Tamil Nadu

Tangedco opposes proposed changes in calculating transmission charges

Karnataka and Telangana have expressed concerns and sought a representation to be made by the Southern Regional Power Committee to the CERC. File Photo

Karnataka and Telangana have expressed concerns and sought a representation to be made by the Southern Regional Power Committee to the CERC. File Photo

Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) has opposed the proposed change in methodology to arrive at transmission charges for import of power from the inter-State transmission system grid.

The Central Electricity Regulatory Commission (CERC) recently notified the Connectivity and General Network Access to the inter-State Transmission System Regulations, 2022 (GNA Regulations, 2022), which lays out the new methodology. However, the date of implementation is yet to be notified.

As per present regulations, the transmission charges are being shared among Southern States by factoring in the current long-term and medium-term power arrangement quantum, tied up by the respective States. As per the new GNA Regulations, the transmission charges will be calculated based on drawals of State, which is defined as GNA quantum replacing the current method.

The GNA quantum has been arrived at by considering 50% weightage to the maximum drawal in a time block during the year, and 50% weightage to the average of maximum drawal in a time block in a day. To arrive at the GNA quantum, CERC has considered the drawal data for the last three years— 2018-19, 2019-20 and 2020-21— as per which, Tamil Nadu’s GNA quantum is estimated at 9177 MW.

As per billing for transmission charges for July 2022, Tamil Nadu’s drawal quantum, based on its medium and long-term contracts, was 8,187 MW.

At a recent special meeting organised by Southern Regional Power Committee (SRPC), under the Central Electricity Authority, Tangedco said the methodology of computation of GNA was unacceptable and was against the existing contracts. It also pointed out that Tamil Nadu had overdrawn its long-term drawal limits only for 5-8 days during 2018-19, 14 days during 2019-20 and 33 days 2020-21.

Tangedco said the CERC had not considered its suggestion to consider 100% of the average maximum drawal in a day during the year for arriving at the GNA quantum. The huge GNA allocated to the States through these regulations is one way of penalising the beneficiaries, which is not acceptable, it noted.

Tangedco has also objected to removal of a clause in the Draft Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (First Amendment) Regulations, 2022, issued by the CERC.

As per draft rules, the clause providing exemption of power drawal from the generating station connected with inter-State transmission system grid, and State network from payment of transmission charges is removed. Tangedco said deleting the clause would definitely impact the transmission charges, resulting in losses to Tamil Nadu.

Karnataka and Telangana have also expressed concerns and sought for a representation to be made by the SRPC to the CERC.

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Printable version | Jul 21, 2022 8:21:09 am | https://www.thehindu.com/news/national/tamil-nadu/tangedco-opposes-proposed-changes-in-calculating-transmission-charges/article65663032.ece