KARNATAKA ELECTRICITY REGULATORY COMMISSION

No. KERC-2-TR-2024-25/1335 Date: 16.01.2025

Draft Karnataka Electricity Regulatory Commission (Terms and Conditions for Open
Access) Regulations, 2025

PREAMBLE

The Commission, in exercise of the powers conferred under 39(2)(d), 40(c), 42(2, 3),
86(1)(c) of the Electricity Act, 2003 read with Section 181 of the Act, has notified the
Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access)
Regulations, 2004, which is amended from time to time. The Commission had also
notified the Karnataka Electricity Regulatory Commission (Terms and Conditions for
Green Energy Open Access(GEOA)) Regulations, 2022 in line with the ‘Electricity
(Promoting Renewable Energy Through Green Energy Open Access) Rules 2022’
issued by the MoP, which was published in the State Gazette on 19.01.2023. The
Commission has also issued the draft of the Karnataka Electricity Regulatory
Commission (Terms and Conditions for Green Energy Open Access(GEOA)) (First
Amendment) Regulations, 2024 which is notified in the State Gazette on 19.12.2024.

The validity of the ‘Electricity (Promoting Renewable Energy Through Green Energy
Open Access) Rules 2022’ framed by the Central Government and the Karnataka
Electricity Regulatory Commission (Terms and Conditions for Green Energy Open
Access(GEOA)) Regulations, 2022 framed by KERC, were challenged in Writ Petition
Nos. 11235/2024, C/W WP No. 22770/2023, 23729/2023 and others before the Hon’ble
High Court of Karnataka. The Hon’ble High Court has struck down the ‘Electricity
(Promoting Renewable Energy Through Green Energy Open Access) Rules 2022’
framed by the Central Government and also the Karnataka Electricity Regulatory
Commission (Terms and Conditions for Green Energy Open Access(GEOA))
Regulations, 2022. As such the draft of the Karnataka Electricity Regulatory
Commission (Terms and Conditions for Green Energy Open Access(GEOA)) (First
Amendment) Regulations, 2024, is withdrawn.

The Hon’ble High Court of Karnataka has passed Orders in the matter on 20.12.2024
and has concluded as follows:

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“IX. Conclusion:
200. In the result, I allow these writ petitions in part, and hold and direct as follows:
(i) The impugned Rules as well as the Regulations framed by the
Central Government and the KERC are struck down.
(ii) The KERC is directed to frame appropriate Regulations if it so
desires in the matter of granting of open access to green energy
generators and consumers.
(iii) During this exercise, the Commission will only be guided by the
National Electricity Policy and the Tariff Policy framed by the
Central Government, and shall independently consider the
interests of all the stakeholders before framing the Regulations.
(iv) This direction will, however, not mean that the KERC will have to
necessarily frame fresh Regulations and if it so desires, it can
continue with the 2004 Regulations.

201. Taking cognizance of the fact that the order would leave a vacuum till the
Regulations are framed by the independently as observed above, an interim
arrangement would therefore have to be made to ensure that the wheeling and
banking facilities availed hitherto by the petitioners are facilitated.

202. This Court had granted an interim order permitting the petitioners to pay 50% of
the transmission charges determined by the KERC vide its order dated
08.06.2023. In its view, interest of justice would be met if the petitioners are
directed to pay 50% of the transmission charges as per the interim order dated
05.07.2024 passed in these writ petitions.

203. The petitioners, under the orders of the KERC pursuant to which they had entered
into Wheeling and Banking Agreements, were also required to pay wheeling
charges at 5% till the KERC frames regulations for open access to the green
energy generators pending framing regulations. The petitioners shall continue to
pay wheeling charges at 5%.

204. The petitioners were also permitted to bank their energy annually, subject to
payment of 2% under the Wheeling and Banking Agreement. However, by virtue

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 of the Regulations which have now been invalidated, they were required to pay
8%.

205. Since these regulations have been struck down and liberty is given to the KERC
to frame regulations for grant of open access to green energy generators and
consumers, the petitioners shall be permitted to avail banking facility subject to
payment of 4%.

206. The petitioners had the benefit of annual banking facility from 2014 in the
standard Wheeling and Banking Agreement. Since the Wheeling and Banking
Agreements have expired, they obviously would not have a contractual right to
demand annual banking facility. Till the KERC frames regulations regarding
banking as aforesaid, the petitioners shall be entitled to a monthly banking
facility.”

In view of the above decision and keeping in view, the National Electricity Policy and
the Tariff Policy issued by the Government of India and also considering the latest
developments in the sector including large scale integration of renewable sources to
the grid, the Commission proposes to notify Open Access (OA) Regulations afresh,
repealing the earlier Regulations. The Commission, in exercise of the powers conferred
under 39(2)(d), 40(c), 42(2, 3), 86(1)(c) of the Electricity Act, 2003 read with Section
181 of the Act, hereby notifies the Draft Karnataka Electricity Regulatory Commission
(Terms and Conditions for Open Access(OA)) Regulations, 2025, for information of all
the persons likely to be affected and notice is hereby given that, the said draft will be
taken into consideration after 30 days from the date of its publication in the official
gazette. The stakeholders and interested persons may file their
objections/suggestions/views on the proposed draft within 30 days from the date of
publication to:

The Secretary,

Karnataka Electricity Regulatory Commission

No. 16, C-1, Millers Tank Bed Area, Vasanthanagara,
Bengaluru, 560052, Karnataka, India

The Commission also decides to hold a Public hearing in the above matter on
25.02.2025 at 3.00 pm.

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Short Title and commencement. –

i. These Regulations shall be called the Karnataka Electricity Regulatory

Commission (Terms and Conditions for Open Access (OA)) Regulations,
2025.
ii. These Regulations shall come into force from the date of publication in the
Official Gazette of Karnataka.
iii. These Regulations shall be applicable to all Open Access customers
including Green Energy Open Access customers who have filed
applications before the State Nodal agency from 13.01.2023 in case of
STOA (Short Term Open Access) and from 02.01.2023 in case of LTOA (Long
Term Open Access) & MTOA (Medium Term Open Access) for use of Intra-
State Transmission System/s (InSTS) and/or distribution system/s of licensee/s
in the State, including such Intra-State Transmission and/or distribution
system/s, which are incidental to Inter-State Transmission of electricity.

1. Definitions

In these regulations, unless the context otherwise requires –

a. "Act" means the Electricity Act, 2003 (36 of 2003)

b. “Banking” means the facility by which electrical energy remaining
unutilized by the OA Consumer or Captive Consumer sourcing power from
wind, solar, mini-hydel or hybrid of the above, out of the energy injected
by the Generating Company into the transmission and/or distribution
system of Corporation/ESCOM/s, which is allowed to be utilized for
wheeling to such consumers for later use, as per the terms and conditions
set forth in WBA.
c. "Commission" means the Karnataka Electricity Regulatory Commission.
d. “Consumer” means any person who is supplied with electricity for his own
use by a licensee or Captive Power Plant (CPP) or the Government or by
any other person engaged in the business of supplying electricity to the
public including captive, under this Act or any other law for the time being
in force and includes any person whose premises are for the time being
connected for the purpose of receiving electricity with the works of a
licensee, the Government or such other person, as the case may be;

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 e. “Existing Open Access Consumer” means a person already availing open
access to the transmission system and/or distribution system of a licensee in
the State under an existing agreement or GoK policy on the date of
coming into force of these Regulations.
f. “Renewable Sources (RE) of Energy/ Green energy” means such sources
that produce/generate electrical energy from renewable sources of
energy including, but not limited to Solar PV Power Project or Wind Power
Project or Hybrid Power Project or Small Hydro Power Project or biomass,
biofuel, urban or municipal waste, pumped storage hydro generation,
Energy Storage Systems using entire electricity generated from renewable
energy for charging or any other technology as may be notified by the
Government of India from time to time and shall also include any
mechanism that utilises green energy to replace fossil fuels including
production of green hydrogen or green ammonia;
g. “Installation” means the whole of electric wires, fittings, motors and
apparatus installed and wired by or on behalf of the Consumer on one and
the same premises starting from the point of commencement of supply.
h. “KER Act” means Karnataka Electricity Reform Act, 1999.
i. “SLDC” means the State Load Dispatch Centre established under sub-
section (1) of section 31 of the Act.
j. “Open Access” means the non-discriminatory provision for the use of
transmission lines or distribution system or associated facilities with such lines
or system by any licensee or consumer or a person engaged in generation
in accordance with the Regulations specified by the Appropriate
Commission.
k. “Open Access Consumer” means any person who has:
(i) contract demand of 100kW and above for High Tension (HT)
or
(ii) sanctioned load of 100 kW and above for Low Tension (LT),
either through single connection or through multiple
connections for LT aggregating to one hundred kW or more
located in the same electricity division of a distribution
licensee, (captive consumers shall not have any load limit)

and

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 who is supplied with electricity for his own use by a licensee or CPP or
the Government or by any other person engaged in the business of
supplying electricity to the public including captive, under this Act or
any other law for the time being in force and includes any person
whose premises are for the time being connected for the purpose of
receiving renewable energy with the works of a licensee, the
Government or such other person, as the case may be;

l. Open Access Customer means an Open Access consumer permitted by

the Commission to receive supply of electricity from a person other than
distribution licensee of his area of supply, and the expression includes a
generating company and licensee, who has availed of or intends to avail
of open access.
m. “Person” shall include any company or body corporate or association or
body of individuals, whether incorporated or not, or artificial juridical
person;
n. “Premises” includes any land, building or structure;
o. “Standby charges” means the charges applicable to open access
consumers against the standby arrangement provided by the distribution
licensee, in case the open access consumers are unable to procure power
from the generating sources with whom they have the agreements to
procure power due to outages of generator, transmission assets and the
like.
p. "State Transmission Utility" means the Board or the Government company
specified as such by the State Government under sub-section (1) of section
39 of the Act;
q. “System Constraint” means a situation in which there is a need to prepare
and activate a remedial action in order to restore operational security
limits.
r. "Wheeling" means the operation whereby the distribution system and
associated facilities of a STU or transmission licensee or distribution licensee,
as the case may be, are used by another person for the conveyance of
electricity on payment of charges to be determined under section 62 of
the Act;

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 Words and expressions used and not defined in these Regulations but defined in
the Act or the KER Act, shall have the meanings assigned to them in the said
Acts. In case of any inconsistency in words and expressions between the Act
and the KER Act, the provisions of the Act shall prevail.

2. Criteria for allowing Open Access:

i. The long-term open access shall be allowed in accordance with the
transmission planning criteria and distribution planning code stipulated in
the State Grid Code / Distribution Code.
ii. The Short-Term/Medium Term open access shall be allowed, if the request
can be accommodated, by utilizing
a. Inherent design margins
b. Margins available due to variation in power flows and
c. Margins available due to in-built spare transmission system capacity
and/or distribution system capacity created to cater to future load
growth;

3. Categorization of Open Access Customer:

The open access customer shall be classified into the following categories based
on the duration of use of the intra- state transmission and/or distribution system:

i. Long-term OA customer - persons availing or intending to avail the open

access for a period equal to or more than five years.
ii. Medium-term OA customer - persons availing or intending to avail the open
access for a period more than one year and less than 5 years.
iii. Short-term OA customer - persons availing or intending to avail the open
access for a period of one year or less.

Provided that the short –term OA customer shall be eligible & re-eligible to obtain
fresh reservation on filing of application after the expiry of his term and subject
to availability. Such eligibility shall be on priority fixed on the basis of the date of
application.

4. Eligibility Criteria for applying for Open Access

i. Subject to the provisions of these Regulations and system availability, OA

customer shall be eligible for open access to the intra-state transmission

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 system of the State Transmission utility or any transmission licensee/s and
distribution system/s of the distribution Licensee/s within the State.

Provided that notwithstanding anything contained in these Regulations,

any generating company having subsisting Power Purchase Agreement
(PPA) with the Distribution Licensee, shall not be entitled to Open Access
for the capacity, for which PPA is entered into, except in accordance with
the terms of such PPA and also for such capacity (quantum of power) for
which Open Access is already granted.

Provided further that, such open access shall be available on payment of

such charges as may be determined by the Commission from time to time.

ii. Every person, who has constructed a captive generating plant shall have
the right to open access as per the provisions of Section 9 of the Act.

Provided that consumers (except captive consumers), who have

a. contract demand of 100kW and above for HT

or
b. sanctioned load of 100 kW and above for LT, either through single
connection or through multiple connections aggregating to one
hundred kW or more located in the same electricity division of a
distribution licensee

shall be eligible for Open Access for sourcing electricity under these
Regulations.

5. Nodal Agency

i. Karnataka State Load Despatch Centre shall operate as the SNA for grant
of long term, medium-term and short term open access.
ii. All the applications related to open access shall be submitted to the portal
set up by the State Nodal Agency in the prescribed formats.

iii. The SNA shall coordinate with transmission licensees including STU and the
Distribution Licensees to ensure granting of open access within the time
frame specified in these Regulations and also to make available all

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 relevant information regarding open access to the public on the portal of
State Nodal Agency.

6. Treatment for existing entities:

The existing consumer(s)/generators may continue to avail the open access as

per the existing agreements or government policy for the period specified in
those agreements or policies, to the extent they are not inconsistent with the
Act/Regulations.

Provided that, the existing consumers/generators shall continue to pay the

applicable charges as specified in their respective agreements, as may be
determined by the Commission from time to time.

Provided further that, open access for the subsequent period in respect of such
consumer/generator shall be governed by provisions of these Regulations,
including any renewal after the completion of initial period of existing WBA.

Provided also that, if Open Access for any additional capacity is sought by such
existing consumer(s)/generators in addition to the capacity already contracted
under open access, shall be treated as new application for open access to the
extent of additional capacity sought.

7. Allotment priority

The priority for allowing open access shall be decided on the following criteria:

(a) Distribution licensee for long-term

(b) OA customers for long-term
(c) Distribution licensee for medium-term
(d) OA customers for medium-term
(e) Distribution licensee for short-term
(f) OA customers for short-term

Provided that, the decision for allowing the open access shall be on first come
first served basis.

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8. Procedure for grant of Open Access. –

i. The Open access applicant shall submit an application complete in all

respects, to the State Nodal Agency(SNA) in the format prescribed by the
SNA on the State portal.
ii. The following time schedules shall be adhered to, for processing the long-
term, medium-term and short-term open access Application:

Sl.
Particulars Time-line Remarks
No.
1 Date on which Zero Date
application is received
by SNA

2 Acknowledgement of Zero date. The acknowledgement shall be

receipt of Application provided immediately by
electronic mode.

3 Acceptance of Within three (03) working In case the application is

application by SNA after days from zero date. incomplete, the SNA shall
confirming that all the inform the same in writing
relevant documents are rejecting the application and
furnished by the furnishing the details of the
applicant including defects. After rectifying the
processing fees and BG defects, a fresh application
shall be made.

4 Forwarding of Within five (05) working On acceptance of the

application to the STU or days from zero date application, the same shall be
the transmission forwarded to the STU or the
licensee/concerned transmission licensee/
Distribution licensee. concerned Distribution licensee
for ensuring the system
availability and that the
generators are not having any
subsisting PPA for the capacity
for which the OA is sought,
except in accordance with the
terms of such PPA.
5 Concurrence from the Within ten (10) working In case system strengthening is
STU or the transmission days from zero date required, the probable date of
licensee/Distribution granting OA shall be intimated
licensee to SNA within the same time.
In case concurrence is not
received within the specified
time, SNA shall consider it to be
deemed concurrence.

Provided that the system

studies at the drawal point to

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 ascertain the availability is not
required for a consumer of the
licensee availing Open Access,
subject to the applicant
furnishing an undertaking that,
he would not exceed the
contract demand specified in
his supply agreement with the
licensee even after opting for
Open Access.

Provided further that the system

studies at the injection point to
ascertain the availability is not
required for an existing
generator who was already
injecting power into the
licensee(s) network under PPA
or otherwise, subject to the
condition that there is no
additional injection beyond the
capacity that was being
injected earlier.

6 Grant of Open Access or Within fifteen (15) working The SNA shall intimate the
otherwise days from zero date applicant, the grant of OA
within the time specified.
In case OA is not granted, the
same shall be intimated within
the above time furnishing the
reasons in writing and also the
probable date from which the
OA can be granted.

In case, SNA fails to intimate the

grant of OA or otherwise, within
the above specified time, the
same shall be deemed to have
been granted, which is subject
to system availability.

7 Submission of agreement Within twenty (20) working The applicant shall submit
by the applicant for long days from zero date copies of signed agreement to
term/medium term/short the SNA/parties to the
term OA agreement in the standard
format approved by the
Commission. The existing WBA
as modified by the Commission
for REC and non-REC route
projects in accordance with
these Regulations shall be
adopted.
In case the applicant fails to
submit the WBA within the
specified time, the Open

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 Access granted is deemed to
have been cancelled.

8 Submission of signed Within twenty-five (25) In case STU or the transmission

copies of agreement by working days from zero licensee/Distribution licensee
the STU or the date fail to submit the signed copies
transmission to the SNA within the specified
licensee/concerned time, the WBA is deemed to
Distribution licensee have been approved (Banking
allowed only in case of solar,
wind, mini-hydel projects and
hybrid of these sources).

9 Effective date for In case the SNA receives The applicant is allowed to
wheeling the copy of the agreement wheel the energy from the
signed by the applicant, effective date.
the effective date for
commencement of
operation of wheeling of
electricity by the applicant
shall be the next date from
the date of submission of
signed copy of the
agreement to the SNA.
Provided that the above
effective date for
commencement of
wheeling operation shall
also be applicable for
banking in case of solar,
wind, Mini-hydel plants and
hybrid of these sources.

iii. The State Nodal Agency shall ensure that non-refundable processing fee
of five thousand rupees for long-term/medium-term open access and one
thousand rupees for short-term open access is paid by applicant to the
nodal agency and the nodal agency shall intimate the same through
electronic mode of communication, immediately on receipt of the
application form. The applicant shall pay the processing fees within one
working day.
iv. An application for a short-term open access, for power plant(s) or its/their
generating unit(s) which are yet to be commissioned, shall be made not
before two months prior to the commissioning date of such power plant(s)
or its/their generating unit(s), to avoid unnecessary blocking of corridor.
v. An application for long-term/medium-term OA shall be accompanied by
a Bank Guarantee (BG)/ Letter of Credit (LC) of ten thousand rupees per
MW, which shall be kept valid and subsisting till the signing of agreement

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 for wheeling of electricity and such BG/LC shall be encashed by the Nodal
Agency, if the application is withdrawn by the applicant prior to the signing
of such agreement. On signing of the agreement for wheeling of electricity,
the BG/LC shall be returned immediately to the applicant by the State
Nodal Agency. The BG/LC shall be submitted within three working days
from the date of intimation by the SNA.
vi. In case there is any material change with regards to the location of the
injection point or quantum of power to be interchanged (by more than ten
percent) using the intra-State transmission and or distribution system, a fresh
application shall be made for the entire capacity to ascertain the system
availability and such application shall be accompanied by relevant
documents, application fees and in case of long term/medium term open
access with required bank guarantee for the additional capacity and in
case the additional capacity sought for cannot be accommodated in the
existing network, the applicant is entitled for open access to the extent of
his original allotment.
vii. Where any application is rejected for any deficiency or defect, the
processing fees and BG/LC, if submitted, shall be returned to the applicant
excluding GST and in such cases a fresh application to SNA through State
portal, shall be made by the applicant after curing the deficiency or
defect.
viii. The State Nodal Agency shall communicate to the applicant through a
recognized mode of communication, the grant of open access or
otherwise.
ix. Further, during the pendency of application for grant of OA, the applicant
shall not inject any energy to the licensee’s network and the licensee shall
not be liable to pay any charges for the energy injected during such
period.
x. Any energy injected into the licensee’s network from the date of grant of
open access till the date of submission of agreement for wheeling, the
applicant shall be entitled for payment of energy charges at Average
Pooled Power Purchase cost [APPC] rate or 75% of the Generic tariff as
determined by the Commission for the relevant year for the relevant RE
source, whichever is lower.

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 xi. The person seeking open access shall digitally execute the agreement for
wheeling of electricity within the time specified above, failing which the
open access granted or deemed to have been granted shall stand
cancelled.
xii. The STU or the transmission Licensee/s, distribution licensee/s and the SLDC
shall ensure proper coordination while arranging for open access.
xiii. New generating plant(s) or generating Unit(s) seeking long –term/medium
term open access and entering into agreement for wheeling, shall
commission such plant(s) or unit(s) within twelve (12) months from the
effective date, failing which the open access granted shall be deemed to
have been cancelled, to avoid unnecessary blocking of the corridor.
xiv. All the information related to approvals, rejections, revisions, curtailment,
etc. shall be made available to the applicant through the web-based
portal for Open Access hosted by the State Nodal Agency.
xv. Provided further that the State nodal Agency shall prepare formats in line
with these Regulations, for smooth implementation of OA in the State.
xvi. The Nodal Agency shall prepare the modified standard agreement formats
for wheeling and banking (banking as applicable) of electricity within
fifteen (15) days from the date of notification of these Regulations, if
required and obtain due approval of the Commission and make the
standard agreement formats available to the public and shall host the
agreement formats on the website of the Nodal Agency. In case, no
modification is required, the existing approved format of the WBA shall be
continued.
xvii. State Transmission Utility (STU) or Distribution Licensee(s) shall conduct
System Studies annually or as often as required or as directed by the
Commission and the System data including the available additional
loading capacity of lines shall be updated on a continuous basis and shall
be made available to the public and such data shall also be hosted on the
licensees(s)’s website.

Provided that where any person makes a request for such studies, the
STU/Distribution licensee shall carry out the system studies by collecting
reasonable charges and such studies shall be completed within ninety

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 days from the date of receipt of charges towards the studies and a
detailed report in writing shall be provided to such person.

9. Procedure for applying for Day Ahead OA Transactions. -

i. The applicant shall apply to the State Portal for Day Ahead OA Transactions
in the standard application format.

ii. For the applications received by the SNA, before 13.00 hrs of the day
immediately preceding the day of scheduling for day-ahead OA
transaction, the State Nodal Agency shall check for congestion in the
system and convey grant of approval or otherwise to the applicant through
e-mail or fax, not later than 15:00 Hours of the day immediately preceding
the day of scheduling for day-ahead transaction, after ensuring that there
is no subsisting PPA for the capacity sought under OA.

iii. Non-refundable processing fee of One Thousand rupees for each

transaction shall be paid by the applicant, in cash or by way of a demand
draft or proof of payment through electronic transfer in favour of the State
Nodal Agency.

Provided that the actual operationalisation of open access shall be

effected subject to payment by the applicant of the charges as specified
in these Regulations and orders passed by the Commission from time to
time, before 17:00 hours of the day immediately preceding the day of
scheduling for day-ahead transaction.

iv. Where open access is denied, the State Nodal Agency shall furnish reasons
thereof to the applicant.

10. Non-Utilization of open access service by Open Access Customers:

i. In the event of inability of the short-term open access customer to utilize for
more than four (04) hours, full or substantial part of the capacity allocated
to him, such a short-term open access customer shall inform the respective
SLDC of his inability to utilise the capacity, along with reasons therefor and
may surrender the capacity allocated to him. However, such short-term

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 customer shall bear full transmission and /or wheeling charges based on
the original reserved capacity and the period for which such capacity was
reserved.

ii. A long-tem/medium-term customer shall not relinquish or transfer his rights

and obligations specified in the open access agreement without prior
approval of the State nodal agency. The relinquishment or transfer of such
rights and obligations by a long-term/ Medium-term customer shall be
subject to payment of compensation, which shall be equal to three
months’ open access charges.

iii. The SLDC may cancel or reduce the capacity allocated to a short-term
open access customer to the extent it is underutilized, when such a short-
term open access customer under-utilizes the allocated capacity more
than two (2) times in a month with duration of underutilization exceeding
two (2) hours each time or fails to inform the distribution licensee of his
inability to utilise the allocated capacity. Such cancellation shall be
resorted to after giving due notice.

iv. The surplus capacity available as a result of its surrender by the short-term
open access customer under clause 10(i) above or reduction or
cancellation of capacity by the SLDC under clause 10(iii) above, may be
allocated to any other short-term open access customer in the order of
pending applications based on the point of injection and drawal.

11. Open Access Charges:

The following are the Open access charges payable by Open access customers
for reserving and / or using the network:
a. Transmission Charges
b. Wheeling Charges
c. Cross Subsidy Surcharge (CSS)
d. Additional Surcharge (ASC)
e. Banking Charges
f. Standby charges, wherever applicable
g. Losses as determined by the Commission

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 h. Other fees and charges such as Load Despatch Centre fees/ charges,
scheduling and system operating charges, applicable parallel operation/
grid support charges, reactive power charges, deviation settlement
charges, monthly transaction charges, meter reading charges and any
other charges, as per the relevant regulations / Orders of the Commission.

Provided that the open access charges shall be levied from the effective date
as defined in WBA, to avoid blocking of the corridor.

12. Computation of Open Access Charges

12.a. Transmission Charges

(i) For reserving and / or using of inter- State transmission system: As

specified by the Central Commission from time to time.

(ii) For reserving and / or using of intra –State transmission System:

(1) For Long Term and Medium Term Open access, the Transmission
Charges shall be computed as below:

Transmission charges in Rs. per MW per Month = (TTSC x 107) / (TCCx12)

Where TTSC is the Total Transmission System Charges for InSTS shall be
sum of Annual Revenue Requirement (ARR) of Transmission
Licensee(s) in Rupees Crores approved or adopted by the
Commission.

TCC is the Total Contracted Capacity of the Transmission System for

all open access customers, excluding short-term OA customers, in
MW.

Provided that such Transmission charges shall be levied once in every month.

Provided further that, in case, where a dedicated transmission system used for
open access has been constructed for exclusive use of an open access
customer by the licensee, the transmission charges for such dedicated system
shall be worked out by STU or the transmission licensee for their respective systems
and get the same approved by the Commission. The charges shall be borne

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 entirely by such open access customer till such time the surplus capacity is
allotted and used for by other persons or purposes.

Provided also that in case, a dedicated line has been constructed by any open
access customer at his cost, for his own exclusive use, no transmission/wheeling
charges shall be paid by such customer for such lines.

Provided also that, the Transmission charges for the Co-located Wind-Solar
hybrid power plants shall be levied as follows:

a. For existing power plant(s), if solar or wind capacity is added, the charges
shall be limited to the existing transmission capacity contracted with the
transmission licensee, subject to the condition that the installed capacity
of either solar or wind is not more than the existing transmission capacity
contracted.
b. For existing power plant, if solar or wind capacity is added and if the solar
or wind capacity is higher than the existing transmission capacity
contracted, then the charges shall be limited to higher of the capacity of
either wind or solar installed capacity, subject to the condition that the
generator obtains evacuation approval for the additional capacity.
c. For new hybrid power plants, the transmission charges shall be levied for
higher of the capacity of either wind or solar installed capacity, duly
obtaining the evacuation approval.
d. A wind-solar plant will be recognized as hybrid plant if the rated power
capacity of one of the resource is at least 25% of the rated power capacity
of other resource.
e. In case capacity margins are available at the receiving transmission sub-
station of respective transmission entity, at which the existing wind / solar
project is connected, additional transmission capacity / access may be
allowed subject to its technical feasibility. In such a case, any transmission
augmentation required up to the receiving transmission sub-station
including the cost shall be the responsibility of project developer.

18 | P a g e
 Provided also that for non-co-located projects, the charges shall be paid for
solar and wind projects separately corresponding to the installed capacity of
solar and wind projects respectively.

Provided also that in case of wind solar hybrid projects, the generation should
not exceed the contracted capacity. Notwithstanding the above, the SLDC
shall have all the rights to curtail the additional injection, keeping in view the
security/reliability of the grid operation.

(2) For Short-Term Open Access, the Transmission Charges shall be

computed as below:

Transmission charges in Rs. per MWh = ________TTSC in (Rs. Crores) x 104______________

Energy Transmitted by Transmission Licensee
during the year (MU)

TTSC is the Total Transmission System Charges for InSTS shall be sum of
Annual Revenue Requirement (ARR) of Transmission Licensee(s) in
Rupees Crores approved or adopted by the Commission.

12.b. Wheeling Charges: As determined by the Commission in Tariff Orders issued

from time to time, in accordance with the MYT Regulations.

12.c. Cross Subsidy Surcharge: The Cross-subsidy surcharge shall be as per the
provisions of Tariff Policy notified by the Central Government under the Act.
The following formula shall be adopted:

CSS (S) = T – [C/ (1-L/100) + D+ R]

wherein:
S – surcharge,
T – Tariff payable by the relevant category of consumers, including
reflecting the Renewable Purchase Obligation,
C – Per unit weighted average cost of power purchase by Licensee,
including meeting Renewable Purchase Obligation,
L – Aggregate of transmission, distribution and commercial losses,
expressed as a percentage applicable to the relevant voltage level,

19 | P a g e
 D -Aggregate of transmission, distribution and wheeling charge
applicable to the relevant voltage level,
R – Per unit cost of carrying regulatory assets.

Provided that in case the above formula gives negative value of surcharge, the
same shall be zero.

Provided further that the cross-subsidy surcharge shall not exceed 20% of the
average cost of supply.

Provided also that cross-subsidy surcharge for Open Access shall be computed
in Rs/kWh and shall be charged on the actual energy consumed by the
consumer under Open Access.

Provided also that such cross-subsidy surcharge shall not be levied in case
distribution access is provided to a person who has been availing power from
the generation plant established as a captive plant for his own use.

12.d. Additional Surcharge:

The Additional Surcharge shall be computed as follows:

Additional Surcharge= Cost of Stranded Power/Open Access Energy in kWh.

Where, the Cost of Stranded power = Lower of (Quantum of power backed

down/surrendered in MW and Quantum of open access power in MW in the
previous year) * Per Unit Fixed Cost of Power Purchase (Rs./MW).

Provided that, BESCOM on behalf of all ESCOMs, shall collect the data from SLDC
& ESCOMs for the previous year as per the Forms-1 & 2 and file petition before
the Commission for determination of additional surcharge for ensuing year. The
additional surcharge so determined shall be applicable to all open access
consumers as well as the open access consumers of the Distribution Licensee(s)
procuring power from ESCOMs. Additional Surcharge collected by the
Distribution Licensee in respect of OA customers, procuring power from ESCOMs,
shall promptly transfer the same to respective ESCOMs.

20 | P a g e
 Provided further that cross subsidy surcharge and additional surcharge shall not
be applicable in case power produced from a non-fossil fuel-based Waste-to-
Energy plant is supplied to the Open Access Consumers.

12.e. Banking charges:

i) Banking shall be permitted on a monthly basis on payment of applicable

charges as determined by the Commission from time to time.

Provided that the unutilized banked energy remaining at the end of the
month, shall not be permitted to be carried forward to subsequent months.
However, the RE generating stations would be entitled to Renewable
Energy Certificates (RECs) for such energy remaining unutilized at the end
of the month.

ii) The energy banked during peak TOD slots (peak and off-peak ToD slots
shall be as defined in the Orders issued by the Commission from time to
time) shall be permitted to be drawn during peak as well as off-peak TOD
slots. The energy banked during off-peak TOD slots shall be permitted to
be drawn during off-peak TOD slot only.
iii) The banking charges shall be 8% of the banked energy or as determined
by the Commission from time to time.
iv) The banked energy shall be computed slot-wise and day-wise and
summated at the end of the month.

12.f. Standby charges

In case of outages of generators supplying to a consumer on open access,

standby arrangements should be provided by the licensee on payment of 125%
(normal energy charges plus 25% of normal energy charges) of energy charges
applicable to that consumer category as determined by the Commission in its
tariff orders.

12.g. Losses

Intra State Transmission losses and or Distribution losses as approved by the

Commission in Tariff orders issued from time to time shall be applicable for all OA
transactions.

21 | P a g e
 12.h. Other fees and charges

i) Load Despatch Centre fees/ charges as determined by the Commission in

Tariff Orders issued from time to time
ii) Scheduling and system operating charges, applicable parallel operation/
grid support charges, reactive power charges as determined by the
Commission from time to time
iii) Deviation settlement charges as specified under the Regulations as
amended from time to time
iv) Monthly transaction charges of Rs.3000/- (Rupees Three Thousand only) per
month
v) Meter reading charges of Rs. 1000/- (Rupees One Thousand only) per
month. No meter reading charges shall be collected, in case of AMR
meters having remote meter reading facilities are being installed and data
is transferred automatically to SLDC/Concerned ESCOM.
vi) any other charges as specified under the various KERC Regulations and
Orders, if any.

13. Curtailment Priority:

In case due to transmission/distribution system constraints or due to grid security,
it is necessary to curtail the service, the following priority shall be followed:
a. The short-term open access consumer shall be curtailed first.
b. Next, medium-term OA consumer shall be curtailed.
c. Next long-term OA consumer shall be curtailed.

Provided that, in view of Grid Security issues, within a category, the OA consumer
shall have equal curtailment priority and shall be curtailed on pro-rata basis.

Provided further that distribution licensees shall be curtailed as a last resort.

14. Green Certificate. –The distribution licensee shall give green certificate on yearly
basis to the consumers for the green energy supplied by the licensee to
consumer on his request beyond the renewable purchase obligation of the
consumers.

22 | P a g e
15. Dispute Resolution:

All disputes and complaints relating to open access shall be made to the SNA,
which may investigate and endeavour to resolve the grievance.

No application for open access shall be denied unless the applicant has been
given an opportunity of being heard in the matter.

If the SNA is unable to redress the grievance, Petition against the order of the
State Nodal Agency, shall be filed before the State Commission, within a period
of thirty days (30) from the date of receipt of Order.

16. Special Energy Meters:

i) Metering shall be done in accordance with the provisions of CEA

(Installation and Operation of Meters) Regulations, 2006 as amended from
time to time.
ii) The meters shall be capable of time-differentiated measurements (15
minutes) of necessary parameters and shall have ToD facility. These meters
shall always be maintained in good condition and shall be open for
inspection by any person authorized by the State nodal agency.

Provided that for LT consumers seeking open access, the time

differentiated measurement of parameters in the meter in 15-minutes’ time
blocks shall be waived. However, such meters shall have ToD facility.
iii) The meter shall include CTs, PTs and associated accessories and shall be
tested and calibrated at least once in a year.
iv) The meters shall be sealed by the distribution licensee in whose area the
Generator/Consumer is situated.
v) In case the meter is provided by the transmission/distribution licensee, the
open access customer shall pay for its rent and also provide meter security
deposit.
vi) The meter shall be capable of communicating its reading to SLDC on real
time basis.
vii) The metering code prevailing in the State shall be applicable to the open
access customers.

23 | P a g e
17. Compliance of Grid Code/Distribution Code

All Open Access customers shall abide by the State Grid Code, Distribution Code
and all other Codes and Standards, DSM Regulations as applicable from time to
time.

18. Collection and Disbursement of charges

The charges in respect of all Open Access customers shall be payable directly
to the State Nodal agency in accordance with the terms and conditions of
payment as prescribed by the State Nodal agency. SNA shall disburse the
amount received to the concerned licensees (Transmission charges to the STU
or the transmission licensee and distribution network charge to the appropriate
distribution licensee).

In case of more than one licensee is supplying in the same area, the licensee
from whom the consumer was availing supply shall be paid the amounts so
collected.

19. Information System:

1. SLDC shall post the following information in a separate web page titled
“Open Access” Information and also issue a monthly and annual report
containing such information;

a. A status report on long term/medium-term/short term customers.

b. Peak load flows on EHV and HV lines
c. Information regarding average loss in the transmission system and
distribution system as determined by the licensee/s on a monthly
basis.
2. The information shall be updated upon every change in status.
3. All previous reports shall be available in the web-archives.
4. The SLDC shall host the above information on its website within one month
from the date of notification of these Regulations.

20. Reports:
The transmission/distribution licensee shall publish a quarterly report on its website
or as often requested by the Commission the information in the following format:

24 | P a g e
 Name and Whether
Period of
address of the OA with Capacity Actual annual
Sl. Point of Point of open
open RE or allowed utilization of
No. injection drawal access
access/wheeling otherwise (MW) energy in MU
allowed
consumer

21. Communication facility:

All Open Access customers shall have the requisite communication system in
place to facilitate seamless communication of data/orders/ information to/from
the State Nodal Agency, in accordance with the applicable standards /
Regulations.

22. Issue of orders and practice directions:

Subject to the provisions of the Electricity Act, 2003 and these Regulations, the
Commission may, from time to time, issue orders and practice directions with
regard to the implementation of the Regulations and procedures to be followed.

23. Power to remove difficulties:

In case of any difficulty in giving effect to any of the provisions of these
Regulations, the Commission may by general or special order, direct the open
access consumers, generators, SNA and the licensees to take suitable action,
not being inconsistent with the provisions of Electricity Act, 2003, which appears
to the Commission to be necessary or expedient for the purpose of removing the
difficulty.

Open access customers/licensees may make an application to the Commission

and seek suitable orders to remove any difficulties that may arise in
implementation of these Regulations.

24. Power to amend:

The Commission may from time to time add, vary, alter, modify or amend any
provisions of these Regulations after following the necessary procedures.

25. Interpretation:
The decision of the Commission regarding the interpretation of these
Regulations shall be final and binding.

25 | P a g e
 26. Repealand saving:
Save as otherwise provided in these Regulations, the Karnataka Electricity
Regulatory Commission (Terms and Conditions for Open Access) Regulations.
2004, and its amendments shall stand repealed from the date of
commencement of these Regulations. Notwithstanding such repeai, anything
done or anyaction taken or purported to have been done or taken including
any procedure, minutes, reports, confirmation or declaration of any instrument
executedunder the repealed regulations shal be deemed to have beer done
or taken under the relevant provisions of these Regulations.

Secreiety 6),
for Karnataka Electricity Reguiatory Commission

26 |
 block
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