Why all the regulatory commissions in India are killing the Open Access?

While the Govt of India is working on new Electricity act to provide the Open Access option to all the electricity consumers even the LT one.

But all the regulatory commissions are calculating the Open Access charges so high that buying of power through third party or power exchanges becomes unviable.

Open Access means “Non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”.

To avail the open access, consumers above 1MW has to pay certain charges like transmission charges, wheeling charges & cross subsidy surcharge to state distributions companies.

MP electricity regulatory commission in its order dated 17th April 2015 has increased the open access charges so high that it will not be feasible for industrial consumers to buy power from IEX (Indian Energy Exchange).

MPERC has given a big blow to industrial consumers by increasing there power tariff by up to 60 paisa on one hand and increasing the Cross subsidy surcharges by upto Rs 1.65/unit on other hand.A 33KV industrial consumer who is buying power thorough IEX now have to pay Rs 1.67/unit as CSS against the existing 2 paisa/unit.

In spite of Indian Electricity policy directs that CSS should be reduced to Zero but all the regulatory commissions in India are increasing the cross subsidy surcharge year after year. No state is able to specify a road map for decreasing the CSS level.


Amit Antil

After doing Power Management (MBA) from National Power Training Institute (NPTI), Amit Antil is now presently working with Today Green Energy Pvt. Ltd. and looking after business development activities for Solar. Earlier he was associated with leading power trading company Global Energy for 3 years. He has a sound knowledge about bidding, power trading, open access, REC trading, Govt. Liaisoning, Contract Negotiation, Power Purchase Agreement.

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