Energy Cost Management - Open Access

DEFINITION OF OPEN ACCESS IN THE ELECTRICITY ACT, 2003:

The non-discriminatory provision for the use of transmission lines or distribution system or a
associated facilities with such lines or system by any licensee or consumer or a person engaged
in generation in accordance with the regulations specified by the Appropriate Commission.
and includes long-term, medium-term and short-term open access.
Eligibility to seek open access
A consumer of a Distribution Licensee shall be eligible for open access to the distribution
system of such Distribution Licensee for obtaining supply of electricity from a Generating
Company or from a Licensee other than such Distribution Licensee, in accordance with the
following eligibility conditions.
Contract Demand of consumer
Date on which open access will be allowed under sub-section
(2) of Section 42 of the Act
Not Less than 5 MVA Publication of these Regulations in Official Gazette.
Not Less than 2 MVA but less than 5 MVA April 1, 2006
Not Less than 1 MVA April 1, 2007
Energy Cost Management - Open Access
Open access allows large users of power typically having connected load of One
megawatt (Mw) and above to buy cheaper power from the open market. The idea is that
the customers should be able to choose among a large number of competing power
companiesinstead of being forced to buy electricity from their existing electric utility
monopoly.
Our Ratio for open access : 50%.
Medium Term Open Access :Yearly renewal
Renewal fees : Rs. 15000/-

3
rd
Generator from Maharashtra : To optimised on different levies. (Airoli / Kandivali)
We will prefer 3
rd
Generator from same state for other two locations.

Benefits of Open Access :
Procurement of 40 to 50 % of energy at lowest possible cost.
Negotiation with Energy Trader / 3
rd
Generator will help to reduce Energy cost by at least
Rs1.00/ Unit.
Energy Cost Management - Open Access
Procedure for Open Access
Negotiation with 3
rd
Generator & signing contract
The company and Discom-A has to agree on terms and
conditions of sale
The company has to get the consent of SEB and "no-
objection" of SERC
Discom-A has to get the consent of LDC and "no-
objection" of RLDC.
SLDC and RLDC has to ascertain transmission adequacy,
and agree to arrange necessary metering, scheduling,
energy accounting and Unscheduled Interchange UI
settlement.
All concerned to have a common understanding about
treatment/sharing of transmission losses, and levy of
transmission/ wheeling charges for the use of intra-
State and inter-State systems.
Risk Factors :
Airoli / Kandivali : No Change in C.D. We
can avail full power
Sahibabad: Change in C.D. to 3000 kva. We
will have to pay excess demand
penalty.
Memorandum of Understanding (MOU)
between 3
rd
Generator / Power Trader and
BCCL, Member - BCCL Agreement and Risk
Disclosure Document.






Charges Payable :
1. Base Rate
2. Transmission charges
3. Scheduling and system operation charges payable to State Load Dispatch Centre (SLDC)
4. Wheeling charges
5. Cross subsidy surcharge
6. Additional Surcharge
7. Standby charges
8. Application fees Rs15,000.00 every year.

One time Charges :

1. Two ABT Meters costing around : Rs. 3,82,000.00
2. Replacement of CT and PT with 0.2 acc. Class : Rs. 1,75,000.00
3. ABT meter software , cables , data logger : Rs. 2,75,000.00
4. Utility testing charges : Rs. 1,00,000.00
Approximate Total one time investment : Rs 9,47,000.00
Expenses to avail Open Access per plant
Energy Cost Management - Open Access
Risk Factors :
Failure of 3
rd
Generator
Additional surcharge to be paid to DISCOM in case of 3
rd
Generator fails applicable when Maximum
Demand will exceed the sanctioned contract demand .
In state of Maharashtra where TOI Airoli and TOI Kandivali Presses are concerned as we will opt for 50%
power purchase from third Generator and remaining 50% from MSEDCL and Reliance .As per present
tariff there will be no risk even if third generator fails because we will not reduce our sanctioned contract
demand with reliance or MSEDCL .In this case demand billing will be carried out as per 50% of
sanctioned contract demand and we will be allowed to use Maximum demand up to sanctioned contract
demand.
In case of TOI Sahibabad , MD billing is as per 75% of sanctioned contract demand .When we will
purchase 50% power through open access we will reduce sanctioned contract demand from 6000KVA to
3000 KVA .In case of third generator failure there will be exceeded demand penalty during the period
third generator fails to supply power .Experience of various industries opted for open access the
incidences of failure of third generator is very less.