Lok Sabha Question No. 1937 (UNSTARRED), answered on 2015-12-10
Subject: Open Access Policy
Ministry: POWER
Asked by: RAMA DEVI, SAKUNTALA LAGURI

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1937 TO BE ANSWERED ON 10.12.2015

## OPEN ACCESS POLICY

†1937.  SHRIMATI RAMA DEVI: SHRIMATI SAKUNTALA LAGURI:

Will the Minister of POWER be pleased to state:

- (a) the details with regard to the Open Access provisions contained in Electricity Act, 2003;
- (b) whether open access provision is not being implemented in the country; (c) if so, the reasons therefor alongwith the various facilities being provided through this provision; and
- (d) the  details  of  assistance  being  provided  under  Open  Access  for  preparing  a competitive atmosphere?

## A N S W E R

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

( SHRI  PIYUSH GOYAL )

- (a) : Open Access has been defined in Section 2(47) of the Electricity Act, 2003. The provisions regarding Open Access to the consumers has been provided in Section 9(2), 38(2), 39(2), 40, 42(2) and 86(1). The relevant extracts of the provisions are at Annex.
- (b) to (d) : Open  Access  to  Inter-State  and  Intra-State  transmission  system  is governed  by  different  Regulations  framed  by  the  Central  Electricity  Regulatory Commission  (CERC)  and  the  State  Electricity  Regulatory  Commissions  (SERCs) respectively.

The Central Commission has notified the Central Electricity Regulatory Commission  (Inter-State  Open  Access  in  Transmission)  Regulations,  2008  and  the Central Electricity Regulatory Commission (Grant of Connectivity, Long Term Access and  Medium-term  Open  Access  in  inter-State  Transmission  and  related  matters) Regulations, 2009 to facilitate Open Access in inter-State transmission of electricity. Open Access at inter-state level is fully operational.

Over  3000  Open  Access  consumers  are  buying  power  through  Power Exchanges.  The details of Open Access availed on Inter State Transmission System during the last five years are given below:

| Total (Bilateral + Collective)   |   No. of Transactions |   Approved Energy (MUs) |
|----------------------------------|-----------------------|-------------------------|
| 2008-09                          |                 15414 |                   30521 |
| 2009-10                          |                 18128 |                   39457 |
| 2010-11                          |                 19883 |                   55232 |
| 2011-12                          |                 24111 |                   66987 |
| 2012-13                          |                 32088 |                   73153 |
| 2013-14                          |                 33917 |                   86973 |
| 2014-15                          |                 38053 |                   80866 |
| 2015-16 (upto Oct., 2015)        |                 28231 |                   61701 |

(Source: POSOCO/NLDC)

Open Access at intra-state  level  remains  the  responsibility  of  SERCs. All the SERCs/JERCs have notified Open Access Regulations. High  level  of  cross  subsidy  in  tariff,  High  levels  of  Open  Access charges,  cross-subsidy  surcharges,  lack  of  functional  and  financial  autonomy  of SLDCs, standby charges etc. are some of the factors reported to be responsible for slow pace of Open Access implementation at distribution level. The  provisions  of  Open  Access  in  Electricity  Act,  2003,  regulations framed  by  CERC/SERCs  etc.  have  ensured  competitive  environment  through  Open

Access and have facilitated inter-State trading in electricity.

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## ANNEX REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.  1937 TO BE ANSWERED IN THE LOK SABHA ON 10.12.2015.

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## Different provisions regarding Open Access provided in the Electricity Act 2003

Section 2(47) Definition of Open Access :  'open access' means 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;

Section 9 Captive Generation :-

- (2) Every person, who has constructed a captive generating plant and maintains and operates such plant,  shall  have  the    right  to  open    access  for  the  purposes  of  carrying    electricity    from  his  captive generating plant   to the destination of his use:

Provided that such open  access shall  be subject to availability of adequate transmission facility and such  availability of transmission  facility shall be determined by the  Central  Transmission  Utility or the State Transmission  Utility, as the  case  may be:

Provided further that any dispute regarding the availability of transmission facility shall be adjudicated upon by the  Appropriate Commission.

Section 38 (2) The functions of the Central Transmission Utility shall be -

- (d) to provide  non-discriminatory open access to its transmission  system for use by-
- (i) any licensee or generating  company on payment of the transmission charges; or
- (ii) any  consumer  as  and  when  such  open  access  is  provided    by  the  State  Commission under sub-section (2) of section 42, on  payment  of the transmission  charges and a surcharge thereon, as may be specified  by the Central  Commission:

Provided  also that such  surcharge shall not be leviable in case open access is    provided  to a person who has established a captive  generating   plant  for  carrying  the electricity to  the destination of his own use.

Section 39 (2) The functions of the State Transmission Utility shall be -

- (d) to provide  non-discriminatory open access to its transmission  system for use by-
- (i) any  licensee or generating  company on payment of the transmission charges ; or
- (ii) any consumer as and when such open access is provided  by the State Commission under sub-section (2) of section  42, on  payment  of the transmission  charges and  a surcharge thereon, as may be  specified  by the State Commission:

Provided also that  such surcharge shall not  be leviable in case open access is provided  to a person  who  has    established  a  captive  generating    plant  for  carrying    the  electricity  to    the destination of  his own use.

Section 40. (Duties of transmission licensees): It shall be the duty of a transmission licensee-

- (c) to provide non-discriminatory open access to its transmission system for use by-

(i) any licensee or generating company on payment of the transmission charges; or

- (ii) any consumer as and when such open access is provided by the State Commission under subsection (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission:

Provided  also  that  such  surcharge  shall  not  be  leviable  in  case  open  access  is  provided  to  a person  who  has  established  a  captive  generating  plant  for  carrying  the  electricity  to  the destination of his own use.

Section 42 (Duties of distribution licensee and open access): --(2)  The  State  Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the  appointed  date  by  it  and  in  specifying  the  extent  of  open  access  in  successive  phases  and  in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints: Provided that such open access shall be allowed on payment of a surcharge in addition to the charges for wheeling as may be determined by the State Commission: Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee: Provided also that such surcharge and cross subsidies shall be progressively reduced in the manner as may be specified by the State Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use. Provided also that the State Commission shall, not later than five years from the date of commencement of the Electricity (Amendment) Act, 2003, by regulations, provide such open access to all consumers who require a supply of electricity where the maximum power to be made available at any time exceeds one megawatt. Functions of State Commission Section 86: --- (1) The State Commission shall discharge the following functions, namely: (a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Provided that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;

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