Report on Open Access – Opportunity Assessment & Implementation
July 1st, 2014

Author: Sanket Gupta & Siddartha Ramakanth

Even after 11 years of the effect of The Electricity Act 2003, Open Access is still a distant dream for many stakeholders of the sector. Reasons may be transmission bottlenecks or political will, the end result is the same. Though bulk consumers trade around 40% of the power traded through leading power exchanges to procure power by-passing the local utilities, serious issues in Open Access still remain. Indian GDP is stalled by 0.4% because of power cuts to the industries as per FICCI and the loss of markets because of higher prices, which is the key resultant of higher power procurement cost, is still not found in books of India Inc. A 100% Open Access implementation throughout India by empowering the infrastructure, consumer and local utility is very much important in the scenario to minimize this loss. More than the government’s will, it is the lack of Infrastructure and the lack of information for the bulk consumers in performing the cost benefit analysis in the respective states of their businesses, which is the reason for very few consumers availing Open Access even in the states which are permitting the Open Access to the fullest. This year after elections, there will be a positive scenario in the Indian markets providing lots of opportunities for the industries to grow globally by imparting the competitiveness in prices by minimizing the cost of power procurement. This report focuses on providing information on costs and benefits which can incur to the consumers by opting Open Access and will actually pave a way to empower the bulk consumers in the state to get the idea on how Open Access in Electricity is going to be a boon for their businesses. The report have the cost benefit analysis of Open access in the major industrially groomed states of the country and the major constraints in its implementation under its sleeves.

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