Powering India's green energy revolution through open access reform

Open access is envisaged as one of the corner-stones of the Electricity Act, 2003 (Electricity Act). Open access means non-discriminatory access to the electricity transmission and distribution system provided to eligible consumers, generators and state distribution companies (DISCOMS).

So far, DISCOMs have imposed heavy non-tariff barriers in the form of operational constraints and state Electricity Regulatory Commissions (ERCs) have approved tariff barriers in the form of cross-subsidy surcharge, additional surcharge, wheeling charge, standby charge, etc. on consumers seeking to avail open access. This makes availing open access uneconomical.

The National Tariff Policy for Electricity, 2016 and the National Electricity Policy, 2005 (NEP) have emphasized the importance of finding a balance between bringing open access to consumers and maintaining the financial viability of DISCOMs. The NEP also states that state ERCs need to provide a facilitative framework for