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MAHARASHTRA STATE ELECTRICITY BOARD
Commercial Section, 4th floor, 'PRAKASHGAD'
Bandra (East), MUMBAI-400051.
Ph No. (P) 26474753, (O) 26474211, 26472131 FAX No. 26472366

 

Ref.No.Co-Ord.Cell/CPP/Gen/34462                         Dated:28.10.2003

 

 

Departmental Circular (Commercial) No. 689

 

Sub:     Board’s policy in respect of Captive generation by industrial consumers for self use, sale to third party/MSEB and banking policy thereof for a period upto 16.12.2004.

 

            Ref:     1)         Departmental Circular (Comm.) No. 602  dated 23.07.1998.

2)         Departmental Circular (Comm.) No. 619  dated 25.05.1999.

3)         Departmental Circular (Comm.) No. 627  dated 02.09.1999.

4)         Departmental Circular (Comm.) No. 643  dated 11.05.2000.

5)                  Departmental Circular (Comm.) No. 651  dated 19.09.2000.

6)                  Departmental Circular (Comm.) No. 663 dated 05.10.2001  

7)                  GOM letter No. ESA-002/Cr.No. 7670/Urja-6/IEL dated 12.11.02.

8)                  GOM letter No. ECE 2002/CR 1311/Urja-7/IEL dated 16.12.2002.

 

 

Previously, the Captive Power Plant (CPP) policy was informed vide Departmental Circulars (Commercial) under reference 1 to 6 as above.

 

In view of the Government directives on CPP policy vide letter under reference  7 & 8, the revised CPP policy is approved by the Board vide Board’s Resolution  No. 979 dated 25.08.2003  which is as below:

 

Sr.No.

Particulars

01.

CPP holder should be consumer of MSEB

02.

The CPP holders earlier permitted for captive generation and  commissioned their CPPs will be permitted for sale of surplus power to MSEB/third parties (max. 2 nos.)

03.

The units generated as per installed capacity of gen. Sets and surplus power saleable is defined as under:

a) KWH output per month from the CPP gen. Set is (installed capacity in MW) x 103 x 0.9 (optimum plf) x Auxiliary consumption 0.99 x 16 hrs. x 30 days

 

b) Permissible saleable units shall be decided by the Board


 

Sr.No.

Particulars

04.

Purchase rate will be Rs. 2.50 per unit or 90% of HT industrial tariff in force from time to time whichever is less

 

 

05.

a) The power fed in MSEB for 16 hours per day i.e. 06.00 hrs. to 22.00 hrs. will be purchased by the Board considering peak demand by consumer during this period.

 

b) Board will not purchase any power during night hours i.e. 22.00 hrs to 06.00 hrs as there is no requirement of power during this period and Board’s generating sets cannot be closed/ back down during this period.

06.

The CPP holder should follow grid discipline

07.

In case of sale of surplus power to MSEB the approval for rate at which the MSEB is purchasing is necessary from MERC

08.

In case of sale of power to MSEB the CPP holder and MSEB will jointly initiate the draft energy purchase agreement. The final EPA (draft approved by Board) will be signed by Board and the CPP holder after approval of MERC.

09.

The EPA will be renewed on year to year basis

10A.

In case of sale to third parties, the approval of MERC for banking and wheeling agreement (EWA) is required

10B

In case of sale of surplus power to third party, wheeling charges and transmission losses are as under:

Distance                             Wheeling charges                Transmission Losses

 

Upto 50 kms.                   2% of energy received          5% of energy received

                                         for wheeling                         for wheeling

 

50 Kms. to 200 Kms.        4% of energy received         8% of energy received

                                          for wheeling                          for wheeling

 

Above 200 Kms.               6% of energy received          10% of energy received

                                          for wheeling                          for wheeling

 

11.

The CPP holder (applicant) purchaser and MSEB will jointly initial the draft EWA approved by the Board and shall be submitted to MERC for both parties.  The final EWA will be signed by the MSEB,  the applicant and purchaser (third party) after approval of MERC.

12.

For sale of power to Board/third parties the CPP holder shall apply with terms and conditions along with single line diagram, location of CPP, copy of consent for the CPP, Board’s consumer number etc.

13.

a) The CPP holder shall make the evacuation and synchronization arrangement at his own cost.

 

b) The CPP holder shall pay 15% cost of synchronization arrangement at his own cost to the Board against supervision charges


 

Sr.No.

Particulars

14.

The sale of power to third party through MSEB grid.

15.

In case of approval of MERC for EPA/EWA/EBA, the CPP holder shall pay to the Board the fee for affidavit to and other related charges as may be decided by the Board and will be intimated to the CPP holder.

16.

The CPP holder shall pay additional demand charges 10% of the installed capacity of the CPP and standby gen. Sets against maintenance of additional capacity in the system and will be added in the monthly energy bills

17.

In case MSEB supplies power to CPP unit the energy charges will be payable as per prevailing HT tariff and revised from time to time

18.

The CPP holder may be permitted to reduce  his contract demand upto 50%.

19.

In case of third party sale, the third party (purchaser) is not permitted to reduce its contract demand agreed with Board

20.

The CPP holder shall obtain all required clearances from the concerned authorities in the area

21.

Banking of surplus energy is permitted only in the period 06.00 hrs. to 22.00 hrs. only

22.

In case of self use, the banked units during 06.00 hrs. to 22.00 hrs. will be carried forward to next month for which credit will be given in subsequent months bill.  However, the balance units banked will be lapsed at the end of the financial year.

23.

If MSEB grid is not available during the period 06.00 hrs to 22.00 hrs. due to some reasons, no  credit/compensation will be given to CPP holder for deemed generation to self use/third party sale

24.

Provisions in Act 2003 will be applicable in addition to above conditions

 

With issue of this circular in respect of CPP, all earlier Departmental Circulars (Commercial)  under reference 1 to 5 are superseded.  The Board vide B.R. No. 979 dated 25.08.2003 has approved certain modification to Departmental Circular No. 663 dated 05.10.2001.

 

Further, this circular will be applicable upto 16.12.2004.

 

All the concerned are requested to take note of the revised CPP policy for implementation.

 

 

 

 

 

 

                                                                                    Chief Engineer (Commercial)

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