You may find the answers down here…
The Electricity Act 2003 and State regulations allows a grid-connected bulk consumer with a contract demand of 1000 kVA or above to meet a part of or their entire electricity requirements via alternate energy sources. Through Open Access, SAPL strives to serve industial and commercial consumers with load more than 1 MW and provide them with electricity at cheaper rate than the Grid Tariff.
The electricity from alternate source is provided through existing infrastructure. Consumers only need to replace the existing metering system with ABT compliant meters.
While Taking Power through OA mechanism, various charges are to be paid by the consumer typically for using the existing system. These charges include the following:
• Transmission charges – The transmission charges are payable to the transmission company for using the transmission infrastructure.
• Wheeling charges – The wheeling charges are payable to the distribution company for using the distribution network. They are applicable to all power generating plants connected to the distribution grid at 33 kV or below and using Open Access.
• Transmission losses – These are the electricity losses in the transmission line between the point of generation and the point of consumption. Typically, these are in the range of 2% to 6%.
• Wheeling losses – These are the electricity losses incurred by the distribution network. They are determined by the State Electricity Regulatory Commissions (SERCs) for each buyer category and typically range between 4% and 10%.
• Cross-subsidy surcharge (CSS) – These are payable by commercial and industrial buyers to fund the tariff subsidy for agricultural and residential buyers. When a buyer opts for Open Access, the distribution company loses high-value income that would have subsidized low-income electricity users. CSS is designed to compensate for the lost subsidy.
• Additional surcharge (AS) – AS is imposed to recover the cost of standard assets when corporate buyers leave the distribution company and procure power through Open Access. The utility needs to prove to the regulator that assets are stranded to impose AS.