Commodity Online
NEW DELHI : Union power minister Sushilkumar Shinde Tuesday urged state governments to allow open access in sale of electricity by implementing measures laid down in the Electricity Act, 2003, national electricity policy and the tariff policy.

The minister said the independent power producers had complained that some state governments were restricting the sale of surplus power within the State, thereby prohibiting sale to consumers and utilities in other States.

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Some states have also fixed the price for sale of power to the distribution licensees. “Such an action on part of the state governments is against the spirit of the Electricity Act, 2003.

This would also adversely affect the projected capacity addition in the 11th Plan by the private sector and would be a discouragement for competition and investment in the power sector,” Shinde said.

To ensure expeditious implementation of power projects, the minister said a special advisory group consisting of experts, retired secretaries to the government, one nominee each from Federation of Indian Chambers of Commerce and Industry, Confederation of Indian Industry and Bharat Heavy Electrical Ltd will be set up soon.

The Central Electricity Authority and power project monitoring panel would identify bottlenecks in timely completion of ongoing projects and apprise the advisory group of the progress, he added.

Open access allows generating stations to enter the market to sell power directly to high tension consumers.

The companies can do so through assured access to the grid to reach consumers while paying the distribution company a wheeling charge and surcharge in lieu of the cross subsidy element.

The Electricity Act, 2003 which has come into force from 10th June, 2003 repeals the Indian Electricity Act, 1910; Electricity (Supply) Act, 1948; and Electricity Regulatory Commissions Act, 1998.