2. In this presentation
• Open Access present scenario
• Barriers to Open Access
• Enablers for facilitating Open Access
3. Status of Open Access
• Electricity Act, 2003 envisages implementation of open access for
1MW+ customers by January, 2009
• IEX is a pioneer in operationalisation of retail open access, first
transaction was in August, 2009
• Several operational and regulatory challenges have led consumers
to choose partial open access and not full open access
• Consumer maintains its supply agreement with local distribution
company and leverages market for economical reasons and/or
contingency power.
5. State-wise Open Access Consumers at IEX
(As on 30th June 2013)
597
499
303
226
146
121
40
26
11 8 4 3 5
0
100
200
300
400
500
600
700
No.ofOpenAccessConsumers
State-wise OA Consumers at IEX
Today almost 2000 plus consumers are availing OA through IEX
8. OA consumers constitute 40-45%
of volumes traded at IEX in DAM
472 541 563
748
1128 1121
1211
1147
1308
1090 1116
1535
1879
2242 2259
2115
0
500
1000
1500
2000
2500
ClearedVolume(MUs)
Month
DAM Monthly Cleared Volume
9. OA status in India
Northern Region
States Buy Sell
Haryana
Punjab
Rajasthan
HP
J&K
Uttaranchal
Delhi & U.P.
East & North Eastern Region
States Buy Sell
Assam & Bihar
Manipur & Mizoram
Tripura & Sikkim
Jharkhand
Arunachal Pradesh
Meghalaya
Orissa
West Bengal
Western Region
States Buy Sell
Madhya Pradesh
DNH & DD-UT
Gujarat
Chhattisgarh
Maharashtra
Southern Region
States Buy Sell
Andhra Pradesh
Karnataka
Tamil Nadu
Kerala
20-Sep-13
10. Open Access is a win-win solution
for all stakeholders
Industries
• Reliable power supply
• Source cheaper power
• Save the value of lost load (VOLL)
State utilities (Discom &
SLDC)
• Cost savings , need not have to buy
costly power as per merit order
• Serve retail consumers better
• Financial gains through open access
charges
State
• Increase in per capita consumption
• Revenue addition in terms of taxes
• Build up in generation capacities
• Employment generation
• Promote industrial & economic
growth
Retail Consumers
• Increased availability
• Better reliability of power
• Benefits trickle down to consumers in
terms of low prices of products
Open Access
Benefits
11. In this presentation
• Open Access present scenario
• Barriers to Open Access
• Enablers for facilitating Open Access
12. • High Cross subsidy surcharge
• High wheeling charges
• Additional surcharge
Regulatory Risks
• Certain statutes in the EA 2003 (Section
11, Section 37, Section 108, etc.) exploited
by States to impede open access
Legislative
Impediments
• SLDC – unequipped or unwilling
• Procedural Bottlenecks
• Physical infrastructural constraints
Operational
Hurdles
Barriers to Open Access
13. • Restrictive Open access regulations across states:
Punjab: High wheeling charges (Rs 1.19 per Kwh)
Haryana: Only RTC & peak hour procurement
Gujarat and Haryana: Proposal by DISCOMS to levy additional surcharge
West Bengal: OA charges are prohibitive; CSS not determined in
consistence with mechanism prescribed under NTP 2006
Tamil Nadu: Section 11
Maharashtra: OA applicants required to go through MERC
UP/Delhi/ Jharkhand/East& NE: Resistance by utility
14. In this presentation
• Open Access present scenario
• Barriers to Open Access
• Enablers for facilitating Open Access
15. Open Access Charges
•Sec 42 (2) :“….Provided also that such surcharge and cross subsidies shall be
progressively reduced in the manner as may be specified by the State Commission…”
•NEP, 2005 Sec 5.8.3: “…..the amount of surcharge and additional surcharge levied
from consumers who are permitted open access should not become so onerous that
it eliminates competition…….”
•Tariff Policy 8.3.2: Tariff to be +/-20% of cost of supply by 2010-11
Implement existing statutes in EA 2003 and NTP 2006
16. Legislative reinforcement
•Strengthen Sec 11, 37, 108 to remove ambiguity and facilitate OA
•Sec 11: OA to generators restricted by state government by citing extraordinary
circumstances
•Sec 37: State governments can direct LDC to restrict power sale outside state in
lieu of maintaining smooth and stable supply
•Sec 108: Directions of state government will prevail where public interest is
involved
•Sec 42(4) : Define uniform methodology of determination of additional surcharge
•Tariff Policy 8.5.6: “…In case of outages of generator supplying to a consumer on
open access, standby arrangements should be provided by the licensee on the
payment of tariff for temporary connection to that consumer category as specified
by the Appropriate Commission…”
Strengthen EA 2003 by expanding, restricting and/or clarifying scope under certain statues concerning OA
17. Streamlining operational hurdles
• Segregate ‘content’ and ‘carriage’ business
• SERC to allow financial segregation of charges in terms of energy charge, network
charge, network loss and surcharges and insist Discoms to reflect these charges in
their consumer bills.
• MERC has already taken a lead
• Equip SLDCs
• Use revenue accrued to SLDC from OA consumers for developing Infrastructure, and
building capacity ……. 100 OA consumers with an SLDC imply a yearly revenue of
appx Rs 7 crores.
• SLDCc can embrace technology to automate processes for NOC issuance, energy
scheduling and energy settlement….IEX has introduced SLDC interface to help
manage NOCs of customers in the state of Punjab and Tamil Nadu. Other states may
adopt it too.
• Open Access Registry (OAR)
• OAR will bring in transparency and facilitate faster transactions using automatic
rule-based open access clearance while removing manual discretions
18. OAR Framework
OA Applicants LDCs
Financial
Institutions (in
future)
Regulators
Stakeholders
OAR
• Store information of all OA consumers
•Store information on all OA granted
• Info on inter-state corridor available for
STOA as uploaded by NLDC/RLDC
• Info on availed STOA corridor
19. Open Access Registry
• An integrated IT based system where all OA approvals will be kept as depository in
electronic form and hence carry out the STOA Transaction.
• Registry will function as an interacting medium between the OA Participants, Trade
Intermediaries/PXs and National/Regional and State LDCs.
• It will act as a central mechanism for consolidating and settling transactions instead of
the NLDC/RLDCs settling each trade individually amongst themselves.
• The OA Approval will be held in the form of electronic accounts and the registry system
revolves around the concept of paper-less trading.
• It maintains current status of NoCs, STOA Approval for participants and Record of
Information will be available to CERC, System Operators, OA Customers, Traders and PXs.
20. Benefits of OAR
- No need to issue separate
clearances for bilateral and
collective
- Reduced transaction cost
and less paperwork
- Information of beneficiary
and transactions is readily
available
- Easy record keeping,
facilitates movement &
safekeeping of approvals
- Enabler for progressive,
investor friendly image and
easy customer interface
- Reduces chances of fraud
- Faster and efficient
scheduling and change over
from one segment to
another.
- For OA accounting and
database
- Operated & maintained by
independent body
22. Carriage Charges in Select States at 33kV Level
STU Charge
(Rs./ kWh)
STU Loss
(%)
Wheeling Charge
(Rs./ kWh)
Wheeling Loss
(%)
Punjab 0.27 2.50% 1.19 2.26%
Tamil Nadu 0.082 2.95% (incl.
wheeling loss)
- Included in
state loss
Andhra
Pradesh
(CPDCL)
0.09 3.53% .096 3.92%
Gujarat (all
DISCOMs)
0.03 4.81% 0.12 10%
Rajasthan
(JVVNL)
0.37 4.20% 0.11 3.80%
23. Cross Subsidy & Additional Charges in States
Cross Subsidy Surcharge
(Rs./ kWh)
Additional Surcharge
(Rs./ kWh)
Punjab 0.85 (all voltage levels) -
Tamil Nadu 3.50 - 3.61 (Presently Sub judice
in High Court)
-
Andhra Pradesh (CPDCL) 1.30 – 3.58 at 33KV (Proposed) -
Gujarat (all DISCOMs) 0.45 (all voltage levels) 1.35 (Proposed)
Rajasthan (JVVNL) 0.05 - 0.18 -
Cross Subsidy surcharge is a charge levied on OA consumers to meet the current
level of cross subsidy within the area of supply of distribution licensee
Additional Surcharge is a charge paid by OA consumers to meet the fixed cost of
distribution licensee arising out his obligation to supply
24. Landed Cost to Consumer accessing DAM at IEX
Landed Cost to Consumer
(Rs./ kWh)
Punjab 5.80
Tamil Nadu 3.51
Andhra Pradesh (CPDCL) 3.75
Gujarat (all DISCOMs) 4.38
Rajasthan (JVVNL) 4.21
Assumptions:
- Price at which procured from IEX = Rs.3/kWh
- Consumer connected at 33kV level
- Consumer load = 1 MW
- Calculating landed cost after adding POC, STU & Wheeling Charges & losses, NLDC operating & application
charges, SLDC charges, IEX transaction charges