We have studied last unit that Regulatory Commissions have been established at the Central and State levels as per the requirements of the Electricity Act, 2003.
The primary responsibilities of the Central Regulatory Commission are to:
• fix tariff of Central Sector generating plants as well as of inter-state power projects;
• fix rationalized tariffs for the generation, transmission and distribution utilities and the trading margins in the inter-State trading of electricity, if considered necessary;
• regulate the inter-state transmission of electricity and issue licenses to transmission licensees and electricity traders with respect to their inter-state operations;
• specify Grid Code with regard to Grid Standards, specify and enforce the standards with respect to quality, continuity and reliability of service by licensees;
• make sure that the utilities improve consumer services, and establish benchmarks which are upgraded over a period of time;
• examine and adjudicate upon disputes, and reconcile the interests of different stakeholders, e.g., the state run corporations and organizations,private utilities, consumers, shareholders and society at large;
• ensure a fair and equitable treatment to each stakeholder.The functions of the State Electricity Regulatory Commissions are to:
• set standards by setting codes, by license conditions, by directions in tariff orders and by miscellaneous orders;
• determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State;
• 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;
• facilitate intra-state transmission and wheeling of electricity;
• issue licenses to persons seeking to act as transmission licensees,distribution licensees and electricity traders with respect to their operations within the State;
• promote cogeneration 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 ofelectricity from such sources, a percentage of the total consumption of electricity in the area of a distribution license;
• adjudicate upon the disputes between the licensees and generating companies and to refer any dispute for arbitration;
• specify Codes such as the State Grid Code consistent with the Grid Code for optimum scheduling and despatch of electricity in accordance with the contracts, disciplining grid operations, keeping accounts of the quantity of electricity transmitted and overall supervision and control over the transmission system; the Electric Supply Code, which would deal with recovery of charges, billing, payment and disconnection/restoration of supply, tampering, distress or damage to electrical plant, electric lines or meter, entry of distribution licensee or any person acting on his/her behalf for disconnecting supply and removing the meter; entry for replacing,
altering or maintaining electric lines or electrical plant or meter; the Distribution Code (for distribution licensee) for the development,maintenance and operation of the Distribution System and the code of practice on payment of bills;
• specify overall performance standards for providing electricity supply services and promoting efficient use of electricity by consumers, apart from taking all reasonable steps to ensure safe, economical and reliable supply of electricity;
• specify or enforce standards with respect to quality, continuity and reliability of service by licensees as well as penalty on failing standards;(The compensation should be determined and be made within 90 days.However, an opportunity would be given to the licensee before allowing compensation).
• set accounting standards for the licensee to follow the guidelines issued by the Company Law for maintenance of accounts, keeping of basic accounting records, reconciliation of bank accounts, comparison of stock,maintenance of works register, reconciliation of accounts relating to revenue, updating of interest payable to consumer and security;
• set operational standards for the licensee for reduction of technical and commercial losses, improvement of collection, maintenance of quality supply and consumer satisfaction index, proper meter reading, billing and collection system, fault attendance system, reduction of power purchase cost by proper demand management and following merit order, completion of projects within schedule, planning investment on priority and profitability basis, implementing a metering plan, i.e., change of defective or non functional meters, new meters, review of load, checking accuracy of the meters, computerization of billing records and billing, proper monitoring of arrears and disconnection of defaulting consumers (in case the bill amount increases over the security amount), good governance, transparency in HR policies, work-force rationalization;
• fix the trading margin in the intra-state trading of electricity, if considered, necessary;
•specify for the consumers a complaint handling system and consumer rights statement.
In addition, the State Commission shall advise the State Government on all or any of the following matters:
promotion of competition, efficiency and economy in the activities of the electricity industry;
promotion of investment in electricity industry;
reorganization and restructuring of electricity industry in the State; and matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by the Government concerned.
The primary responsibilities of the Central Regulatory Commission are to:
• fix tariff of Central Sector generating plants as well as of inter-state power projects;
• fix rationalized tariffs for the generation, transmission and distribution utilities and the trading margins in the inter-State trading of electricity, if considered necessary;
• regulate the inter-state transmission of electricity and issue licenses to transmission licensees and electricity traders with respect to their inter-state operations;
• specify Grid Code with regard to Grid Standards, specify and enforce the standards with respect to quality, continuity and reliability of service by licensees;
• make sure that the utilities improve consumer services, and establish benchmarks which are upgraded over a period of time;
• examine and adjudicate upon disputes, and reconcile the interests of different stakeholders, e.g., the state run corporations and organizations,private utilities, consumers, shareholders and society at large;
• ensure a fair and equitable treatment to each stakeholder.The functions of the State Electricity Regulatory Commissions are to:
• set standards by setting codes, by license conditions, by directions in tariff orders and by miscellaneous orders;
• determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State;
• 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;
• facilitate intra-state transmission and wheeling of electricity;
• issue licenses to persons seeking to act as transmission licensees,distribution licensees and electricity traders with respect to their operations within the State;
• promote cogeneration 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 ofelectricity from such sources, a percentage of the total consumption of electricity in the area of a distribution license;
• adjudicate upon the disputes between the licensees and generating companies and to refer any dispute for arbitration;
• specify Codes such as the State Grid Code consistent with the Grid Code for optimum scheduling and despatch of electricity in accordance with the contracts, disciplining grid operations, keeping accounts of the quantity of electricity transmitted and overall supervision and control over the transmission system; the Electric Supply Code, which would deal with recovery of charges, billing, payment and disconnection/restoration of supply, tampering, distress or damage to electrical plant, electric lines or meter, entry of distribution licensee or any person acting on his/her behalf for disconnecting supply and removing the meter; entry for replacing,
altering or maintaining electric lines or electrical plant or meter; the Distribution Code (for distribution licensee) for the development,maintenance and operation of the Distribution System and the code of practice on payment of bills;
• specify overall performance standards for providing electricity supply services and promoting efficient use of electricity by consumers, apart from taking all reasonable steps to ensure safe, economical and reliable supply of electricity;
• specify or enforce standards with respect to quality, continuity and reliability of service by licensees as well as penalty on failing standards;(The compensation should be determined and be made within 90 days.However, an opportunity would be given to the licensee before allowing compensation).
• set accounting standards for the licensee to follow the guidelines issued by the Company Law for maintenance of accounts, keeping of basic accounting records, reconciliation of bank accounts, comparison of stock,maintenance of works register, reconciliation of accounts relating to revenue, updating of interest payable to consumer and security;
• set operational standards for the licensee for reduction of technical and commercial losses, improvement of collection, maintenance of quality supply and consumer satisfaction index, proper meter reading, billing and collection system, fault attendance system, reduction of power purchase cost by proper demand management and following merit order, completion of projects within schedule, planning investment on priority and profitability basis, implementing a metering plan, i.e., change of defective or non functional meters, new meters, review of load, checking accuracy of the meters, computerization of billing records and billing, proper monitoring of arrears and disconnection of defaulting consumers (in case the bill amount increases over the security amount), good governance, transparency in HR policies, work-force rationalization;
• fix the trading margin in the intra-state trading of electricity, if considered, necessary;
•specify for the consumers a complaint handling system and consumer rights statement.
In addition, the State Commission shall advise the State Government on all or any of the following matters:
promotion of competition, efficiency and economy in the activities of the electricity industry;
promotion of investment in electricity industry;
reorganization and restructuring of electricity industry in the State; and matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by the Government concerned.
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