Open Access Electricity | Basic Knowledge |

Description

Open Access enables heavy users with quite 1 MW connected load to shop for cheap power from the open market. The concept is to permit the purchasers to settle on from variety of competitive power companies, instead of being forced to shop for power from the local utility monopoly. It not only helps the economic & commercial consumers by ensuring regular electricity supply at competitive rates but also enhances the business of power markets. Open access helps consumers meet their Renewable Purchase Obligations (RPOs) also . A consumer with bulk load can avail the advantages of cheap and green solar energy by either purchasing through the rooftop solar installation in its premises or buying from an offsite solar farm under open access. Once the consumers are given the selection to get power from the open market, it'll automatically cause competitive pricing of electricity making electricity cost go down.
What is Intra-State Open Access and Inter-State Open Access?
When buyer and seller are located within the same state, then it's called an Intra-state transaction. for this case, the open access charges comprising transmission losses and charges wheeling losses and charges (if applicable) and cross-subsidy of that specific state are applicable. However, when the customer and seller are in located in several states then it's called as an Inter-state transaction. for this case, aside from the open access charges applicable in intra-state transactions, Point-of-Connection (POC) charges and losses of the regional grids where the customer and seller are located also are applicable..
Who can avail open-access?
Any consumer having connected load of 1 MW and above can avail open access. However, the State Electricity Regulatory Commission formulates and regulates the open access provisions at the state level, therefore the basic eligibility to avail open access may vary from state to state. While most of the states have still kept 1 MW because the minimum load to participate in open access, states like Tamil Nadu , Uttarakhand, Haryana and Andhra Pradesh have reduced it to 0.1 MW. Thus, primarily the economic and commercial consumers like office complexes, hotels, hospitals, shopping complexes and other large establishments can make use of Open Access.