The Centre seems to have put its foot down in the wrangle with states over the issue of implementation of open access for bulk power consumers. The Union power ministry has asked the Forum of Regulators (FoR) to modify its model regulations on intra-state open access, in line with the law ministry?s opinion.
?The power ministry reiterates it direction to the central commission under Section 107 of the Electricity Act to take all necessary steps, including framing of appropriate regulations to implement the provisions of open access as per the Act in pursuance of the ministry of power letter of November 30, 2011,? the ministry has said in a recent letter.
FoR is a body of electricity regulators. All 1-mw-and-above consumers are deemed to be open access consumers and the regulator has no jurisdiction over fixing the energy charges for them, the attorney general had said in a legal opinion last November.
Following that, the Union power ministry shot off letters twice to states, asking them to implement mandatory open access for bulk power consumers. However, there is little progress in compliance by states.
Meanwhile, the FoR is divided over the fresh interpretation of open access provisions in the Electricity Act, 2003, provided by the law ministry. Unable to evolve a stand on the issue, the forum has issued a discussion paper to highlight key issues flagged off by its members.
It has left the issue of implementation to the state electricity regulators who have said that they will take their decision based on results of public hearing rather than blindly following Centre?s advice that is not binding on them anyway.
States oppose the concept of mandatory open access as they fear that industrial and commercial consumers, who are seen as premium customers for their regular payment, could flee their discoms? network, making it difficult for them to cross-subsidise the agriculture sector electricity consumers..
Some 968 consumers, mostly located in Tamil Nadu and Rajasthan, were buying power through open access from the India Energy Exchange (IEX) at the end of March this year. These consumers purchased 6,275 million units of electricity during the year.