Open-access power share down to half
Gurpreet Singh Nibber
CHANDIGARH:

SETBACK Another jolt for industrial units, which are already reeling under the imposition of cross-subsidy charges

In another jolt to industrials units in the state, the Punjab State Power Corporation Limited (PSPCL) has put a restriction on the power they can draw through open access, limiting it to half of their connected load.
The corporation issued the order last week to “ration“ power available to industrial units through open access (OA), following a directive from the Northern Regional Load Dispatch Centre (NRLDC).

The centre has restricted Punjab from drawing more than 4,800 MW from other states.

The private industry, which is going to be hit badly by this rationing, is worried about its impact on the viability of their businesses. On PSPCL's insistence, the Punjab State Electricity Regulatory Commission (PSERC) had imposed crosssubsidy charges of 74.48 paise per unit on power contracted by private industry through the open access system.

“We have no option but to impose restrictions on openaccess consumers because they draw 200 to 800 MW daily, and due to such a wide range, the curbs imposed by NRLDC would get violated,“ said PSPCL chairman-cum-managing director KD Chaudhari.

There have been instances, especially during the peak season, when frequency of the transmission system in the region is low and drawal of additional power by OA consumers over and above what is planned by the power corporation triggers crash in the transmission system. The NRLDC directive came with a strong penalty clause.

The state has about 240 industrial units ­ the highest in the country drawing power through open access.

Though the corporation claims to have the best OA policy, its latest order means that an industrial unit, which has an installed capacity of 2 MW, can draw only 1 MW of power from outside through the OA system.

Chaudhari said though the corporation expected a sharp fall in the use of open access by the private industry, the amount of power drawals remained the same. However, the industry has a different view. “It is yet another attempt to scuttle benefit to the industry in Punjab. Our businesses are already unviable and rationing of power under OA is another setback,“ according to an owner of a Mandi Gobindgarh-based arc induction furnace. Open access There is a provision for the open-access system in the Electricity Act 2003, so as to bring in competition in the distribution system. High-end power consumers and big industrial units are opting for open access to get power from sources other than the state power corporation. Industrial units offer bids through power traders for low-cost power.