Q-1. What is Open Access ?
As per Electricity Act 2003 Open Access is
“Non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”.
Open access allows large users of power having connected load of 1 megawatt (Mw) and above — to buy cheaper power from the open market. Open Access allows the customers to choose among a large number of power generating companies & Power Exchange for purchasing Power instead of Purchasing electricity from their Distribution Company or State Board monopoly at most competitive rates. It helps Industrial Consumer by ensuring regular supply of electricity at competitive rates and boost business of power bourses. Open Access allows Generating Company to sale their power in Open Market at competitive rate & it helps to mobilize the power from surplus state to power deficit state.

Q-2. What Is power trading?
In Electricity Act 2003, trading is defined as: “PURCHASE OF ELECTRICITY FOR SALE THEREOF”. Trading recognized as a distinct activity.

In context of bilateral Transaction:Power trading inherently means a transaction where the price of power is negotiable and options exist about whom to trade with and for what quantum.

In context of collective transaction: A power exchange is a platform on which power is traded, i.e. bought or sold.

Q-3: What are the category of open Access ?

Inter State Open Access: In this category buying & selling entity are in different state. As per CERC regulation 2008 It is further categorized as:

Short Term Open Access (STOA): open access allowed for the period of less than one month.
Medium Term Open Access (MTOA): open access allowed for a period of 3 months to 3 years.
Long Term Open Access (LTOA): open access allowed for a period of 12 years to 25 years.

Intra State Open Access: In this Category buying and selling entity belongs to same state. In this case SERC regulations are followed. It is further categorized as STOA, MTOA, and LTOA and the duration of which depends on the respective state open access regulations.

Q-4 How many types of transaction is there in Open Access?
1- Bilateral Transaction : bilateral transaction means a transaction for exchange of energy (MWh) between a specified buyer and a specified seller, directly or through a trading licensee or discovered at power exchange through anonymous bidding, from a specified point of injection to a specified point of drawl for a fixed or varying quantum of power (MW) for any time period during a month.

2- Collective Transaction: Collective transaction” means a set of transactions discovered in power exchange through anonymous, simultaneous competitive bidding by buyers and sellers.

Q- 5 What are the charges & Losses will be applicable for Open Access Consumer?
Open Access allows Industrial Consumer or Power generator to purchase or sale power by using existing transmission & distribution system by paying Transmission charges ,Distribution charges & other charges.

Open Access Charges : POC Charges , State Transmission Charges , Wheeling charges , Cross Subsidy Charges , SLDC Charges & RLDC Charges .

Open Access Losses : POC Loss , State Transmission Loss , Wheeling Loss

Question : Who is eligible for availing open access?

Answer : Entity having connected load and contract demand equal to or more than 1 MW/1MVA & having connection through independent feeder (Some state are allowing Mix Feeder Consumer also) at 11KV or above voltage.

Question : What is the Procedure for availing O.A?
Answer : The entity has to submit the application on prescribed format to the concerned state utility along with application processing fee.After availing open access, special energy meter is required to be installed in series with the existing meter.

Question : What is Power Exchange?
Answer : Power exchange means the power exchange established with the prior approval of the commission. It is a platform for trading of power by buyers and sellers.

Question : What is meant by Nodal Agency?
Answer : The nodal agency for bilateral transaction shall be the Regional Load Despatch Centre of the region where point of drawl of electricity is situated and in case of collective transactions, the nodal agency shall be the National Load Despatch Centre.

Question : What is meant by Nodal Agency?

Answer : The nodal agency for bilateral transaction shall be the Regional Load Despatch Centre of the region where point of drawl of electricity is situated and in case of collective transactions, the nodal agency shall be the National Load Despatch Centre.

WHAT ARE THE PRELIMINARY REQUIREMENTS before applying for NOC or Standing clearance to SLDC ?
a) Grid Connectivity either at 11KV, 33KV, 66 KV, 132 KV, 220 KV or 400 KV level. Most of the states insist on a dedicated grid connectivity.

b) NOC from the concerned SLDC in the prescribed Format PX1 and c) Installation of Special Energy Meter and other auxiliary equipments as directed by the SLDC , which records your drawl/injection in 15min intervals. The Availability Based Tariff Meter ( ABT Meter) is programmed to record flow of energy, demand and voltage.

You will have to install Special Energy Meter ( ABT Meter) of 0.2s accuracy or as specified by the concerned SLDC and change the existing CT / PT to be compatible with it.

There is no need to install separate line. You shall get your Power through the Existing Grid .

Question : Who is eligible for trading of power from Exchange?
Answer :
1. Who has obtained No Objection Certificate from State SLDC on prescribed Format (PX-1).
2. Has installed Special Energy Meter & other metering equipment as per the requirement of State Utility.
3. Has obtained Client Membership through a Member of Exchange by depositing annual subscription as specified by the Exchange.

Question : How the Client Member can trade power?
Answer :
1. He has to submit his required quantum of power, duration & the rate at which he intends to avail power on hourly/15- minute or a block of time for scheduling of power on next day to Exchange Member, who in turn will submit to Exchange in prescribed time frame.

2. The client will be informed by the Member through Obligation Report received from Exchange mentioning the quantum cleared, duration & rate along with other charges.

Question : How the market clearing price is calculated?

Answer : Market clearing price is determined by plotting a graph between aggregated sell bids & buy bids on hourly basis. The intersection point of the two curves represents the clearing price.

Question : How the power will flow?
Answer : The power will flow through the existing network of CTU/STU/DISCOM.


Electricity purchased on the Exchange Platform is a “Pre-paid “ electricity. You pay today, for bidding tomorrow, for delivery of power the day-after.

You will have to keep an estimated Obligation amount calculated as under in your own IEX settlement account = Volume ( in MW) X number of hrs. X Your BID Price) + 10-20% estimated price for transmission charges +Rs.2500). After the obligation amount is generated your bank will send the obligated amount to IEX directly from your settlement account

Q :- How the billing will be done by DISCOM ?
DISCOM will raise bill on the quantum which you will draw from grid after deducting Exchange power .

ANS.: When you purchase Power from the Exchange, you need to consume the same during those particular hours only. If by any reason, you are not able to consume Power during that period, the same is recorded by the ABT Meter and at the end of the month, when final readings are calculated, you will Compensate as per the UI Mechanism for Under Drawl, or as per the rules of your State. In some states in case of under drawl EB does not compensate and hence you lose the power.