Letters: Open access myths

This refers to ‘Ending power monopolies’ (September 8). The idea that open access is a panacea for all the sector’s problems is falling in the trap of armchair theoreticians such as those in the Planning Commission who are responsible for holding back the country’s development in the infrastructure sector.

Open access refers to the concept of selling power in a licence area that is controlled by some other company. So, BSES can sell power to North Delhi Power Limited’s (NDPL) subscribers just as NDPL can sell to BSES customers. Under this arrangement, a subscriber in a BSES area is no longer dependent upon what BSES does in her locality — instead, she is dependent upon what NDPL does. That is the theory.

The reality is that the customer has to live in a BSES area and so it is unlikely NDPL will ever be able to service the client’s complaint in the BSES area. The reality is also that open access will not drive down prices as is widely argued.

As long as there is a shortage of electricity prices will always remain high. Open access will not reduce this as, in itself, open access does little to increase the supplies of electricity.

Vikram Thakur, New Delhi

Readers should write to:
The Editor, Business Standard,
Nehru House,
4, Bahadur Shah Zafar Marg,
New Delhi 110 002,
Fax: (011) 23720201;
letters@bsmail.in