Practical Problems in Implementation of Open Access
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Practical Problems in Implementation of Open Access

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Mr. Harry Dhaul

Mr. Harry Dhaul
Director General, IPPAI
at RPR 2012, 23-26 August, Goa, India

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Practical Problems in Implementation of Open Access Practical Problems in Implementation of Open Access Presentation Transcript

  • The Regulators & Policymakers Retreat 2012 Practical Problems in Implementation of Open Access The Grand Hyatt, GoaHarry Dhaul 23-26 August 2012Director General, IPPAI
  • Open Access – DISCOMs Challenges Cross Forced USO Subsidy Surcharge ? Revenue Loss UI Exposure – Cherry due to OA picking consumer flip- flop OA DISCOM Workforce (?) Harry Dhaul - Director General, IPPAI
  • Open Access – Regulatory Dilemma Are they Independent enough ??? Do they have enough Willpower ??? Striving hard to maintain DISCOMs sustainability vs. Consumer choice Upsetting revenue balance of State – low end consumers to bear the brunt of increased tariff to compensate for loss of OA consumers Determining the REAL cross subsidy surcharge Handling Reforms envisaged under EA-03’ thru  Under-staffed Commissions &  Un-skilled operational staff Domestic/A HT/Commerc griculture ial Consumer Consumers Harry Dhaul - Director General, IPPAI
  • Open Access – Traders’ Issues  Future of Power Trading ??  Very low margins  Incapability in managing commercial risk due to very low margins  Major buyers; Utilities with “NO” financial credibility  High risk of commercial defaults  Corridor availability Issues in Day-Ahead market: Biggest gainers are Exchange(s)  Small players without market vision playing deterrent role, and causing under-development of market  Players competing on margin rather than in better & innovative product offerings Harry Dhaul - Director General, IPPAI
  • Open Access – Consumer Reality Exorbitant Irrational Cross Subsidy Temporary Surcharges Charges Undesirable hold up ofDeemed reduction OA approvalof Contract Demand Harry Dhaul - Director General, IPPAI
  • A few examples: States’ Vision for Open Access Maharashtra:  Deemed reduction in Contract Demand- consumer reluctant to give up this right  Temporary charges on Over-drawl/Under injection of units -charges are unreasonably high and absurd  Lapsing of energy in Under-drawl/Over injection -not easy for consumers to adhere to schedule due to varying machine cycle and load mix.  Special Energy Meter- MSEDCL empanelled vendor not approved by MSETCL  Cross Subsidy Surcharge – no trajectory of progressive reduction, complying with EA’03 Punjab:  Imposition of CSS has STIFLED OA transactions  Wheeling charges applicable for even STU connected OA customer Harry Dhaul - Director General, IPPAI
  • Ministry of Power Letter on Open Access GO ! OK Maybe Why Implement Ministry’s Letter: State ERCs have their own view point and Consumer choice act accordingly, does that mean SERCs or Compulsion don’t want REFORMS ? Harry Dhaul - Director General, IPPAI
  • MoP Letter on Open Access : Unanswered Questions  Can MoP give directives to SERCs on matters of electricity ?  What motivated MoP to seek clarification, and who asked for it ?  Does that mean it will give Consumer a choice or put Consumers in an unending tussle between DISCOMs & SERCs  Will this lead to separation between wires and supply?  What will happen to DISCOMs’ viability & their future;  What will happen to thousands of DISCOM/SEB employees? Will they be absorbed elsewhere?  Would this lead to phasing out of DISCOMs?  Do DISCOMs have any plans/roadmap to bail themselves out? Harry Dhaul - Director General, IPPAI
  • MoP Letter on Open Access : Unanswered Questions  What will happen to existing long term PPAs due to sudden load reduction of DISCOMs  Does Cross Subsidy Surcharge hold any legal sanctity for consumers having no Contract Demand with DISCOMs  If some consumers do not want to opt for such a scheme what will be the future of such consumers How dare  What will be future of such UMPPs & IPPs you ask for Open Pls., I Access won’t ask for Open Access C D Harry Dhaul - Director General, IPPAI
  • Open Access : Possible way forward  SERCs should implement concept of Deemed O.A approval for consumers with specific timelines in case of abnormal delay in grant of necessary permissions by SLDCs/DISCOMs  UI may be implemented on intra-state basis across states to counter absurd Temporary charges  Forum of Regulators may intervene to rationalize CSS across India to promote consumer OA  CERC should extend support to SERCs for time bound implementation of Open Access reforms in states  SERCs–DISCOMs should work hand-in-hand to create “Consumer Choice” and a win-win situation for all stakeholders Harry Dhaul - Director General, IPPAI
  • The issue is “Choice” of Open Access as enshrined in EA 2003 versus “Mandatory” Open access Let the deliberations begin… Harry Dhaul - Director General, IPPAI