In a move aimed at introducing competition in the power supply sector, the Central Electricity Regulatory Commission issued orders for inter-state transmission, prohibiting discrimination by state electricity boards. The commission divided open access customers into two categories-long term and short term.

CERC categorised long-term customers as those intending to access inter-state transmission links for a minimum period of 25 years treating the existing beneficiaries of regional transmission system as long-term customers.

All others have been classified as short-term customers whose access shall not exceed more than one year at a time.

The commission also probihited discrimination between open access customers and self use by an integrated entity, like state electricity boards.

The long-term customers have been prioritised at a higher level compared to the short-term ones.

Bidding has been introduced for short-term customers where capacity sought is more than that available.

Customers getting reservation for capacities less than they had sought would have to pay charges quoted by them while customers who get capacity equal to the amount sought by them would have to pay charges quoted by the last customer.