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Source: The post is based on the article “Regulatory loopholes may end up favouring bigger players: Experts” published in The Hindu on 14th November 2022.
What is the News?
Recently, the Central Electricity Regulatory Commission(CERC) released a draft proposal to facilitate a regulatory framework for General Network Access(GNA).
Alongside, CERC has also released new connectivity regulations. These regulations are being red-flagged by market players.
What is General Network Access(GNA)?
General Network Access(GNA) means open access to the inter-State transmission system.
It seeks to do away with pre-determined point-to-point transmission access. Instead, it enables both access or drawal on the entire transmission corridor in a way that it provides generators and procurers with the flexibility of both injection and withdrawal.
What are the benefits of the General Network Access(GNA) regulatory framework?
Firstly, GNA will untangle the current webs in the system and ensure that a generator focuses only on producing power and the consumer on buying it.
Secondly, GNA provides more flexibility and the possibility of open access to the buyers and sellers of power in terms of scheduling, subject to grid constraints and does not suffer from the rigidity of the current point-to-point open access mechanism.
What are the issues with the GNA framework now?
There are loopholes in the accompanying connectivity regulations issued subsequently by CERC.
The concern is that these connectivity regulations could potentially end up favoring the bigger players in the sector.