Open Access in the power sector is a regulatory framework that allows large electricity consumers to purchase power directly from the open market, rather than being restricted to buying from local distribution companies (DISCOMs). In India, this mechanism is primarily available to consumers with a connected load exceeding 1 megawatt (MW).
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Cost Efficiency: By accessing the open market, consumers can often secure electricity at more competitive rates compared to traditional DISCOM tariffs.
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Supplier Diversity: Consumers have the flexibility to choose from multiple power suppliers, fostering competition and potentially leading to better service and pricing.
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Enhanced Reliability: Diversifying power sources can improve the reliability of electricity supply, reducing dependence on a single provider.