Karnataka, Gujarat to disallow open access to hit Industries

Karnataka and Gujarat Government’s decision to disallow sale of electricity through open access could negatively impact operations of close to 200 industrial consumers, industry chamber CII said. With this decision coming into effect, industrial electricity consumers (consumption of over 1 MW) in Gujarat will now buy power from within the State at Rs 6-7 per unit as opposed to the Rs 4-4.5 per unit charged by power exchanges, it said in a statement.

Karnataka, on the other hand, has restricted power sales within the boundaries of the State, and hence curbing the choice of power generators to sell power to consumers outside the State.

Anil Sardana, Chairman, CII National Committee on Power and Managing Director, Tata Power Company Ltd, said, “Open access is at the centre of the new Electricity Act 2003 and must therefore be supported and pursued by all stakeholders in the electricity business. The consumer’s choice to explore competitive electricity price thereby contributing to economic competitiveness of their products and services is an important aim of the Act. It is hoped that such competitive spirit shall be maintained duly tiding over short term challenges of capacities in transmission system, etc.”

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