| The Electricity Act, 2003 stipulates that open access of power for all consumers with a load of 1 Mw or higher should be introduced within five years. |
| With open access to consumers in place, they will be able to source power from the utility of their choice. |
| The task force has also recommended that the Centre, in consultation with the states and the Electricity Regulatory Commissions, needs to evolve a common power market design within a year. |
| The panel, which submitted its report to the government earlier this week, has said the need for power exchanges should also be evaluated as part of the common power market designs. |
| "An overall power market design guidelines, including the creation of suitable Power Exchange, will need to be developed by the Centre within one year," the report has said. |
| In an eight-point strategy, the task force has suggested a periodical review of the rate of returns in line with capital market conditions. |
| Outlining the need for major distribution reforms, it said Letter of Credit was to be the basic payment security mechanism for generators and transmission companies and states may consider additional payment security if necessary. |
| The task force, in its first report on fiscal measures, had suggested the need for a "transitional period" for reforms to take root. |
| It had proposed wide-ranging fiscal measures, including cut in Customs duty, abolition of special ad valorem duty and tax holiday to step up investments in a bid to bring down tariffs. |
| The task force also recommended measures that would enhance availability of funds for the sector. |
| It suggested facilitating borrowings through the ECB route with adequate hedging, granting priority sector status to investment in rural generation, transmission and distribution, granting SLR status to power sector bonds, providing long term funds coupled with financing by institutions like PFC and REC. |
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