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Maharashtra government in a hard hitting letter to the state electricity regulatory commission (SERC) has said it was very concerned about the methodology and operationalization of open access regulations as they are likely to have a long term impact on the power tariff and the principle of equity.
Besides, state power secretary Ajoy Mehta in a communication dated July 31 to SERC said the government is concerned about open access through exchanges and granting open access to renewable energy power especially wind generators.
He claimed that these may adversely impact the small consumers and will lead to accrual of windfall profits to developers and other consumers who have a capacity to pay.
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Mehta, who is also the managing director of Maharashtra State Electricity Distribution Company (MahaViataran), said while the government appreciates the authority of the SERC to rule on issues raised by MahaVitaran with regard to open access, wind policy and competitive bidding, it is also sensitive towards protecting the interest of the consumers at large.
Mehta told Business Standard '' It will not be ethical on the part of SERC chairman VP Raja, who completes his term in September, to give judgements on key issues raised by MahaVitaran. These issues have a long term impact on consumers at large.''
However, Raja said he has already stopped hearing new cases since August 5 as he was demitting office on September 4.
''However, I am continuing to sit in the bench during hearing of the part heard cases. But such cases will be postponed for final order as the hearing can take place after completion of my term. Consultation between the SERC and the state government does take place. SERC will certainly discuss the issues raised by the state power secretary in his communication as government is an important player.''
Mehta in his letter said SERC's open access regulations, 2013 are in the process of its finalization. ''Many prime consumers are availing the benefit of open access. This will have a huge financial impact on MahaVitaran and consequently on the common consumers. Process of public hearing on the comments received from stake holders be initiated prior finalization of these regulations.''
Moreover, Mehta said the concept of open access through power exchange is not covered in the SERC's open access regulations of 2005 framed prior to formulation of exchanges.
Further, allowing open access to wind power based projects is leading to high profits for developers at cost of small consumers.
On competitive bidding, Mehta said there is a need to consider it as opposed to fixed feed in tariff in the interest of competition and transparency which the government feels will benefit the consumers.
"These issues have long term implications and can lead to an adverse impact on the tariffs of the consumers and at the same time lead to unwarranted profits to certain developers and large players,'' Mehta said.
