Institutional arrangement for power trading by DISCOMs in Telangana and AP


G.O.Ms.No. 21 Dated 12 May 2014 Institutional arrangement for power trading by DISCOMs in Telangana and Residuary AP State Government of Andhra Pradesh has put in place an institutional arrangement for trading in power by four DISCOMs namely APCPDCL, APNPDCL, APSPDCL and APEPDCL vide ref cited.

In view of the bifurcation of State of Andhra Pradesh in accordance with the Andhra Pradesh Reorganisation Act, 2014, CPDCL and NPDCL will become part of Telangana State, whereas, SPDCL & EPDCL will remain with residuary State of Andhra Pradesh. The present Apex committee of AP Power Coordination Committee (APPCC) and Sub-Committees of AP Power Trading Committee (APPTC) and AP Balancing and Settlement Committee (APBSC) are operational for all the 4 DISCOMS. Now in view of state bifurcation, there is a need to create separate Apex Committees and Sub Committees for the trading in Electricity for two States.

3) Accordingly after detailed examination of the matter, Government hereby order to put in place, the following institutional arrangement w.e.f.
02.06.2014 for trading of Electricity by Telengana and residuary AP State in suppression of orders issued above.

4) An Apex committee called “Power Coordination Committee” (PCC) and two Sub-Committees called “Power Trading Committee” (PTC) and “Balancing and Settlement Committee” (BSC) will be set up w.e.f. 02.06.2014 in both the states. The Sub-Committees shall act under the guidance of the Apex Committee.

5) The Apex Committee will carry out the functions as listed in
Annexure-A. The composition of PCC will be as follows:

1) CMD, TRANSCO of respective state – Chairperson and Convener
2) Director, (Finance) of respective TRANSCO – Member
3) Director, (Commercial) of respective TRANSCO – Member
4) CMD’s of DISCOMs – Members

6) The Power Trading Committee (PTC) will carry out the functions as listed in Annexure–B. It will consist of SE-Commercial of the DISCOMs in the respective state (to be headed and convened on a rotation basis for a three month period) with CE-SLDC from respective TRANSCO as special invitee.

7) The Balancing & Settlement Committee (BSC) would carry out the functions as listed in Annexure-C. It will consist of CGM-Commercials of the respective DISCOMs in the State (to be headed and convened on a rotation basis for a three month period) with CE-SLDC and SE-EBC from respective TRANSCO as special invitees.

8) All the aforesaid Committees shall ensure optimal utilization of the resources for the benefit of the State in a coordinated manner.

9) The Government may make any changes to the functions, composition or life of these committees as it may consider necessary in the interest of the power sector.

Annexure to G.O.Ms.No. 21
Annexure – A

Functions of PCC

• PCC shall guide, direct and approve the activities undertaken by PTC & BSC from time to time

• PCC shall direct TRANSCO and distribution licensees to provide necessary information, requisite support and depute its staff for efficient discharge of its functions. TRANSCO and distribution licensees shall extend all cooperation to PCC in the matter.

• PCC shall examine all commercial issues related to bulk supply and all legal issues related to IPPs and other generators and advise the DISCOMs suitably; and

• PCC shall nominate a person to participate in SREB meetings who shall be authorized to represent of respective State at regional level.

Annexure – B Functions of PTC:
• PTC shall be responsible in the matters related to power procurement from all generators, scheduling load relief, if any and issues related to SRLDC at the regional level. It shall also be responsible for inter-regional sales;

• PTC shall be governed by directions issues by PCC from time to time and PTC shall furnish report of compliance of directives to PCC every month and

• PTC shall through PCC seek TRANSCO and distribution licensees to provide necessary information requisite support and depute its staff for efficient discharge of its functions and TRANSCO and distribution licensees shall extend all cooperation to PTC in the matter.

Annexure – C Functions of BSC:
• BSC shall be responsible to review energy accounting and billing for inter-utility trading of power and imbalance settlement according to PCC guidelines.

• BSC shall monitor compliance of regulation for market operation by the distribution licensees and shall aid PCC in resolving disputes amongst the distribution licensees.

• BSC shall be governed by directions issued by PCC from time to time and BSC shall furnish report of compliance of directives to PCC every month.

• BSC shall through PCC seek TRANSCO and distribution licensees to provide necessary information requisite support and depute its staff for efficient discharge of its functions and TRANSCO and distribution licensees shall extend all cooperation to BSC in the matter.

• BSC shall undertake reconciliation of energy exchange and settlement of imbalances amongst distribution licensees based on the guidelines formulated in this regard and approved by PCC.

G.O 21 on 12 May 2014 Institutional arrangement for power trading by DISCOMs in Telangana and AP State Orders

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