"Open Access"
J.P. Sharma
(Querist) 02 July 2009
This query is : Resolved
I want to know about the "Open Access" under the Electricity Act, 2003. What are the basic requirement for open access, kindly elucidate.
A V Vishal
(Expert) 02 July 2009
OPEN ACCESS AND TRADING : The Electricity Act, 2003 which has come into force from 10th June, 2003 repeals the Indian Electricity Act, 1910; Electricity (Supply) Act, 1948; and Electricity Regulatory Commissions Act, 1998. In view of a variety of factors, financial performance of the state Electricity Boards has deteriorated. The cross subsidies have reached unsustainable levels. A few States in the country have gone in for reforms which involve unbundling into separate Generation, Transmission and Distribution Companies. To address the ills of the sector, the new Act provides for, amongst others, newer concepts like Power Trading and Open Access.
Open Access on Transmission and Distribution on payment of charges to the Utility will enable number of players utilizing these capacities and transmit power from generation to the load centre. This will mean utilization of existing infrastructure and easing of power shortage. Trading, now a licensed activity and regulated will also help in innovative pricing which will lead to competition resulting in lowering of tariffs.
DEFINITION OF “OPEN ACCESS” IN THE ELECTRICITY ACT, 2003: The non-discriminatory provision for the use of transmission lines or distribution system or a associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”
A MORE GENERAL DEFINITION OF “OPEN ACCESS” : Enabling of non-discriminatory sale/purchase of electric power/energy between two parties utilizing the system of an in-between (third party), and not blocking it on unreasonable grounds”.
ISSUES:
a) Freedom to buy/sell, and access to market
b) Adequacy of intervening transmission
c) Transmission/wheeling charges
d) Treatment of transmission losses
e) Energy accounting, scheduling, metering and UI Settlement.
The present level of inter-regional electricity exchange is still quite limited and the constraints for enhancing the same are the relative lack of commercial awareness with SEBs, lack of proper market mechanism (absence of tariff structure to promote merit-order operation and encourage trading of power), inadequate transmission capacity, lack of statutory provisions for direct sale by IPPs/CPPs/ Licensees outside the State, grid indiscipline and financial viability of State Utilities, among others.
EXAMPLE: Suppose a company from Maharashtra wants to sell 100 MW to a Discom-A in Andhra Pradesh.
Following steps need to be taken:
a) The company and Discom-A to agree on terms and conditions of sale
b) The company to get the consent of MSEB and "no-objection" of MSERC
c) Discom-A to get the consent of APTransco and "no-objection" of APSERC.
d) MSLDC and APSLDC to ascertain transmission adequacy, and agree to arrange necessary metering, scheduling, energy accounting and UI settlement.
e) WRLDC and SRLDC to ascertain transmission adequacy in their regional transmission systems.
f) All concerned to have a common understanding about treatment/sharing of transmission losses, and levy of transmission/ wheeling charges for the use of intra-State and inter-State systems
IMPACT OF “OPEN ACCESS SYSTEM” ON DISCOM’S:
Electricity Act 2003 has mandated that with immediate effect open access should be implemented. While everyone accepts that it may serve the consumer interests, there are two contradicting views regarding the implications of the open access system on the electricity entities especially the DISCOMs. The first view is that competitive power generation will bring down the ultimate costs to the consumers. Cost reduction is possible only by reducing the T&D losses, keeping under control the operating costs and keeping the additional power purchase costs low. Given the facts that power purchase costs keep increasing and the HT tariff has been mandated to be brought down closer to the average costs (thereby reducing t
J.P. Sharma
(Querist) 10 June 2010
Thanks a lot belatedly.
