WB,MP reject Centres new interpretation of open access

Open access is a reform provision in the Act under which consumers are empowered to choose the electricity supplier of their choice

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The Centres new interpretation of open access in the Electricity Act,2003 that distribution companies need not provide power at regulated tariffs to industrial consumers,has led to a chaotic situation with certain states such as Rajasthan asking such consumers to make their own arrangements. Open access is a reform provision in the Act under which consumers are empowered to choose the electricity supplier of their choice.

Some other states such as West Bengal and Madhya Pradesh,however,view the Centres interpretation in different manner. West Bengal has trashed it,having received an opinion to the contrary from its Attorney General. Madhya Pradesh,on the other hand,said this would deprive its electricity board of its paying industrial consumers since they will be free to procure power from other utilities.

According to officials in the government,the stage is set for a yet another slugfest between the Centre and the states. On the issue of open access,the Power Ministry,after getting the Union Law Ministrys opinion,is of the view that the service obligation of distribution companies to provide electricity at regulated tariffs to industrial consumers no longer apply. What this means is that industrial consumers who get power from the discoms at tariffs fixed by the regulatory commissions,will now have to buy more expensive power from the market. The move could further dent Indias industrial competitiveness.

In Rajasthan,following the state power utilitys notices to all industrial consumers,consumers have moved a petition with the regulator. The provision of open access,which seeks to introduce the concept of choice for the consumer and create competition,provides for non-discriminatory8230; use of transmission lines or distribution systems with such lines or system by any licensee or consumer or person engaged in generation in accordance with the regulations specified by the Appropriate Commission.

So far,the issue of open access has been viewed as an option to be exercised by qualified consumer those with load of over 1MW. The new interpretation by the Ministry of Law and Justice,adopted by the Power Ministry,legal opinion concludes that Discoms are not obliged to supply power to such consumers.