Lok Sabha Question No. 15 (STARRED), answered on 2017-02-02
Subject: Power purchased by Industrial Consumers via Open Access
Ministry: POWER
Asked by: KONDA VISHWESHWAR REDDY

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.15 TO BE ANSWERED ON 02.02.2017

POWER PURCHASED BY INDUSTRIAL CONSUMERS VIA OPEN ACCESS

- *15. SHRI KONDA VISHWESHWAR REDDY:

## Will the Minister of POWER be pleased to state:

- (a) whether  the  Electricity  Act,  2003  and  rules  framed  thereunder  provide healthy competition including open access and if so, the details thereof; (b) the  details  of  States  and  State  power  utilities,  which  have  ventured  into open access of electricity; (c) the  details  of  total  power  purchased  by  industrial  consumers  during  the last two years via open access; the  details  of  industrial  sectors  which  have  bought  the  most  quantum  of
- (d) power through open access during the last two years; and
- (e) the  steps  taken  by  the  Union  Government  to  promote  sale  of  power  via open access?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) to (e) : A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  STARRED QUESTION  NO.15  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  02.02.2017 REGARDING  POWER  PURCHASED  BY  INDUSTRIAL  CONSUMERS  VIA  OPEN ACCESS.

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- (a) : Yes, Madam.    The  Electricity Act, 2003  and  rules  framed thereunder provide healthy competition including open access. The generation  of  electricity  has  been  delicensed  under  Section  7  and  captive generation has been permitted without any license under Section 9 of the Act. Open access has been defined in Section 2(47) of the Electricity Act, 2003 as the  '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.'  Further, Section 66 of the Electricity Act, 2003 empowers Appropriate Commission to develop the power market, including trading, to promote healthy competition.  Also, in compliance  with  the  provisions  of  Section  63  of  the  Electricity  Act,  2003, Union  Government  has  issued  Guidelines  for  procurement  of  power  by DISCOMs through the competitive bidding process.
- (b) : Implementation of open access  at  intra-state  level  remains  the responsibility  of  respective  State  Electricity  Regulatory  Commissions/Joint Electricity  Regulatory  Commissions  (SERCs/JERCs).  In  accordance  with  the provisions  of  the  Electricity  Act,  2003,  the  Appropriate  Commission  frames relevant regulations regarding open access in Transmission and Distribution. As per the information available with the  Forum  of  Regulators (FOR) Secretariat, all the  SERCs/JERCs have framed regulations on open access.
- (c) : As per the information compiled by Central Electricity Authority (CEA),  the  total  power  purchased  by  industrial  consumers  in  day  ahead market  from  Indian  Energy  Exchange  (IEX)  and  Power  Exchange  of  India Limited (PXIL), during the last two years i.e. 2014-15 and 2015-16 is 12.526 Billion Units and 20.362 Billion Units respectively.  The state-wise details as received from IEX and PXIL and compiled by CEA are given at Annex.
- (d) : As  per  information  made  available  by  CEA,  the  two  sectors, metal and textile sectors combined, have purchased 56% & 58% of the total power purchased through open access route by industrial sector during the year 2014-15 and 2015-16 respectively.
- (e) : Electricity is a concurrent subject. The responsibility of promoting and facilitating open access rests with the concerned SERCs/JERCs. However, Ministry of Power facilitates, through various policies under National Electricity Policy and Tariff Policy, to create suitable environment for enabling regulations to provide healthy competition including open access in the power sector.

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ANNEX

ANNEX REFERRED TO IN PART (c) OF THE STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 15 TO BE ANSWERED IN THE LOK SABHA ON 02.02.2017 REGARDING POWER PURCHASED BY INDUSTRIAL CONSUMERS VIA OPEN ACCESS. *********** Details  of  total  power  purchased  by  industrial  consumers  during  the  last  two years via open access on day ahead basis (IEX data)

| State/UTs/Entity     | FY 2015-16 (in million Units)   | FY 2014-15 (in million Units)   |
|----------------------|---------------------------------|---------------------------------|
| Rajasthan            | 5,218                           | 2,903                           |
| Gujarat              | 2,784                           | 1,841                           |
| Haryana              | 1,998                           | 1,062                           |
| Karnataka            | 1,221                           | 414                             |
| Telangana            | 1,051                           | 468                             |
| Dadra & Nagar Haveli | 791                             | 26                              |
| Essar Steel          | 2,261                           | 1,976                           |
| Punjab               | 1,993                           | 746                             |
| Andhra Pradesh       | 319                             | 831                             |
| Madhya Pradesh       | 432                             | 660                             |
| Daman and Diu        | 423                             | 343                             |
| Kerala               | 145                             | 5                               |
| Odisha               | 270                             | 17                              |
| Uttarakhand          | 276                             | 181                             |
| Assam                | 154                             | 30                              |
| Himachal Pradesh     | 277                             | 51                              |
| Tamil Nadu           | 338                             | 311                             |
| Meghalaya            | 205                             | 147                             |
| Delhi                | 4                               | -                               |
| Maharashtra          | 14                              | -                               |
| Puducherry           | -                               | -                               |
| Arunachal Pradesh    | 50                              | 65                              |
| Regional Entity      | 59                              | 307                             |
| Bihar                | -                               | -                               |
| DVC                  | -                               | -                               |
| Goa                  | -                               | 1                               |
| Total                | 20,283                          | 12,384                          |

Details  of  total  power  purchased  by  industrial  consumers  during  the  last  two years via open access in day ahead basis (PXIL data)

| State/UTs/Entity   |   FY 2014-15 (MU) |   FY 2015-16 (MU) |
|--------------------|-------------------|-------------------|
| Gujarat            |            122.64 |             63.6  |
| Rajasthan          |             16.87 |             14.55 |
| Haryana            |              1.68 |              0.02 |
| Punjab             |              0.57 |              0.61 |
| Daman              |              0.12 |              0    |
| Grand Total        |            141.89 |             78.78 |

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