Book Online Tickets for Master Class on Point of Connection : Ch, Mumbai. Metis Business Solutions with AF Mercados EMI are organizing yet another Masterclass on The Point of Connection Charge Mechanism for Transmission in India, September 22, 2011, Hilton Mumbai International Airport Hotel, Mumbai.
The Point of Connectio

Master Class on Point of Connection : Charge Mechanism for Transmission in India


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About The Event

Metis Business Solutions with AF Mercados EMI are organizing yet another Masterclass on The Point of Connection Charge Mechanism for Transmission in India, September 22, 2011, Hilton Mumbai International Airport Hotel, Mumbai.

The Point of Connection (PoC) charge mechanism for transmission services provided by the Inter State Transmission System operators has been implemented in India with effect from July 1, 2011.

Though the mechanism is based on strong engineering and economic principles, inputs by various stakeholders acted as an over lay on these core discipline fundamentals. This method was developed after long debates involving Regulators, Policy Makers, Transmission Service Providers, System Operator, Generating companies, Distribution Companies, Consultants, Power Traders and Power Exchanges. This overlay helped satisfy the important requirement of acceptability, while the core discipline fundamentals helped the mechanism satisfy efficiency – sensitivity of tariffs to distance, direction and quantum of flow – requirements of the tariff design mechanism.

Point of Connection (PoC) mechanism has changed the way markets will operate in India. Artificial transmission tariff based barriers (pancaking) to the geographic outreach by generators, distribution companies and open access customers have been mitigated by the new mechanism. Further, since the electricity grid now operates as an integrated network and is no longer a loose agglomerate of regional and state grids – inter -state power flows over state lines and the state generating stations use ISTS networks to convey their energy.

Markets for Power and conduct of various players in this market will be influenced by transmission grid and attendant commercial mechanisms. It is therefore critical to understand and appreciate the challenges and strategically employ alternative conducts to achieve and extend the benefits of the new transmission pricing mechanism. Certain key challenges are:

  • The data requirements from various Designated ISTS Customers:
    • Generators will now be required to appropriately plan transmission access.
    • Some state-owned lines, which are being used for interstate transmission but currently not being paid for by ISTS users will now have to be considered on due representation from the state transmission utilities. Such grid integration is a blessing and would reflect the true spirit of the national grid.
  • The scheduling and loss allocation mechanism will undergo a change.
  • The RPCs will be required to keep a record of transmission system usage based on SEM meter data at the ISTS interface points and this shall be the basis of billing any deviations from the approved transmission usage.
  • Realignment of the existing BPTAs to the requirements of the new TSA will be a challenge.
  • Finally, the STU charges may still get pan-caked with the ISTS charges for inter-state OA transactions. In case a PoC mechanism is implemented at the state level also (for which each SERC may take a decision), we could have a truly integrated grid – where one pricing mechanism governs open access on the national grid.

In this context it becomes pertinent for State Transmission Utilities, Distribution Companies, Generators, Traders, and consultants to understand the following fundamental attributes of the PoC mechanism:

  1. Technical (both engineering and economic) underpinnings
  2. Development process – why were various assumptions and simplifications done,
  3. Various agencies/committees involved & procurement of data for determination of PoC charges
  4. Implications of transmission pricing on case-I bidding process
  5. Implications of PoC mechanism on utilization & hence sharing of Intra State Transmission Networks
  6. Regulatory Framework and the Concept of default mandatory transmission services agreement

Program Schedule


9.00 AM – 9.15 AM

Introduction to the Masterclass

9.15 AM – 9.30 AM

SESSION 1: Definition of Utilization – Distance and Direction Sensitivity

 Recent Developments in Long Term and Short Term Markets in India

  • Different Definitions of Utilization
  • Flat versus Locational Charges
  • Marginal versus Average Cost Pricing
  • LMPs and FTR based Transmission Pricing – Implementation issues in Indian Context

9:30 AM – 11.30 AM

Tea / Coffee

11.30 AM – 11:45 AM

SESSION 2: Practical Transmission Pricing Mechanisms - Part I

  • Contract Path Method
  • Postage Stamp
  •  Long Run versus Short Run Pricing Signals
  1. Investment Cost Related Pricing applied in England and Wales (zonal pricing based on LRMC);
  2. CostReflective Network Pricing applied in Australia (zonal pricing based on LRMC);
  3. Pricing based on marginal transmission losses applied in Norway (zonal pricing based on SRMC);

11:45 AM – 1:15 PM


1:15 PM – 2.00 PM

Session 3: Practical Transmission Pricing Mechanisms - Part II

  • Hybrid Methodology (PoC) mechanism evolved in India for sharing of transmission charges and losses
  1. Average Participation Method
  2. Marginal Participation Method
  3. Hybrid Method

The objective of the two sessions is to:

  •     Technically discuss practical transmission pricing mechanisms and their algorithms
  •      To appreciate how the Hybrid PoC mechanism was evolved in India

2.00 PM to 3.30 PM

Tea / Coffee

3:30 PM to 3:45 PM

Session 4: Development of Regulations, Interests and Concerns of Various Stakeholders, Way Forward

  •      Definitions of Approved Injection and Approved Withdrawal
  •      Treatment of Long, Medium and Short Term Open Access
  •      Nodal versus Zonal issues
  •      Change in risk profile because of the new transmission service agreement (TSA)
  •      Constraints on Data Availability
  •      Billing, Collection and Disbursement at Intra-State Level – some issues
  •      Way Forward – Implementation at the State Level

3:45 PM – 5.50 PM



Participation Fee

  • INR 18,000/- (Metis subscriber) per delegate
  • INR 22,500/- (Non-subscriber) per delegate
  • Discount options for a group of three or more are available
  • Cheque / DD in favour of Metis Business Solutions Pvt. Ltd., New Delhi.

For priority registrations please contact:

Mr. Siddhanth Jain            9810233471 / 011-4505 7447       E-mail: /

Mr. Siddhartha Swarup      9999221308 / 011 4505 7445       E-mail:

Venue Map