With the Electricity Bill passed by Parliament in its recently concluded Budget session providing for increased responsibilities for regulators, the Central Electricity Regulatory Commission (CERC) has initiated steps to face the liberalised scenario, as mandated under the legislation.
The power regulator is scheduled to come up with a terms-and-conditions order for tariff setting by December this year.
The Commission is also in the process of preparing a trading policy, guidelines on development of market and for fostering competition in the sector, in time for the new tariff period starting April 1, 2004.
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According to chairman, Central Electricity Regulatory Commission, A K Basu, the Commission plans to firm up the terms and conditions of tariffs, under Section 62 of the legislation, and has already initiated consultations with various stakeholders.
By May 31, Central Electricity Regulatory Commission would be coming out with a discussion paper and the new tariff guidelines would be in place by December 31, he said.
Under this, the Commission would prescribe the principles for determination of tariff for supply of electricity by a generating company to a distribution licensee, transmission, wheeling and retail sale of electricity.
Presently the Central Electricity Regulatory Commission fixes tariffs for central utilities and inter-state projects on a three-year basis.
In its discussions with the stakeholders, the Commission plans to invited suggestions on how long the tariff period should be, Basu said.
The Commmison will come out with a Trading Policy entailing the general guidelines by September 30, Basu said. Under Section 52 of the new legislation, the Commission has to specify the technical requirement, capital adequacy requirement and credit worthiness for being a electricity trader.
As regard to promoting the development of a market, as required under Section 66 of the Bill, the Commission would involve the services of an external consultancy agency and would be coming out with its final order by December 31, Basu said.
For promoting competition, the Commission has already issued guidelines for competitive bidding, which was subsequently challenged by Power Grid Corporation.
The Commission would come out with revised guidelines in a week