Karnataka Issues Clarifications for Green Energy Open Access Rules

The Commission has clarified regulations around energy settlement and open access charges


The Karnataka Electricity Regulatory Commission (KERC) has clarified various rules in the state’s Terms and Conditions for Green Energy Open Access Regulations 2022.

The clarifications were issued in response to the requests from the stakeholders who sought the Commission to simplify specific regulations, including time of day (ToD) settlement and open access charges.

KERC issued the draft ‘Green Energy Open Access Regulations, 2022 in August last year.

Implementation of Time-of-Day Settlement for Energy Injected and Drawn

In accordance with the guidelines set by the Forum of Regulators, the Commission has now declared that the energy banked during the peak time-of-day (ToD) periods can be utilized both during peak and off-peak periods.

However, the drawal of off-peak ToD banked energy during off-peak slots will attract banking charges, and drawal from off-peak ToD slots to peak ToD slots, will attract additional charges on top of the banking charges.

The banking charges are calculated at 8% of the banked energy, and the additional charge is 2% of the banked energy.

The morning peak slot is scheduled from 6 am to 10 am, and the evening peak hours will be from 6 pm to 10 pm.

Settlement Priority for Different Generation Sources

As per the existing provisions, the power delivered by the company through wheeling is to be prioritized for billing, and the residual demand was deemed to have been met by the electricity supply company (ESCOM) serving the consumer’s area.

The bill was prepared after deducting the consumption by the consumer from various open access sources, ensuring that power procured in any 15-minute time block should not exceed the contract demand.

The Commission has now clarified the following priority for adjustment of energy purchased from various sources while preparing the bills:

  • Power market purchase
  • Short-term purchases other than power market
  • Medium-term purchases other than the licensee
  • Long-term purchases other than the licensee
  • Distribution licensee

In cases where consumers purchase power under the new Green Open Access rules and the older regulations, they must have separate meters for energy accounting. In the absence of separate meters, the energy allocation will be done proportionally based on the contracted capacity under and outside of the Green Open Access Rules. For billing purposes, the energy under the new Green Energy Open Access rules will be settled first, followed by the power consumed under the older regulations with annual banking.

Charges to be paid by new consumers added to the existing WBA

The generators will continue to have the authority to include or remove consumers from the current wheeling and banking agreement (WBA).

However, the open access charges must be paid per the new regulations for new and existing consumers who wish to increase their capacity. The new rules will also bind the banking facility provided to these consumers.

Transmission charges for Intrastate Wheeling of Energy 

The Commission has clarified that if the wheeling of power involves using the transmission network or networks of more than one licensee, the charges will vary for different scenarios.

Below are the scenarios listed in the clarifications –

  • If only a transmission network is used, transmission charges, including losses determined by the Commission, will be payable to the transmission licensee.
  • In cases where the transmission network and the ESCOM’s network are used, transmission charges will be payable to the transmission licensee. The transmission and distribution licensee’s technical losses and wheeling charges will be payable to the ESCOM, where the power is drawn. Wheeling charges for the power drawn will be shared equally among the ESCOMs whose networks are used.
  • If only ESCOM’s network is used, wheeling charges will be payable to ESCOM after deducting the technical losses.

Charges applicable under the Green Energy Open Access Rules

According to the provisions of KERC Green Energy Open Access Regulations, 2022, the determination of open access charges will be carried out by the Commission using the methodology specified by the Forum of Regulators.

Considering the delay in the adoption of this methodology, the Commission has listed the following collection method for the Karnataka Power Transmission Corporation, State Load Despatch Center, and ESCOMs will be implemented:

  • The transmission charges and losses determined by the Commission in its tariff order will apply to all transactions under the Green Energy Open Access.
  • The wheeling charges and losses, additional surcharge, and cross-subsidy surcharge will be determined by the Commission in its tariff order. Additional surcharge will not be applicable if the fixed charges of the licensee are being recovered through a retail supply tariff and such fixed charges are paid by the open access consumers.
  • Standby charges will apply per the rules specified by the Ministry of Power.
  • Banking charges will be as set by the Forum of Regulators (8% of the banked energy)

Other charges

  • Since the consumers are not paying full fixed charges as per the present tariff structure, an additional surcharge as determined by the Commission in its tariff order from time to time will apply.
  • A monthly transaction charge of ₹3,000 (~$36.39) will apply for maintaining transaction details.
  • A monthly meter reading charge of ₹1,000 (~$12.13) will be applicable.

Similarly, load despatch center fees, scheduling and system operation charges, applicable parallel operation charges, reactive power charges, deviation settlement charges, and other charges as determined by the Commission will also apply.

Recently, KERC released the draft of the KERC (Terms and Conditions for Open Access) (Fifth Amendment) Regulations, 2023. The proposed amendments aim to align with Karnataka’s draft Green Energy Open Access Regulations released last August.

Last month, the Ministry of Power instructed state electricity regulatory commissions to comply with the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules and align their states’ open access regulations with the notified rules.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.