Regulatory hurdles trip open access market for energy consumers: ICRA

Regulatory hurdles like high cross subsidy charges and resistance from utilities are affecting the growth of open access market for energy consumers, domestic ratings agency Icra said.

“…regulatory challenges, especially levy of high cross-subsidy surcharge (CSS) and other charges, and resistance from utilities is adversely impacting power generating companies (gencos) and high tension (HT) customers and thus affecting the growth of the open access market,” Icra said in a release.

“ICRA notes that the high level of open access charges to avail energy supply by HT consumers, primarily owing to the increase in CSS coupled with the levy of additional surcharge by regulators in a few states like Andhra Pradesh, Gujarat and Rajasthan, has constrained procurement from the open market for such consumers.

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