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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 consumers 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 Electricity Board’s 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 sell their power in Open Market at competitive rate & it helps to mobilize the power from surplus state to power deficit state.

The open access is categorized as:
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.

Types of Transactions: Bilateral or collective transactions:
In context of 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.

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

Open Access Charges & Losses: 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 . These charges include PoC Charges, Transmission Charges, Transmission Losses, Wheeling Charges, Wheeling Losses, Cross Subsidy Surcharge, SLDC Charges, RLDC Charges.