Anil Sasi
New Delhi, Dec. 25
Reforms in the power sector remain stymied though the path-breaking Electricity Act, 2003 promised to usher in a free market as most States are stubbornly refusing to play ball.
A number of State governments are using all possible means to restrict supply of power outside their boundaries. Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra, Orissa and Rajasthan have issued orders invoking emergency provisions under the Electricity Act to stymie open access, which goes against the very spirit of the reformist legislation.
The provision of open access enables power generators to cherry-pick consumers while allowing users to migrate to power suppliers of their choice.
A majority of these States have issued restrictive orders this year to prevent captive units and private plants from selling electricity outside their boundaries on the grounds of a power deficit in the respective State.
The curbs on wheeling of power outside the State have mostly been invoked under Section 11 and 108 of the Act.
“The issue has been brought to the notice of the Central Government, the Planning Commission and the Central Electricity Authority by some IPPs (independent power projects, that is, private project developers). Providing non-discriminatory open access to transmission and distribution systems is necessary for inter-State sale of power, market development and protecting the interest of the consumer. We are taking up the issue with the concerned States in strong terms,” a senior official with the Power Ministry said.
The Electricity Act has given powers to the State Governments under “extraordinary circumstances” to give directions to the generating stations to clamp supplies outside the State. These circumstances have been defined in the law to mean “circumstances arising out of threat to the security of the state, public order or a natural calamity or such circumstances arising in public interest”.
“It is these provisions that are being misused. Except for irregular monsoons, clearly nothing adverse has taken place across any of these States to necessitate the invoking of the restrictive measures,” an official from the CEA said.
By using the restrictive provisions, most States are permitting sale of power in the short-term market only when certain quantity of surplus from captive power plants is supplied to the State grid. Depending upon the requirement of a State, sellers are either denied power during evening peak hours or, in some cases, allowed after committing some quantity of power round-the-clock to the State grid.
Other roadblocks in the market development are high transmission charges for the use of State network and cross-subsidy surcharges imposed on the industrial consumers for getting the open access facility.
http://www.thehindubusinessline.com/2009/12/26/stories/2009122652420100.htm
