Power minister asks states for open access

Arguing that the move by certain states to fix price for sale of power to their distribution licencees could adversely affect capacity addition and discourage investment in the 11th Plan period,Union power minister Sushil Kumar Shinde today asked states to operationalise open access as laid down in the Electricity Act 2003 and the National Electricity Policy.

Addressing the state power ministers conference here,Shinde said that under the open access formula generating stations had been allowed to enter the market and sell power directly to high-tension consumers through assured access to grid while paying the distribution company a reasonable wheeling charge. In the recent past,some independent power producers have brought to the notice of the government orders issued by some state governments restricting sale of surplus power within the state only,thereby prohibiting sale to consumers and utilities outside the state. Some states have also issued orders fixing price for sale of power to the distribution licencees within the state. This would also adversely affect the projected capacity addition in the 11th Plan by the private sector…. He observed that unfortunately most regulators had fixed the surcharge at a very high level. Though open access is fully operational in inter-state transmission of power,it had however been permitted in most of the states mainly for captive generation,he pointed out.

Madhya Pradesh,Bihar,Assam,Chhattisgaharh and Orissa were the weakest links on Indias power grid,where large sums of each states electricity were lost to pilfering and transmission shortfalls,said officials during the conference.

Shinde said additional funds to be provided would not solve the challenges for open access and instead,states must use tools like Accelerated Power Development and Reform Programme to see a reduction in power loss and an increase in capacity and access in rural regions. Shinde said his ministry would commence consultations with sectoral experts to expedite the instalment of infrastructure needed to meet the goals of an additional 5,600MW of power by August and 78,000 MW capacity by 2012. He said he would chair an advisory group on power generation comprising experts,retired secretaries and representatives of business chambers and BHEL.