International Brands in Hospitality Sector Empowered by Open Access Electricity
Synopsis
The case deals with understanding the concept of open access electricity. When the electricity consumed from the existing power supply company becomes costly, the major expenditure is towards the electricity bills. If generation of captive power plant is not feasible on site, the open access concept can be used. Open Access Electricity has enabled the consumer to generate captive energy at one place and utilise the same at other place by payment of wheeling charges and taxes. The story in the case explains how the dilemma of hospitality industry can be solved by use of open access electricity.
This Teaching Note is aimed to clarify certain questions which the students can raise after reading the narrative. The probable questions and their answers are included in the following write-up.
Pedagogical Objectives
The case is useful for demonstrating the application of Open Access Electricity to reduce the electricity bills and better the customer experience under the Electricity Act 2003. The primary objective of the case is to demonstrate how Open Access models can be used to reduce electricity bills of high consumption commercial complexes whilst also mentioning theeffectiveengagement with customers associated with utility companies. Other learning objectives include the following:
• Demonstrate the application of Electricity Act 2003
• Demonstrate the superiority of selection process of different categories of connections
• Understand sensitivity and specificity in context of energy requirement and availability problem
• Learning different types of open access charges and treat categorical variables
• Understand deployment strategies based on electricity consumption pattern and service providing company
Positioning and Setting
The Case is positioned in the strategy and policy area, specifically underlining benefits of Government Acts and Policies that an energy consumer and energy generation company can avail.
Assignment Questions
I What are the benefits that can be availed under Open Access Electricity?
II What is the procedure for Open Access Electricity?
III ...............
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Exhibits
Exhibit (TN)-I: PoC Rates
Exhibit (TN)-II: Possible Scenarios and Change in Charges
Exhibit (TN)-III: Electricity Consumption for Lalit Leela Palace
Exhibit (TN)-IV: Electricity billing for Lalit Leela Palace