Social issues world Habitat Day


Challenges Resistance of states



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tarix03.01.2022
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Challenges

  • Resistance of states: Proposal of open access has faced resistance from states, as state distribution companies are keen to protect their monopolistic position.

  • High surcharge: The high cross subsidy surcharge, which was levied when a consumer shifted to other distribution companies made the idea of open access futile. Thus high surcharges were used to deny open access to those who consumed electricity above 1MW.

  • Other means to deny open access in the past: Buying electricity from a company across the city or state requires it to be transported across wires. In the past to prevent open access the State Level Dispatch Centres (SLDCs) owned by the government would simply say their power lines were too choked to carry the electricity.

  • Lack of timeline for implementation: The proposed bill may not impose timelines for implementation of open access for the household consumers. Moreover, the government has no plan to make it a compulsory exercise.


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