AVAILABILITY BASED TARIFF

AND

SCHEDULING MECHANISM

THE INDIA ELECTRICITY THE INDIA ELECTRICITY MARKETMARKET

TIME LINETIME LINE

REAL TIME15 MT BLOCKS

LONG TERMBENEFICIARY

CAPACITY ALLOCATION

> 5 YEARS

POWER PURCHASEAGREEMENTS

CAPACITY COMMITTMENT

1-5 YEARS

SHORT TERMAGREEMENTS

DAY-AHEAD SCHEDULING

DAY AHEAD - 3 MONTHS

Components of inter-utility tariffComponents of inter-utility tariff(Pre – ABT Mechanism i.e. the (Pre – ABT Mechanism i.e. the

mechanism used to exist about 5 mechanism used to exist about 5 years back)years back)

Tariff used to consist of the following Tariff used to consist of the following built-in components: built-in components:

Fixed chargesFixed charges- Interest on loans- Interest on loans- Depreciation- Depreciation- O & M charges- O & M charges- Return on equity- Return on equity- Interest on Working Capital- Interest on Working Capital

Energy charges (fuel cost)Energy charges (fuel cost) IncentivesIncentives Surcharge & other leviesSurcharge & other levies No charge for reactive energyNo charge for reactive energy

TENTATIVE COST FOR NTPC THERMAL STATIONS FOR THE MONTH OF JUNE TENTATIVE COST FOR NTPC THERMAL STATIONS FOR THE MONTH OF JUNE 20042004

StationStationFixed Fixed Cost Cost Rs. Rs.

Cr/yrCr/yr

(1)(1)

Average Average Fixed Fixed

Cost Rs. Cost Rs. Cr/dayCr/day

(2)(2)

Average Average Fixed Fixed

Cost P / Cost P / KWhKWh

(3)(3)

Variable Variable Base Base

Cost P / Cost P / KWhKWh

(4)(4)

Variable Variable FPA FPA P / KWh P / KWh

(5)(5)

Total Total Variable Variable

Base Base Cost P / Cost P / KWh (6)KWh (6)

ComposiComposite Cost te Cost

P / P / KWhKWh

(3) + (6)(3) + (6)

RamagundaRamagundamm

486.12486.12 1.3321.332 26.4326.43 82.1482.14 1.061.06 83.2083.20 109.63109.63

Talcher Talcher Stage IIStage II

564.72564.72 1.5471.547 42.9842.98 42.2642.26 3.213.21 45.4745.47 88.4588.45

SingrauliSingrauli 364.59364.59 0.9960.996 28.2728.27 67.9867.98 7.867.86 75.8475.84 104.11104.11

RihandRihand 478.74478.74 1.3301.330 65.8365.83 106.03106.03 44.7044.70 78.9978.99 137.41137.41

Unchahar – Unchahar – II

195.91195.91 0.5350.535 73.3573.35 55.8355.83 6.746.74 112.77112.77 186.12186.12

Anta GPS*Anta GPS* 92.9292.92 0.2580.258 47.1347.13 60.5560.55 84.1184.11 144.66144.66 139.47139.47

Auraiya Auraiya GPS*GPS*

160.20160.20 0.4450.445 42.1742.17 61.9261.92 92.8892.88 154.80154.80 169.73169.73

DadriGPS DadriGPS G)G)

210.96210.96 0.5760.576 37.2037.20 95.1495.14 0.240.24 95.3895.38 132.58132.58

Dadri (T)Dadri (T) 416.78416.78 1.1581.158 76.9776.97 90.5690.56 55.5755.57 146.13146.13 229.24229.24

Unchahar – Unchahar – II II

------ ------ ------ 103.28103.28 6.986.98 110.26110.26 473.75473.75

Dadrigas(L)Dadrigas(L) ------ ------ ------ 356.34356.34 71.2171.21 436.55436.55

*Rates for mixed fuel (gas+ liquid fuel, naphtha)

Availability Based Tariff Availability Based Tariff (ABT)(ABT)

the presently followed mechanismthe presently followed mechanism

Tariff is split into the following Tariff is split into the following separate components:separate components:

Capacity chargesCapacity charges Energy chargesEnergy charges Unscheduled Interchange (UI)Unscheduled Interchange (UI)

AVAILABILITY BASED TARIFFAVAILABILITY BASED TARIFF

(A)(A) CAPACITY CHARGECAPACITY CHARGE

(B)(B) ENERGY CHARGEENERGY CHARGE

(C)(C) ADJUSTMENT FOR DEVIATIONS ADJUSTMENT FOR DEVIATIONS

(U I CHARGE)(U I CHARGE)

(A) = a function of the Ex-Bus MW (A) = a function of the Ex-Bus MW availability of Power Plant for the day availability of Power Plant for the day declared before the day starts x declared before the day starts x SEB’s % allocation from the plantSEB’s % allocation from the plant

(B) = MWh for the day as per Ex-Bus drawal (B) = MWh for the day as per Ex-Bus drawal schedule for the SEB finalised before schedule for the SEB finalised before the day starts x Energy charge ratethe day starts x Energy charge rate

(C) = (C) = Σ Σ (Actual energy interchange in a 15 (Actual energy interchange in a 15 minute time block – scheduled energy minute time block – scheduled energy interchange for the time block) x UI rate interchange for the time block) x UI rate for the time block for the time block

TOTAL PAYMENT FOR THE DAY = (A) + (B) TOTAL PAYMENT FOR THE DAY = (A) + (B) ± ± (C) (C)

FEATURES :FEATURES :

((A) and (B) do not depend on actual plant A) and (B) do not depend on actual plant generation / drawal. No metering required generation / drawal. No metering required for this as they are based on off-line for this as they are based on off-line figures. All deviations taken care of by (C)figures. All deviations taken care of by (C)

No complication regarding deemed No complication regarding deemed generation.generation.

Perpetual incentive for maximizing Perpetual incentive for maximizing generation and reducing drawal during generation and reducing drawal during deficit, but no incentive to over generate deficit, but no incentive to over generate during surplus.during surplus.

VARIABLE COST(Ps) OF POWER STATION IN SR AS ON JANUARY 2006

0

2400

4800

7200

9600

12000

14400

16800

19200

21600

24000K

UT

TA

LAM

(101

MW

) (7

3 P

S)

NE

YV

EL

II-S

TG

1 *

*(63

0 M

W)(

75 P

S)

TA

LCH

ER

ST

G I

I (2

000M

W)

(79

PS

)

KO

VIL

KA

LAP

PA

L *(

105

MW

)(80

PS

)

VA

LAT

HU

R(9

4MW

) (8

2 P

S)

AB

AN

PO

WE

R (

113M

W)

(88

PS

)

KO

TH

AG

UD

EM

(D)(

500

MW

)(96

PS

)

RA

MA

GU

ND

AM

(210

0 M

W)(

98 P

S)

NE

YV

ELI

-II

ST

G-I

I **

(840

MW

)(10

0 P

S)

JEG

UR

UP

AD

U (

GA

S)(

216

MW

)(10

2 P

S)

SP

EC

TR

UM

(G

AS

)(20

8 M

W)(

104

PS

)

RA

MA

GU

ND

AM

ST

III

(500

MW

) (1

04 P

S)

SIM

HA

DR

I(10

00 M

W)(

104

PS

)

RA

MA

GU

ND

AM

-B(6

2.5

MW

)(10

5 P

S)

VIJ

JES

WA

RA

M -

II(1

72.5

MW

)(10

7 P

S)

RE

INS

CA

LCIN

ING

LT

D.(

41 M

W)(

110

PS

)

KO

TH

AG

UD

EM

(B)(

210

MW

)(11

1 P

S)

KO

TH

AG

UD

EM

(A)(

240

MW

)(11

1 P

S)

KO

TH

AG

UD

EM

(C)(

220

MW

)(11

1 P

S)

VIJ

AY

AW

AD

A T

.P.S

.-1&

2(10

50 M

W)(

121

PS

)

VIJ

AY

AW

AD

A T

.P.S

.-3(

210

MW

)(12

1 P

S)

LAN

CO

(350

MW

)(12

5 P

S)

RA

ICH

UR

.T.P

S.

**(1

260

MW

)(12

5 P

S)

NE

YV

ELI

EX

PA

NS

ION

(42

0MW

) (1

35 P

S)

SR

IVA

TS

A

RA

YA

LAS

EE

MA

TP

P(4

20 M

W)(

153

PS

)

NO

RT

H M

AD

RA

S.T

.P.S

(630

MW

)(15

3 P

S)

VIJ

JES

WA

RA

M -

I(10

0 M

W)(

158

PS

)

ST

-CM

S(2

50 M

W)(

161

PS

)

ME

TT

UR

.T.P

.S(8

40 M

W)(

166

PS

)

B S

E S

(A

P)(

GA

S)(

140

MW

)(16

8 P

S)

TU

TU

CO

RIN

.T.P

.S(1

050

MW

)(18

2 P

S)

NE

YV

ELI

-I(6

00 M

W)(

185

PS

)

V S

P *

(120

MW

)(19

0 P

S)

PO

ND

Y P

CL

(32.

5 M

W)(

200

PS

)

EN

NO

RE

.T.P

.S(4

50 M

W)(

219

PS

)

L V

S(3

7.8

MW

)(22

0 P

S)

NE

LLO

RE

(30

MW

)(22

5 P

S)

NA

VB

HA

RA

T(3

5 M

W)(

240

PS

)

JIN

DA

L(26

0 M

W)(

280

PS

)

TA

TA

DE

ISE

L(81

.3 M

W)(

390

PS

)

RA

YA

LAS

EE

MA

(37.

8 M

W)(

390

PS

)

KO

ZH

IKO

DE

DP

P(1

28.8

MW

)(42

0 P

S)

GM

R V

AS

AV

I(19

6 M

W)(

444

PS

)

BA

LAJI

(SA

MA

YA

NA

LLU

R)(

105

MW

)(45

6 P

S)

BR

AH

MA

PU

AM

D P

P(1

06.5

MW

)(47

0 P

S)

KA

SA

RG

OD

P

C L

(21

MW

)(47

0 P

S)

SA

MA

LPA

TT

Y I

PP

(105

MW

)(47

4 P

S)

TH

AN

NE

ER

BA

VI(

235

MW

)(50

0 P

S)

PP

NA

LLU

R(3

30.5

MW

)(55

0 P

S)

B S

E S

(K

ER

ALA

)(16

5.5

MW

)(56

0 P

S)

KA

YA

MK

ULA

M N

TP

C(3

50 M

W)(

580

PS

)

YE

LEH

AN

KA

DE

ISE

L(12

7.92

MW

)(60

0 P

S)

BA

SIN

BR

IDG

E(1

20 M

W)(

863

PS

)

STATION, IC IN MW

CU

MU

LA

TIV

E IN

ST

AL

LE

D C

AP

AC

ITY

IN M

W

0

100

200

300

400

500

600

700

800

900

1000

VARIABLE COST

CUMULATIVE INSTALLED CAPACITY(MW)

IN SR 17935 MW OF THERMALS OUT OF 19227

MW (93%) HAS VARIABLE COST THAT FALLS

IN THE RANGE OF 60PAISE TO 400 PAISE

DETAILS>400 Ps/uCAP N D

ESC TO EXIT

DAY AHEAD SCHEDULING

• Schedules are made for each 15 minute time

block wise on day ahead basis i.e. 96 time

blocks in a day.

• Participating agencies are ISGS and States.

• Bilaterals/STOAs are also included in the

preparation of schedules.

• RLDC prepares and coordinates the schedules.

• On the day of operation the schedules can be

revised with prior intimation i.e. 4 to 6 time

blocks.

SCHEDULING

Availability Declaration

Entitlements

SLDC

Requisition & Bilateral Agreements

Injection Schedule Drawal Schedule

Revision in DC Revision in Requisition

FinalInjection Schedule

FinalDrawal Schedule

10:00

11:00

15:00

17:00

22:00

23:00

RLDC

ISGS

Time

Revisions duringCurrent day

Revisions duringCurrent day

0 to 24 hours

RLDC

TIME TABLE FOR EXCHANGE OF INFORMATION IN RESPECT OF SCHEDULING

By 10.00 hrs. ISGSs shall advise SRLDC the Station-wise MW and MWh capabilities

By 1100 Hrs. SRLDC shall advise the States / Beneficiaries the Station wise MW & MWh entitlements.

By 1500 hrs. SLDCs/ Beneficiaries shall communicate the Station-wise requisitions and details of bilateral exchanges to SRLDC.

By 1700 hrs. SRLDC shall convey the ex-power plant despatch schedule to each ISGS and net drawal schedule to each State / Beneficiary. The details of unrequisitioned surpluses shall also be intimated.

By2200 hrs. ISGSs / States / Beneficiaries shall inform the modifications, if any, for incorporating in the final schedule

By 2300 hrs. SRLDC shall issue the final despatch and drawal schedule.

ESC TO EXIT

BY 10: 00 HRS

ISGSs shall advise SRLDC the Station-wise

MW and MWh capabilities

Back

SAMPLE DC SHEET

BY 11: 00 HRS

Back

SRLDC shall advise the States / Beneficiaries the

Station wise MW & MWh entitlements.

SAMPLEENT. OF STATES

BY 15: 00 HRS

SLDCs/ Beneficiaries shall communicate the

Station-wise requisitions and details of

bilateral exchanges to SRLDC.

Back

BY 17: 00 HRS

SRLDC shall convey the ex-power plant despatch schedule to each ISGS

SRLDC shall convey the net drawal schedule to each State / Beneficiary

The details of unrequisitioned surpluses shall also be intimated.

Back

SAMPLESCHD OF STATES

SAMPLESCHD OF ISGS

BY 22 00HRS

Back

ISGSs / States / Beneficiaries shall

inform the modifications, if any,

for incorporating in the final schedule

BY 23 00HRS

SRLDC shall issue the final ex-power plant despatch schedule to each ISGS

SRLDC shall issue the final net drawal schedule to each State / Beneficiary

Back

1000

900

800

700

600

500

400

300

200

100

0

0 2 4 6 8 10 12 14 16 18 20 22 24

Forecast ex-bus capability of Power Plant

Hours

MW

Net Injection Schedule

SEB - A's Requisition

SEB - A's Entitlement - (40%)

SCHEDULING

UI PRICE CURVE : EXISTING

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

48.

7

48.

8

48.

9

49

49.

1

49.

2

49.

3

49.

4

49.

5

49.

6

49.

7

49.

8

49.

9

50

50.

1

50.

2

50.

3

50.

4

50.

5

50.

6

50.

7

50.

8

50.

9

51

FREQUENCY IN HZ

UI

PR

ICE

KNEE POINT210

345

745

KNEE POINT

SHOW TABLE HIDE TABLE

FREQ

UI PRICE EXISTING

48.7 74548.8 74548.9 74549 745

49.1 66549.2 58549.3 50549.4 42549.5 34549.6 30049.7 25549.8 21049.9 18050 150

50.1 12050.2 9050.3 6050.4 3050.5 050.6 050.7 050.8 050.9 051 0

30 Ps

45 Ps

80 Ps