FORUM OF REGULATORS

FOR-NEWS Issue No. 3

Chairperson's Message

Shri Mukul Dhariwal and Shri Anil Kumar Jha have been This third issue of FOR
appointed as Members of Madhya Pradesh Electricity Newsletter is in continuation
Regulatory Commission w.e.f. 2nd January, 2018 and 22nd to our pursuit to ensure
January, 2018 respectively. seamless dissemination of
information on regulatory &
Shri Ngangom Sarat Singh has been appointed as
policy issues.
Chairperson, Joint Electricity Regulatory Commission for
Manipur & Mizoram w.e.f. 24th January, 2018.
I am glad to inform you that
Shri P.K. Pujari has been appointed as Chairperson, the Technical Committee constituted by FOR has done an
Central Electricity Regulatory Commission w.e.f. 2nd excellent job in bringing about harmonization on a number
February, 2018. of regulatory issues, especially on grid integration of RE.
The Committee has carried out extensive examination of
Shri Subhash Chandra Das has been appointed as issues like Intra-Day Load / Generation Management, 5-
Chairperson, Assam Electricity Regulatory Commission Minute Scheduling, Metering, Accounting and Settlement,
w.e.f. 9th February, 2018. Fast Response Ancillary Services (FRAS) from Hydro
Generating Stations, RPO Web Tool etc. I am hopeful of
Shri I.M. Bohari and Shri Mukesh Khullar have been further progress in these areas.
appointed as Members of Maharashtra Electricity
Regulatory Commission w.e.f. 6th June, 2018. The Forum has carried out capacity building programs and
commissioned studies during the past five years. A detailed
Shri Raj Pratap Singh has been appointed as Chairperson, analysis of the impact and effectiveness of these capacity
Uttar Pradesh Electricity Regulatory Commission w.e.f. building programs and studies was carried out, which led to
2nd July, 2018. encouraging results. Taking a cue from this, the Forum
will continue with its capacity building programs and
Justice Satyendra Singh Chauhan has been appointed as studies for the benefit of the Member Organizations.
Chairperson, Delhi Electricity Regulatory Commission
w.e.f. 5th July, 2018. We value your feedback and contributions in the form of
updates on the activities of SERC / JERC, issuance of
Shri Shrimat Pandey has been appointed as Chairperson, Regulations etc. We look forward to your responses.
Rajasthan Electricity Regulatory Commission w.e.f. 9th
July 2018.

Welcome to FOR/CERC Chairperson Shri P.K.Pujari in the 63rd FOR meeting

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FOR-NEWS Issue No. 3

FOR Meetings
 63rd FOR Meeting was held on 9.4.2018 in New Delhi. During the meeting,
 The Forum authorised constitution of a Working Group who will deliberate upon guidelines on principles
of tariff determination for distribution assets including depreciation parameters in compliance to tariff
policy 2016.
 The Forum endorsed the recommendation of the Technical Committee for introduction of real time energy
market with hourly gate closure and requested CERC to take suitable action, to take the idea forward. It
was also reiterated that automation of the process, preparedness of the stakeholders, especially, Discom
and the Power Exchanges were essential requisites to the success of the framework.
 The Forum appreciated the initiative of the FOR sub-Group constituted by the Technical Committee who
suggested that, on a pilot basis, 5-minute capable meters may be installed at say, 4-5 locations in each
Region to gain practical experience in 5-minute metering, interfacing requirements/ file interchange
formats and to develop data analytics/ tools for 5-minute metering, data validation, reporting, etc. The
pilot project would help in formulation/ refinements of Technical specifications and Software
Requirement Specifications for Metering Software at RLDCs and Accounting Software at RPCs for 5-
minute metering.
 The Forum endorsed the recommendation of the Technical Committee for pilot studies on FRAS for
Hydro (along with pilot studies on 5-Minute Scheduling, Metering, Accounting and Settlement) in the
States of Andhra Pradesh, Rajasthan, Telangana, Uttar Pradesh and West Bengal.

 62nd FOR Meeting was held on 15.12.2017 in New Delhi. During the meeting,
 The Forum discussed and endorsed the FoR Study on “Impact Assessment of FoR Studies and
Capacity Building Programs” which covered a detailed analysis on the relevance, efficiency,
effectiveness and impact of the studies and capacity building programs of FoR.
 Volume I & II of the Report of the FoR Standing Technical Committee on Implementation of
Framework on Renewables at the State-Level was released
 The Forum endorsed the report of the "Working Group on Open Access”. The report made
recommendations on scheduling power for certain time slots to prevent frequent shifting, uniform
methodology for determination of various OA charges etc.
 Presentation on the generic software of E-Court for the State Electricity Regulatory Commissions,
Reference from Ministry of New and Renewable Energy (MNRE) on RPO Trajectory and RPO
Compliance, Report of the FOR Working Group on Issues Related to Open Access etc.

 61st FOR Meeting was held on 22.9.2017 in Chennai. During the meeting,
 The Forum discussed the progress achieved by the FoR Technical Committee on RE Integration which
included the need to implement SAMAST across all States , preparation of model DPR, preparation of
Model Regulations for facilitating State level DSM, Generic RPO Webtool, national level framework
for optimum resource utilization etc.
 The Forum considered submission of merging solar and non-solar RPOs into one single RPO target for
compliance by obligated entities in the light of emerging market realities.
 The Forum noted that the IEGC notified by CERC recognized must run status for the RE plants and
several States have also accorded the similar status to RE plants in their regulations. Hence, the Forum
resolved that this principle should be adopted universally across States
 The Forum observed that in order to encourage transparency and efficiency in project costs, threshold
limit for intra-State transmission projects is required to be determined by the SERCs as provided for in
the Tariff Policy. Therefore, the Forum urged the Members to determine the threshold limit for their
respective State-level transmission projects, while taking all relevant parameters of their State into
consideration.

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FOR-NEWS Issue No. 3

SERC Regulations/Developments

 DERC’s approach paper for Tariff rationalization

Regulations at a Glance
In February 2018, the Delhi Electricity Regulatory
Commission (DERC) came out with an approach paper for
tariff rationalization. The objective of the approach paper is to CERC Regulations
examine the existing regulatory framework
 CERC approved procedures for
in electricity retail tariff and develop a strategy for creating
competition in the market within the present legal framework grant of connectivity to use ISTS.
of the Electricity Act, 2003. The paper identified challenges
CERC approved the procedure for grant
such as frequent shifting of Open Access consumers,
of connectivity to Renewable Energy
insufficient Cross subsidy surcharge, Additional surcharge
projects proposing to use Inter-State
and Standby charges, redesign of tariff structure and
transmission system (ISTS). The
rationalisation. As a way forward, some of the
guidelines provide for procedure,
recommendations of the paper are:
eligibility, and timelines for approval of
 Retail tariff to be reflective of actual Fixed costs so
connectivity by the CTU. Previously, the
as to minimise Cross subsidy surcharge between
connectivity approval was granted on
fixed and energy charges
first come first serve basis based on the
 Competition to be introduced in retail supply business
capacity of the sub-stations, resulting in
 Identify retail supply licensees along existing
late comers having to wait for
distribution licensees for purpose of Universal
augmentation of new sub-stations. SECI
Service Obligation and ensure electricity at regulated
stipulates 18 months for commissioning
rate to every consumer as per provisions of Electricity
of Wind power plant from the date of
Act
issuance of letter of award. However, it
takes 2-3 years to construct new
 MERC Order on Rooftop under Net Metering substation or evacuation infrastructure.
Maharashtra Electricity Regulatory Commission (MERC) has
passed a ruling stating that the benefits of net metering are  National APPC for 2018-19 and
limited to rooftop solar installations of upto 1 MW. beyond at Rs 3.53/kW

MERC was responding to a petition filed by Bharat Central Electricity Regulatory

Electronics Limited (BEL), a Government of India Enterprise Commission (CERC) has set the national
under the Ministry of Defence (MoD), requesting clearance average power purchase cost (APPC) at `
for the implementation of 3 MW solar power project with a 3.53/kWh for regional renewable energy
net metering facility on the Ordinance Ammunition Factory in generators. This APPC will apply during
Khadki (AFK), Pune. The project did not qualify because of the financial year (FY) 2018-19 and until
its size. further orders for deviation settlement with
respect to open access and captive wind
In the case of the BEL project, the 3 MW captive solar system and solar generators fulfilling the
falls under the provisions for open access. Power generated requirement of regional entities are put in
under open access attracts additional charges such as place.
wheeling charges, a cross-subsidy surcharge. All these factors The new APPC is ` 0.05/kWh more than
including fees payable to MSLDC impact the viability of the the previous APPC of ` 3.48/kWh for FY
project. MERC has also observed that AFK Pune cannot 2017-18.
claim exemption from the provisions of Net Metering
Regulations, 2015. When a consumer of electricity also
becomes a consumer of a particular distribution licensee, it
comes under the Commission‟s regulation and no special
treatment can be granted.

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FOR-NEWS Issue No. 3

Ministry Of Power News

 Thermal generating Stations to upgrade emission control systems in larger public interest

MoP issued directions to CERC to facilitate smooth implementation of revised emission standards
of Environment (Protection) Amendment Rules, 2015 for Thermal Power Plants (TPPs). The
respective TPPs may approach appropriate Commission for approval of additional capital
expenditure on account of upgradation or installation of new emission control systems on account
of change in law event in respect of PPA entered under the section 62 & 63 of Electricity Act, 2003.
The additional cost shall consider for being made pass through in tariff by the Appropriate
Commission in accordance with the law.

 Mechanism for Implementation of New Environmental Norms for Thermal Power

Plants(TPP) supplying power to distribution licensees under concluded long term and
medium term Power Purchase Agreement(PPA)

Ministry of Power has issued directions to the Central Electricity Regulatory Commission under
Section 107 of the Electricity Act recognizing the compliance of Environment Protection
(Amendment) Rules, 2015 by Thermal Power Plants as Change of Law.

FOR's interaction with Hon'ble Minister of State (IC), Power and New & Renewable Energy , Shri R.K.Singh

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FOR-NEWS Issue No. 3

CEA Related

Annual Generation Programme 2018-19 issued by Central Electricity Authority (CEA)

Generation Programme is prepared by CEA based on the actual generation by the Stations during
previous years, maintenance schedules furnished by the Stations for the year 2018-19 and anticipated new
capacity additions during the year. However, there could be substantial variations in generation from
individual Stations due to change in actual maintenance schedules of Stations (vis-à-vis proposed
schedules) & sudden outages of units, actual commissioning of new capacities and change in overall
generation mix due to constraints in availability of specific sources like hydro or gas etc.

MNRE Related

 MNRE to support 2.5 GW wind-solar hybrid projects

The objective of the Scheme is to facilitate installation of new wind-solar hybrid projects at a price
discovered through the transparent process of reverse bidding through Solar Energy Corporation of India
(SECI), the Scheme‟s nodal agency. The Scheme will be implemented for setting up of 2500 MW hybrid
projects on a build, own, and operate (BOO) basis. The eligible bid capacity for bidding will be minimum
200 MW and 500 MW by a bidder with a project capacity of at least 50 MW at one project site.

 India moves to auction its first offshore wind power project

In a move that would help boost its clean energy commitments, India has called for expression of interest
(EoI) for the first offshore wind energy project in the country being set up in the Gulf of Khambat, off the
coast of Gujarat, according to a government statement. The development assumes significance given the
1,000 megawatts (MW) size of the project, with the government‟s plan to set up at least 5 gigawatts
(GW) of offshore wind capacity by 2022. India plans to leverage scale to bring down offshore energy
tariffs by harnessing the enormous wind power potential along its 7,600 km coastline. “The National
Institute of Wind Energy (NIWE), an autonomous body under the Ministry of New and Renewable
Energy (MNRE), has called for „Expression of Interest‟ (EoI) for the first offshore wind energy project of
India".

 Revised Schedule of "Quality Control Order of Solar Photo Voltaic Systems, Devices and
Components Goods 2017"

Central Government had issued “Solar Photovoltaics, Systems, Devices and Components Goods
(Requirements for Compulsory Registration) Order, 2017 “vide S.O. 2920 (E) dated 5 September,
2017 for six products included in the Schedule with effect from 5th September 2018. After having
discussions with various stakeholders including the Bureau of Indian Standards (BIS), the date of
coming into force of the said Order was advanced to 16th April, 2018.The Schedule has been issued
for components of solar photovoltaic system with the date of implementation indicated against each
product in the Schedule.

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FOR-NEWS Issue No. 3

FOR Related

 Forum of Regulators Report on Open Access

Forum of Regulators released a report on issues impacting the open access and recommended way forward for
its better implementation. The recommendations of the Forum include:
a. Leverage technology solutions and automate processes for issue of No-Objection Certificates (NOC),
energy scheduling, and energy settlement
b. Conduct impact assessment for DISCOMS as well as open access users
c. Open access consumers must schedule minimum continuous eight hours of supply through open access
d. Cross Subsidy Surcharge (CSS) must be calculated on the basis of average cost of supply and must not be
based on category-wise or voltage-wise cost of supply
e. There must be three components of additional surcharge to fully recover the losses due to stranded
capacity and regulatory assets
f. Tariff structure is not uniform across all SERCs and the concept of standby charge can be only for long-
term open access consumers
g. SERCs must revise fixed charges gradually

 First Report of FOR Technical Committee on Implementation of Framework for Renewables

at the State Level

Technical Committee for Implementation of Framework on Renewables at the State Level was formed under the
Chairmanship of Member CERC, Shri A.S. Bakshi, and comprising Technical Members of State Commissions
of renewable rich States viz. Tamil Nadu, Gujarat, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka and
Madhya Pradesh.
Major initiatives of the Committee are listed below and detailed as individual chapters in the first volume:
a. Implementation of Scheduling, Accounting, Metering and Settlement of Transactions in Electricity
(SAMAST) Report
b. Implementation of State Level Forecasting & Scheduling Framework
c. Model Deviation Settlement Mechanism (DSM) Regulations:
d. RPO Web-Tool and related matters
e. Regional Co-operation for Optimum Utilization of Generation Resources
f. Introduction of 5 Minute Time Block
g. Smart Meters
h. Model Regulations for tariff Determination & other related matters for intra-State hydro Generating
Stations

Members of FOR

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FOR-NEWS Issue No. 3

FOR Study Reports

The Forum of Regulators (FOR) carried out an independent Impact Assessment of the Studies and Capacity
building workshops undertaken during the past 5 years and analyzed whether these activities are in line with the
functions and objectives of the Forum. The execution of this assignment was divided under five main stages:
Inception - Design and Planning, Finalization of Key Impact Parameters, Data Collection and Analysis,
Framing Recommendations and Roadmap and Stakeholder Consultation.

On the basis of derived insights, three major focus areas have been identified:
i. Making the process of carrying out Studies and CBPs uniform, robust and inclusive of all critical
requirements - Focus on Process
ii. Ensuring the involvement of suitable personnel from SERCs from planning to application stages of a
Study or CBP – Focus on People
iii. Developing in-depth, all-rounded and referable content for Studies and CBPs that can readily be adopted
by SERCs – Focus on Content
The exercise of assessing impact of such Studies and CBPs has revealed that while SERCs have valued the quality
of study reports, CBP presentations and related content, they seek a parallel mechanism wherein they are duly
involved and motivated to contribute in a meaningful manner. Such a mechanism will also make it easier for
States to embrace and adopt Study and CBP outcomes, initiating a healthy cycle of feedback-driven Studies and
CBPs.
The following areas of improvement have been brought forth in the study :
 Greater inclusion and involvement of SERCs across lifecycle of Studies and CBPs
 Allowing more interaction of SERCs for communication of best practices
 Ensuring coverage of parameters as perceived significant by SERCs by all Studies and CBPs
 Greater focus on adoption of recommendations by SERCs for the purpose of fulfilling their functions and
resolution of pertinent issues
The following areas of strength have been discovered in this assignment which can be further capitalized upon:
 Enhancement of knowledge and awareness regarding complex issues with the help of Studies and
CBPs
 Incorporation of national case studies and best practices employed in various States
 Sustainability of recommendations and ability to withstand future trends

For complete repository of FOR information,

kindly visit www.forumofregulators.gov.in

Please send your feedback at Forum of

Regulators

1st Floor, Chanderlok Building,

36 Janpath, New Delhi 110001
Email: secyskj@gmail.com

Shri Gireesh B Pradhan , Chairpeson FOR/CERC felicitated by Justice Bhavani Prasad, Chairperson, APERC on
the eve of demitting office of CERC
Disclaimer: Contents of this Newsletter are prepared taking references from various resources available in public domain. The contents of
the Newsletter may be considered as indicative references only and respective organizations may be contacted for accuracy of data or
information. The contents do not necessarily reflect the views of the Forum of Regulators or its Member Organizations. The Forum of
Regulators does not guarantee the accuracy of data or information included in this publication and accepts no responsibility for any
consequence of their use.
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