cerc (power system development fund) regulations 2010

CERC (Power System Development Fund) Regulations

2010

Background

Constitution of Fund

Utilization of fund

Managing Committee, PSDF

2Power System Development Fund (PSDF)

Brief Outline

Loose Pool accounts

Unscheduled Interchange Charges account

Congestion Charges account

Power Market Congestion Charge account

Reactive Energy Charges account

Accounts operated by RLDCs/ NLDC

Utilization for Regional benefits

CERC formed Power System Development Fund (PSDF) vide notification dated 4th

June, 2010

Utilization for Power System Development of National/ Regional Importance 3

Background

Power System Development Fund (PSDF)

Constitution of Fund

Other charges as may be notified by

commission

4Power System Development Fund (PSDF)

Account Constituent

ChargesSource

Transfer of Payments to the Fund

Unscheduled Interchange (UI) Charges Account

Unscheduled Interchange (UI) Charges

Amount raised after final settlement of claims of UI charges

Latest by 15th of subsequent month

Congestion charge Account

Congestion Charges

Amount raised after release of charges payable to regional entities entitled to receive congestion


Power Market Congestion Charge Account

Congestion amount

Amount rising from the differences in the market prices of different regions as a consequence of Market Splitting in Power Exchanges


Reactive Energy Charges account

RLDC Reactive Energy Charges

Amount raised after settlement of Reactive Energy Charges

Latest by 30th day of April of the subsequent Financial Year

5

Utilization of Fund

Schemes as governed by the respective charges regulations

Other Schemes benefiting large number of utilities

Schemes having far reaching effect for Power System

Development


6

Utilization of Fund….


Account Name Governed Regulation Utilization

Unscheduled

Interchange (UI)

Charges Account

Central Electricity

Regulatory Commission

(Unscheduled Interchange

Charges and related

matters) Regulations,

2009

1. Servicing of Investments for the transmission

schemes of strategic importance

a. Cost recovery of scheme from the users after

reaching optimum level of utilization of the scheme

2. Providing Ancillary Services

Congestion charge

Account

Central Electricity


( Power Market)

Regulations, 2010

1. Utilization to relieve congestion

2. System Studies to optimize the utilization of Inter-

Regional and Inter-State Links

3. SPS installation on ISTS and Deemed ISTS

4. Installation of Shunt Capacitors

7


Account Name Governed Regulation Utilization

Power Market

Congestion

Charge Account

Central Electricity


( Measures to relieve

congestion in real time

operation) Regulations,

2009

1. Installation of VAR compensators, Series

compensators and other reactive energy generators

2. Additional transmission capacity creation for

relieving congestion

3. Technical Studies of Grid for congestion reduction

4. Capacity Building measures and training of

participants of Power Exchanges

5. To develop information dissemination mechanism for

the participants of Power Exchanges

6. Parked with a financial institution for grant of loans at

concessional rates to the congestion relieving projects


8


Account NameGoverned Regulation

Utilization

Reactive Energy

Charges account

Central Electricity

Regulatory

Commission ( Indian

Electricity Grid Code),

2010 - Annexure-1,

Sec-6.1d

1. Training of SLDC operators

2. Capacity Building in the respective Region as

provided in Grid Code

a. Up to a limit of ` 2 Crore per Year or 30% of

the outstanding balance as at the beginning of FY,

whichever is less – Require approval of RPC only

b. Proposals beyond the limit – Require approval

of Commission through Managing Committee


9

Managing Committee, PSDF

Constituted vide CERC order dated 14.09.2010

Constitution


Position in the Managing Committee Person NominatedChairman CEO, POSOCOMember Convenor GM NLDC

Representative of RPC

MS- NRPCMS-ERPCMS-WRPCMS-SRPCMS-NERPC

Representative of RLDC

GM NRLDCGM ERLDCED WRLDCGM SRLDCAGM NERLDC

Independent External Member (Finance) Ex. ED (Finance), NLCIndependent External Director (Power Sector Expert) Addl. Director, CPRI

Secretary DGM NLDCTreasurer DGM F&A, POSOCO

10

Meetings of Managing Committee, PSDF

At least four meetings in a year shall be convened

Interval between any two meetings shall not, preferably, exceed six months

Secretary of the Fund may at any time convene a meeting of the Managing

Committee by notice in writing of fourteen (14) days

A special meeting of the Managing Committee may be convened at any time

by the Chairperson of the Managing Committee in case of urgency

Managing Committee may constitute Committees or sub- Committee(s) out of

its own members to look after day-to-day operations or for any other specific

purposePower System Development Fund (PSDF)

11

Functions of Managing Committee, PSDF

Opening accounts titled “Power System Development Fund” or by such other name with any of the Scheduled Banks/Nationalised Banks Main account at New Delhi Subsidiary accounts at such other branches of the said bank

Maintaining proper accounts and manage the Fund as an independent fund

Scrutinization of project proposals having regard to the objects of the Fund, the importance of the projects and quantum of fund required for such projects

Investing the money lying in the Fund in securities authorized under the Indian Trusts Act, 1882

Framing guidelines from time to time with the approval of the Commission for the investment of balance funds


12

Functions of Managing Committee, PSDF…

Submitting its recommendations in writing to the Commission for

approval for disbursement from the Fund, after scrutinizing the

proposals

An independent system for concurrent monitoring and evaluation of the

projects, schemes and activities shall be evolved to ensure effective

and proper utilization of the Fund

Power to withhold or suspend the release of balance sanctioned fund or

part thereof, in case of fraudulent utilization


13

Operation of the Fund

Any two persons designated as authorized signatories by the Managing

Committee from time to time shall operate bank accounts

Authorized signatories shall not make any withdrawal from the accounts

of the Fund except through proper authorization and/or after sanction

from the Managing Committee


14

Property and Income of the Fund, Audit of Accounts

Property and Income of the Fund

All properties of the Fund, whether movable or immovable, shall vest in the

name of the Fund

No part of the Fund shall be used directly or indirectly by way of dividend, bonus

etc.

Audit of Accounts

registered chartered accountant firm/ Chartered Accountant shall be appointed

to audit the accounts of the Fund annually

Shall prepare an annual statement of accounts in such form as may be decided

by the Managing Committee in consultation with the auditor appointedPower System Development Fund (PSDF)

15

Annual Reports, Dissolution of Fund

Shall prepare the annual report of the Fund including the work undertaken during the year, together with balance sheet and audited account

Submission of Report to the Commission shall prepare summarized quarterly reports of funds utilization which

will be displayed on the website of the Commission Commission may direct by notification on Official Gazette to dissolve

the Fund from such date and for such period all funds and other properties vested in the Fund shall during the period

of dissolution, vest with such entity to be nominated by the Commission in this behalf

Fund shall be reconstituted after expiry of dissolution period


cerc (power system development fund) regulations 2010

Documents

power exchangeslatest

power exchanges5

system studies

utilization of interregional

release of charges payable

utilization of fundschemes

ui chargeslatest

congestion reduction4