14 and 32 OA consumers, respectively.
These states, which are incurring high commercial losses in power distribution due to factors like theft, can make big savings if they allow OA facility to their bulk consumers who can benefit from low prices ruling in the open market ( Average sales price of electricity at IEX on Wednesday was Rs 2.45 a unit).
For example, the average power procurement of UP Power Corporation ( UPPCL) was Rs 5.94 a unit in 2012-13. Further, one-quarter of power procured by the discom was lost in distribution.
Given that, the state can make a significant savings by allowing open access facility to bulk consumers.
UP is facing peak-hour power shortage to the tune of 2,800 mw. But rather than using the OA facility to cut its operational losses, the state is tying up costly power under long-term contracts.
According to industry sources, UP is considering buying 2,875 mw electricity from generators like Indiabulls, Jindal Power and Lanco at the price range of Rs 6 a unit.
The state has also agreed to buy 2,100 mw power from various companies including KSK Energy, Moserbaer and Navyug in the price range of Rs 5.4-5.8 a unit.