Draft of two directives for open access to electricity
Kathmandu The Electricity Regulatory Commission (ERC) has forwarded further process to implement open access to electricity transmission and distribution system.
The Commission has published two more draft directives related to open access for comments, suggestions and comments from the stakeholders and the general public.
The 314th meeting of the Commission held on August 8, 2018 decided to make public the draft of ‘Open Access Grievance Resolution Directive, 2083’ and ‘Balancing and Settlement Directive, 2083’.
According to the Commission, the provision on open access has been introduced with the objective of ensuring the right of consumers to use electricity in quality, reliable, safe and accessible manner by making Nepal’s electricity sector competitive. The Commission had issued the ‘Directive on Open Access to Electricity Transmission and Distribution System, 2082’ last December.
According to the Commission, draft of two related directives required for the full implementation of the directive has now been made public.
The Open Access Grievance Resolution Directive, 2083 (2
083) has laid down the process for resolving the complaints and disputes arising out of open access in a speedy, fair, transparent and effective manner.
Provision has been proposed to resolve complaints and disputes at the initial level through the Grievance Resolution Committee. If the committee is not satisfied with the decision, the dispute can be settled through the Electricity Regulatory Commission.
Similarly, the Balance and Settlement Directive, 2083 BS will provide guidelines to make the transactions related to the use of open access to the transmission and distribution system systematic, transparent, predictable and time-bound.
According to the draft, the transactions made through open access will be divided into two parts and managed. It has been proposed to manage regular transactions through a month’s work schedule and transactions related to deviation fees through a weekly schedule.
Arrangements have also been proposed to conduct all the transactions under open access through an electronic system i. e. software.
The Commission has said that other provisions necessary for the implementation of open access will also be gradually followed. The draft of directives including determination of broadcast fee, deviation settlement mechanism, metering, grid connectivity and other directives will be made public for comments, suggestions and comments from the stakeholders and the general public in the near future.
According to the Commission, the concerned stakeholders and general public can send their opinions, suggestions and comments on the draft directive in writing through email to the Commission’s office, Sano Gaucharan, Kathmandu.
These guidelines are related to Section 51 of the Open Access Directive on Electricity Transmission and Distribution System, 2082.
According to the commission, they will be issued under Section 43 of the Electricity Regulatory Commission Act, 2074.
Clause
14 of the Electricity Regulatory Commission Act, 2074 BS has given the commission the responsibility of maintaining competition in the electricity sector and protecting the interests of consumers. According to the Commission, necessary arrangements have been made for open access to the electricity system as per this provision.
According to the Commission, the Nepal Electricity Authority (NEA) has to bear a large share of the electricity market and the risk related to the market alone due to the lack of effective open access system. Once the open access system is fully implemented, other persons, organizations and consumers will be able to buy and sell electricity as per the specified provisions and charges using the transmission and distribution system of Nepal Electricity Authority.
This is expected to end the situation where the people or organizations producing and consuming electricity have to depend only on the Nepal Electricity Authority (NEA) for power supply.
The Commission has expected the implementation of open access to electricity to increase competition in the electricity market, reduce market risk, make electricity transactions more transparent and predictable and help in building a reliable electricity market.
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