Long Term Access Agreement

The Central Electricity Regulatory Commission (CERC) has issued the Sixth Amendment ceRC (Grant of Connectivity, Long-term Access and Medium-term Open Access in Inter-State Transmission and related matters) Regulations 2017. Under the new rules, CERC also determined that the start date for medium-term open access would not be set at five months and no later than two years from the last day of the month in which applications were submitted. Previously, CERC had established long-term access to the ISTS right to use for a period of more than 12 years, but no more than 25 years, and medium-term open access to the right to use the SIS for a period of more than three months, but no more than three years. According to a CERC official, changes in the duration of open access over the long and medium term are due to the difference in demand and prices related to the financial situation of DISCOMs (distributors) and that buyers need short- and medium-term purchases of electricity to meet demand. An increase in these transactions will put pressure on the existing infrastructure, hence the change in duration, the CERC official added. Another amendment to the CERC Regulation stipulates that dedicated transmission lines from sources of electricity generation (projects) to the transit station of the holder of the transport licence must be developed, owned and operated. In the case of a thermal project of 500 MW or more, a water project or a renewable project of 250 MW or more, the Central Transport Authority plans to ensure that transmission lines do not exceed 100 km between the project and the nearest substation. The transmission charges for these specific lines are borne by the power generation company from the date of receipt to the date of operation. Once the transmission lines are operational, they will be included in the POC pool and the payment of transmission charges for transmission lines, in accordance with CERC rules.