Untitled - Ministry of Power

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Central Electricity Regulatory Commission
The Central Electricity Regulatory Commission
(CERC), an independent statutory body with
quasi-judicial powers, was constituted on 25 th July
1998 under the Electricity Regulatory Commission
Act, 1998. The Commission consists of a
Chairperson and four other Members including
the Chairman, CEA as the ex-officio member.
2. Under the Electricity Act, 2003, 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;
(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;
(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.
3. The Electricity Act, 2003 further states that
the Central Commission shall advise the
Central Government on all or any of the
following matters, namely;-
(k) to discharge such other functions as may
be assigned under this Act.
(a) formulation of National Electricity Policy and
tariff policy;
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(b) promotion of competition, efficiency and
economy in activities of the electricity industry;
(c) promotion of investment in electricity
industry;
(d) any other matter referred to the Central
Commission by that Government
4. To give effect to the functions vested with
the Central Commission under the Electricity
Act, 2003, the CERC has during the year
2003-04 circulated the following
Consultation/Discussion Papers for soliciting
the views of all concerned:-
(i) Discussion Paper on Terms & Conditions of
Tariff for period commencing 1.4.2004
(ii) Concept Paper on Open Access in Inter-
State Transmission; and
(iii) Concept Paper on Eligibility Conditions for
Grant of Power Trading License
The Commission has conducted the due
process of hearing and consultation with the
stakeholders, experts and informed citizens,
on the above issues. The Commission has
already issued final regulations on ‘Open
Access in Inter-State Transmission’ and
‘Grant of Power Trading License’. The
Regulations governing Terms & Conditions
of Tariff for the period commencing 1.4.2004
have also been specified.
5. During the year 2003-04, CERC issued
notifications/regulations relating to reconstitution
of Central Advisory Committee and
its amendment and addition of new members,
extension of billing of tariff charges upto
30.9.2003, CERC (Terms & Conditions of Tariff)
(First Amendment) Regulations, 2003, CERC
(Terms & Conditions of Tariff) (Second
Amendment) Regulations, 2003, CERC
(Procedure, Terms & Conditions for grant of
Transmission License and other related
matters) Regulations, 2003 and extension of
billing of tariff charges upto 31.3.2004.
6. The Commission has also opened its web
site (www.cercind.org) which is regularly
updated by posting all the programmes and
orders of the Commission from time to time.
7. 159 petitions were carried forward from the
previous year, that is 2002-03. In addition
121 petitions were filed during 2003-04, the
year under report, taking the total number
to 280 petitions. Out of these, 155 petitions
were disposed of during 2003-04 itself.