Exercise 2 – Exercise on open access

1. Is it eligible to apply for open access? Quote the relevant law.

Answer: Yes, the company is eligible for open access. As the company is located in Maharashtra, the
Maharashtra Electricity Regulatory Commission (Distribution Open Access) Regulations, 2016, shall
be applicable1. As per clause 3.2 of these regulations, the eligibility for open access is consumers
with contract demand of 1 MW and above; since the demand of Kshitij Conveyors Limited is 1.5 MW
each day, hence they would be eligible to apply for open access.

2. How can it apply for open access? To whom should the application be submitted?

Answer: Application for open access as per Maharashtra Electricity Regulatory Commission
(Distribution Open Access) Regulations, 2016 can be made to the nodal agency, which is the
Distribution Licensee of the area where the factory is located. Depending on the duration of open
access sought, viz. Short term, less than or equal to 1 month at a time, Medium term, more than 3
months up to 3 years and Long term, from 12 years up to 25 years, the application can be submitted
as per the formats for open access and connectivity specified in the regulations. The application for
open access must be accompanied by other documents as specified in the regulations, such as
existing supply agreement with the distribution licensee, latest electricity bill, consent from
Maharashtra SLDC (if applicable).

The application for open access has to be submitted to the nodal agency, which is the Distribution
Licensee of the area where the factory is located. As the factory is located in Thane, the distribution
licensee is Maharashtra State Electricity Distribution Company Limited (MSEDCL).

3. What are the charges which will need to be paid for securing open access?

Answer: The charges needed to be paid for securing open access are as follows:

(i) Application fees for Connectivity to distribution system: INR 2 lakh

(ii) Bank Guarantee in favour of Nodal Agency per MW of Open Access (only required when
applying for Long term access): INR 10,000
(iii) Meter installation charges (if meter is installed by MSEDCL)

Other open access charges related to wheeling of electricity through the distribution network are
payable after power has been consumed through open access.

4. From where will the power be obtained under the open access system?

Answer: The power may be obtained from the following sources:

(a) Any other licensee that supplies in the same area as that of MSEDCL
(b) Any other licensee within or outside the state
(c) Any generator such as captive plant, Independent Power Producer (IPP) or other generators
within or outside the state
(d) Through an electricity trader or power exchange

1
Assuming that the factory load is not 66 kV or above, in which case the connection could be taken from the
State Transmission Licensee for open access to the State Transmission system.
However, for each category, the respective documents pertaining to purchase of power, consent
from concerned distribution licensees and SLDCs would be applicable while applying for open access.

5. Does the company need to enter into an agreement to obtain open access?

Answer: The company needs to enter into an agreement with the distribution licensee and the
generator/other licensee for Long term or Medium term open access only. For Short term open
access, the company needs to only submit the application with the required documents as per the
MERC regulations to the concerned distribution licensee.