India to allow Open Access System for power cos
2009-02-18 13:15:00

NEW DELHI: Soon it may be possible for power producers to sell 3% of their power capacities through open access systems to distributors of their choice.

A Committee appointed by Prime Minister, Dr. Manmohan Singh on Open Access will shortly finalise its recommendations, making it mandatory for power generators to sell off 3% of their power capacities through open access system, according to B K Chaturvedi, Member (Power), Planning Commission of India.

Disclosing this at ASSOCHAM organized Conference on `Open Access: Vision for Competitive Power Market in India’. B K Chaturevedi also said that the Planning Commission would also recommend that the 3% ceiling could be expanded to ensure that power distributors are able to capture 10% market through open access system.

Chaturvedi said that despite strong political opposition at state level, the Planning Commission would be incorporating this ceiling in its advisory to the Prime Minister so that a strong open access system for power distribution is put in place.
According to him, after this decision is approved of, power generators in any locations can initially sell off 3% of their total capacities to consumer of their choices in any locations.

Chaturvedi also disclosed that the government would put in place a strong regulator for open power access as at times of liberalization, it cannot be allowed that one power generator in one location will be required to sell off all its power in one locations and that too at subsidized rates.

“This committee is headed by me and the Planning Commission is going to insist that despite opposition to open access, the centre issues a directive to ensure that at least 3% of power in one particular plant is sold off through open access”, disclosed Chaturvedi.

The Member Planning Commission stressed the need for open access as he felt that there is a strong co-relation between a higher GDP and prolific and fertile power sector as without power, scoring higher GDP is virtually impossible.

According to him, India would be able to add 80,000 megawatt of capacities to its existing capacities during 11th plan period against capacity addition of 20,000 megawatt in 10th plan period. It’s a matter of serious concern that while India is proposing to add 80,000 megawatt of power capacities by 2012, China on the other hand makes the capacity addition of 1 lakh megawatt in 1 year.

T N Thakur, CMD, Power Trading Corporation Ltd said that the open access market has to be created which would be possible provided there is no opposition to it. The CMD PTC also said that it is a matter of great satisfaction that consumers are now demanding free and fair open access which if put in place will attract a large number of investors in the power sector in which still the pubic investment is dominant.