Questions and Answers
Who shall develop intra-state transmission projects that cost above a certain threshold?
What group must consult with the Central Electricity Regulatory Commission to frame regulations for tariff determination from coal washery rejects?
Which type of project allows the developer to get the tariff determined by an Appropriate Commission under specific conditions?
What is the maximum shareholding by a non-Government Company allowed in projects developed under Section 62?
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What criteria is NOT mentioned for the prequalification of a hydroelectric project developer?
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What condition must be met for the Appropriate Commission to determine tariffs for hydroelectric projects?
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Which body decides the threshold limit for intra-state transmission projects?
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Which of the following is NOT a requirement for determining tariffs for hydroelectric projects?
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What factors should the national tariff framework implement according to the National Electricity Policy?
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How are transmission charges under the national tariff framework likely to be determined?
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What should the spread between minimum and maximum transmission rates achieve according to the NEP?
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What is not a precondition for network expansion under the National Electricity Policy?
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Who has specified norms for capital and operating costs in inter-State transmission?
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What is the objective of the utilization factor in the tariff framework?
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How will investments by transmission developers be invited according to the guidelines?
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What is emphasized for the smooth operation of the grid regarding transmission systems?
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What should the actual level of retail sales be adjusted for?
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What could generate the necessary political will to reduce theft in power distribution?
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What role does third-party verification play in the context of AT&C losses?
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Why is improving governance for AT&C loss reduction more complex for government-owned utilities?
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What is intended by separating technical loss reduction from commercial loss reduction?
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What could encourage suitable local incentive schemes for utility staff?
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What assessments will the SERC undertake for power distribution licensees?
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How does the MYT framework impact tariff adjustments?
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What should the associated cost on the account be factored into?
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What is a requirement for captive power plants to supply surplus power?
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Who decides the wheeling charges and other implementation terms for captive generation?
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What must be included in the tariff for captive power supply?
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What should the Appropriate Commission fix in relation to renewable energy sources?
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What may distribution licensees purchase from captive plants?
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What does the sale of electricity from grid-connected captive plants to non-captive users depend on?
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Which rule's compliance is necessary for open access to power sold by captive plants?
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What happens to the subsidy direction from the State Government if the payment of subsidy is not made to the utilities?
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What should the State Commission consider when determining the tariff for consumers?
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How should bad debts be recognized according to the guidelines?
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In what situation can contingency reserves be utilized?
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What does Section 61 of the Act mandate regarding tariff determination?
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What should happen to the existing practice of developing reserves?
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How should past losses or profits be treated during the transition period?
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According to the guidelines, what should the State Commission recognize regarding working capital?
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Study Notes
Intra-State Transmission Projects
- State Governments will develop projects through a competitive bidding process for costs exceeding a set threshold determined by State Electricity Regulatory Commissions (SERCs).
Tariff Regulations for Coal Washery Rejects
- Central Electricity Regulatory Commission (CERC) will create tariff regulations for coal washery reject projects within six months.
- These regulations will also apply to State Electricity Regulatory Commissions.
- Procurement allowed under Section 62 of the Act for projects by Central/State PSUs or Joint Ventures with a maximum of 26% non-government company shareholding.
Hydroelectric Project Tariff Options
- Developers can have tariffs set by the Appropriate Commission based on performance-based cost service regulations, contingent on a transparent two-stage project allotment process by State Governments.
- Allotment criteria include financial strength, past infrastructure experience, and ability to meet performance guarantees.
Captive Generation
- Captive generation facilitates competitive power availability.
- Appropriate Commission should foster conditions for captive power plants to connect to the grid, allowing surplus power supply under existing regulations.
- Distribution licensees may buy firm supplies from captive plants, differentiating prices for peak/off-peak usage and including generation variable costs.
Renewable Energy Source Requirements
- Appropriate Commission must set a minimum percentage of electricity consumption from renewable sources based on resource availability and retail tariff impact.
- National Electricity Policy advocates a national tariff framework sensitive to factors like distance and power flow.
Transmission Charges Framework
- Transmission charges may be set based on MW per circuit kilometer, zonal postage stamp basis, or another variant, ensuring fair sharing of costs.
- No prior agreement required for network expansion; planning and execution to align with the National Electricity Plan.
Capital and Operational Norms
- CERC has established norms for capital costs, operating costs, and Standards of Performance for inter-State transmission.
- Investment in transmission will utilize competitive bidding based on Central Government guidelines.
AT&C Loss Reduction Incentives
- Incentives for reducing Aggregate Technical and Commercial (AT&C) losses linked to profitability under Multi-Year Tariff (MYT) frameworks.
- Government-owned utilities face unique challenges in achieving loss reduction and require consumer group support for transparency.
Subsidy Compliance
- Section 65 mandates State Government subsidy directives for tariff determinations only apply if subsidy payments to utilities are made.
- Initial tariff setting by the State Commission must consider consumer needs without initial subsidies.
Working Capital and Past Losses
- Recognition of utilities' transitional challenges is necessary, including working capital, bad debts, and the impact of uncontrollable factors on losses.
- Contingency reserves require prior approval from the State Commission for activation.
Consumer Interest Safeguarding
- The Appropriate Commission’s tariff determination must balance consumer interests and ensure reasonable cost recovery for electricity.
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Description
This quiz covers essential regulations and frameworks related to intra-state transmission projects, tariff regulations for coal washery rejects, and hydroelectric project tariff options. Understanding these concepts is crucial for those involved in the energy sector, particularly in relation to state and central regulatory commissions.