Hurdle faced by Open Access

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  • States discoms & STUs are worried that they may lose potential clients, which will have long term effect on already debt laden discoms & huge profit will go to certain project developers.
  • State such as Maharashtra which having highest tariff in India had opposed this concept of open access in past. Their opinion that allowing open access to wind power-based projects was leading to high profits for developers at the cost of small consumers & these issues have long-term implications and can lead to an adverse impact on the tariffs (rates) of consumers.
  • Some of the states had not allowed the consumer to buy power from multiple sources citing that open access can be given for only one transaction for any consumer.
  • The Electricity Bill 2014 (Amendment), propose to divide distribution companies in to distribution business and the supply business. But there is clarification required in in the settlement mechanisms related to metering, billing and collection.
  • One of the main concern is about cross subsidization for agriculture & domestic users. Amendment lacks in specifying the mechanism & time frame to eliminate subsidy.
  • Infrastructure hurdle which mainly arising due to monopoly of Discoms on network (cable connections). If consumer wants open access there is need of separate network/ cable connections.
  • Lack transmission corridor availability, The current available corridor were planned  only for long term PPA but due to open access it has to accommodate short term supplies.

By Sagar Katkar

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