Patna, Jan. 15: Open access system (OAS), an arrangement allowing private companies to source power from any generating company, including captive generators, is being endorsed by experts as an answer to Bihar’s perennial power woes.
Power crisis has always been cited as a major reason behind the “slow” rate of industrialisation in Bihar.
The state government has initiated several steps to improve the generation of power, its transmission and distribution. However, all measures, especially the power generation, are expected to take about four to five years to become effective.
S.M. Sahay, a Bihar Electricity Regulatory Commission (Berc) member, who is also the acting chairman, said under such circumstances the OAS system could be of a major help.
“The commission has, in its recommendation in the tariff order of 2008 and again in 2010, reiterated the need to have an open access system in the field of power sector to meet the immediate requirements of energy in the state,” Sahay told The Telegraph.
For this, he said, the state government needs to accept the recommendations of Berc to Bihar State Electricity Board (BSEB) for giving permission for OAS.
The OAS would provide private entrepreneurs particularly those who have set up captive power generation units.
The access (permission) to use the transmission lines of the board, these private entrepreneurs can enter into a purchase power agreement (PPA) for a short term, either through a bilateral agreement or through a power exchange.
This system would be beneficial to the board as well, because it would get revenue from the customers for using its transmission line and other charges known as open access charges, sources said.
The board should put the open space of the transmission lines available for the use on its website by identifying the lines on which the load is very low, the sources said.
“Any consumer, individual or industrial user can approach the commission in case they have any grievance,” Sahay said.
Welcoming the BERC’s recommendations, Bihar Industries Association (BIA) general secretary Sanjay Goenka told The Telegraph: “The board gave its nod to the signing of the long-term PPA but we need permission for open access for short-term PPA that could be signed for a week, a month, few months or maybe a year. It would help the industries meet the shortage of energy which the state under the present circumstances, has failed to provide.”
Asked how the system is going to be of help to the industries, Goenka said if permission to use open access is granted, the industries having their own captive power generation plant can enter into a PPA for selling their additional power for a particular short period of time.
“Suppose a steel firm was using 3MW of electricity from its own captive power generation unit, which generates a total of 5MW. The firm can sell the surplus 2MW for the period it did not require the electricity,” BIA general secretary said, adding for that to happen industries need to have open access.
Goenka said any firm can set up the co-power generation unit to meet its requirement and the firm could be needing just 3MW, but it may require an additional 2MW when the company goes for expansion.
“The board should also try to limit the open access charge within 50 paise per unit from the current Rs 1.25,” he said, adding once the open access was provided, it would be totally on the customers to choose the system through which they want to purchase electricity. He, however, pointed out that the consumers may purchase it through a bilateral agreement and also through Indian energy exchange (IEX).
