Open Access : An Introduction


OPEN ACCESS

What? :- Open Access is one of the most important features of the Electricity Act 2003.  Open Access can be defined as a non-discriminatory provision for 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 appropriate commission.

Why? :- Open access in transmission has been introduces to promote competition amongst the generating companies who can now sell to different distribution licensees across the country. This should lead to availability of cheaper power. It helps large consumers particularly the sick textile, cement and steel industrial units by ensuring regular supply of electricity at competitive rates and boost business of power bourses.
Under Open Access distribution, companies and eligible consumers have the freedom to buy electricity directly from generating companies or trading licensees of their choice and correspondingly the generating companies have the freedom to sell to any licensee or the any eligible consumer.

Category? :-
On the basis of location of buying and selling entity, the open access is categorized as:

Inter State Open Access: When buying and selling entity belongs to different states. In this case CERC regulations are followed. It is further categorized as:
Short Term Open Access (STOA): open access allowed for the period of less than one month.
Medium Term Open Access (MTOA): open access allowed for a period of 3 months to 3 years.
Long Term Open Access (LTOA): open access allowed for a period of 12 years to 25 years.
* If suppose you require open access for two months, then you should re – apply for STOA before the expiry of first month.
Intra State Open Access:  When buying and selling entity belongs to same state. In this case SERC regulations are followed. It is further categorized as STOA, MTOA, and LTOA and the duration of which depends on the respective state open access regulations.

Transactions Type? :-
In general the buyer and seller of electricity can go for bilateral or collective transactions.
Bilateral transactions:  In this transaction, a PPA is signed between the buyer and seller, which is generally facilitated by a trader for a little margin.
Collective transactions: In this transaction the electricity is traded through exchanges, by exchange members for a very small margin fixed by commission. Currently India has two exchanges PXIL and IEX.

Charges? :-
A consumer who is permitted open access will have to make following charges
Connectivity Charges
PoC Charges
Transmission Charges
Transmission Losses
Wheeling Charges
Wheeling Losses
Cross Subsidy Surcharge
SLDC Charges
RLDC Charges
Renewable purchase obligation (RPO)



Some Different Open Access regulations companies? :-
Rajasthan Open Access Regulation
Maharashtra State Electricity Transmission Company Ltd
Andhra Pradesh Open Access Regulation
Punjab State Electricity Transmission Company Ltd
Gujrat Energy Transmission corporation Ltd
Tamilnadu Transmission corporation Ltd

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