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Power Line Conference Review of Electricity Act, 2003 Mohit Saraf Senior Partner, Luthra & Luthra

Power Line Conference Review of Electricity Act, 2003 Mohit Saraf Senior Partner, Luthra & Luthra Law Offices July 14, 2004. The Electricity Act, 2003 – Features & Issues. Generation - De-licensed Supply by generating company Open Access/ Dedicated transmission lines

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Power Line Conference Review of Electricity Act, 2003 Mohit Saraf Senior Partner, Luthra & Luthra

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  1. Power Line Conference Review of Electricity Act, 2003 Mohit Saraf Senior Partner, Luthra & Luthra Law Offices July 14, 2004 L&L Confidential

  2. The Electricity Act, 2003 – Features & Issues • Generation - De-licensed • Supply by generating company • Open Access/ Dedicated transmission lines • Whether supply by generating company to consumers through dedicated transmission lines amounts to distribution of electricity? L&L Confidential

  3. The Electricity Act, 2003 – Features & Issues • Captive generation of electricity • Benefits under the Act: • Right of Open Access • No surcharge • Definition of Captive generation • Generation of electricity by a company for its members • Supply of surplus energy by a captive plant. L&L Confidential

  4. The Electricity Act, 2003 – Features & Issues • Non-discriminatory Open Access • Operational/ Technical constraints • Surcharge only applicable in case of open access • Purpose of surcharge/ cross-subsidy • Surcharge on transmission charges/ wheeling charges • Whether surcharge is payable in case of supply through dedicated transmission lines? L&L Confidential

  5. The Electricity Act, 2003 – Features & Issues • Trading recognised as a separate activity • Transmission licensee cannot engage in Trading • Whether inter-state trading licence covers intra-state trading? L&L Confidential

  6. The Electricity Act, 2003 – Features & Issues • Multiple Distribution Licences • Area of Licence • Setting up distribution system/ Open access on existing network • Supply of electricity by a distribution licensee outside the area of licence • Whether permissible? • Can the distribution licensee extend its own lines outside the area of licence? L&L Confidential

  7. The Electricity Act, 2003 – Features & Issues • Determination of Tariff • Section 62(1) vs. Section 86(1)(a) • Open Access • Supply through dedicated transmission lines • Trading margin • Tariff through competitive bidding L&L Confidential

  8. Proposed Review of the Act • Unbundling of SEBs – whether stalled? • Phasing out of cross-subsidization – whether shelved? L&L Confidential

  9. Thank you L&L Confidential

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