An open access consumer is a person or entity that has the right to procure electricity from a source other than the designated distribution licensee of their area, using the distribution system of that licensee. The legal framework allows consumers to choose their electricity supplier through open access, provided they pay the applicable surcharge, known as cross subsidy surcharge (CSS), which compensates the distribution licensee for the loss of cross-subsidy revenue.

In the context of the provided document, a key point is that the CSS is payable by consumers who opt to take supply through open access from a supplier other than the distribution licensee of their area (!) (!) . The legal definition of "consumer" includes entities that use electricity for their own use, regardless of whether they are connected directly to the distribution licensee or are procuring power via open access (!) (!) .

Furthermore, even entities deemed to be licensees, such as those in special zones like SEZs, may still be considered consumers if they are using the electricity solely for their own consumption and not for distribution to others (!) . The legal provisions recognize that consumers have the right to choose their source of supply while being liable to pay the CSS, which is intended to balance the interests of existing licensees and promote competition.

In summary, an open access consumer is an entity that has the right to purchase electricity from a source other than the local distribution licensee, using the distribution system of that licensee, and is liable to pay the applicable CSS for such open access arrangements.