This question was asked inGPSC Deputy Executive Engineer (Electrical) Class-2 Master Paper 2026Question 160 of 195 published · Gujarat Public Service CommissionOpen paper
Q160EasyElectricity Act & Regulation

Consider the following statements regarding "Energy Wheeling":
1. It is the process of transporting electricity from a generator to a remote consumer using the existing transmission/distribution grid.
2. Wheeling charges are paid by the generator or consumer to the grid owner (DISCOM/TRANSCO).
3. Wheeling is only permitted for thermal power plants and not for renewable energy.
Which of the statements given above is/are correct?

Answer & step-by-step solution
Correct answer: A. 1 and 2 only
Quick explanation

Wheeling separates ownership of energy from ownership of the wires. The generator and consumer may contract for power while the physical electricity flows through a transmission/distribution licensee’s network, subject to grid-code, open-access and tariff rules. Key relation: Commercial concept: delivered energy uses network capacity; applicable charges may include transmission/wheeling and other regulatory charges depending on jurisdiction.

Exam focus: Wheeling = use of someone else’s grid; do not confuse it with energy banking. Common trap: Assuming renewable power must be consumed only at the point of generation.

Statement-wise Verification

  • Statement 1 - Correct.
    It is the process of transporting electricity from a generator to a remote consumer using the existing transmission/distribution grid.
    Wheeling is the transport of electricity across another entity’s grid from a generator/source to a consumer or buyer.
  • Statement 2 - Correct.
    Wheeling charges are paid by the generator or consumer to the grid owner (DISCOM/TRANSCO).
    In principle: the grid owner/licensee is compensated through regulated transmission/wheeling/network charges, paid according to the applicable open-access arrangement.
  • Statement 3 - Incorrect.
    Wheeling is only permitted for thermal power plants and not for renewable energy.
    Renewable generators routinely use wheeling/open-access frameworks; there is no general thermal-only restriction.

Core Concept

Wheeling separates ownership of energy from ownership of the wires. The generator and consumer may contract for power while the physical electricity flows through a transmission/distribution licensee’s network, subject to grid-code, open-access and tariff rules.

Formula / Key Relationship

Commercial concept: delivered energy uses network capacity; applicable charges may include transmission/wheeling and other regulatory charges depending on jurisdiction.

Step-by-Step Check

The definition and common renewable/open-access use confirm 1 and 2 and disprove the exclusive thermal restriction. Option A.

Why the Other Options Are Wrong

Option B is incorrect because it includes incorrect statement(s) 3 and omits correct statement(s) 1. Option C is incorrect because it includes incorrect statement(s) 3 and omits correct statement(s) 2. Option D is incorrect because it includes incorrect statement(s) 3.

Answer-Key Verification Note

The uploaded provisional key marks C . After independent technical verification, the defensible answer is A . This discrepancy is stated explicitly rather than silently copying the provisional key.

Exam Shortcut / Approach

Wheeling = use of someone else’s grid; do not confuse it with energy banking.

Common Mistake

Assuming renewable power must be consumed only at the point of generation.

Quick Revision

Grid Wheeling and Charges is linked with Energy Wheeling, Open Access and Energy Management. Wheeling = use of someone else’s grid; do not confuse it with energy banking.

Exam tipWheeling = use of someone else’s grid; do not confuse it with energy banking.
Verified · SRO editorial desk Report
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