Open access charges- an example for the calculation of OA charges in Haryana
Open access refers to the practice of allowing non-discriminatory access to transmission and distribution systems by generators and consumers of electricity. It is a mechanism that allows consumers to procure power directly from power generators, instead of purchasing electricity from their local distribution companies (Discoms).
One of the important factors to consider while opting for open access is the open access charges. Open access charges are the fees that the generator has to pay to the transmission and distribution companies for the use of their transmission and distribution network. These charges are levied to compensate for the fixed and variable costs of the transmission and distribution infrastructure.
Calculating open access charges can be a complex process as it involves several components such as transmission charges, distribution charges, wheeling charges, losses, cross-subsidy surcharge, additional surcharge, and others. Here, we will explain the process of calculating open access charges in the state of Haryana for a 5 MW solar power plant.
To start with, let’s assume that the power generated by the solar power plant is injected into the Haryana State Transmission Utility (STU) at a tariff rate of 4 INR/kWh. The open access charges for the state of Haryana are as follows:
- CTU charges: 0.00 INR/kWh
- CTU losses: 0.00 INR/kWh
- STU charges: 0.36 INR/kWh
- STU losses: 0.09 INR/kWh
- Wheeling charges: 0.86 INR/kWh
- Wheeling losses: 0.36 INR/kWh
- Cross-subsidy surcharge: 0.81 INR/kWh
- Additional surcharge: 1.15 INR/kWh
- LDC charges: 0.15 INR/kWh
- Banking charges: 0.18 INR/kWh
- Electricity duty: 0.00 INR/kWh
Using the above information, we can calculate the open access charges for the 5 MW solar power plant as follows:
Open Access Charges = STU Charges + Wheeling Charges + Cross-subsidy surcharge + Additional surcharge + LDC charges + Banking charges = 0.36 + 0.86 + 0.81 + 1.15 + 0.15 + 0.18 = 3.97 INR/kWh
This means that for every unit of electricity generated by the 5 MW solar power plant, the generator has to pay 3.97 INR as open access charges to the transmission and distribution companies.
It is important to note that open access charges vary from state to state and are subject to change from time to time. The above calculation is based on the open access charges levied by the Haryana government as of September 2021.
In conclusion, open access is an important tool for consumers and generators to reduce their electricity costs and increase competition in the electricity market. While the calculation of open access charges may seem complicated, understanding the components involved can help in making informed decisions about open access.