Centre allows own transmission lines for large industrial users

The Centre has also made minor changes in transmission tariff norms to make it more cost effective

Hyderabad: In a significant move that is expected to reduce losses of electricity distribution utilities and improve their financial viability, the union government has decided to allow large industrial users of electricity to have their own transmission lines and grid connectivity without any requirement of license. The Centre has also made minor changes in transmission tariff norms to make it more cost effective.

This privilege was previously only available to generating companies and captive generating stations. The streamlined process was likely to attract more investments, boost industrial growth and stimulate job creation in the country. According to power officials, doing away with the requirement of license for dedicated transmission lines for industry would lead to ease of doing business for the industry, leading to faster industrial growth and more job creation. Large industrial users would no longer face bureaucratic hurdles and delays in obtaining licenses, leading to faster and smoother operations, they observed.

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Through amendments to the Electricity Rules 2005, the government also rationalised charges for open access to electricity. As per the amendments, consumers having more than a specified quantum of load and Energy Storage Systems (ESS) would be allowed to establish, operate and maintain dedicated transmission lines themselves without the requirement of licence.

According to the new rules, a generating company or a captive generating plant or EES or a consumer having load of not less than 25 megawatt in case of inter- state transmission system and 10 MW in case of intra-state transmission system will not be required to obtain license for establishing, operating or maintaining a dedicated transmission line to connect to the grid as far as it adheres to the regulations under the Act.

As per the amendment, for a person availing open access or the general network access, the additional surcharge would be linearly reduced and eliminated within four years from the date of grant of general network access. A person who has never been a consumer of the distribution licensee would not have to pay additional surcharge, it said.

Moreover, the government aims at providing a reasonable and uniform open access to electricity to consumers across the country at competitive and reasonable rates. New rules have been prescribed with methodologies for determining various open access charges for wheeling, state transmission and the additional surcharge.