General Network Access (GNA)

1.   What was the reason of proposing to replace the existing Connectivity/ Long Term Access/Medium Term Open Access regulations with General Network Access (GNA) Regulations?

Central Electricity Regulatory Commission vide its two orders issue in March, 2010 and Feb, 2011 grant approval for Eleven High Capacity Transmission corridors of cost around Rs. 50,000 Cr for evacuation of power of Generation projects of IPPs. The progress of these IPP-projects was affected due to various reasons like delay in land acquisition, statutory clearance and fuel tie up. Due to issues related to case–I bidding not many distribution companies have tied up their power requirement from these generating stations. There being no liability for payment of transmission charges associated with Connectivity. Some of the generators were seeking LTA for a quantum much less than their Connectivity to piggy ride on the existing transmission network avoiding the liability of paying monthly transmission charges which would be payable under LTA service. Naturally, inter-State Transmission Charges for these stranded lines has been shared by end-users who have little say in such capacity building. As these generators do not have any firm beneficiaries, it is difficult to plan proper transmission system which results congestion in some section. CTU and CEA raised concern in regard to the present mechanism of treating Connectivity and Long Term Access separately. Besides, it is often found that the drawal requirement of many states is more than the allocated power. Transmission system so created to meet the drawal requirement of the states fulfills the need of that particular State; however, the charges are shared by all the beneficiaries. Further, availability of National Grid facilitates transfer of power from available cheaper sources. This has opened up opportunities for economic despatch of stations. Many States are backing down their own generating stations or not scheduling power from costlier ISGS and buying power from other sources through MTOA/STOA. The present transmission planning process does not incorporate economic despatch principle. In this situation, CEA initiated the idea of GNA for (i) proper planning of Transmission system and (ii) assured recovery of transmission charges from the applicant. States like Punjab, Tamil Nadu, Haryana, Uttar Pradesh etc. who are availing far more import capacity through ISTS than their LTA capacity should proportionally share the PoC charges at the point of drawal. It needs to be recognized that in the current scenario if short term/ medium/PX transactions are curtailed it results in significant bottling up of generation and distress to DISCOMs.

2.   What is the basic difference between ‘existing practice’ and ‘GNA approach’ in respect of planning? Transmission Planning is presently being done on the basis of Long Term Access (LTA) taken by ISGSs. Load-Generation balance is being done on the basis of

Electric Power Survey published by CEA. Transmission Planning is proposed to be done on the basis of projected load of the States and anticipated generation scenario based on economic principles of merit order operation. Clause 19.1(a) of draft Planning Regulation lays the objective of planning as “To plan transmission system for optimal utilization of resources to subserve the interests of the national economy with due consideration to power market.

3.   What benefit planners shall get from GNA? Transmission system strengthening to be carried out based on GNA requirements of the generators and the States and in accordance with the CEA (Technical Standards for Connectivity to Grid) Regulation. With GNA figures planners can achieve a much more practical planning.

4.   What is the proposed definition of GNA? “General Network Access or GNA” means the non-discriminatory access to the ISTS granted by the CTU to an Applicant for an estimated maximum injection/ drawal for a specified period.

5.   What is the proposed concept of GNA? GNA is the ability in MW to draw or supply from a given point/zone of connection (PoC) to any ISTS point as assessed by the CTU through system studies.

6.   In what way proposed GNA is different from Long Term Access or Medium Term Open Access? “Long Term Access or LTA” means the right to use the inter-State Transmission system for a period exceeding 7 years and “Medium Term Open Access or MTOA” means the right to use the inter-State Transmission system for a period equal to or exceeding 3 months but not exceeding 5 years. LTA is allowed on the basis of MW applied for power transaction from source to drawal point/targeted region whereas GNA shall be allowed on the estimated (by CTU) max injection/drawal of a node/zone for a specified period and not on considering source to drawal point route.

7.   Shall the term LTA and MTOA exist after commencement of proposed GNA? (i) On commencement of CERC (Grant of Connectivity and GNA to the ISTS and other related matters) Regulations, the CERC (Grant of Connectivity, LTA and MTOA in ISTS and related matters) Regulations 2009 shall stand repealed.

(ii) Long-term access or medium term open access granted in accordance with the Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009 (as amended from time to time) shall continue to be valid till GNA is granted for such access by CTU as per these Regulations.

8.   What is the chronology of the development of draft GNA Regulations? Chronology of development of GNA Regulations is as given below:

(i)                  December 2013: Concept of GNA by CEA was placed.

(ii)                 September 2014: Staff Paper released by CERC on Planning, Connectivity, LTA, MTOA

(iii)                February 2016: Report of Task Force (formed by CERC) with draft Planning Regulations

(iv)               September 2016: Publication of Mata Prasad Committee (formed by CERC) Report with proposal for GNA

(v)                26.04.2017: Draft Regulations on Planning by CERC considering Task Force and Mata Prasad Committee Report and proposed to delete Part-III of IEGC

(vi)               14.11.2017: Draft Central Electricity Regulatory Commission (Grant of Connectivity and General Network Access to the inter-State transmission system and other related matters) Regulations, 2017

9.   What benefit generators shall get from proposed GNA? Following are the benefits generators shall get: (i) Generators shall not be liable to pay notional point of drawal charges (ii) Generators shall not have to declare target beneficiaries (iii) More than one generator can use the dedicated transmission line connecting their generating station to pooling station of ISTS. An “Applicant for Connectivity” may be connected to both inter-State transmission system and intra-State transmission system.

10.           What difficulty the generators shall experience due to proposed GNA Regulations? GNA of generators will be Installed capacity less auxiliary consumption. There is a provision of Bank Guarantee of Rs. 20 Lakhs/MW GNA sought. In case GNA customer intends to exit from GNA he shall be liable to pay relinquishment charges. Generators have to apply for GNA within two and half years of grant of connectivity, failing which connectivity will deem to be cancelled.

11.           What benefit distribution licensees shall get from proposed GNA Regulations? Distribution Licensee who intends to avail supply for a minimum load of 250 MW from the inter-State transmission system shall be treated as eligible for inter-State connectivity.

12.           What benefit Bulk Consumers shall get from proposed GNA Regulations? Consumer who intends to avail supply for a minimum load of 250 MW from the inter-State transmission system shall be treated as eligible for inter-State connectivity.

13.           What is the relation between proposed GNA and PoC charges? The concept of PoC charges has de-linked the transmission charges and losses from the notional path of commercial transaction of power. GNA is also not path specific. Accordingly, charges for GNA could be aligned with the PoC mechanism. Para 6(c) of Mata Prasad Committee Report suggests that “An Applicant should be charged with Reliability charges for connected quantum”.

14.           What is the special provision in proposed GNA Regulations for Day Ahead Collective Transactions? 5% of each corridor for which separate ATC is declared shall be reserved for day ahead collective transaction. NLDC shall release the capacity for contingency market in case of non-utilization by power exchanges.

15.           What are the salient features of draft GNA Regulations in respect of States? Salient features of draft GNA Regulations in respect of States are:

(i)          State transmission utilities acting on behalf of distribution licensees and other intra-state entities that are seeking GNA to ISTS would need to apply for GNA each year for a five-year period.

(ii)          CTU will allocate GNA based on system studies.

(iii)        Deviation charges shall be as per CERC (Deviation Settlement Regulations) 2010. 2010Unless specified otherwise by the State Commission concerned, the Deviation rate for intra-State entity shall be 105% (for over-drawals or under generation) and 95% (for under-drawals or over generation) of the Deviation rate at the periphery of regional entity.

(iv)     STUs shall not be required to submit Access Bank Guarantee.

(v)       Any intra-State entity desirous of availing GNA to ISTS may apply GNA application directly to CTU alongwith required No objection certificate from STU or it may apply for the same to STU. STU shall consider such GNA application by all intra-state entities while making application on behalf of intra-State entities for grant of GNA to CTU.

(vi)       Unless specified otherwise by the State Commission concerned, the Deviation rate for intra-State entity shall be 105% (for over-drawals or under generation) and 95% (for under-drawals or over generation) of the Deviation rate at the periphery of regional entity.

(vii)      In case of allocation of power by Ministry of Power, Govt. of India in respect of generating stations owned or controlled by Central Government, the concerned generating company may make application to CTU for GNA on behalf of the allocatees on the basis of their written authority for making the application.

(viii)    CTU shall approach the Central Commission for regulatory approval along with system studies of new transmission assets in respect of ISTS within a month of its approval by Standing Committee. After the approval is accorded by the Central Commission, the system strengthening of ISTS shall be undertaken for implementation in accordance with applicable Regulations.

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