The Hindu Business Line : TN allows third party sale of power

POWER producers in Tamil Nadu can now sell the electricity they produce directly to a consumer other than the electricity board thanks to the Government notifying the regulations on open access framed by the Tamil Nadu Electricity Regulatory Commission.

The regulations are in line with the provisions in the Electricity Act, 2003, and it is now up to the Tamil Nadu Electricity Board, the designated State transmission utility, to file a petition before the regulatory commission on the various charges that it proposes to levy for permitting use of its transmission and distribution system, according to official sources.

Third-party sale of power is one of the important provisions of the Electricity Act and with regulatory commissions in the States framing regulations on open access, this will become a reality, according to power industry experts. It will help generators, including group captive power plants, by-pass State utilities and sell excess capacity to any other consumer also, according to them.

Along with the regulations on intra-State open access, the Tamil Nadu Government has also notified in the gazette regulations on licensing transmission and distribution utilities and the terms and conditions for determining tariff, all in line with the provisions of the Electricity Act.

With the notification on intra-State open access regulations, power generating companies, including those that have established captive generating plants, and electricity traders can use the transmission system either of the State transmission utility or any other transmission licensee to transmit electricity, on payment of charges to be specified by the commission. The generating companies will also be eligible for open access to the distribution system of a licensee on payment of wheeling charges.

The regulatory commission has categorised open access customers as those going in for short-term access - one year or less - and long-term customers - those availing themselves of this facility for five years or more. Any company generating electricity through non-conventional sources shall be treated as long-term intra-State open access customers, according to the regulations.

In the first phase, open access shall be allowed to all existing and new high-tension (HT) consumers with a load of 10 MW and above before six months from the date of these regulations coming into force. In the second phase, open access shall be allowed to all existing HT consumers and new applicants with a load of 5 MW after six months but before 18 months. In the third and final phase, it will be allowed to all existing HT consumers and new applicants with a load of 1 MW and above, after 18 months but before December 30, 2008.

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