With a view to increase efficiency and competition in the power sector, Central Electricity Regulatory Commission on Monday allowed open access in transmission system to power generating and distributing companies with immediate effect.

"All transmission service providers in the country including PowerGrid Corporation shall provide non-discriminatory open access for inter-state transmission to any distribution company, trader, generating company, captive plant or any permitted consumer," CERC said in a statement in New Delhi.

The move would create options for distribution companies and bulk customers for buying power, the regulator said, adding this would facilitate competition in the power generation industry.

The commission has also ordered that the open access customers shall have an option like the existing beneficiaries to enter into long-term bulk power transmission agreement for use of inter-state transmission system and in such a case the transmission service charge would be determined according to the tariff norms notified by it.

The New Electricity Act, 2003 had mandated open access in transmission from the date of its enactment.

As per the CERC order, the nodal agency for long-term access shall be the Central Transmission Utility, which is PGCIL at present.

CERC has categorised open access customers into two broad categories -- short-term customers, who intend to avail transmission services upto one year and long-term customers, who intend to avail transmission access for five years or more.

Allotment priority of long-term open access customers shall be higher than the short-term customers, it said, adding, "The original beneficiaries who are at present connected to regional grid and the new-long term customers shall be treated at par."

In the event of transmission constraint, all short-term customers shall be curtailed first followed by long-term customers, the regulator said.

The nodal agency for short-term access shall be the Regional Load Dispatch Centre.

According to the order, application processing fees of Rs 100,000 shall be charged from long-term customers and the request for transmission access shall be processed by the nodal agency in a time-bound manner.

Maximum processing time period for availing long-term service shall be 90 days, whereas the maximum time for availing the service upto one month shall be seven days.

According to CERC, any open access customer directly connected to Central Transmission Utility transmission network shall be treated in an identical manner as the existing entities and would be liable to pay unscheduled energy intercharge charges as the availability based tariff (ABT) for any deviations in energy schedule.

The availability based tariff has been implemented by the central commission in all the five regions of the country and has built-in mechanism for energy accounting in respect of any deviations from the declared schedules.

CERC has recommended that same methodology and procedure for energy accounting should also be implemented at the state level.

It would be mandatory for all open access inter-state transmission customers to provide special energy meters with requisite communication facility as per the requirement of Regional Load Dispatch Centre or Central Transmission Utility and these meters shall have to be tested and maintained in good condition, CERC added.