Relief for Reliance Energy as CERC orders status quo for open access

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Mumbai: In a pathbreaking order, the Central Electricity Regulatory Commission on Friday ordered that the open access provided to the Reliance Energy Trading Ltd by the Karnataka State Load Despatch Centre and Renuka Sugars will continue till the next hearing. The open access granted by the trio to Reliance Energy Trading Ltd for the months of October and November is to expire on November 30.

“We direct that status quo regarding open access to Reliance Energy Trading Ltd as on date be continued till the next date of hearing which is slated for December 16. In view of the urgency, and the fact that generation of power at a co-generation plant is involved, the matter deserves consideration for the interim order,” CERC official told FE.

Earlier, Reliance Energy Trading Ltd submitted that it had entered into agreements for the purchase of electricity with Renuka Sugars which has two cogeneration plants in Karnataka. These agreements were for 20 mw power at Athani for the period from October 1 to 31 and 12 mw power at Munoli for November 1 to December 31. The petitioner entered into an agreement for the sale of the above power to Reliance Infrastructure. However, on the advice of Reliance Infrastructure the petitioner entered into another agreement with Madhya Pradesh Power Trading Company for banking of the said power during the night hours and return the said power between April to June 2009 from Madhya Pradesh Power Trading Company to Reliance Infrastructure.

Subsequently, Reliance Energy Trading Ltd made application for open access for transfer of the above power to Reliance Infrastructure, Mumbai during the day time and to Madhya Pradesh Power Trading Company during the night time. Thereafter, the petitioner entered into another deal for purchase of power from Renuka Sugars for January 1 to March 31, 2009 and accordingly on November 6 made application for concurrence of open access for the same period.

The Karnataka State Load Despatch Centre however, failed to convey its decision on the applications for December 1 to 31 and January 1 to March 31, 2009.

CERC’s order is crucial as FE had reported on November 24 that open access in power sector continues to be a non starter.