Govt removes licencing provision for consumers on quantum of power loads

Now they are allowed to operate and maintain dedicated transmission lines themselves.
Image used for representational purposes only.
Image used for representational purposes only. (File photo: EPS)

NEW DELHI: The power ministry on Monday removed the licencing provision for consumers having more than a specified quantum of load and energy storage systems (ESS).

Now they are allowed to operate and maintain dedicated transmission lines themselves. The ministry said by allowing such a facility a new category of bulk consumers would emerge, benefiting from more affordable electricity and grid reliability.

“A generating company or a person setting up a captive generating plant or an energy storage system or a consumer having load of not less than 25 MW in case of Inter State Transmission System and 10 in case of Intra-State Transmission System shall not be required licence to establish transmission line to connect the grid,” said the ministry in a statement.

The ministry said the steps taken by the government had brought down losses of the distribution companies from 27% in 2014 to 15.41% in 2022-23. These rules will ensure that their losses are reduced and their viability increases; leading to them being able to provide better services to the consumers.

Open access is one of the key features of Electricity Act, 2003, but due to high charges levied by some state regulators this facility could not be utilised by the consumers to the desired level. As per the rule inter-alia prescribes that for a person availing General Network Access or Open Access, additional surcharge shall be linearly reduced and get eliminated within four years from date of grant of General Network Access or Open Access. It is provided that the additional surcharge shall be applicable only for the Open Access Consumers who are or have been consumers of the concerned Distribution licensee.

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