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A provision for the sale and purchase of third party power through open access was been created in The Electricity Act, 2003 as long as the schedule of charges determined by the respective State/Central Electricity Regulatory Commissions for utilization of the electricity grid and services are paid to the corresponding agencies. Consumers could purchase power under third party mode without any equity investment in the power generating company. However, through this mode of purchase the consumer needs to pay cross subsidy surcharges (CSS) to the respective power DISCOM. The CSS is fixed by the Energy Regulatory Commission of a particular state.

In Karnataka the CSS is exempted for 10 years for the consumers who buy solar power under third party mode from the solar power plants that are commissioned before 31st March’18