APTEL Ruling Upholds Open Access Rights Against MSEDCL's Restrictions
APTEL's ruling protects open access rights in Maharashtra, overturning MSEDCL's previous cancellations. It clarifies that open access is part of contract demand, rejecting system overload claims, and ensures transparent communication, fair treatment, and protection for industrial consumers.
November 08, 2024. By EI News Network
The ruling has brought clarity to the ongoing debate on open access rights in Maharashtra, protecting several large industrial consumers affected by MSEDCL’s actions.
The dispute originated when MSEDCL refused to grant short-term open access (STOA) to SWPGL, preventing the company from supplying power to its major clients. MSEDCL cited issues such as 'metering constraints' and 'system limitations' as reasons for blocking access, later canceling permissions that had already been given to SWPGL. This disrupted the supply to SWPGL’s customers, who depend on open access power to meet their electricity needs. In its ruling, APTEL held that MSEDCL had acted improperly by making such unilateral and retroactive decisions. APTEL ordered that open access must be allowed as long as the combined power flow from MSEDCL and SWPGL doesn’t exceed the contract demand set by each consumer.
APTEL also provided clarity on the relationship between open access and contract demand, emphasising that open access should not be considered an additional burden on the system but as part of the existing contract demand. MSEDCL had assumed that open access would increase demand beyond limits, thus blocking access applications or cutting down access to some consumers. However, APTEL clarified that open access power falls within the contracted demand, so it doesn’t require any additional adjustments or restrictions.
The Tribunal also confirmed that as per Maharashtra’s Open Access Regulations, MSEDCL must fulfill power commitments up to each consumer’s contract demand, even if the consumer also uses open access power. This contract demand obligation is binding on the distribution licensee until it’s formally reduced or surrendered by the consumer, and open access arrangements cannot override or replace this commitment.
Addressing technical issues, APTEL noted that fully replacing contract demand with open access power could destabilise the network, creating operational risks. The Tribunal pointed out that open access and contract demand serve separate functions within the electricity distribution system, which need to be handled independently to maintain stability.
MSEDCL’s argument that open access is overloading the system was rejected by APTEL, which ordered MSEDCL to notify open access applicants about any necessary infrastructure upgrades instead of outright blocking applications. APTEL also ruled that it is the responsibility of long-term access users to finance upgrades for system improvements, not short-term open access users.
This ruling offers important clarity for Maharashtra’s open access consumers, ensuring that MSEDCL cannot arbitrarily deny or delay open access requests due to system constraints or procedural delays. By upholding the Maharashtra Electricity Regulatory Commission (MERC)’s earlier decision, APTEL has strengthened consumer protections, ensuring that open access and contract demand requests are treated fairly within the regulatory framework.
The Tribunal emphasised that open access applicants should receive clear communication from MSEDCL on any distribution requirements, aiming to create a more transparent and efficient power distribution process in Maharashtra.
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