The government is set to allow open access for bulk consumers of electricity on payment of a surcharge in addition to the wheeling charges. This would mean that big industries and large commercial or residential complexes could purchase power directly from the generators.
According to the Draft Electricity Bill, 2001, prepared by the power ministry, the wheeling charges and surcharge would be determined by the appropriate regulatory commission, and would be used for providing subsidy to the supply of electricity to rural areas.
A senior power ministry official told Business Standard that the surcharge will take care of the cross subsidy for supply of cheaper power to rural and less remunerative areas. The surcharge will be in place till the cross subsidies are not eliminated, he added.
The Bill which is likely to be introduced in the ongoing monsoon session of Parliament, has also proposed open access of the transmission lines to the distribution licensees and the generating companies at the outset.
Power ministry sources said that the provision has been a major step forward from the NCAER suggestion of allowing open access to the transmission lines in phases determined by the State Commission. Prescribing a time limit for allowing open access may not be reasonable, they said. Sources said that the provision would balance the interests of the generators/bulk consumers on the one hand and the rural/weaker sections on the other hand.
Though liberal on open access, the ministry however, has not allowed trading of power in the Draft Electricity Bill, 2001. Sources said that trading in power has been banned to ensure fair play in the supply of power.
They added that the NCAER suggestion that transmission and supply of electricity throughout the country should be free from any inter-state barriers or restrictions, has also not been included in the Draft Bill as the provision would have been considered by the states as an attempt to intrude into their domain.
Officials said that the ministry was in the process of giving final shape to the Electricity Bill in consultation with the experts, finance ministry and the Planning Commission so that it could be introduced in the monsoon session.
They, however, added that any further delay in finalising the Bill would make it difficult for the ministry to introduce it even in the current session of Parliament.
