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The power industry
is in the process of re-organisation. The Electricity
Act has freed generation from licensing, introduced
open access and identified power trading as a distinct
activity. Further it advocates unbundling of the
integrated State Electricity Boards into generation,
transmission and distribution utilities. This has
led to a number of new opportunities in the power
sector. Few of the significant developments that
can be foreseen are:
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A host of new entrants in the
power sector leading to a competitive market
in the entire value chain of the power sector.
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Unbundling of the vertically integrated
State Electricity Boards. |
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Power trading would result into opportunities
for power generators to sell the surplus capacities,
which hitherto used to go idle. |
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Introduction of flexible pricing, within
the maximum regulated price by generators
and distribution utilities. |
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Progressive reduction in cross-subsidies
to reflect the cost to serve. |
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Thus, the facilitating provisions of the
new Act with regard to ‘Open Access’
in transmission and supply, will enable the
Company to supply the power generated by it,
to its group companies, AEC and SEC, which
have stable finances and a good collection
record. The Company would also be free to
sell power to any power trading licensees
or any other customers. |
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