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Open access in power transmission allowed

By Our Special Correspondent

NEW DELHI NOV. 17. The Central Electricity Regulatory Commission (CERC) today introduced competition in the power sector by allowing open access in the transmission system to power generating and distributing companies with immediate effect.

"All transmission service providers, including the Powergrid Corporation (PGCIL), shall provide non-discriminatory open access for inter-State transmission to any distribution company, trader, generating company, captive plant or any permitted consumer,'' a CERC statement said.

The move would create options for distribution companies and bulk customers for buying power, the regulator said, adding that this would facilitate competition in the power generation industry.

The Commission has also ordered that the open access customers would have an option like the existing beneficiaries to enter into long-term bulk power transmission agreement for use of the inter-State transmission system and in such a case, the transmission service charge would be determined according to the tariff norms notified by the CERC.

The New Electricity Act, 2003 had mandated open access in transmission from the date of its enactment. As per the CERC order, the nodal agency for long-term access would be the Central Transmission Utility (CTU), which is PGCIL at present.

The CERC has categorised open access customers into two broad categories — short-term customers, who intend to avail themselves of transmission services up to one year and long-term customers, intending to avail themselves of transmission access for five years or more.

Allotment priority of long-term open access customers would be higher than the short-term customers, it said adding that the original beneficiaries who are at present connected to regional grid and the new-long term customers would be treated at par.

In the event of transmission constraints, all short-term customers would be curtailed first, followed by long-term customers, the regulator said. The nodal agency for short-term access would be the Regional Load Dispatch Centre (RLDC) of the region in which the point of drawl is located.

According to the CERC order, application processing fees of Rs 1lakh would be charged from long-term customers and the request for transmission access would be processed by the nodal agency in a time-bound manner.

The maximum processing time for availing of long-term service would be 90 days, whereas the maximum time for availing of the service up to one month would be seven days.

According to the CERC, any open access customer directly connected to the Central Transmission Utility transmission network would be treated in an identical manner as the existing entities and would be liable to pay unscheduled energy intercharge charges as per the availability based tariff for any deviations in energy schedule.

The availability based tariff system had been implemented by the CERC in all the five regions of the country and has built-in mechanism for energy accounting in respect of any deviations from the declared schedules. The CERC has recommended that the same methodology and procedure for energy accounting should also be implemented at the State level also.

It would be mandatory for all open access inter-State transmission customers to provide special energy meters with requisite communication facility as per the requirement of Regional Load Dispatch Centre or the Central Transmission Utility and these meters would have to be tested and maintained in good condition, the CERC added.

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