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ROLE OF REGULATORS IN ELECTRICITY MARKET -FUNCTIONS OF CERC -FUNCTIONS OF SERC

ROLE OF REGULATORS IN ELECTRICITY MARKET -FUNCTIONS OF CERC -FUNCTIONS OF SERC. PRESENTED BY SH. Rakesh Prasad DGM (COMMERCIAL) POWERGRID. ROLE OF THE REGULATOR. TOTAL FREEDOM SOMETIMES LEADS TO UNFAIR BUSINESS PRACTICES, CARTELIZATION AND SO ON.

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ROLE OF REGULATORS IN ELECTRICITY MARKET -FUNCTIONS OF CERC -FUNCTIONS OF SERC

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  1. ROLE OF REGULATORS IN ELECTRICITY MARKET-FUNCTIONS OF CERC-FUNCTIONS OF SERC PRESENTED BY SH. Rakesh Prasad DGM (COMMERCIAL) POWERGRID

  2. ROLE OF THE REGULATOR • TOTAL FREEDOM SOMETIMES LEADS TO UNFAIR BUSINESS PRACTICES, CARTELIZATION AND SO ON. • THEREFORE A BALANCE HAS TO BE STRUCK, WHICH IS WHERE THE ROLE OF A REGULATOR BECOMES IMPORTANT. • A REGULATOR IS SET UP BY THE GOVERNMENT TO ENSURE THAT THE ORDINARY CITIZEN GETS DESIRED SERVICES ON REASONABLE COST. • IN A LIBERALIZED MARKET THE TRANSMISSION AND DISTRIBUTION SEGMENTS, BECAUSE OF THEIR NATURAL MONOPOLISTIS NATURE, WHOULD REMAIN REGULATED TO ENSURE RESONABLE RETURN ON INVESTMENT AND CONTINOUS DEVELOPMENT OF THE INFRASTRUCTURE TO MEET FUTURE NEEDS.

  3. ROLE OF THE REGULATOR…Contd • REGULATOR ARE NOT ALLOWED TO WORK INDEPENDENTLY. THEY ARE GUIDED BY THE POLICY OF GOI. • REGULATOR HAS TO OBTAIN THE VIEWS OF ALL THE STAKEHOLDERS FOR FORMATION OF NORMS • REGULATOR SHOULD WORK WITHIN THE FRAMEWORK OF THE LAW, SHOULD NOT BE HAMPERED BY GOVT. INTERFERENCE AND SHOULD NOT BE MANIPULATED BY POWERFUL PRIVATE ENTERPRISES.

  4. ROLE OF THE REGULATOR…Contd • ROLE OF REGULATOR IN ELECTRICITY MARKET IS ESSENTIAL TO ENSURE- • SUPPLY RELIABILITY • CONTINUOUS INVESTMENTS • REASONABLE PRICING • PROPER MARKET BEHAVIOUR • THE ELECTRICITY ACT’2003 (ACT 2003.ppt) PROVIDES FOR CONSTITUTION OF CERC & SERC.

  5. CENTRAL ELECTRICITY REGULATORY COMMISSION • THE CENTRAL COMMISSION WAS ESTABLISHED ON 24.7.1998 • THE CENTRAL COMMISSION SHALL CONSIST: • A CHAIRPERSON AND THREE OTHER MEMBERS • THE CHAIRMAN OF THE CENTRAL ELECTRICITY • AUTHORITY SHALL BE THE MEMBER, EX- OFFICIO • THE CENTRAL COMMISSION MAY APPOINT A SECRETARY TO EXERCISE AND PERFORM UNDER CONTROL OF THE CHAIRPERSON

  6. FUNCTIONS OF CERC THE CENTRAL COMMISSION SHALL DISCHARGE THE FOLLOWING FUNCTIONS NAMELY:- • (A) TO REGULATE THE TARIFF OF GENERATING COMPANIES OWNED OR CONTROLLED BY THE CENTRAL GOVERNMENT; • (B) TO REGULATE THE TARIFF OF GENERATING COMPANIES OTHER THAN THOSE OWNED OR CONTROLLED BY THE CENTRAL GOVERNMENT SPECIFIED IN CLAUSE (A), IF SUCH GENERATING COMPANIES ENTER INTO OR OTHERWISE HAVE A COMPOSITE SCHEME FOR GENERATION AND SALE OF ELECTRICITY IN MORE THAN ONE STATE;

  7. FUNCTIONS OF CERC….CONTD • (C) TO REGULATE THE INTER-STATE TRANSMISSION OF ELECTRICITY ; • (D) TO DETERMINE TARIFF FOR INTER-STATE TRANSMISSION OF ELECTRICITY; • (E) TO ISSUE LICENSES TO PERSONS TO FUNCTION AS TRANSMISSION LICENSEE AND ELECTRICITY TRADER WITH RESPECT TO THEIR INTER-STATE OPERATIONS. • (F) TO ADJUDICATE UPON DISPUTES INVOLVING GENERATING COMPANIES OR TRANSMISSION LICENSEE IN REGARD TO MATTERS CONNECTED WITH CLAUSES (A) TO (D) ABOVE AND TO REFER ANY DISPUTE FOR ARBITRATION;

  8. FUNCTIONS OF CERC….CONTD • (G) TO LEVY FEES FOR THE PURPOSES OF THIS ACT; • (H) TO SPECIFY GRID CODE HAVING REGARD TO GRID STANDARDS; • (I) TO SPECIFY AND ENFORCE THE STANDARDS WITH RESPECT TO QUALITY, CONTINUITY AND RELIABILITY OF SERVICE BY LICENSEES. • (J) TO FIX THE TRADING MARGIN IN THE INTER-STATE TRADING OF ELECTRICITY, IF CONSIDERED, NECESSARY; • (K) TO DISCHARGE SUCH OTHER FUNCTIONS AS MAY BE ASSIGNED UNDER THIS ACT.

  9. FUNCTIONS OF CERC….CONTD THE CENTRAL COMMISSION SHALL AID AND ADVISE THE CENTRAL GOVT ON FOLLOWING MATTERS: • IN THE FORMULATION OF NATIONAL ELECTRICITY POLICY AND TARIFF POLICY FAIR TO THE CONSUMERS • TO PROMOTE COMPETITION, EFFICIENCY AND ECONOMY IN THE ACTIVITIES OF ELECT. INDUSTRY • TO PROMOTE INVESTMENT IN ELECTRICITY INDUSTRY

  10. STATE ELECTRICITY REGULATORY COMMISSION • THE STATE COMMISSION WITHIN SIX MONTHS FROM THE APPOINTED DATE BY NOTIFICATION, SHALL CONSTITUTE STATE COMMISSION. • THE STATE COMMISSION SHALL CONSIST NOT MORE THAN THREE MEMBERS INCLUDING CHAIRPERSON. • THE CHAIRPERSON AND MEMBERS SHALL BE APPOINTED BY THE STATE GOVT. ON THE RECOMMENDATION OF SELECTION COMMITTEE.

  11. FUNCTIONS OF SERC The State Commission shall discharge the following functions, namely: - • (A) DETERMINE THE TARIFF FOR GENERATION, SUPPLY, TRANSMISSION AND WHEELING OF ELECTRICITY, WHOLESALE, BULK OR RETAIL, AS THE CASE MAY BE, WITHIN THE STATE: PROVIDED THAT WHERE OPEN ACCESS HAS BEEN PERMITTED TO A CATEGORY OF CONSUMERS UNDER SECTION 42, THE STATE COMMISSION SHALL DETERMINE ONLY THE WHEELING CHARGES AND SURCHARGE THEREON, IF ANY, FOR THE SAID CATEGORY OF CONSUMERS;

  12. FUNCTIONS OF SERC….. CONTD. • (B) REGULATE ELECTRICITY PURCHASE AND PROCUREMENT PROCESS OF DISTRIBUTION LICENSEES INCLUDING THE PRICE AT WHICH ELECTRICITY SHALL BE PROCURED FROM THE GENERATING COMPANIES OR LICENSEES OR FROM OTHER SOURCES THROUGH AGREEMENTS FOR PURCHASE OF POWER FOR DISTRIBUTION AND SUPPLY WITHIN THE STATE; • (C) FACILITATE INTRA-STATE TRANSMISSION AND WHEELING OF ELECTRICITY;

  13. FUNCTIONS OF SERC….. CONTD. • (D) ISSUE LICENCES TO PERSONS SEEKING TO ACT AS TRANSMISSION LICENSEES, DISTRIBUTION LICENSEES AND ELECTRICITY TRADERS WITH RESPECT TO THEIR OPERATIONS WITHIN THE STATE; • (E) PROMOTE CONGENRATION AND GENERATION OF ELECTRICITY FROM RENEWABLE SOURCES OF ENERGY BY PROVIDING SUITABLE MEASURES FOR CONNECTIVITY WITH THE GRID AND SALE OF ELECTRICITY TO ANY PERSON, AND ALSO SPECIFY, FOR PURCHASE OF ELECTRICITY FROM SUCH SOURCES, A PERCENTAGE OF THE TOTAL CONSUMPTION OF ELECTRICITY IN THE AREA OF A DISTRIBUTION LICENCE;

  14. FUNCTIONS OF SERC….. CONTD. • (F) ADJUDICATE UPON THE DISPUTES BETWEEN THE LICENSEES, AND GENERATING COMPANIES AND TO REFER ANY DISPUTE FOR ARBITRATION; • (G) LEVY FEE FOR THE PURPOSES OF THIS ACT; • (H) SPECIFY STATE GRID CODE CONSISTENT WITH THE GRID CODE SPECIFIED UNDER CLAUSE (H) OF SUB-SECTION (1) OF SECTION 79;

  15. FUNCTIONS OF SERC….. CONTD. • (I) SPECIFY OR ENFORCE STANDARDS WITH RESPECT TO QUALITY, CONTINUITY AND RELIABILITY OF SERVICE BY LICENSEES; • (J) FIX THE TRADING MARGIN IN THE INTRA-STATE TRADING OF ELECTRICITY, IF CONSIDERED, NECESSARY; AND • (K) DISCHARGE SUCH OTHER FUNCTIONS AS MAY BE ASSIGNED TO IT UNDER THIS ACT.

  16. Thank You

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