Open Access in All States May Finally Become a Reality

An article in Business Standard mentioned that the Ministry of Power has issued an order to all state governments, power regulators and distribution utilities to implement the open access provisions of the Electricity Act, 2003.
The article further states that “the power ministry had taken the law ministry’s advice before issuing the new instruction on Tuesday”.
Further:

The law and judiciary department said “The provisions of section 42 (3) of the Electricity Act provides that a person requiring supply for electricity has to give notice. If the consumer intends to use the network of the distribution companies, he has to give notice and upon such notice to a discom, it is duty-bound to provide non-discriminatory open access to its network. Section 42 (3) cannot be construed to mean that giving of a notice is a pre-condition for the implementation of open access.”

It said the requirement of a notice was only to communicate the open access consumer’s intention of using the discom’s network in line with the relevant regulations and not to seek its permission for doing so.

The coverage in DNA on the same topic also mentioned the below:

“All 1 megawatt (mw) and above consumers are deemed to be open access consumers and that the regulator has no jurisdiction over fixing the energy charges for them,” the Ministry of Law said in a note to the Ministry of Power.

 
This interpretation is welcome, and much needed. The current practice, which provides discretion to the state utilities to provide open access, or not is a major roadblock. It has done nothing more than give additional discretion in a system that already dosen’t work.
See previous coverage on the topic of Open Access:

• MP Proposes High Cross-subsidy
• Maharashtra Cross-subsidy Declared
• Supreme Court Allows Open Access in Maharashtra

 
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