Competitive Bidding Guidelines

These guidelines are formulated by the Ministry of Power, as per Section 63 of Electricity Act 2003. These guidelines aim to promote competition, encourage private sector participation, facilitate transparency in procurement, reduce information asymmetry, protect consumer interests, reduce time required to materialize projects and ensure compliance with norms and standards for the transmission sector. An analysis of ISTS projects under TBCB is under progress and will be shared after completion.

Tariff Based Competitive Bidding (TBCB) Guidelines, 2006

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Objective
Aimed at facilitating competition in Transmission Sector through wider participation in providing transmission services and tariff determination through process of tariff based bidding.
[Clause No. 1]
Bid Process Coordinator (BPC)
- Responsible for coordinating the bid process for procurement of required transmission services.
- The BPC would be notified by MoP and nomination of BPC will be for a period of 3 years at a time.
- For immediate effect, Empowered committee will be the BPC till any other organization is nominated.
[Clause No. 3]
Transmission charge structure
Tariff structure will have 2 components - one scaleable and the other non-scaleable. The scaleable component shall not be more than 15% of the non-scaleable component.
[Clause No. 7]
Transmission Service Agreemet (TSA)
The TSP will enetr into the TSA with the concerned utilities.
[Clause No. 9.4.2]
Bid evaluation committee
The BPC shall constitute a committee for evaluation of the bids with atleast one member each from CEA and the concerned RPCs.
[Clause No. 9.8]
Empowered Committee
An Empowered Committee shall be constituted by MoP. The Committee will be chaired by a Member of CERC, to be nominated by the chairman, CERC. It shall have both Member (Power system) and Member (E&C) from the CEA as members.
[Clause No. 13]
Additional parameters in the document
Payment Security Mechanism, Perspective plans, short-term plans, Network Plans, identification of projects, state transmission projects, contract award, etc.
Resolution By
Ministry of Power
Date of Notification
4/13/2006
1st Amendment
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Bid Process Coordinator (BPC)
Addition in the definition of BPC.
[Clause No. 2]


Transmission charge structure
Changes in the Transmission charge strucuture in para 7.3.
[Clause No. 5]


Transmission Service Agreemet (TSA)
Changes in the Transmission service Agreement in para 9.6.2.
[Clause No. 6]


Bid evaluation committee
Bid Evaluation methodology is substituted in para 9.6.5. Also, there is change in definition of Bid Evaluation Committee.
[Clause No. 6]


Additional parameters in the document
Preparation for Inviting bids, Transmission service provider, Bidding Process, etc.


Resolution By
Ministry of Power


Date of Notification
7/4/2007


2nd Amendment
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Empowered Committee
Para 14 is substituted and functions of Empowered committee is added.
[Clause No. 1]


Additional parameters in the document
License for Transmission, Reasonableness of Transmission charges.


Resolution By
Ministry of Power


Date of Notification
10/10/2008


3rd Amendment
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Additional parameters in the document
State Transmission Projects.


Resolution By
Ministry of Power


Date of Notification
5/2/2012


4th Amendment
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Additional parameters in the document
Biding Process, Time table for the Bid Process, Contract award and conclusion, License for Transmission.


Resolution By
Ministry of Power


Date of Notification
12/9/2013


5th Amendment
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Empowered Committee
Para 13 has been substituted in the definition of Empowered Committee.


Resolution By
Ministry of Power


Date of Notification
1/2/2014