Eco Survey silent on open access to consumers

It only mentions that inter-state short-term access is now fully functional

Open access to consumers especially for 1 Mw and above is yet to take off on a large scale. However, the Economic Survey is completely silent on this aspect, though it does mention that open access at the inter-state level is now fully functional.

Open access refers to the free sale of electricity by distributors to consumers and is seen as a tool for fostering competition among power suppliers

During 2011-12, 66,987 million units (MU) of inter-state short-term open access transactions (including bilateral and collective) were approved for sale. During 2012-13 (up to November 2012), sale of 48,008 MU has been approved through 21,185 inter-state bilateral and collective short-term open access transactions.

The facilitative framework created through the Central Electricity Regulatory Commission (CERC) (Open Access in Inter-State Transmission) Regulations 2008 has provided regulatory certainty for the sellers and buyers through market access and also the security of payment against default by buyers. Further, CERC also notified the regulations concerning grant of connectivity, long-term access, and medium-term open access in inter-state transmission in 2009 and regulations for approvals for execution of the interstate transmission scheme in 2010 to ensure development of an efficient, reliable, coordinated, and economical inter-state electricity transmission system based on the long-term access sought by generation developers.

However, despite these regulatory initiatives and power ministry's intervention, states are reluctant to implement open access at state level largely due to existence of cross subsidies in tariff (distribution companies resist losing paying/subsidising consumers), non impartial role of state load dispatch centres (SLDCs), high level of open access charges and non availability of surplus power at reasonable rates.

Moreover, states are invoking section 11 of the Electricity Act, 2003 which empower them to give direction to generating companies to operate and maintain generating stations under “Extraordinary Circumstances.” States including Karnataka, Tamil Nadu, Odisha and Andhra Pradesh have invoked section 11 to prohibit export of power from their state treating “power shortages” as extra ordinary circumstances. Several orders of CERC preventing misuse of section 11 have been challenged in the high courts. CERC and power ministry have moved Supreme Court against Karnataka high court order.

Forum of Regulators, a representative body of power regulators has recommended that the expression “extraordinary circumstances” in section 11 should be modified to delete the words “public order” and “such other circumstances.”  FOR has suggested that a proviso under section 11 should be added to stipulate that the direction under this provision cannot be given by the Appropriate Government to deny open access.