Availability Based Tariff and its impact On different Industry Players-A Review.

ABT is a performance-based tariff for the supply of electricity by generators owned and controlled by the central government. It is also a new system of scheduling and dispatch, which requires both generators and beneficiaries to commit to day-ahead schedules. It is a system of rewards and penalties seeking to enforce day ahead pre-committed schedules, though variations are permitted if notified One and one half hours in advance. The order emphasizes prompt payment of dues. ABT (Availability Based Tariff) along with the Electricity Act of 2003 is perhaps the most significant and definitive step taken in the Indian power sector so far to bring more efficiency and focus to this vital infrastructure. The ABT mechanism is based on financial principles. ABT scheme is for unscheduled interchange of power. The paper reviews ABT issues, its components, clauses, mechanism, benefits and the impact of grid on different players like generation utilities, grid operator, consumers involved in power generation, transmission and distribution. While the proposed tariff structure has wide implications for each player, this deals exclusively with the technology challenges/opportunities thrown up by ABT. [ABSTRACT FROM AUTHOR]