The Hindu Business Line : Bengal, Rajasthan, Himachal allow 7 cos to choose power distributor<br> List includes Gujarat Ambuja, Hindustan Zinc, Indal units

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Bengal, Rajasthan, Himachal allow 7 cos to choose power distributor
List includes Gujarat Ambuja, Hindustan Zinc, Indal units

Our Bureau

New Delhi , Dec. 22

GUJARAT Ambuja's Himachal Pradesh unit, Aditya Cements' and Hindustan Zinc's Rajasthan units and West Bengal-based Indal Ltd are among the first set of consumers in the country to have been permitted to select the power utility of their choice.

This follows the move by power regulators in three States — West Bengal, Rajasthan and Himachal Pradesh — to grant the green signal to seven cases of open access in distribution for industrial consumers, enabling them to select the electricity supplier of their choice.

While Rajasthan has granted open access to three companies — Aditya Cement, DCM Shriram and Hindustan Zinc units, the West Bengal Electricity Regulatory Commission has approved the application of Bhushan Ltd, Electrosteel Castings Ltd and Indal seeking open access in distribution.

The Himachal Pradesh Regulatory Commission has given its approval to Gujarat Ambuja Ltd to draw power from a utility of its choice.

Besides these three States, as many as 17 others have issued final regulations on open access while three more States have issued draft regulations, setting the stage for the introduction of open access in distribution, a Central Electricity Regulatory Commission release said.

Open access in distribution has been allowed under the Electricity Act, 2003, which enables State Commissions to formulate regulations that enable open access for consumers drawing more than 1 MW.

Consumers can select a power supplier of their choice, either from their own State or from outside the State, provided they pay wheeling charges for transmission of electricity to their unit and also shell out a surcharge to the utility that is supplying power to them currently.

The Forum of Indian Regulators had recently constituted a Group to discuss issues relating to operationalisation of open access in distribution and harnessing of captive generation, the CERC release said. The Group recommended that in order to encourage captive generation to come to the grid, various charges levied on them should be rationalised, the release said.

Unreliable power supplied by the State Electricity Boards, both in terms of quality and duration of supply, have forced over 60 per cent of industry to shift to captive power units.

These units now have the option to choose the electricity supplier of their choice in States where the respective regulator has issued open access norms.