New Indias Indian Electricity Act 2003.ppt

Grid code defines the important aspects of grid regulations

1. National Training Programme For C&D
Employees
(Variant 3-Financial Management ,Store Accounting and Office Admininstration)
)

2. 2
INTRODUCTION TO DISTRIBUTION
 
DISTRIBUTION SYSTEM
• Distribution
is a network of lines, receiving Power at 66 kV or

33 kV and derating to 11 kV, and 440 volts and supplying Power
to
customers
• Distribution
can be broadly divided into two:
 1.Primary
Distribution:

Primary Distribution is the network at 11
KV
emanating from 33/11 Kv SS or 66/11 KV SS
 2.Secondary
Distribution:

It is the network operating at utilization
voltage
i.e. 440v/220 volts at consumer premises.

3. INTRODUCTION TO DISTRIBUTION
CUSTOMER:
One
who receives Power supplied by Licensee (Power
Co)
at appropriate tariff.
 At
what voltages customer gets Power in a
Distribution:
 

33KV


22KV


11
KV


440/215
volts
3

4. 4
General Terms Used in Distribution
 
1.
CURRENT: Current is measured in Amps. The Ampere is the basic unit of electric
current.
It is that current which produces a specified forces between two parallel
wires.
 
2
VOLTAGE: It is measure of electric potential. A potential of one volt appears
across
a resistance of one ohm when current one Amp flow through that resistance.
 
3.
RESISTANCE:
Voltage

Current

The
unit of resistance is ohm (Ώ)
 
4.
KILOVOLT AMPERE: (KVA): It is the product of Kilovolts and Amps. This
measures
the electrical Load on a Circuit or a System.
 For
Single Phase Circuit KVA: Voltage x Amps/1000
For
Three Phase Circuit KVA: √13 x Voltage x Amps/1000

5. General Terms Used in Distribution
KILOWATT (KW) ACTIVE POWER`:
 It
is the active power producing work
For
Single Phase:
Power
(KW):
Volts
x Amps x Power Factor



1000
For
3 Phase:
Power
(Kw):
√3
x Volts x Amps x Power Factor


1000
POWER FACTOR:
it is the ratio between KW and
KVA
: =
kW
kVA
5

6. General Terms Used In Distribution


KILOWATT HOUR: (Kwh): It
is the energy
consumed
by 1000 watts in one hour. If 1 kw
of
electrical equipment is operated for one hour,
it
would consume 1 kwh of energy (one unit)
MAXlMUM DEMAND: It
is highest average
KVA
recorded with in a month. The demand is
measured
using trivector meter( Digital Meter).
 
6

7. General Terms Used In
Distribution
POWER
TRANSFORMER: 33/11 or 66/11kV


It
receives Power at 33 KV and derate to 11 KV
Normal
Capacities of 33/11KV Power Transformers:

10 MVA, 8 MVA, 5 MVA, 3.15 MVA, 1.6 MVA
DISTRIBUTION
TRANSFORMER:
It
receives Power at 11 KV and derates to 433 Volts
Normal
Capacities of 11kV/433v Power Transformers:


315,
250, 100,63,25,16 kVA
7

8. ELECTRICITY DISTRIBUTION COMPANY
What
is Electricity Distribution Company
It
is a company having license to distribute Electric power to
various
categories of customers in the area at tariff fixed by
Electricity
Regulatory Commission and responsible for energy
purchased,
and sold.
Who
will be the Head of Distribution Company
Distribution
Company will be headed by Chairman - Managing
Director
with 3-4 Directors.


8

9. ELECTRICITY DISTRIBUTION
COMPANY
What
is the role of
Distribution
Company
Distribution
Company purchases power from
Generation
Companies (Government &Private
Developers)
and sell to Customers, maintain
quality
and reliable supply to Customers.
Transmission
company(Transco) facilitates
transmission
of power through its wires.
 SLD/RLD/NLD
centres manage the operation
&
Control of power system
9

10. ELECTRICITY DISTRIBUTION
COMPANY
Administration
of Distribution Company
Distribution
Company is divided in to Zones
headed
by Chief Engineer Zone
Each
Zone is divided into Circles, headed by
Superintending
Engineers
Each
Circle is divided in to Divisions, headed
by
Divisional Engineer/Executive Engineers
10

11. ELECTRICITY DISTRIBUTION
COMPANY
Each
Division is divided into Sub-Divisions,
headed
by Asst. Divisional Engineer/Sub-
Divisional
Engineer
Each
sub-division is divided into sections
headed
by Assistant Engineer/junior Engineer.
 Each
section comprising of average 6000-7000
connections.
11

12. 12
Functions of Electricity distribution company
• Purchase
of Power from Transco/ National Grid
•Distribution
of Power to Customers
•Accounting
of Energy (input Units) purchased
•Accounting
of Energy (Sales) sold to customers
•Maintaining
company assets i.e. No. of 33/11 KV Sub-Stations, 33 KV
network
length, Power Transformer Capacity, 11 KV network,
Distribution
Transformers, LT network, Customer metering.
•Planning
for Expansion of substation Capacity
•New
sub-stations, lines, additional transformers etc.
• Customer
Service with emphasis on Customer relationship management

13. 13
Functions Of Distribution Company
•Periodical
review of Distribution System covering:


-Line
Losses


-
Overloaded Distribution Transformers


-Overloaded
HT Lines


-Over
loaded Substations


-
Revenue Collections


-System
Defects


-Low
Voltage Pockets


-Purchase
of Line material, and Equipment


-Erection
of new Sub-Stations, Lines


-Providing
Quality Metering to Customer


-Maintaining
Quality and reliable Power supply to
Customer


-Providing
training to employees for upgrading their skills

14. 14
Electricity Act 2003 –
Distribution Reforms

15. 15
Background
•Three
erstwhile Acts that regulated the electricity
sector:
•The
Indian Electricity Act, 1910
•The
Electricity (Supply) Act, 1948
•The
Electricity Regulatory Commissions Act, 1998
Contd..

16. 16
Background (contd..)
•The
Indian Electricity Act, 1910
•Provided
basic framework for electric supply industry in
India.
•Growth
of the sector through private licensees. Licence by
State
Govt.
•Provision
for licence for supply of electricity in a specified
area.
•Legal
framework for laying down of wires and other works.
•Provisions
laying down relationship between licensee and
consumer.
•The
Electricity (Supply) Act, 1948
•Mandated
creation of SEBs.
•Need
for the State to step in (through SEBs) to extend
electrification
(so far limited to cities) all across the country.
Contd..

17. 17
•Main
amendments to the existing Acts
•Amendment
in 1975 to enable generation in Central sector
•Amendment
to bring in commercial viability in the functioning of SEBs –
•Section
59 amended to make the earning of a minimum return of 3% on fixed assets a
statutory
requirement (w.e.f 1.4.1985)
•Amendment
in 1991 to open generation to private sector and establishment
of
RLDCs
•Amendment
in 1998 to provide for private sector participation in
transmission,
and also provision relating to Transmission Utilities.
Background (contd..)
Contd..

18. 18
•The
Electricity Regulatory Commissions Act, 1998
•Provision
for setting up of Central / State Electricity
Regulatory
Commission to with powers to determine tariffs.

•Constitution
of SERC optional for States. .
•Distancing
of Govt from tariff determination.
Background (contd..)

19. Electricity Act 2003
Electricity Act 2003 along with National Electricity
Policy are said to be culmination of Power Sector
Reforms in India which started in 1991 by opening
up of Indian Power Sector thereby promoting entry
of private players into power generation
(IPPs)through MOU route
Power Sector Reforms aimed at ensuring the sector
to become more efficient ,lowering the cost and
delivering better results

20. 20
Common features of State Acts
Independent
Regulatory Mechanism
•Constitution
of SERC
•Powers
of tariff fixation, licensing, regulation or working of licensees,
performance
standards etc. to SERC
Reorganisation
of SEB
•TRANSCO
as successor entity
•Single
buyer model
•Separation
of generation, transmission & distribution
Contd..

21. Electricity Act 2003
Year Milestones
1991 IPP Process
1995 Competitive Bidding Mandatory for Generation Projects and
Orissa Reform Act
1996 Orissa Electricity Regulatory Commission formed and
Common Minimum Action Plan for Power Sector
1998 Central Electricity Regulatory Commission Act and
Private Sector Participation in Power Transmission
1999 State Regulatory Commissions formed in many States
and Privatisation of Distribution in Orissa
2001 Accelerated Power Development and Reform
Programme (APDRP)
2002 Privatisation of Distribution Business in Delhi
2003 Electricity Act 2003
2004 Open Access in Inter-State Transmission Regulation
2005 National Electricity Policy
2006 Rural Electrification Policy

22. 22
Common features contd…..
Powers
of State Governments to give policy directions
to
SERCs.
•Policy
directions also on subsidy
•State
Governments to compensate licensee affected by
direction
regarding subsidy

23. Electricity Act 2003
Objective: Competition, Protection of consumers interest
&Power for all areas
Creates liberal framework for power
development
Creates competitive environment. Facilitates
private investment
Delicences generation
Multiple Licensing in Distribution
Rural Areas: Stand alone generation and
distribution delicenced

24. 24
Need for the new legislation
•Requirement
of harmonizing and rationalizing the provisions in the
existing
laws to
-

Create
competitive environment for benchmark competition
which

will
result in enhancing quality and reliability of service to
consumer.
-

distancing
regulatory responsibilities of Govt.
•Reform
legislation by several States separately.
•Obviating
need for individual States to enact their own reform laws.
•Requirement
of introducing newer concepts like power trading, open
access,
Appellate Tribunal etc.
•Special
provision for the Rural areas.

25. Electricity Act 2003
Stringent provision for controlling theft of energy
Obligates states to restructure SEBs
Mandates creation of Regulatory Commissions
Tariff to be determined by Regulatory Commissions
Open access in Transmission from outset
Open access in Distribution to be allowed by SERCs
in phases
Gradual phasing out of cross subsidies
Trading a distinct licensed activity to promote
development of Electricity market
Appellate Tribunal of Electricity to hear appeals
against orders of CERC/SERCs

26. Electricity Act 2003
Rural Electrification: Relevant provisions of Electricity
Act 2003
Section 4. The Central Govt. shall, after consultation
with the State Govts. prepare and notify a national
policy, permitting standalone systems( including
those based on renewable source of energy and non-
conventional sources of energy for rural areas
Section 2(63). “stand alone system ” means the
electricity system set up to generate power and
distribute electricity in a specified area without
connection to Grid

27. 27
State Reform Acts
Orissa
(1995)
Haryana
(1997)
Andhra
Pradesh (1998)
Uttar
Pradesh (1999)
Karnataka
(1999)
Rajasthan
(1999)
Delhi
(2000)
Madhya
Pradesh (2000)
Gujarat
(2003)

28. 28
Salient features of the Electricity Act, 2003
•Role
of Government
•Rural
Electrification
•Generation

•Transmission

•Distribution

•Consumer
Protection
•Trading
/ Market Development
•Regulatory
Commission / Appellate Tribunal
•Tariff
Principles
•CEA
•Measures
against Theft of electricity
•Restructuring
of SEBs

29. 29
Role of Government
Central
Government to prepare National Electricity Policy and
Tariff
Policy.
(Section 3)
Central
Govt. to notify a National Policy for rural areas permitting
stand
alone systems based on renewal and Non-Conventional energy
sources
in consultation with States.
(Section 4)
Central
Govt. to formulate a National Policy in consultation with the
concerned
State Govts. for bulk purchase of power and management
of
local distribution through Users’ Association, Cooperatives,
Franchisees
and Panchayat Institutions etc.
(Section 5)

30. 30
 
•Appropriate
Govt to endeavor to extend supply of electricity to all
villages/hamlets.

(Section 6)
•No
requirement of licence if a person intends to generate and
distribute
power in rural area.
(Section 14)
Rural Electrification

31. 31
• Generation
free from licensing. (
Section
7)
•Requirement
of TEC for non-hydro generation done away with. (
Section
7)
•Captive
Generation is free from controls. Open access to Captive
generating
plants subject to availability of transmission facility. (
Section
9)
•Clearance
of CEA for hydro projects required. Necessary due to concern of
dam
safety and inter-State issues. (
Section
8)
•Generation
from Non-Conventional Sources / Co-generation to be
promoted.
Minimum percentage of purchase of power from renewables may
be
prescribed by Regulatory Commissions. (
Sections
61 (h), 86 (1) (e))
Generation

32. 32
•There
would be Transmission Utility at the Centre and in the States to undertake
planning
& development of transmission system.
(Sections 38 & 39)
•Load
despatch to be in the hands of a govt company/organisation. Flexibility
regarding
keeping Transmission Utility and load despatch together or separating
them. Load
Despatch function critical for grid stability and neutrality vis a vis
generators
and distributors. Instructions to be binding on both.
(Sections 26, 27,31, 38, 39)
•Transmission
companies to be licensed by the Appropriate Commission after
giving
due consideration to the views of the Transmission Utility.

(Sections 15(5)(b))
•The
Load Despatch Centre/Transmission Utility / Transmission Licensee not to
trade
in power. Facilitating genuine competition between generators

(Sections 27, 31, 38, 39,41)
•Open access to the transmission
lines to be provided to distribution licensees,
generating
companies.


(Sections 38-40)
This
would generate competitive pressures and lead to gradual cost reduction.
Transmission

33. 33
- Distribtution to be licensed by SERCs.
- Distribution licensee free to take up generation & Generating co. free
to take up distribution licence. This would facilitate private sector
participation without Government guarantee/ Escrow. (Sections 7, 12)
- Retail tariff to be determined by the Regulatory Commission.
(Section 62)
- Metering made mandatory. (Section 55)
- Provision for suspension/revocation of licence by Regulatory
Commission as it is an essential service which can not be allowed to
collapse. (Sections 19, 24)
- Open access in distribution to be allowed by SERC in phases. (Section
42)
- In addition to the wheeling charges provision for surcharge if open access
is allowed before elimination of cross subsidies, to take care of
(a) Current level of cross subsidy
(b) Licensee’s obligation to supply. (Section 42)
- This would give choice to customer.
Distribution

34. 34
Consumer Protection
Consumer
to be given connection within stipulated time.
(Section 43(1))
Penalty
in the event of failure to give connection
(Section 43(3))
Payment
of interest on security deposit.
(Section 47(4))
Regulatory
commission to specify Electricity supply code to be
followed
by licensees.
(Section 50)
No
sum due from consumers recoverable after a period of two years
unless
the same was shown recoverable continuously.
(Section 56(2))
Contd…

35. 35
Redressal
forum for redressal of grievances of consumers, to be
appointed
by every distribution licensee within six months.
Ombudsman scheme

(Section 42 )
Standards
of performance
Licensees
required to meet standards of performance specified by
Regulatory
Commission. Failure to meet standards makes them
liable
to pay compensation to affected person within ninety days.
Licensee
to furnish to the Commission periodical information on
standards
of performance
(Section 57)
District
level committee - (a) to coordinate and review extension of
electrification
in each district; (b) to review quality of power supply and
consumer
satisfaction, etc.
(Section 166 (5))
Consumer Protection contd…

36. 36


- Trading distinct activity permitted with licencing. (Section
12)

- Regulatory Commission may fix ceiling on trading margin
to avoid artificial price volatility. (Sections 79 (2) (b) & 86
(2) (b))

- The Regulatory Commission to promote development
of market including trading. (Section 66)



Trading/ Market Development

37. 37
Regulatory Commissions/Appellate Tribunal
State
Electricity Regulatory Commission to be constituted within six months.
(Section
82)
Provision
for Joint Commission by more than one State/UT.
(Section 83)
Provision
for constitution of Appellate Tribunal consisting of Chairman and three
Members.

(Section 110, 112)
Appellate
Tribunal to hear appeals against the orders of CERC/SERC, and also to
exercise
general supervision and control over the Central/State Commissions.
(Section
111)
Appeal
against the orders of Appellate Tribunal to lie before the Supreme Court.
(Section 125)
Appellate
Tribunal considered necessary to-
•Reduce litigation and delay in decisions through High Court.
•Provide technical expertise in decision on appeals.

38. 38
•CEA
to continue as the main technical Advisor of the Govt. of India/
State
Government with the responsibility of overall planning.
(Section
70)
•CEA
to specify the technical standards for electrical plants and
electrical
lines.
(Section 73)
•CEA
to be technical adviser to CERC as well as SERCs.
(Section 73)
•CEA
to specify the safety standards.
(Section 53)
 
Central Electricity Authority

39. 39
Tariff Principles
• Regulatory
Commission to determine tariff for supply of electricity by generating co. on
long/medium
term contracts.
(Section 62)
No
tariff fixation by regulatory commission if tariff is determined through competitive
bidding
or where consumers, on being allowed open access enter into agreement with
generators/traders.
• Consumer
tariff should progressively reduce cross subsidies and move towards actual
cost
of supply. (
Section 61 (g), (h))
• State
Government may provide subsidy in advance through the budget for specified
target
groups if it requires the tariff to be lower than that determined by the Regulatory
Commission.

(Section 65)
•Regulatory
Commissions may undertake regulation including determination of multi-
year
tariff principles, which rewards efficiency and is based on commercial principles.
(Section 61 (e), (f))
•Regulatory
Commission to look at the costs of generation, transmission and distribution
separately. (Section 62 (2))

40. 40
Measures Against Theft of Electricity
-Focus
on revenue realisation rather than criminal proceedings.
(Sections 126, 135)
-Penalties
linked to the connected load and quantum of energy and financial gain
involved
in theft
. Acts
of tapping, or tampering with meter also constitute the offence.
Offence
punishable with imprisonment up to three years or fine up to six time financial
gains
assessed or both.
(Section 135)
-Provisions
for compounding of offences.
(Section 152)
-Assessment
of electricity charges for unauthorised use of electricity by the assessing
officer
designated by the State Government.
(Section 126)
-Theft
of electric lines and materials made punishable with imprisonment or fine or both.
(Section 136)
-Punishment
provision for abetment of theft
. (Section 150)
-Special
Courts
(Sections 153-158)

41. 41


- Provision
for transfer scheme to create one or more
companies
from SEB.
(Section 131)

- Provision
for continuance of SEBs (
Section 172)

- States
given flexibility to adopt reform model/path.





Restructuring of SEBs

42. 42
•All
licenses, authorisations, permissions, approvals, clearances
issued
under the repealed laws are saved for a maximum period of
one
year.
(Section 172(b)).
•Action
taken under corresponding provisions of the repealed laws
or
rules made thereunder are saved to the extent of
consistency/correspondence
with the provisions of the new
Act(Section 185 (2)).
•Provisions
of State Reform laws not inconsistent with provisions
of
the new Central law will continue to apply in that State
(Section
185(3)).
•State Governments can defer implementation of the new Act
by a maximum period of six months. (Section 172(d)).
 
New Central Law vis a vis State Reform /
Amendment Laws

43. 43


National
Electricity Policy


(under
section 3(1) of the Electricity Act, 2003)


Aims
and Objectives
Access
of Electricity-Available for all households in next five years.
Availability
of Power -Demand to be fully met by 2012.
Energy
and peaking shortages to be overcome and adequate spinning reserve to
be
made available.
Supply
of Reliable and Quality Power of specified standards in an efficient
manner
and at reasonable rates.
Per
capita availability of power to be increased to 1000 units by 2012.
Minimum
lifeline consumption of 1unit/household/day as a merit good by 2012

Financial Turnaround and commercial viability of sector.

Protection of consumers’ interests.

44. Issues
Addressed
The
policy addresses the following issues:
Rural
Electrification
Generation
Transmission
Distribution
Recoveries
of cost of services and targetted subsidies
Technology
Development and research and development (R&D)
Competetion
aimed at consumer benefits
Financing
power sector programmes including private sector participation
Energy
conservation
Environmental
issues
Training
and Human Resource Development
Cogeneration
and Non conventional Energy sources
Protection
of consumer interests and Quality standards.

45. Rural Electrification Policy, 2006
RE
policy notified in August-2006 in compliance with
Sections
4 and 5 of Electricity Act 2003


Goals
Rural
(Village) Electrification should be completed
by
the end of the 10th Plan i.e. by year 2007;
Access
to all households should be provided by the
end
of the 11th Plan i.e. by year 2012;
At
least one unit of electricity per day is provided to
all
households Below the Poverty Line.

46. ‘AARQA Goal’
Accessibility to electricity: Increase from the currently
assessed levels to all households by 2012
Availability of power: Increase from the current limited levels
to demand matched by 2012
Reliability of power supply: Increase from the currently low
levels to 24 hours by 2012
Quality of power supply: Increase from the currently poor
levels to 100% by2012
Affordability of power: Pricing based on the ability of the
customer to pay