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CERC Issues Clarifications And Practice Directions For Connectivity And General Network Access Regulations

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The Central Electricity Regulatory Commission (CERC) is set to implement the Connectivity and General Network Access to the inter-State Transmission System (GNA) Regulations, 2022, from October 1, 2023. This landmark move aims to streamline and enhance the country’s power transmission and connectivity infrastructure.

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The CERC recently addressed various concerns and difficulties raised by CTUIL (Central Transmission Utility of India Limited) and renewable energy developers regarding the practical implementation of the GNA Regulations. These clarifications and practice directions, issued via a CERC order on September 22, 2023, are expected to pave the way for smoother compliance.

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One of the key provisions introduced is the option for generators with a Commercial Operation Date (COD) as of October 1, 2023, to apply for transition or connectivity. These generators can submit a Connectivity Bank Guarantee (Conn BG3) at a rate of ₹2 lakhs/MW to CTU if they intend to schedule their power. Once submitted, CTU will issue provisional GNA permissions to such entities, treating them as deemed T-GNA holders.

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Recognizing the tight timeline between the order release (September 22, 2023) and the GNA scheduling start date (October 1, 2023), the CERC has considered requests for an extension. Generators facing difficulties in submitting their Bank Guarantees (BGs) will now have until October 16, 2023, to provide the required documentation. However, these generating stations must submit an undertaking guaranteeing the deposit of the BG by the specified date. Failure to do so will result in the withdrawal of the permissions granted by CTU.

It’s worth noting that while minor defects in BGs may be accepted with the understanding that they will be corrected later, BGs with major defects will only be considered after receiving an undertaking from the parties for their rectification. Furthermore, the Connectivity/Transition Agreement, as outlined in the GNA Regulations, will be finalized upon submission of the correct BG.

These decisions have been made in light of the upcoming bank holidays and the aim to ensure that power generation is not hindered by administrative formalities. However, it is crucial for generating stations to adhere to the specified timeframe for BG submission, as failure to comply could result in non-scheduling of power.

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The CERC’s actions are authorized under Regulation 42 of the GNA Regulations, which grants the Commission the power to address difficulties under certain circumstances. Additionally, Regulation 44 empowers the Commission to issue Suo Moto orders and practice directions to facilitate the implementation of the GNA Regulations and related matters.

In conclusion, these recent developments represent a significant step toward streamlining India’s power transmission and connectivity, ensuring a more efficient and reliable energy infrastructure.

Please read the document for more details

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