NITI Aayog reviews role of central, state electricity regulators
New Delhi: India is targeting an overhaul of
power sector regulations
, with necessary changes in the role and accountability of entities.
Towards this, government think-tank
NITI Aayog
has initiated a study on the autonomy, role clarity, capacity and accountability of the
Central Electricity Regulatory Commission
(
CERC
) and State Electricity Regulatory Commissions (
SERCs
), a senior government official told ET.
"The study is aimed at strengthening these institutions to address the rapidly changing nature of electricity, including entry of new market players, new types of systems, and new products in the sector which demands greater responsibility and accountability on the part of the regulators," the official said.
The plan is to enable
energy regulators
to undertake systemic changes in their approach and functioning to better address the challenges faced by regulatory commissions including maintaining viability of the power system, attracting private investments and protection of public interest.
The study is expected to conclude by this year-end with proposed changes to the regulatory commissions getting implemented from next year, the official said.
The Aayog is of the view that while some electricity regulatory commissions (ERCs) have developed a reputation for high-quality regulation, enforcement, and adjudication, few ERCs continue to draw criticism on issues such as regulatory capture, delay in
tariff orders
, and lack of autonomy. This has necessitated the need for a study to revamp the structure, function and power to make them more robust.
India expects peak power demand to surge to 370 GW by 2030 from 243 GW currently. This will require massive expansion and strengthening of the electricity generation, transmission and distribution system in the country.
The CERC was set up in 1998, under the provisions of the
Electricity Regulatory Commission Act
, 1998. It is the central commission for purposes of the Electricity Act, 2003, and is primarily responsible for regulating tariffs of generating companies owned or controlled by the Centre and tariffs for interstate transmission of electricity.
It is also responsible for promoting competition, efficiency and economy in activities of the sector besides supporting investments in the power sector.
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