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SCHEDULE-C

OPERATING PROCEDURES

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1.

DEFINITIONS AND INTERPRETATION

1.1

In these Procedures words and expressions Defined in the Bulk Supply agreement shall have the same meaning in these Operating Procedures and the following words and expressions shall, unless the context requires otherwise, have the meanings set out opposite them.

"Applicable Codes": any or all of the Grid Code, the distribution Code and any other code or instrument issued or approved by the Central or State Regulatory Commission in accordance with the applicable Electricity Laws and regulations

"Bulk Supply Agreement": the bulk supply agreement between Transco and the COMPANY

"Bulk Supply Business": the business or bulk supply of electrical energy in the National Capital Territory of Dellhi.

"Bulk Supply Liconce": the Transmission and Bulk Supply Licence which, Transco will apply for and obtain from the Commission.

"Commission" means the Delhi Electricity Regulatory Commission constituted under Section 3 of the Delhi Electricity Reform Act, 2000.

Commissioning Programme": the programme for the commissioning of a New Connection or Modification drafted by the COMPANY and approved by Transco in accordance with the provisions of Article 5.

"Completion Date": the proposed date for completion of the works as sspecified in a Construction Programme

"Connection": means the Point of Supply of electricity in Bulk by Transco to the COMPANY.

"Construction Programme": the programme for the carrying out of the works agreed ton between Transco and the COMPANY.

"Co-ordination Committee": a co-ordination committee established by the parties pursuant to terms in the Bulk Supply Agreement

"Connection application": an application made by the COMPANY to Transco for the construction and commissioning of a New Connection.

"Connection Offer": an offer made by Transco to the COMPANY in response to a Connection Application from the COMPANY to Transco.

"the COMPANY Equipment": the equipment from time to time owned, used or operated by the COMPANY whether or not forming part of the Distribution System

"Electricity Laws": any or all of the Delhi Electricity Reform Act, 2000, the Electricity Regulatory Commissions Act, 1998, the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948, the Indian Electricity Rules, any amendment or replacement of the same, and any other law, decree, judgement, legislation, regulation, statute or other legislative measure relating to electricity from time to time in force and in so far they are applicable in the National Capital Territory of Delhi.

"Equipment": Transco Equipment or the COMPANY Equipment, as the context may require.

"Equipment Schedule ": the form of equipment responsibility schedule prescribed from time to time in the Grid Code.

"Existing Connection ": a Connection in existence and which has been commissioned as at the date of adoption of these Procedures.

"Transco Equipment ": the equipment from time to time owned, used or operated by Transco whether or not forming part of the Transmission System

"Modification ": an alteration to a Connection.

"Modification Application ": an application made by the COMPANY to Transco for a Modification.

"Modification Offer ": an offer made by Transco to the COMPANY for the construction and commissioning of a Modification provided in response to a Modification application received by Transco.

"New Connection ": a Connection other than an Existing Connection.

"Procedures ": means these operating procedures

"proposed Connection ": any site proposed by the COMPANY to be constructed and commissioned as a New Connection.

"Reform Act ": The Delhi Electricity Reform Act, 2000.

"Retall Supply Business ": the business of distribution and retail supply of electrical energy in the Area of Supply, which in the case of the COMPANY is the Sspecified Area.

"Retail Supply Licence ": the distribution and retail supply licence to be granted to the COMPANY by the Commission

"Safety Obligations ": all applicable obligations and laws concerning health and safety (including any duty of care arising at common law, under statute, statutory instrument, and codes of practice, compliance with the provisions of which is mandatory) including, without limitation, any of the Electricity Laws.

"Site Responsibility Schedule": the form of site responsibility schedule prescribed from time to time in the Grid Code.

"Transco ": Delhi Power Corporation Limited and shall include the relevant successor entity or entitles of Transco.

2.

REVIEW AND AMENDMENT OF THE OPERATING PROCEDURES

2.1

The Co-ordination Committee shall review the Operating Procedures from time to time, and in particular the performance by each of the Parties of its obligations and the exercise of its rights under the Operating Procedures, and shall, in light of and taking into account the results of such review, use all reasonable endeavours to agree any alterations to these Procedures that may be necessary or desirable.

2.2

If the Commission makes any amendments to the Grid Code or any other Applicable Codes such amendments together with all consequential changes consistent with the same as may be made by Transco shall be deemed to be incorporated in the Operating Procedures, as and with effect from the date on which such amendment becomes effective. Transco shall, as soon as practicable after the sate on which such change(s) become effective convene a meeting of the Co-ordination Committee to discuss such changes and issue an amended version of the Operating Procedures which shall reflect, as appropriate, such change(s).

2.3

Similarly the Central Electricity Regulatory Commission and the Central Transmission Utility sspecified under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948, may from time to time issue directions for compliance with Grid Code applicable to Northern Grid and further provide for other standards and Codes which may have an impact on the Operating Procedures agreed to between the Parties. The Parties will be bound by such directions, codes, standards etc. that may be sspecified by the Central Electricity Regulatory Commission and the Central Transmission Utility and agree to modify the Operating Procedures existing between them to be consistent with the above.

3.

COMPLIANCE WITH GRID CODE

The Parties shall be bound by and shall comply with the provisions, as amended from time to time as mentioned in Article 2.

4.

OBLIGATIONS RELATING TO CONNECTIONS

4.1

Subject to the terms of terms of these Procedures neither Party shall do or (within the land over which it has granted any Right of Access) permit anything to be done (whether in relation to the Connection itself or to any of such Party's Equipment) which might sever,terminate, restrict, impair, impede or interfere with any Connection or the effective operation of any Connection without the prior consent of the other Party (which consent shall not be unreasonably withheld or delayed taking into account both the COMPANY's need to maintain, repair and operate the Distribution System, and Transco's need to maintain, repair and operate the Transmission System), save to the extent necessary to enable:

4.1.1

the relevant party to carry out any works, repairs or maintenance which it is obliged to carry out pursuant to any of the Applicable Codes or Electricity Laws; or

4.1.2

any person to deal with the requirements of an Emergency.

4.2

Subject to the terms of these Procedures each party shall:

4.2.1

if and in the event that that party becomes aware of any Emergency affecting the other Party's Equipment:

 

(a)

inform the other Party of the existence of such Emergency; and

(b)

take whatever steps as are practicable in the circumstances in order to mitigate the effects of any Emergency on the other Party's Equipment, provided that that Party shall be reimbursed by the Party whose Equipment is so affected for all expenses and costs reasonably incurred in its taking such action; and

4.2.2

comply at all times with prudent utility practices and Safety Obligations.

4.3

Subject to the terms of these Procedures the COMPANY shall:

4.3.1

keep all its relevant Equipment which is situated at or adjacent to any Connection in such condition as will enable electrical energy to flow to and from the Distribution System through that Connection in accordance with prudent utility practices: and

4.3.2

control, maintain, (to the extent necessary) repair and operate its Equipment such that its Equipment shall be in a condition fit for the purpose of the distribution of electrical energy in accordance with purpose of the distribution of electrical energy in accordance with prudent utility practices and the provisions of the relevant Site Responsibility Schedule.

4.4

Subject to the terms of these Procedures Transco shall:

4.4.1

keep all its relevant Equipment which is situated at or adjacent to any Connection in such condition as will enable electrical energy to flow to and from the Transmission System through that Connection: and

4.4.2

control, maintain, (to the extent necessary) repair and operate its Equipment such that its Equipment shall be in a condition fit for the purpose of the transmission of electrical energy in accordance with prudent utility practices and the provisions of the relevant Site Responsibility Schedule.

5.

NEW CONNECTIONS AND MODIFICATIONS

5.1

Transco and the COMPANY shall each comply with the procedure set out in this paragraph in relation to the construction and commissioning of New Connections and Modifications.

5.2

The procedure for the construction and commissioning of New Connection or Modification shall be as follows:

5.2.1

the COMPANY shall complete and submit to Transco an Application in relation to the Proposed Connection or Modification, which shall include:

 

(a)

A report stating the purpose of establishment of a new supply point, proposed connection or modification and a description of the new or modified equipment to be installed at the proposed connection or connection (as appropriate);

(b)

a Construction Programme;

(c)

all other information required to be submitted by the COMPANY to Transco with any application for a New Connection or Modification in accordance with the terms of the Grid Code; and

(d)

all other information as Transco may reasonably require so as to enable it to evaluate the Application.

5.2.2

Transco shall consider such Application and shall forward to the COMPANY a Connection Offer or Modification Offer (as appropriate) as soon as practicable and (unless the Commission consents to a longer period) in any event within two (2) months of receipt by Transco of the application and all information required to be submitted therewith. Such Connection Offer or Modification Offer shall include:

 

(a)

details of any and all works that Transco will need to undertake, including any works required for the extension or reinforcement of the Transmission System which are necessary or desirable to accommodate the conditions set out in the relevant application;

(b)

details of statutory clearances, wayleaves, easements and rights over land required in order to complete the works

5.2.3

In relation to the above the capital-related payments and expenses including those arising from necessary consequential reinforcement or extension of the Transmission System shall be incurred by Transco only, if such payments and expenses are approved by the Commission and allowed as a pass through in the Bulk Supply Tariff.

5.2.4

Notwithstanding the above it in Transco's opinion the nature and complexity of the Application is such that the time frame sspecified in that paragraph is not adequate Transco shall (with the consent of the Commission, for which Transco shall, if it thinks appropriate, apply) make a preliminary indication of terms (which indication shall not be intended to create legal relations between Transco and the COMPANY) specifying a date by which it intends to forward to the COMPANY the Connection Offer or Modification Offer. Within [30] days of receipt of such preliminary indicated of terms the COMPANY shall notify Transco in writing whether or not Transco should proceed to make the Connection offer or Modification offer (as appropriate).

5.2.5

The Connection offer or Modification Offer made by Transco shall be an irrevocable offer which shall remain open for acceptance by the COMPANY for sixth (60) days from the date of its issue by Transco If the COMPANY wishes to accept the Connection offer or Modification Offer it shall notify Transco in writing of its intention to do so. For the avoidance of doubt, if Transco does not receive notification of the acceptance by the COMPANY of the relevant Connection Offer or Modification Offer within the sspecified period of sixty (60) days then the relevant Connection offer or Modification Offer shall lapse and be of on effect.

5.2.6

If the Connection offer or Modification offer is accepted by the COMPANY the construction and commissioning of the Proposed Connection or Modification shall proceed in accordance with the Construction Programmed agreed to between the Parties.

5.2.7

If the COMPANY has provided new information, specifications or data since submitting the Application and supporting information to Transco, Transco shall make a revised Connection offer or Modification Offer (as appropriate) within sixty (60) days of written request being made by the COMPANY, and the provisions of the Paragraph 5.2.6 shall apply to such revised Connection Offer or Modification Offer, mutatis mutandis.

5.2.8

Transco shall be entitled to reject any Application if :

 

(a)

any of the grounds for rejection set out in the Applicable Code and/or the Bulk Supply Licence apply at the time the Application is received by Transco; and/or

(b)

accepting the Application and implementing the New Connection or Modification would put transco in breach of any Applicable Codes, the Bulk Supply Licence, or any of the Electricity Laws.

5.3

Transco and the COMPANY shall each use all reasonable endeavours to obtain the planning and statutory consents, wayleaves, easements or rights over all land necessary to enable each party to carry out and complete the works. Each party will bear will bear the costs incurred in obtaining such consents or permissions for the works their scope.

5.4

All the works shall be complete in all respected by the Party on whom the Construction Programme, the relevant provisions or the Applicable Codes, the relevant Indian Standard Specification (and if no applicable Standard).

5.5

The Construction Programme may be varied always that both Parties consent in writing to such variation and that such variation shall be made before the Complete Date.

5.6

Immediately on acceptance of Transco's offer by the COMPANY, the Commissioning Programme shall be prepared and implemented as follows :

5.6.1

Each party will make available to the other Party a draft Commissioning Programme.

5.6.2

Each party as soon as practicable and in any event within (30 days) or receipt hereof shall approved the draft Commissioning Programme or notify the other Party any variations to the proposed Commissioning Programme of the Party. If the Parties do not respond within {30} days of receipt, it will be deemed that the Commissioning Programme, has been approved by both the Parties.

5.6.3

In case of any dispute over the draft Commissioning Programme, the same shall be resolved in accordance with the dispute resolution procedure contained in Article 11 of the Bulk Supply Agreement.

6.

CHANGES TO TRANSMISSION SYSTEM

6.1

If Transco considers that it is necessary or desirable for reasons of system security or efficiency or in exercise of its rights or in compliance with its obligations under any of the Electricity Laws or any of the Applicable Codes, to change or reconfigure the Transmission System, and such change or reconfiguration involves :

 

(a)

effecting any Modification;

(b)

implementing any New Connection; or

(c) decommissioning any substation or any part thereof.

 

Then it shall be entitled to carry out all appropriate works to effect such change and/or reconfiguration.

 

While carrying out such change or reconfiguration Transco shall ensure that existing supplies in the COMPANY will continue to receive supply through their outgoing feeders.

6.2

If Transco wishes to carry out any works pursuant to Paragraph 6.1, it shall notify the COMPANY in writing at least [30] days prior to the carrying out of the relevant works to the extent that the carrying out of any such works shall affect any existing Connection.

6.3

Transco shall use all reasonable endeavours to minimise the effects on the Distribution System of any such Modification(s), New Connection or decommissioning of any substation, on the Distribution System.

6.4

All costs and expenses in respect of all works carried out to effect the changes referred to in Paragraph 6.1 shall be for the account of Transco but any other cost that may have to be incurred by the COMPANY due to such changes of reconfiguration carried out by Transco, shall be to the account of the COMPANY.

7.

METERING

7.1

Installation of Meters

7.1.1

Transco shall install a Main Meter and a Check Meter at all of its 400 kv and 200kv substations on which any point of Supply is situated.

 

Notwithstanding the above, if any of the Meters mentioned above is already installed and functional on the date of this Agreement, such Meter shall be deemed to qualify for the above Meter installation responsibility of Transco, provided such meter is certified (by government authorised meter testing lab/centre) to be within the accuracy level and other requirements of this Schedule.

7.1.2

Following installation, the Main Meters and the Check Meter shall be the property of Transco and Transco shall be responsible for the cost of their maintenance, replacement and calibration. All the meters mentioned in this clause 7.1.2 shall be under the joint custody of the Parties

 

Notwithstanding the above metering system, both Parties expressly agree and accept that Transco shall own the 66kv busbars (or the 33 kv busbars in case the point of supply is at 33 kv) at the 400 kv or 220 kv substations on which any point of Supply is situated and shall be responsible for their operation and maintenance.

7.2

Inspection and Testing of Meters

7.2.1

The Main Meter and the Check Meters and any other meter relevant to the calculations of the payments due under this agreement shall be sealed with a seal owned by each of the Parties and shall not be opened, calibration or tested except in the presence of the representatives of both the COMPANY and Transco. Each party shall ensure that the meters, monitors, terminals of CT and PT, are appropriate and the associated circuits which it owns, are sealed between inspections and tests.

7.2.2

The COMPANY and Transco shall inspect the metering system atleast once every three months and, if necessary, recalibrate the metering system and in any event, recalibration at least once every 12 months. Any party can require the testing of any Meter even before the period of three months stipulated above. In such a case, if after the test, the meter is found to be within the accuracy levels required by this Schedule, the cost of meter testing shall be borne by the party who had requested for the test. In all other cases, the cost of the meter test and recalibration shall be borne by the owner of such meter.

 

In addition to the tests conducted under clause 7.2.2, in the event that the reading on the Check Meter differs from that on the Main Meters by more than -+ 0.2% in any month, the Main Meters and the Check Meters shall be be jointly tested in turn.

7.2.3

In the event that any meter comprising the Meter System is found to be defective, it shall be obligatory for Transco to recalibrate or replace the Meter within seven (7) days to ensure that it is functioning correctly.

7.2.4

The testing and calibration shall be conducted in accordance with Clause 7.6 hereunder.

7.2.5

Transco shall provided the COMPANY, on reasonable notice from the COMPANY with such access to the Meters, as the COMPANY may reasonably required for the purpose of complying with its obligations under the agreement. In exercise of its rights under the clause, the COMPANY shall not interfere with the operation functioning of the Transmission System.

7.3

Electrical Output

 

The electrical energy delivered by Transco to the COMPANY at the Point of Supply shall, be measured on the basis of meter reading from the Main Meters.

7.4

Inaccuracy of Meters

7.4.1

In the event that any Main Meter fails to register or, upon being tested, is found not to be accurated within -+ 0.2% but the Check Meter is found to be accurate within -+ 0.2%. the electrical energy shall for the relevant period be measured on the basis of the value registered by the corresponding Check Meter.

7.4.2

In the event that the Main Meter and the corresponding Check Meter both fail to register or, upon being tested, be found not be accurate within -+ 0.2%, the electrical energy shall for the relevant period be adjusted by immediately restoring and recalibrating the Main Meter and the corresponding Check Meter and the correction applied to the consumption registered by the Main Meter.

7.4.3

For the purpose of the correction to be applied, the Main Meter shall be tested at 100, 80, 50 and 20 per cent load at unity power factor and 0.5 power factor. Of these eight values, the error at the load and power factory nearest the average monthly load served at the Points of Supply during the relevant period shall be taken as the error to be applied for correction.

7.4.4

The relevant period referred to in the above clauses shall be the actual period during which inaccurate measurement were made if such period can be determined or, if not readily determinable, the shorter of (i) the period since the immediately preceding test of the relevant Main Meter and (ii) ninety (90) days immediately preceding the test at which the relevant Main Meter was determined to be defective or inaccurate.

7.5

Meter Reading

 

Representatives of both Transco and the COMPANY shall conduct joint visual readings of the Metering System at 10.00 am on the first day of each following which the Parties shall immediately prepare joint statements recording of such meters for the relevant month and, if the readings are significantly different from each other and/or the reading of the Check Meter differs, from the reading of the Main Meter by -+0.2%, then the Metering System shall immediately be jointly tested by the COMPANY and Transco and the provisions of clause 7.4 shall apply. IF the representative of the COMPANY fails to be present, the statement prepared by the representative of Transco shall be considered valid for the payment obligations of the COMPANY.

 

The print out of data and reading recorded in the memory of static energy meter, down loaded through meter reading instrument of otherwise shall also be recognised for the computation of energy and such other action as may be deemed necessary.

7.6

Metering System

7.6.1

Each meter comprising the Metering System shall have an accuracy class of -+ 0.2% as per IEC 687 or or any corresponding equivalent standards. Each PT and CT shall also be of same accuracy level.

7.6.2

Each meter comprising the Metering System shall, as to their technical standards, description, accuracy and calibration, comply fully with any applicable requirements of the Electricity Rules.

7.6.3

The Metering System shall measure :

(i)

the KWh, KVA, kVAh maximum/minimum power factor, maximum demand, voltage, current, KVAR and KVARh for each Settlement Period;

(ii)

the tampering, if any, of the Metering System along with the details of such tampering.

7.6.4

The Metering System shall be capable of keeping in record, the data outline in Clause 7.6.3 for period of last sixty (60) days.

7.6.5

The Metering System shall be of a self diagnostic type.

7.6.6

the COMPANY may required Transco at the COMPANY's expenses, to install such additional remote monitoring equipment as the COMPANY may reasonably require for the purpose of measuring and monitoring the performance of the Project.

7.6.7

Applicable Standards

 

The latest versions of the following Standards (or their equivalent Indian Standards) will be applicable :

 
IEC - 687 for Static Energy Meters
ISS   13779 for Static Energy Meters
BS   3938 for Potential (Voltage) Transformers
CBIP   Report No. 88 for Solid State Meters

7.6.8

Type of Meters

 

the Meters shall be microprocessor based electronic Tri-Vector Meters. Provisions should also be made for remote reading and telemetering of energy consumed.

7.6.9

CTs and PTs for Metering purpose

(i)

The Current Transformers are to be as per the BS-3938 or any corresponding equivalent standards with an accuracy class 0.1 and a minimum rated output of 15 VA.

(ii)

The Voltage Transformers are to be as per the BS-3944 or any corresponding equivalent standards with an accuracy of class 0.1 and a minimum output 9 of 100 VA.

(iii)

the CT/PT secondary winding supplying a Main Meter will be dedicated for that meter unless otherwise agreed. However, the secondary winding supplying a Check Meter can be used for other purposes as long as there is no degradation of accuracy beyond the defined limits.

(iv)

The burden on any CT/PT associated meter will not be modified without obtaining of the other party

(v)

Common return wire for two or more CT secondary circuits is not permitted.

(vi)

Each meter shall be fed by a separated fused set of leads from the PT.

(vii)

IF the Main and Check Meters are to be connected to the same PT, then separate fuses have to be provided for each circuit.

(viii)

Each fuse in the PT circuit will be monitored and alarmed for voltage failure for loss of one or more phases of voltage supply to any Meter.

(ix)

site testing of the Metering System.

(x)

The CT cable size should not be less than 6 Sq. Mm (preferably 10 Sq. Mm) Copper.

(xi)

The PT cable should not have a resistance greater than 0.2 ohm/phase.

7.6.10

Test/Calibration Equipment

(i)

Solid State sub-standard meter suitable for checking the accuracy of class -+0.2% meters should be used. These should be duly calibrated and sealed by the Government authorised meter testing house/lab or by a mutually agreed independent test house where such facilities are available.

(ii)

Similarly, suitable primary/secondary injection sets should also be available at the plant.

 

Till above metering system is commissioned, the energy consumption shall be worked out as per present metering system on a provisional basis. COMPANY shall be pay as per such provisional energy consummation. After installation of new metering system the discrepancy between the new system and earlier system shall be determined and adjustments shall be immediately carried out based on the new system.

 

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