Section 9(2) in Tamil Nadu Electricity Grid Code, 2005
(2)Subject to any scheme of tariff, as may be approved by the TNERC, the bulk power supply agreements between the constituents shall duly specify the relationship between capacity charges to be paid and plant availability, and energy charge rates (in rupees per MWh) for each station, in ex-power plants. Regarding the other commercial issues, the following are applicable:(i)The transmission charges and other open access charges shall be paid to the respective constituents as per the TNERC regulations issued time to time.(ii)The summation of the station-wise ex-power plant drawal schedules for all generating stations after deducting the apportioned transmission losses (estimated), shall constitute the State beneficiaries / distribution licensees drawal schedule which in turn shall be used for billing.(iii)In case of a deviation from the generation schedule, the frequency-linked Unscheduled Interchanges Charges (UI charges) shall be applicable for such deviations as may be approved by the CERC/TNERC from time to time and dependent on average frequency for the concerned 15-minute block.(iv)Energy Accounts shall be prepared by the SLDC on a monthly basis. The beneficiaries / distribution licensees as per provision in the respective PPAs shall pay these bills.(v)The SLDC shall in parallel issue the weekly bills for UI charges and Reactive Energy Charges to all constituents by Tuesday for the seven-day period ending on the penultimate Sunday mid night. These bills shall have a higher priority, and the generating stations and beneficiaries / distribution licensees shall pay the billed amounts within 10 days of billing date.(vi)If payments against the above bills are delayed beyond 10 days, the defaulting entities shall have to pay a simple interest rate of 0.04 percent for each day of delay. The interest so collected shall be paid to the entities who have to receive the payment which got delayed.(vii)SLDC shall periodically review the actual deviation from the-generation and net drawal schedules to check whether any of the entities is indulging in unfair gaming. In case any such practice is detected the matter shall be reported to the STU for further investigation / action.(viii)All energy accounting calculation carried out by SLDC shall be open to all users for any checking / verification. In case any mistake is detected, the SLDC shall forthwith make a complete check and rectify the mistake.(ix)Energy accounting (including billing of UI charges and reactiVe energy charges) is one of the most important and critical function of SLDC. Any flaw in the energy accounting will lead to serious financial consequences. Hence, a committee to be designated by the Commission will conduct annual audit on the accounting and technical performance of SLDC and present a report to the Commission before the end of May every year for the previous financial year.(x)Regarding VAR drawal / absorption from Inter State Grid, the SLDC has to follow IEGC. The charge/payment for VARs, shall be at a nominal paise / kVARh rate as may be approved by CERC / TNERC from time to time, and will be between the beneficiary and the Pool Account and between two beneficiaries. The generating stations shall generate / absorb reactive power as per instructions of SLDC, within the capability limits of the respective generating units. No payments shall be made to the generating companies for such VAR generation / absorption.(xi)The basic rules for absorption / generation are:• The Beneficiary pays for VAR drawal when voltage at the metering point is below 97%.• The Beneficiary gets paid for VAR return when voltage is below 97%.• The Beneficiary gets paid for VAR drawal when voltage is above 103%.• The Beneficiary pays for VAR return wrhen voltage is above 103%.
