KERC Proposes Extra Banking Charges Against Peak Time Power Withdrawal

In its latest discussion paper, the Karnataka Electricity Regulatory Commission (KERC) has offered more details relating to imposing an additional banking charge of two percent when the net power withdrawal is made during peak hours under the open access system. The proposal has been put forward for dealing with energy banking and its subsequent withdrawal, injection, and related settlement on a monthly-basis.  

“It is to be noted that at the end of the month, if there is net drawal during peak hours, the same has to be first set off against the net banked energy (if any) at the end of the month during off-peak hours and to the extent of such energy set of, additional 2% charges has to be levied,” the discussion paper said. 

Earlier, per the directions of the KERC, the Forum of Regulators (FoR) put forward the calculation methodology of open access charges and banking charges under its ‘Model Regulation on Methodology.’ It specified that the green energy producers could bank their energy during peak Time of Day (ToD) and withdraw the same during peak and off-peak ToD slots.

It mandated that participants who banked their power during off-peak periods and wanted to withdraw during off-peak hours could do the same by paying the banking charges. However, the rules said that when the power in such a condition is withdrawn during peak hours, the participants were liable to pay the banking charges and an additional charge specified by the Commission.

The Commission later specified this additional charge at 2 percent in addition to the prescribed 8 percent banking charges. The Commission has now proposed this discussion paper to discuss the procedural aspect of implementing ToD settlement of energy to bring more clarity to the issue. 

 This comes at a time when the revised Green Energy Open Access rules allowed Low Tension power consumers to opt for Green Energy Open Access if their total contracted demand of 100 KW or more. The KERC has already defined the morning peak ToD slot as the period between 6am and 10am. 

 The latest discussion paper has illustrated the calculation of the net withdrawal or net injection of the power under the banking system to bring uniformity in calculating the banking charges. 

“The Commission in its Tariff Orders, has clearly specified the peak and off-peak ToD slots applicable to all HT consumers. However, the GEOA Rules issued by MoP specifies that LT consumers having contract demand of 100kW and above can opt for Open Access and as such, the ToD slots shall be applicable to such consumers also for settlement of energy and charges. Thus, considering the ToD slots specified in the tariff Order, an illustration is enunciated below to depict the monthly settlement of energy and daily settlement of charges thereof,” the discussion paper said.