Padamjit Singh, Chairman of AIPEF, in his letter has stated that supply licensees would sell power to high revenue identified consumers such as large supply consumers, industry, shopping malls etc. This will impact revenue of state Discoms and make them financially sick.
The system of a supplier arranging power from outside to be given to a large no. of scattered consumers embedded in the Discoms distribution system is not compatible with the prevailing scheduling system wherein every generator/supplier has to give the power supply to the Discoms as per day ahead schedule.
Moreover, the energy accounting and losses not yet developed/streamlined by state Discoms as has been done in USA and Australia to handle the work of supply licensee using network of Discoms and Transco. In case supplier's generator/source trips the unscheduled overdraws impact will come on state Discoms. How this unscheduled overdrawl will be loaded on to supplier.
Discoms are supposed to apply power cuts as per guidelines of regional load dispatch centers. In applying power cuts, the feeder being common, the consumers getting supplier licensee power will also get cut which could lead to disputes.
Consumer will have to deal with two agencies- the network owner and the supplier. Ownership of metering equipment/meters could create problems-supplier may not agree to meters of Discoms and vice versa.
In case a LS consumer above 1 MW gets power from outside source as permissible now, through open access, he has to get the power as per a schedule. By contrast with a supplier giving power to large number of scattered consumers in the state, it would not be possible to give any kind of schedule on day ahead basis accurately.