Issues of Public Hearing in the matter ofFinal Test Run (FTR) Report Submitted by the Market Operator for approval of the Authority
along with proposed amendments in the Market Commercial Code
1. Whether the twenty-four actions items approved by the Authority in the Competitive Trading
Bilateral Contract Market (CTBCM) test-run plan have been successfully completed by theMarket Operator, System Operator and other entities or otherwise?
2. Whether the IT infrastructure deployed by NTDC and CPPA-G for CTBCM transactions has
been tested and certified as successfully implemented? Additionally, whether backup oralternative measures are available in case of system failure during market transactions, andwhether the absence of SCADA will impact the successful implementation of the market?
3. Whether any delay in the implementation of central economic dispatch of the entire country will
have any impact on the implementation of CTBCM?
4. Whether the CTBCM transactions including settlements of energy and capacity of bilateralcontracts for prospective market participants (generators and bulk power consumers) have been
simulated during the test-run?
5. Whether the planned mechanism to shift capacity invoices based on commercial allocation
factors along with operationalization of BMC as per the provisions of the National Electricity
Plan is justified? What are the bottlenecks of shifting capacity invoices from the existingmechanism to coincidental system demand-based mechanism immediately after CMOD?
6. Whether the proposal to shift to a new mechanism for calculating firm capacity certification
based on an annual dependable capacity test instead of generation contribution in critical peak
hours is justified? What were the challenges faced in the approved methodology and are theyaddressed in the proposed methodology?
7. Whether the proposed changes in the formulae of Total Demand, Capacity Obligation, Firm
Capacity and Ancillary Services etc. in approved market commercial code are justified and havethey been tested during the test run?
8. Whether the proposal to defer compensation for ancillary services until the identification ofcongested zones by the System Operator is justified? Should transitory provisions forcompensation of ancillary services for existing zones i.e. NTDC and K.E. be retained in themarket commercial code until the identification of congested zones by the System Operator?
9. Whether the proposed labels in the Market Commercial Code to tag generators operated due todifferent system operations considerations are justified? and What is impact of the same on themarginal price determination as well as market settlements?
10. Whether transmission and distribution constraints will have any impact on the CTBCM
transactions especially on the bilateral contracts between bulk power consumers andgenerators/suppliers? What measures have been put in place by NTDC and CPPA-G in thisregard?
11. Whether the proposal to reduce the number of separate bank accounts for Market Operator
functions and proposed changes in the payment system is justified? Has the Market Operator
ensured that transparency in transactions is not compromised due to the proposed changes?
12. Whether the rationale behind the nomenclature changes, including the redefinition of various
terms and renaming of specific terms in the market commercial code is justified?
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13. Whether Renewable Energy power plants that are not capable of providing ancillary services
should be allowed to participate in the CTBCM as merchant power plants?
14. Whether the provisions added in the proposed market commercial code related to captive
generation are justified? Should captive generators register as market participants for thepurpose of wheeling of electric power for self-use?
15. Whether the dispute resolution mechanism provided in the Market Commercial Code isadequate to settle disputes among market participants or otherwise?
16. Whether the proposed delay of the legal separation of the CPPAG as MO and SPA for 5 years
as opposed to the licensed obligation of 1 year is in violation of the terms and conditions of thelicense of MO? Whether the same will have any implications for CTBCM considering conflictsof interest between two functions?
17. Whether the restructuring of System Operator as obligated in its licence has been carried out?
Whether any delay in the legal separation of NTDC as System Operator and Transmission
Network Operator will have any impact on the CTBCM?
18. Whether the recommendation to deal with excess transmission losses of transmission
companies outside of the market commercial code as opposed to the provision of the approved
market commercial code is justified?
19. Whether the Market Commercial Code adequately addresses the settlement treatment of excesstransmission losses by NTDC and DISCOs, as well as treatment of inter-DISCO losses
considering the fact that UoSC shall be charged on uniform basis?
20. Whether the auxiliary consumption of NTDC grids should be treated as a purchase from theDISCOs as SOLRs or continued to be settled by CPPA-G as per practice in vogue?
21. Whether the requirement of the market commercial code for Secured Metering System (SMS)
installation on both primary and backup meters at all metering points has been fulfilled orotherwise?
22. Whether the settlement of PESCO and TESCO is being performed currently in the absence ofSMS between their boundaries and what are its potential implications regarding imbalances andcapacity obligations of both DISCOs? What measures are being taken by PESCO and TESCO
in this regard?
23. Whether the System Operator is ready to shift the current merit order mechanism from afortnightly basis to a daily basis? Additionally, whether the daily demand forecast prepared bySystem Operator required from DISCOs for efficient central economic dispatch is streamlined
as required under applicable documents?
24. Whether the necessary tools and capacity building has been undertaken by System Operator to
prepare the daily load forecast for the efficient system operations as required under applicable
documents?
25. Any other issue with the approval of the Authority.
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