Evaluating Open Access In The Indian Power Sector Using The Transportation Model
By: Jagtap, Milind
.
Publisher: Pune NICMAR 2019Edition: Vol.34(1), Jan-Mar.Description: 25-30p.Subject(s): Construction Engineering and Management (CEM)Online resources: Click here
In:
NICMAR Journal of construction managementSummary: Power is a key resource for the development ofinfrastructure assets in India. The Indian power sector has witnessed a significant turmoil over the last two decades. It has been providing significant amounts ofsubsidy to the domestic and agricultural consumers known as Low Tariff(LT) consumers, since long. This conservative strategy ofthe power sector largely compromised competition in the sector due to the provision of subsidy to the LT consumers. This kind of cross subsidy entails recovering more revenue from the industrial and commercial consumers known as High Tariff(HT) consumers, to make up for the loss ofrevenue to provide subsidies to the LT consumers. The cost ofsupply ofelectricity is the major decision variable. The LT consumer pays subsidized tariffofabout 50 to 60 percent ofthe cost ofsupply and the HT consumers pay hefty tariffs ofabout 170 to 180 percent ofthe cost ofsupply. In order to encourage competition in the sector, a non-discriminatory open access to the power is allowed for the consumers, wherein it can switch over to a low cost power supplier. This calls for reducing the subsidy to LT consumers and introducing surcharge on HT consumers for switch over to new distribution companies (DISCOM) licensee. The economics ofopen access system are demonstrated using the transportation model, applied to the power scenario ofthe state ofMaharashtra. The solution reveals an interesting thought process to practise open access in the power sector.
| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
|---|---|---|---|---|---|---|
Articles Abstract Database
|
School of Engineering & Technology (PG) Archieval Section | Not for loan | 2020369 |
Power is a key resource for the development ofinfrastructure assets in India. The Indian power sector has witnessed a significant turmoil over the last two decades. It has been providing significant amounts ofsubsidy to the domestic and agricultural consumers known as Low Tariff(LT) consumers, since long. This conservative strategy ofthe power sector largely compromised competition in the sector due to the provision of subsidy to the LT consumers. This kind of cross subsidy entails recovering more revenue from the industrial and commercial consumers known as High Tariff(HT) consumers, to make up for the loss ofrevenue to provide subsidies to the LT consumers. The cost ofsupply ofelectricity is the major decision variable. The LT consumer pays subsidized tariffofabout 50 to 60 percent ofthe cost ofsupply and the HT consumers pay hefty tariffs ofabout 170 to 180 percent ofthe cost ofsupply. In order to encourage competition in the sector, a non-discriminatory open access to the power is allowed for the consumers, wherein it can switch over to a low cost power supplier. This calls for reducing the subsidy to LT consumers and introducing surcharge on HT consumers for switch over to new distribution companies (DISCOM) licensee. The economics ofopen access system are demonstrated using the transportation model, applied to the power scenario ofthe state ofMaharashtra. The solution reveals an interesting thought process to practise open access in the power sector.
Click on an image to view it in the image viewer
There are no comments for this item.