FICCI & IEX jointly organized an online interaction on competitive power procurement for C&I consumers in Uttar Pradesh

FICCI & IEX jointly organized an online interaction on competitive power procurement

FICCI & IEX jointly organized an online interaction on competitive power procurement

Webinar was organized on “Power Procurement for C&I Consumer in Uttar Pradesh” on 30 September 2021. The industries in Uttar Pradesh have always been curious and excited about lowering rates of electricity as this is a major factor in the manufacturing cost of the products. In the post pandemic times this has become one of the most important factors and now the Industries need cheaper electricity to reduce costs and tackle economic slowdown. 

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has come up with open access regulations, termed as the Uttar Pradesh Electricity Regulatory Commission (terms and conditions for open access) Regulations, 2019. The eligibility criteria for open access will be permissible to the consumers seeking open access for a contracted demand of 1 MW and above connected at 11 kV and above. The consumers can now source electricity competitively instead of buying expensive electricity from local Discoms. It is allowing consumers to buy electricity directly from power generators, traders, or exchanges. It’s imperative that more and more industries opt for Open Access and take benefit from it. 

Mr Rohit Bajaj, Head and Senior Vice President-Business Development at IEX, said, “Today IEX is facilitating competitively priced power to almost 4500 plus commercial and industrial consumers located across India. There is huge opportunity available for consumers of UP as they can reduce power procurement cost by upto Rs 1/unit. Over 80 customers are already leveraging electricity market on the Exchange and potential remains far greater. We are confident that this webinar will facilitate all 1 MW and above open access consumers in UP to take benefit and buy power through Exchange, which will also spur the industrial growth in the state”. In the state of UP, the C&I consumers account for 14% of the total electricity consumed by the state on an yearly basis. The state presently has an installed capacity of around 28,000 MW. As UP aspires to become a preferred investment destination, lowering the operational costs of electricity for industries is a critical factor. Encouragement to Open Access can potentially assist C&I industrial consumers in lowering their electricity costs, allowing them to improve their overall operational efficiency and contribute to the state’s growth.

Mr. Vinod Agarwal, Director, Paswara Papers Ltd. said that the state Industry seeks the support from the Government in R&D, Innovation, policies to make a quality, cost effective product for the International and Domestic market. Heavy users of electricity may benefit from Open Access, now that the government has allowed it in UP.

Mr. Amit Gupta, Head FICCI Uttar Pradesh said that this requires the Industry and Government to come together and make this difficult situation an opportunity for Uttar Pradesh Industry. The growing number of Open Access users has already displayed the potential in this scheme.

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