How will a consumer benefit from MCXs Indian Energy Exchange?
The Electricity Act 2003 is based on the philosophy that consumers benefit through competitive markets. The Act has de-licensed generation, encouraged captive power by allowing them to sell almost half of the generation, without any licence requirements. Multiple players are required for competitive markets. This is done by allowing multiple licences in the same area and also allowing ‘Open Access’ to all consumers needing more than one megawatt power and to all generators and also to Licences. ‘ Open Access’ means non-discriminatory use of wires and related infrastructure, on payment of user charges and subject to availability of capacity. Thus, the consumer is provided with choice of suppliers, including his own captive unit, which can be located anywhere in the country. Even group of consumers can come together (even without any incorporation) for setting up captive units. This is certainly going to help build up competition, and increase in supply. How can the captive power plants
