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Planing Comission pushes open access in power sector

Daily Post correspondent
Patiala

The Planning Commission is further pushing open access in the power sector. The commission has agreed to the suggestions of the committee on open access and directed it to finalize the report expeditiously.

Sources in the sector said state utilities would provide power to open access consumers at negotiated rates and not regulated ones.

To enable competing suppliers to use the distribution network on a level-playing field, the tariff for distribution companies should clearly specify the energy charges and wheeling charges separately.

Punjab, which has allowed industrial consumers to buy electricity from outside the state through a short-term open access window, has now imposed a cross-subsidy charge. Industrial consumers will have to shell out this extra amount every time they buy power from outside, presumably to stop the state-owned utility in Punjab from bleeding.

After the government adopts the open access policy, Punjab will have to fall in line with the Centre. The distribution licences shall inform all consumers of one MW and above that they can choose their electricity supplier. The state utilities shall provide power to open access consumers at negotiated rates, not regulated rates.

The committee recommended that 25 per cent of the Centre’s discretionary allocation of 15 per cent of Central power sector units (CPSU) generating capacity may be made available for direct sale to open access consumers. As for new capacity of CPSUs, 50 per cent of the unallocated quota might be reserved for sale to these consumers. The sale prices might be determined by bidding. The profits made by the CPSUs might be shared equally with the respective states, where open access consumers were located.

The state electricity regulators should ensure enabling arrangements such as standby supplies at affordable prices, metering and settlement and small generators should be allowed to bring power into the market without any hindrance in grant of open access.

The state authorities should be advised to permit free sale of electricity and not compel generators to sell electricity to the SEB in the state except where a power purchase agreement exists.

State load dispatch centres (SLDCs) shall be upgraded in a time-bound manner to enable open access.

The state governments should be advised to set up SLDCs as independent entities with financial and operational autonomy. These should be upgraded in a time-bound manner.

The Central government should not permit supplies

from the unallocated Central quota of CPSUs to be sold by a recipient state and/or its utilities outside the recipient state either directly or through intra-state to deficit states at prices exceeding the regulated tariff and a margin of 4 paise per unit, which was the permissible trading margin.