Intra-State Availability Based Tariff (ABT)
Intra-State Availability Based Tariff (ABT)
Tariff (ABT)
What is ABT ?
1. In Year 2000, the CERC revised the tariff structures of
inter- state generators from drawal-based tariffs to
ABT to discipline grid operations.
2. The earlier system was effectively a single-part tariff,
where inter-state generators were compensated on the
basis of their generation and beneficiary states paid on
their actual drawals.
3. As a result, there was no discipline among generators and
beneficiaries, leading to frequent tripping and undesirable
frequency excursions.
4. The ABT structure comprises of the following:
a. Capacity Charge (As per Plant Availability)
b. Energy charge (As per Schedule)
c. Unscheduled Interchange (UI) i.e. deviations from
schedule Charge (Linked to Frequency)
UI Charges(Inter-State ABT)
1. The UI charge is payable by generators and beneficiary states
for any deviation from the accepted schedule.
2. The UI charge provides incentives and disincentives for
deviations between the scheduled and actual exchange of
power, depending on the deviation’s contribution to the
overall stability and security of the grid.
3. The UI shall be worked out for each 15-minute time block.
Freq UI rate Freq UI rate
>49.00 5.70 49.00 5.70
49.02 5.61 49.50 3.45
49.04 5.52 50.00 1.50
49.06 5.43 50.50 & + 0.00
49.08 5.34 ( Each 0.02 Hz step is equivalent to 6.0 paise/kwh
… in the 50.5-49.8 Hz frequency range, and to 9.0
50.44 0.18 paise/kwh in the 49.8-49.0 Hz frequency range)
50.46 0.12
50.48 0.06
50.50 & + 0.00
Advantages Of ABT
Availability Based Tariff (ABT) is successfully implemented for
Inter-State System in India.
The experience of implementing ABT in the country till date has
shown following major advantages :
1. Significant Improvement in Grid Discipline and Grid Security.
2. Improvement in grid voltage levels leading to reduction in
transmission losses and enhancement of transmission capacity.
3. Enabling environment for meeting Peak Demand.
4. Inter-State trading of electricity becomes reality.
5. Real-Time electricity Market.
6. Improvement in commercial dealings.
Need For Intra State ABT(1)
1. ABT is currently applicable only to central sector generators
and beneficiaries who are directly connected to and are a
player on the regional grids (inter state only). The advantages
not being utilized by the entire power sector.
2. On the intra-state level, a significant surplus capacity exists
with various generating companies & CPPs which at present
is not being optimally utilized.
3. Moreover, a number of state generating stations still have
single part tariff, which is not in line with merit order
regime. Such generating stations would be asked to back
down even though on a variable cost based merit order
system they would have been fully dispatched.
4. It is also necessary that the distribution utilities become more
accountable in their load management processes by assessing
consumer demand more accurately and planning their load
shedding schedules judiciously.
Need For Intra State ABT(2)
5. Unbundling of SEBs would increase no. of players
managing the load in the system.
6. Unless a mechanism is put into place at the intra-state level
to cover these distribution companies also under ABT, the
loop would not be closed and the actual implementation of
ABT would not be completed.
7. Thus, implementation of ABT at the intra-state level
would release up idle generating capacity leading to
meeting of more consumer demand, ensure better load
management by the distribution companies, boost bilateral
trading etc.
8. ABT with self contained discipline mechanism would
enable better and reliable grid operations.
Issues in Intra State ABT
Thank You