OPEN ACCESS

Open access is available for power purchase or sale by utilities or distribution licencees. However, when it relates to generators and consumers, only some of the States have permitted limited open access. Some are permitting open access to generators if they are connected to central transmission network. While inter-state open access within the limitation of adequate available transfer capability' (ATC) has been operational, intra-State open access has not progressed because of tardy implementation of certain pre-requisites. (http://www.powerind.in/2012/05/open-access-in-power-sector-should.html)

RESISTANCE FROM STATES Reasons-apprehension of the State utilities about flight of industrial consumers from their net; non-availability of surplus power at reasonable rates; irrational open access charges; non-availability of open access infrastructure of metering; and segregation of consumers' lines, among other factors. Even though the cross-subsidy surcharge on open access transactions is mandated under Section 39 and 42 of the Act, erecting a high tariff barrier deters customers from purchasing supplies from outside the jurisdiction of Discoms and runs counter to the tariff envisaged in the National Electricity Policy and Tariff Policy. The National Electricity Policy states that the cross-subsidy surcharge should not be so onerous that it becomes difficult for customers to procure competitive power from the market. For meeting the demand during acute power shortage, it is observed that some States have misused their powers to block the sale of surplus capacity of captive generators to other States, by inappropriately invoking Section 11 of the Act. This de-motivates the generators to sell power through the power trading mechanism, and forces some of them to sell power below market rates. It vitiates the very spirit of the Act. It has forced the Union Ministry of Power to issue direction to Central /State Regulatory Commissions to allow industrial consumers to buy cheaper power from the open market under Section 107 of the Electricity Act. (http://www.powerind.in/2012/05/open-access-in-power-sector-should.html) REQUIREMENTS Some of the basic requirements for availing of open access by consumers are: metering conforming with specific standards; infrastructure to facilitate these transactions; servicing sub-stations to consumers to have the facility to segregate consumer lines;

no objection for scheduling by State Load Despatch Centres and adhering to regulations of SERC/CERC on open access. (http://www.powerind.in/2012/05/open-access-in-power-sector-should.html)

HURDLES Cross Subsidy Surcharge (CSS): Discard the Cross Subsidy Surcharge (CSS) In fact India needs to introduce fair power pricing, and discard subsidies in the power sector all together. Enforce the state utilities to grant open access in an unbiased manner. Enable banking of power Without banking, renewable energy is meaningless owing to its intermittent nature. Upgrade the power grid infrastructure to reduce wheeling and transmission losses More thought has to be given on how India can finance such an expensive overhaul. (http://indianpowersector.com/home/tag/open-access/page/2/)

Open Access Faces Hurdles from Discoms in Rajasthan

Recently, all the Discoms in Rajasthan simultaneously came out with circulars with changes to the open access mechanism. As an example, the key changes made by the circular of the Ajmer Discom (See Comml. AJ-484) are mentioned below: Those consumers that draw power from the Discoms only in an emergency will be levied temporary tariff (50% higher than the normal applicable tariff) They will have to inform the Discoms 48 hours in advance of the inten t to draw such power The Discom will have no obligation to supply power to them Those consumers that draw power from both the Discom and other sources will also have the 48 hour prior intimation requirement. Also, once the decide to draw power from a source other than the discom, they will have to do so for the entire 24 hour period. They will also have additional surcharges during peak hours. To top it all, the Ajmer Discom gave 4 days to the industry to choose which option they would like to go with These changes will obviously make the open access proposition a non-starter. The 48 hour prior notice requirement is a big hindrance. At the same time the 24 hour block provision will make the purchase of power from power exchanges un-viable. The higher tariffs will hurt too. To be fair to the Discoms, the need for prior intimation is well appreciated it will enable them to plan their power procurement better. However, there are better way to achieve thatAs for the circulars, RERC has put a stay on them for the time being, after several industries applied for relief. (http://reconnectenergy.com/blog/tag/open-access/)

Maharashtra allows open access for CPP

Open access is now open for Fossil fuel-based captive power plants (CPPs) with power demand of 1 MVA and above in Maharashtra. The following important points were highlighted: 1. It would be the responsibility of the generator to supply the generation data. In case of non-cooperation or non-submission of generation data in 15-minute time block by the relevant authority like the state-level despatch centre, the consumer would be required to pay the monthly bill as per its tariff without any credit adjustment. 2. The open access consumer and the generator would have to comply with MahaVitarans metering requirement in totality. 3. In case if the net energy received at the drawal point every 15 minutes time block is less than the net energy actually consumed during the corresponding 15 minutes time block, the excess energy consumed by the open access consumer during the said 15 minutes time block would be considered as overdrawl from MahaVitarans grid and would be billed at the rate applicable from time to time. 4. In case of distribution open access, transmission loss would be deducted and transmission charges at Rs 0.29 per unit would be recovered by MahaVitaran. 5. The open access consumer would also have to apply for transmission open access, if the injection point or the drawal point is connected to an EHV (more than 33 kV) network.

(http://reconnectenergy.com/blog/tag/open-access/) KARNATAKA ISSUE

A notification issued by the Karnataka government forbidding power suppliers to distribute outside the State. the Karnataka Government has notified that the demand for power will rise by about 10 per cent to about 200 million units and the only option available is to tap the power exported to other States. if such a scenario persists it will severely hit growth and development process in the power sector and power-deficit states such as Andhra Pradesh, Madhya Pradesh, Maharashtra and Punjab in all probability might soon follow suit. Out of the total 12,366 mega watts (MW) installed capacity of power utilities in Karnataka as on August 31, 2011, with a share of about 34 per cent private sector accounted for about 4,241 MW. In Karnataka in 2010, for instance, JSW Power was stopped from proceeding with sale of power to a Tamil Nadu state buyer. (http://indianpowersector.com/home/tag/open-access/page/2/)

SOME CASES ON DENIAL OF OPEN ACCESS CASE-1

In the matter of non approval of Open Access communicated by Southern Regional Load Despatch Centre on ground of non- receipt of consent from SLDC-OPTCL for transmission of power generated by Nava Bharat Ventures Ltd through M/s. Reliance Energy Trading Ltd, to the distribution utilities in Andhra Pradesh.

Commissions(CERC) observations: There is no transmission constraint or congestion as accepted by Orissa State Load Despatch Centre.

The requirements of procuring and erecting PLCC and other communication equipment have already been complied with by the petitioner. Neither Orissa Grid Code nor the Orissa State Electricity Regulatory Commission orders put any restriction in granting open access. Commission did not find any justification for denial of open access on the ground of lack of facilities for real time monitoring. RULING:- Commission directed that open access shall be allowed as required by RETL since there are no transmission constraints and surplus transmission capacity is available on the intra-State transmission systems. CASE-2 RAJASTHAN

In the matter of petition for direction to RRVPNL to pass order on concurrence as per the Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2008. Taking a stern view of denial of open access by Rajasthan SLDCs, CERC issued show cause notices to Rajasthan SLDC and Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RRVPNL) to explain why action should not be initiated against them for violating the CERCs regulations on open access in inter-State transmission. The complaint was filed by Gujarat Flurochemicals Ltd. (GFL), a company that owns wind generation facility in the Jaisalmer district of Rajasthan.

CASE-3
VSL had executed a PPA initially with KPTCL to supply power to HESCOM. As per PPA, in the event of any payment default by HESCOM for a continuous period of three months, VSL can sell power to third parties. HESCOM has defaulted payment for more than 3 months. Further, VSL entered into a PPA Tata Power Trading Company Limited for sale of 7.5 MW of power on round-the-clock basis and for that Tata Power Trading sought open access which was denied by KPTCL on ground of its previous PPA with VSL. RULING: The Commission observed that as an independent operator and statutory body under the Electricity Act, 2003, SLDC should consider the applications for open access in an impartial manner and in line with provisions of Electricity Act, 2003 and the open access regulations. Any denial of open access on considerations other than those prescribed under the law and taken note of in the above analysis, will attract the penal provisions of the Electricity Act, 2003.

(www.assocham.org/events/recent/event_352/S_K_Chatterjee.ppt)