Regulatory mess short circuits open access inter-state transmission

Font Size

Print

Feedback

Email

Discuss

Related Articles

NTPC to appoint banker for S Africa buyCERC presses green pedal on T&DNTPC delays compound power woesL&T bags Rs 2-k cr power plant order

Mumbai: Open access in inter state transmission and intra state transmission and distribution face major administrative, regulatory and tax related hurdles.

Besides, the rigid stand taken by various state governments and state electricity regulatory commissions (SERCs) makes the entire exercise economically unviable.

Interestingly, the Economic Survey has made a strong pitch for open access. Even as the Electricity Act, 2003 mandates non discriminatory open for inter state as well as intra state transmission and distribution system, open access in inter state transmission is currently operational. However, open access in intra state transmission and distribution is yet to be operational.

Various charges such as cross subsidy surcharge, standby charge imposed by SERCs make open access economically unviable for consumers. So far 23 SERCs have issued open access regulations.

Besides, state governments have been discouraging flow of surplus power outside their state on the ground that state itself is power deficit. Certain state governments had recently issued instructions under section 11 of the Electricity Act, 2003 that generators located within the state have to sell their entire surplus power to the state grid, thereby, effectively prohibiting flow of power outside the state. On the other hand, state load despatch centres (SLDCs) are not permitting open access on the pretext of system congestion. SLDCs are expected to function independently, they continue to operate under the overall supervision of the state transmission utilities. Respective state governments have been using the SLDCs to turn down open access applications on flimsy grounds leading to open access seekers having to resort to litigation.

Power Ministry sources told FE “This is quite visible as of the total 193 applications received in 16 states requesting open access for a capacity of 18,189 mw as on May 31, 2009, as high as 140 cases were related to captive power plants (CPPs). Although 132 cases comprising 15,153 mw were approved, only 78 open access cases of which, 65 were CPP, were implemented. Open access on distribution has been largely restricted to CPPs.” Moreover, there is a lack of adequate metering, billing, balancing and settlement system that is required for open access to operate.