Open access under Section 42 of the Electricity Act, 2003 allows a consumer (other than the distribution company in the area) to use the transmission and distribution network of a licensee to purchase electricity from a source of its choice, subject to the payment of surcharges and wheeling charges. Open access at the distribution level (for consumers above a specified connected load) is regulated by SERCs and has been a source of significant regulatory litigation, as state regulators and distribution companies have at various times imposed conditions that effectively limit its commercial viability.
