Sourcing power through open access gets costlier in Haryana

Sourcing power through open access will turn costlier for industry in Haryana as state power regulator HERC has decided to levy wheeling charges, cross-subsidy charges and additional surcharge on open access consumers.
Haryana Electricity Regulatory Commission (HERC) in its latest order has decided to levy 74 paise per unit of wheeling charges and 50 paise of additional surcharge on energy drawn by open access consumers.
Besides, cross subsidy charges of up to Rs 2.02 per unit have also been imposed on intra state open access consumers, as per the order.
"...The cross- subsidy surcharge shall be payable by all intra-state open access consumers except those persons who have established captive generating station and are availing open access for carrying the electricity to a destination for their own use.

Cross-subsidy surcharge shall also be payable by such open access consumer who receives supply of electricity from a person other than the distribution licensee in whose area of supply he is located," as per the order.
Open access facility allows energy consumers to receive supply of electricity from sources other than state power utility.

Haryana Power distribution companies had sought levying of additional surcharge of 97 paise per unit on open access consumers on the plea that they have to bear the fixed for the stranded power capacity whenever open access consumers buy power from other sources.
Discoms had pointed out that in Haryana, consumers were buying 150 million units of power per month on an average through open access facility.

HERC observed in the order that the entire power procured by the Discoms for supply to its consumers were tied up under long - term power purchase agreements.
"Hence, in case some of its consumers instead of drawing power from the Discoms brings in power from outside through Open Access the Discoms power, to a certain extent, do get stranded for which under the terms of most PPAs the Fixed Charge component of tariff is payable," it said.
HERC in its order for 2014-15 observed, "it would not be fair if the cost incurred by distribution licensees for the power purchase commitments stranded on account of power drawn by open access consumers from other sources is passed on to other consumers as that would amount to cross-subsidising of the open access consumers by other consumers."

"The Commission therefore considers it appropriate to pass on 50 per cent of the stranded cost worked out by the Discoms on account of power drawn through Open Access," it said.
The Commission has now decided to levy additional surcharge on the energy drawn by open access consumers through open access at the rate 50 paise/kWh as per order.