How to Pay One-time GNA Charges: A Guide for Power Generators

Introduction

Regulation 40.2 of the CERC (Connectivity and General Network Access to the inter-state Transmission System) Regulations, 2022[1] mandates certain entities with specified capacities, such as generating stations, captive plants, standalone energy storage systems, renewable power park developers, distribution licensees, and bulk consumers, to pay a one-time General Network Access (GNA) charge. Regulation 22.2 (d) requires these entities, which fall under Regulation 4.1 and clause (iii) of Regulation 17.1, to pay Rs. one lakh per MW for the GNA quantity one month before the start date. Failure to adhere to this payment requirement may lead to the encashment of certain bank guarantees for recovery purposes.

Recently, the Central Transmission Utility of India Limited (CTUIL), a subsidiary of Power Grid Corporation India Limited, issued an Advisory regarding the Procedure for Payment of these one-time GNA charges.[2]

How to Pay One-Time GNA Charges?

Entities subject to Regulation 4.1 and clause (iii) of Regulation 17.1 are required to pay one-time GNA charges of Rs. 1 lakh per MW for the amount of GNA. This payment is due one month before the start date of GNA, specifically for capacity declared in commercial operation after the effective date of the regulation, which is April 5, 2023. Generators or GNA grantees whose Commercial Operation Date (COD) or GNA start date begins on or after this date must comply with this payment requirement.

The payment should be deposited into CTUIL’s allocated bank account. For clarity, the beneficiary details have been provided, including the account name, address, bank name, account number, branch details, IFSC code, account type, and MICR code.

Following the payment, GNA/Connectivity grantees are required to notify CTU using the format “BCD/One-time GNA/Pool,” as outlined in Annexure II. This includes information such as the grantee’s name and address, the GNA/Connectivity quantum, the CTU letter reference and date, the GNA’s effective date, the grant letter reference, the amount paid, the date of payment, and the UTR number. The completed form should be submitted via email and postal mail to the CTU’s designated email address.

Conclusion

The procedure specified by CTUIL for one-time GNA charges establishes a solid framework for regulatory compliance in the energy industry. It ensures transparency of financial transactions and also emphasizes the significance of timely communication between entities and the Central Transmission Utility. In the future, this streamlined approach will cultivate efficiency and contribute to the overall reliability of the interstate Transmission System. This will also serve as a model for future regulatory initiatives aimed at enhancing accountability and facilitating the integration of new energy resources into the grid.

[1] https://cercind.gov.in/Regulations/175-GAZ.pdf.

[2] https://www.ctuil.in/uploads/assets/169743533850Advisory%20regarding%20Procedure%20for%20payment%20of%20one-time%20GNA%20charges.pdf.