Open access in power facing challenges on execution front, say experts
Tuesday, March 27, 2012

New Delhi: Speedy implementation of open access system in the power sector will help bring in competition and efficiencies, thereby benefiting the customers, experts said today at a conference organised by industry body ASSOCHAM.

However, cross subsidy surcharge, metering issues and non-implementation of intra-state availability based tariff remain as major hindrances at present, said Mr Sushil Maroo, co-chairman of ASSOCHAM National Council on Power, and deputy managing director and group CFO of Jindal Power Ltd.

Inaugurating the conference titled "Open Access – Competitive Environment for Power Sector," Mr Maroo said that given changes underway in the market, the role of a power regulator will be crucial.

With tremendous increase in power generation by the private sector, the need of hour is to ensure speedier implementation of open access to bring in efficiencies.

Mr Satish Jindal, co-chairman of ASSOCHAM National Council on Power, and director and COO of JSW PTC Ltd, said many states are still not allowing bulk consumers to purchase power from open market. Though the power ministry has clarified that bulk consumers are deemed open access consumers and can procure power from open market, the same is not being implemented in true sense.

Mr. Jindal added that some states are imposing cross subsidy charges. Availability of transmission capacity is another issue which is affecting the open access. "Due to non-availability of corridor for the southern region, power cannot be sourced from other regions.

Others who also spoke on the occasion were Mr H.L. Bajaj, former chairman of Central Electricity Authority, and Mr Amulya Charan, chief mentor at Power Trading and Advocacy, Tata Power Company Ltd.