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ANNOUNCEMENTS



TERI SAS launches M.Sc. (Energy Studies & Management)
Road map for sustainable development of open access market in the country

Student name: Ms Arneet Kaur Sahni
Guide: Dr Subir Sen
Year of completion: 2013
Host Organisation: SN Power Markets Private Limited
Supervisor (Host Organisation): Mr Gaurav Bhatiani
Abstract: The term Open Access in the Electricity Act, 2003 conjures up a competitive and liberalized retailelectricity market, but for all the efforts invested in this idea, there has not been any substantial changein the status‐quo of monopolistic distribution licenses operating in electricity market. This position canlargely be attributed to excessive charges in the form of cross‐subsidy surcharges, additional surcharges,high transmission and wheeling charges, etc which when coupled with wholesale power prices yield anuneconomical situation of independent power sourcing.

However, with “consumer needs” and “willingness to pay” for good quality products and services gettingestablished in most of the sectors such as telecom, aviation etc., retail electricity open cannot be left fartoo behind. The journey has already begun with the visible growth in the open access customers atpower exchanges over the past one year. Further, new innovations like smart grid, pre‐paid and netmetering etc combined with existing and emerging platforms such as Power Exchanges, Parallellicensees, Distribution Franchises, ESCOs, RESCOs, Distributed RE Generation etc have added “diversity”and “new choices” to electricity customers. The distribution sector will have to learn and adapt quickly to these changes by including the end consumers into the designing and co‐creation of solutions to drivea truly competitive electricity market.

It is in this context that the study focused on the determination of the market (size, volume, type and number of consumers) for open access in the states of Karnataka and Punjab. The study would also highlight how the prevailing regulatory framework, infrastructure, consumer’s willingness-to-pay impact the overall development of the Open Access Market in these states.