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, 2021
Objective
- Promote competitive procurement of transmission services.
- Encourage private investment in transmission system.
- Facilitate transparency and fairness in procurement processes.
- Facilitate reduction of information asymmetries for various bidders.
- Protect consumer interests by facilitating competitive conditions in procurement of transmission services of electricity.
- Enhance standardization and reduce ambiguity and hence time for materialization of projects.
- Ensure compliance with standards, norms and codes for transmission systems while allowing flexibility in operation to the transmission service providers.
[Clause No. 1]
- Encourage private investment in transmission system.
- Facilitate transparency and fairness in procurement processes.
- Facilitate reduction of information asymmetries for various bidders.
- Protect consumer interests by facilitating competitive conditions in procurement of transmission services of electricity.
- Enhance standardization and reduce ambiguity and hence time for materialization of projects.
- Ensure compliance with standards, norms and codes for transmission systems while allowing flexibility in operation to the transmission service providers.
[Clause No. 1]
Bid Process Coordinator (BPC)
- Responsible for conducting the bid process for procurement of required transmission services for each inter-state transmission project to be implemented under tariff-based competitive bidding.
- For procurement of transmission services, the Central Government shall notify the CTU or any Central Government Organization/ Central Public Sector Undertaking or its wholly owned subsidiary (Special Purpose Vehicle) to be the BPC.
- For conducting the bid process, BPC shall charge a professional fee @ 1% of the estimated cost of the project subject to minimum of Rs. 5 Crore and a maximum of Rs. 15 Crore for each project.
[Clause No. 3]
- For procurement of transmission services, the Central Government shall notify the CTU or any Central Government Organization/ Central Public Sector Undertaking or its wholly owned subsidiary (Special Purpose Vehicle) to be the BPC.
- For conducting the bid process, BPC shall charge a professional fee @ 1% of the estimated cost of the project subject to minimum of Rs. 5 Crore and a maximum of Rs. 15 Crore for each project.
[Clause No. 3]
Transmission charge structure
- Transmission charges shall be paid and settled for each payment period as per regulations of the Appropriate Commission. Annual transmission charges for the first year, which shall remain fixed for the period of 35 years from COD of project, shall form the basis for bidding and evaluation.
- The bidder with the lowest annual transmission charges discovered after the e-reverse bidding procedure will be considered for the award.
[Clause No. 7]
- The bidder with the lowest annual transmission charges discovered after the e-reverse bidding procedure will be considered for the award.
[Clause No. 7]
Transmission Service Agreemet (TSA)
The TSP on the date of acquisition of SPV from the BPC will enter into a Transmission Service Agreement (TSA) with the Nodal Agency (in case of inter state projects) / the concerned utilities (in case of intra State projects).
[Clause No. 9.4.3]
[Clause No. 9.4.3]
Bid evaluation committee
- For inter state transmission systems, CEA shall constitute a committee for evaluation of the bids with at least one representative from CEA and not less than two representatives from the concerned Regional Power Committees and one independent member. Further, in case project is inter-regional, there shall be at least one representative from every concerned RPC.
- For intra state transmission systems, the STU/ State Government shall constitute a committee for evaluation of the bids with similar composition as for inter state transmission systems or as deemed fit.
[Clause No. 9.8]
- For intra state transmission systems, the STU/ State Government shall constitute a committee for evaluation of the bids with similar composition as for inter state transmission systems or as deemed fit.
[Clause No. 9.8]
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
8/10/2021