Assistance to MPSEB and Government of Madhya Pradesh on Power Sector Restructuring in Madhya Pradesh

Client: SNC Lavallin, Department for International Development.

Scope of Work: The project was completed in three phases. Phase 1 involved preparation of a Business Plan and a Financial Restructuring Plan for MPSEB and its successor entities. During Phase 2, Feedback assisted MPSEB in Power Sector Restructuring and review of the Electricity Act provisions. Institutional Strengthening and Capacity Building for Successor Entities were undertaken during Phase 3.

Preparation of Open Access regulations

Client: Rajasthan Electricity Regulatory Commission

Scope of work:

• Analysis of the regulatory framework that forms the basis of Open Access.
  
  
• Analysis of the key features and learnings from the open access regimes in the electricity sector across the world.
  
  
• Review of the electricity sector in Rajasthan with emphasis on technical, operational, commercial and financial aspects.
  
  
• Analysis of issues relating to state level policies and jurisdiction issues between Central Electricity Regulatory Commission (CERC) and Rajasthan Electricity Regulatory Commission (RERC).
  
  
• Detailing of the pre-requisites and key issues in providing Open Access to various categories of participants.
  
  
• Assessment of the contractual framework required for multi-party transactions possible under the Open Access regime.
  
  
• Development of various options for pricing including analysis of cost of service and the framing of surcharge and additional surcharge based on the existing and proposed cross subsidy position in the state.
  
  
• Analysis of costs of utilities and determination of cost of service to formulate applicable cross-subsidy surcharge or additional surcharge payable for open access.
  
  
• Formulation of policy for gradual elimination of cross-subsidy through the above.
  
  
• Assessment of the options for phasing and the introduction of open access in the distribution system.
  
  
• Assessment of the procedures for availing open access.
  
  
• Recommendations on various issues relating to Open Access.
  
  
• Framing of Draft Open Access Regulations.
  
  
• Assistance in discussions with stakeholders and the public hearing process.
  
  
• Finalizing the Open Access Regulations in conjunction with RERC.
  
  

Benefit to the client:

Based on Feedback’s assistance, RERC finalized the Open Access regulations and issued the same.