, 2004(Regulation No.3 of 2004).
(vi) If network augmentation is required for providing access to an applicant, the Licensee shall carry out such augmentation only if (a) the Licensee can recover within a reasonable time the costs, the capital investment and a reasonable rate of return on the capital investment in respect of the augmentation, and (b) the Licensee has the ability to raise funds to finance such capital expenditure:
Provided that the Licensee may require the open access user to make a capital contribution towards such network augmentation.(vii) Scheduling and system operation charges shall be payable by all open access users under scheduling by SLDC. Such charges shall be governed by the relevant Regulations issued by the Commission.
18. Payment terms and conditions. - 18.1 In case of Long-Term users, the concerned Distribution Licensee may invoice a user in respect of the open access charges as set out in clause 17 of this Regulation and the open access user must pay those charges, in accordance with the procedures set out in the open access agreement between the Licensees and the user: Provided that the Distribution Licensee shall have appropriate back-to-back arrangements in place with the Transmission Licensee(s) in order to pass on the transmission charges so collected from the user to the concerned Transmission Licensee. 18.2 In case of short-term users, the Distribution Licensee(s) may invoice the user and the user shall pay the charges to the concerned Licensee(s) directly. The SLDC shall assist / advise the Distribution Licensee in the matter of energy accounting and allocation. 18.3 All open access users shall pay the charges payable under the open access agreement from the date of commencement of open access specified in the open access agreement, regardless of whether or not such open access is used on and from that date, except if the failure to use such open access is due to the default of the concerned licensee(s) whose networks are being used. 18.4 In case of underutilization leading to surrender or cancellation of contracted capacity, the user shall pay such charges and in such manner as set out in clause 15 above. 18.5 Meter readings and Billing in respect of open access for supply to consumers. - The Distribution Licensee in whose area the consumer is located shall take the meter readings at the exit point. The billing shall be done by the respective Licensees as per the open access agreement under clause 12 read with the provisions of clauses 17 and 20 of this Regulation. 18.6 For the purpose of clause 18.5 above, a consumer using the Transmission and /or Distribution systems for his total power requirements without any contracted maximum demand(CMD) from the Distribution licensee shall be deemed to be a consumer of the distribution licensee in whose area the consumer is located. 19. Other matters. - 19.1 Coordination among licensees and SLDC. - For the success of open access implementation, the licensees and the State Load Dispatch Centre shall carry out information exchange among themselves on a daily basis to determine the level of open access transactions in their respective areas of supply, energy flows, loading of transmission and distribution lines and equipment to determine system stability, available capacity, congestions in the networks, etc. 19.2 Information requirements. - The licensees and the State Load Dispatch Centre shall maintain the following information on their websites in order to ensure transparency and carry out information exchange among themselves required to process open access applications:(i) Transmission and / or wheeling charges, as the case may be, for open access users located within the State; and
(ii) A status report on the current long-term users indicating name of user, period of the access granted (start date and end date), point(s) of injection and point(s) of drawal, capacity contracted and applicable charges. This report shall be updated as and when the status changes ; and
(iii) Information regarding usage of the inter-regional links as well as interface between the Central Transmission Utility and State systems and inter-state links indicating time of updating, name of the link, total transmission capacity of the link, scheduled capacity use and current capacity of the link in use. This information shall be updated at least on hourly basis and wherever feasible on 15-minute basis.
19.3 Quality of supply. - The licensee(s) shall ensure compliance with Grid Code wherever applicable. The Distribution Licesees shall also comply with the quality of supply standards as prescribed under the Andhra Pradesh Electricity Regulatory Commission (Licensees' Standards of Performance) Regulation, 2004 (Regulation No.7 of 2004) in respect of all open access users of its network. 19.4 Energy and Demand Balancing. - All open access users, and the users covered under clause 7.2, shall make reasonable endeavor to ensure that their actual demand or actual sent-out capacity, as the case may be, at an inter-connection does not exceed the Contracted Maximum Demand or allocated sent-out capacity for that inter-connection: Provided that for carrying out balancing and settlement of energy and demand at all entry and exit points relating to open access agreements, the licensee shall strictly adhere to the Balancing and Settlement Code to be approved by the Commission, from time to time. 19.5 Curtailment due to constraints. - The licensee, based on directions from SLDC, may curtail power to any open access user or users, whether long-term or short-term, in an event of emergency threatening grid security and stability. As far as practicable, the priority in curtailment shall be as prescribed hereunder:(a) Short-term open access users of the network shall be curtailed in the first step, followed by
(b) All other consumers including long-term access users, but excluding distribution licensees, in ascending order of contract period , followed by
(c) Distribution licensees.
20. General Terms and Conditions of Supply. - With regard to matters not contained herein, including but not limited to the following, and wherever the context so requires, the conditions set forth in the General Terms and Conditions of Supply shall generally be applicable:(a) Voltage of supply vis-a-vis total Contracted Demand;
(b) Security Deposit;
(c) Disconnection for non-payment of charges;
(d) Title Transfer to successor entity ; and
(e) Levy and collection of Customer Charges
21. Dispute resolution. - All disputes and complaint shall be referred to the Nodal Agency for resolution : Provided that when the Nodal Agency is itself a party to the dispute, the dispute shall be referred for resolution to the Forum for Redressal of Consumer grievances set up under Regulation No.1 of 2004 : Provided further that in case of wheeling of power from the captive generating plants, any disputes regarding the availability of transmission facility shall be adjudicated upon by the Commission. 22. Force Majeure. - 22.1 Events such as war, mutiny, civil commotion, riot, flood, cyclone, lighting, earthquake or other force and strike, lockout, fire affecting the premises, installations and activities of any of the parties having an open access agreement shall constitute force majeure events for the purpose of this Regulation. 22.2 If any person being party to an open access agreement is unable to, wholly or in part, perform on time and as required, any obligation under such open access agreement or this Regulation because of the occurrence of a force majeure event, then, subject to this Regulation, that obligation shall be treated as suspended to the extent and for so long as the affected person's ability to perform such obligation remains affected by that force majeure event. 23. Issue of orders and practice directions. - Subject to the provisions of the Electricity Act, 2003, the A.P. Electricity Reform Act, 1998, and this Regulation, the Commission may, from time to time, issue orders and practice directions in regard to the implementation of this Regulation, the procedure to be followed and other matters, which the Commission has been empowered by this Regulation to specify or direct. 24. Power to remove difficulties. - 24.1 In case of any difficulty in giving effect to any of the provisions of this Regulation, the Commission may by general or special order, direct the Open Access users, generators and the licensees to take suitable action, not being inconsistent with the provisions of the Act, , which appears to the Commission to be necessary or expedient for the purpose of removing the difficulty. 24.2 The Open Access users, generators and the licensees may make an application to the Commission and seek suitable orders to remove any difficulties that may arise in implementation of this Regulation. 25. Saving. - Nothing contained in this Regulation shall affect the rights and privileges of the users under any other law for the time being in force, including the Consumer Protection Act, 1986 (68 of 1986). 26. Power to amend. - The Commission may from time to time add, vary, alter, modify or amend any provisions of this Regulation. (BY ORDER OF THE COMMISSION) S.SURYAPRAKASA RAO SECRETARYAnnexure-1:
Suggested contents of Open Access Application
(a) (i) Name and address of the applicant
(ii) Details of applicant's installation
(iii) Nature of wheeling i.e., whether it is for captive use or third party sale.
(iv) Name and address of consumers to whom the power is to be wheeled
(b) Type of open access required, whether long-term, or short-term
(c) Capacity in KW or MW required for open access in respect of each consumer
(d) Point(s) of Entry
(e) Point(s) of Exit
(f) Period for which open access is required
(g) Details of metering arrangements at the entry points and exit points as required under the Metering Code (part of the Grid Code or the Distribution Code, as the case may be) as amended from time to time
(h) Information whether the recipients of power are already consumers of Distribution licensee of their area. If so, furnish the Contracted Maximum Demand (CMD) of each of them with the Distribution Licensee concerned
Any other information reasonably required by the licensee / Nodal Agency.Annexure-2:
Suggested essential features of Open Access Agreement
(a) The Entry and Exit points
(b) Allotted capacity (in kW or MW) for open access in the Transmission and / or Distribution system
(c) The rates and charges for providing various access services, such as:
(i) Transmission and/or Wheeling charges as the case may be;
(ii) Transmission losses and / or wheeling losses to be deducted;
(iii) Cross-subsidy Surcharge ;
(iv) Additional surcharge ;
(v) SLDC charges;
(vi) Reactive energy charges, if applicable; and
(vii) Any other charges
(d) A requirement that the applicant's equipment / installations at all times for the entire duration of the contract complies with the provisions of the Grid Code and/or the Distribution Code, as the case may be (e) The date of commencement of Open Access (f) The manner of accounting of energy and demand balancing procedures, as per the Balancing and Settlement Code to be approved by the Commission, from time to time (g) The billing cycle and the payment terms and conditions; (h) The Agreement period and its termination / deration conditions (i) Other terms and conditions including powers of the Nodal Agency on surrender of capacity, premature termination of open access agreement, penalty for under-utilisation of allotted capacity, etc. (j ) Provision for renewal of open access Agreement in applicable cases Any other information as considered reasonable by the Licensee.
Annexure - 3:
Duties, rights and obligations of parties, inter-alia, in case of Tripartite Open Access Agreements referred to in clause 12.2 of the Regulation
Exit Points location on 132 KV and above (Transmission System):
(a) Concerned Transmission Licensee's obligation to provide transmission capacity - User's right on transmission capacity contracted :
(b) Duties of Distribution Licensee of that area of supply where such exit point is located for meter reading and billing (for transmission charges, surcharges, out-of-balance payments, etc.);
(c) User's duty to pay the charges, as billed for ; and
(d) Distribution Licensee's obligation to pass on the transmission charges so collected from the user to the concerned Transmission Licensee.
Exit Points location on 33 KV and below (Distribution System):
(a) Concerned Transmission Licensee's obligation to provide Transmission capacity - User's right on Transmission capacity contracted;
(b) Concerned Distribution Licensee's obligation to provide Distribution system capacity -User's right on Distribution capacity contracted;
(c) Distribution Licensee's duties for meter reading and billing (for Transmission charges, Wheeling charges, applicable surcharges, out-of-balance payments, etc.) ;
(d) User's duty to pay for charges as billed for ; and
(e) Distribution Licensee's obligation to pass on the transmission charges collected from the user to the concerned Transmission Licensee.