Electricity Act: Govt proposes to give more power to state regulators

In the wake of the recent power grid collapse, government proposes to give more powers to the state regulators through an amendment in the Electricity Act likely to be introduced during the next Parliament session.

“There is a need to provide more power, more teeth to the State Electricity Regulatory Commissions (SERCs). They should be given more liberty so that grid discipline is enforced by them,” Power Minister Veerappa Moily said.

The ministry has already appointed a Task Force, headed by Chairman CEA (Central Electricity Authority) which is consulting various stakeholders in this regard. “Within two months the Task Force should give the report and in the meantime I have asked all the state regulators to work on the proposed amendment, and evolve them with a holistic approach.

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“We want the new (amended) Act to be more reforms based, more principle based and I also propose to introduce that in the Winter session of the Parliament,” he said.

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At the end of 11th plan period (2007-12), the share of private power companies rose from 21 percent to 55 percent, he said, adding if emphasis is not given on distribution, they will have no incentive.

“The proposal now is that the orders of the state regulators should be treated as ‘civil decree’ or which can be enforced by law,” Moily said. “Put some governance and reforms for the greater functioning of the state electricity boards and enforcement of rules and regulations by SERCs,” he said.

“There should be performance appraisal of the state regulators, we are looking at that,” he added.

As against the total installed capacity in India of over 2,00,000 MW, the energy demand is expected to reach 4,00,000 MW by 2022.

PTI