Telangana State Electricity Regulatory Commission Introduces Draft Regulation For Intra-State Open Access

Representational image. Credit: Canva

Telangana has come out with a draft regulation for intra-State Open Access, in the realm of Telangana State’s electricity infrastructure, a set of regulations governs the access provided to a variety of users. Whether they utilize the intra-state transmission system, distribution networks, or inter-state transmission systems, these rules apply universally. The users in question encompass Open Access Generators, Scheduled Consumers, and OA Consumers, with further categorization into four groups: Long-Term Open Access Users, Medium-Term Open Access Users, Short-Term Open Access Users, and Green Energy Open Access Consumers.


For the long-term and medium-term open access transactions, the State Transmission Utility (STU) takes charge, while the State Nodal Agency, also overseen by the STU, manages green energy open access in these durations. Short-term open-access applications, on the other hand, are directed to the State Load Dispatch Centre (SLDC). These short-term arrangements are subject to consultation with relevant transmission and distribution licensees, except for those spanning less than a week. The SLDC and licensees collaborate to establish procedures for facilitating these short-term transactions. For short-term green energy open access, the TSSLDC (Telangana State Load Despatch Centre) serves as the State Nodal Agency.

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Compliance with the planning criteria stipulated in the State Electricity Grid Code, Distribution Code, and CEA Safety Regulations guides the implementation of long-term and medium-term open access. Captive users are obligated to deposit a security guarantee, equivalent to 51% of their captive consumption, annually by April 30th. This deposit acts as protection against estimated cross-subsidy surcharges and additional surcharges, as determined by the Commission. Non-captive consumers are not exempted from these surcharges.


Failing to meet the ownership and consumption criteria, as specified in Rule 3 of the Electricity Rule 2005, can result in captive users losing their captive status. Consequently, this leads to the imposition of Cross Subsidy Surcharge, Additional Surcharge, and other relevant charges on open-access consumers.

Existing distribution licensees are treated as long-term open access users, governed by existing agreements or arrangements. They are required to pay transmission charges, wheeling charges, and other fees, as determined by the Commission. These licensees must also furnish semi-annual reports on their usage to the STU, SLDC, and the Commission.

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Users with pre-existing agreements retain the privilege to continue using wheeling services as outlined in those agreements. However, they must adhere to any transmission, wheeling, or other charges determined by the Commission for additional capacity sought beyond their existing contracts.

Open access eligibility is granted to users with a contracted capacity exceeding 1 MW. For Green Energy Open Access, consumers with a demand of 100 kW or more in the same electricity division are eligible, with no restrictions on power supply for captive consumers under this category.

In the future, the Commission may entertain the idea of granting open access to consumers with a contracted capacity of 1 MW or less. This consideration would factor in operational constraints and other relevant variables.

Licensees bear the responsibility of making diligent efforts to eliminate operational obstacles within the transmission and distribution systems. This encompasses aspects such as metering, communication systems, and capacity determination, all in the service of ensuring that eligible consumers encounter minimal hindrances in accessing open access.

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The core objective of these regulations is to simplify and streamline access to Telangana State’s electricity systems. This is achieved while upholding principles of fairness, encouraging the adoption of green energy, and addressing operational challenges for consumers.

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