CEA Issues O&M Norms For New Transmission Service Providers

The Central Electricity Authority (CEA) has now come up with fresh guidelines for the Operations and Maintenance (O&M) of electricity transmission networks. The authority crafted these norms to clarify the role of the new transmission service provider (TSP) towards the O&M works of its assets.

The order said that the Request for Proposal (RfP) documents for projects undertaken under tariff-based competitive bidding (TBCB) often lacked clarity on the issue. It was further compounded when the O&M was related to the assets co-located on the premises of the existing TSP players. 

“In case of the assets of the New TSP which are co-located in the existing substation, detailed scope of works as well as the roles and responsibilities of the New TSP and existing TSP have not been clearly defined in the TBCB Bid documents. In the absence of clarity in this regard, the coordination issues are being faced by the New TSP while

undertaking the O&M works of the assets established in the premises of the existing substation,” the guidelines document read. 

The new norms said these rules would apply to all the upcoming and under-bidding Inter-State Transmission System (ISTS) projects under the TBCB route. It also said that all the contracts signed by the various TSPs for O&M activities and charges would remain in force until the end of their term. 

Batting for clarity on the O&M obligations, the norms said, “ For all upcoming projects and under bidding projects, existing substation owner or agency of existing substation owner shall carry out the operation and maintenance activities in case of any bay extension as well as in case of voltage expansion works in the existing substation,” it read. 

It also said that the O&M charges to be paid by the new TSP to the existing substation owner for the year should be 30 percent of the normative O&M expenses of relevant voltage level and transformer capacity. The CEA norms said that besides this, the new TSP should pay the taxes and duties to the existing substation owner. It also asked the fresh TSP and owner of the substation to nominate their nodal officers for better coordination of all the O&M matters. 

The new norms came to the fore after the Ministry of Power formed a committee on November 28, 2022, under the chairmanship of a CEA member to deliberate on the issue.