The Central Electricity Regulatory Commission (CERC) was created through the Electricity Regulatory Commissions Act of 1998. The main goal of the body is to oversee the power industry, guaranteeing effective and cost-effective production, transmission, distribution, and commerce of electricity at the national level in India.
CERC is important in developing strategies, granting permits, establishing rates, settling conflicts, and encouraging competitiveness in the electricity sector. It has been vested with the function of maintaining an equilibrium among consumers, producers, transmission permit holders, and other parties involved in the power industry.
ROLE
CERC's responsibilities include the establishment and regulation of tariffs for electricity generation and transmission, enforcement of fair practices in power trading, grants of licenses for power generation and transmission, and resolution of disputes among power sector stakeholders. Through tariff regulations, the body encourages investment in the power sector while protecting consumer interests.
It also develops policies and regulations for supporting the integration of renewable energy, grid stability, and environmental sustainability. It plays a significant role in the promotion of the development of interstate transmission networks to ensure seamless electricity flow across regions.
CERC also supervises the enforcement of electricity-related laws and regulations like the Electricity Act of 2003 and the National Electricity Policy. CERC enhances accountability and reliability in the power sector as a regulatory authority, playing a key role in shaping the growth and operations of India's electricity industry, thereby contributing to the country's energy security and economic progress.
TIMELINE
1998 The Government of India sets up CERC under the Electricity Regulatory Commissions Act, 1998, to regulate the power sector, covering tariffs and inter-state electricity transmission.
2003: It released the Indian Electricity Grid Code, establishing the standards and procedures for national grid operation and maintenance.
2010: CERC introduced the Renewable Energy Certificate (REC) mechanism to encourage renewable energy production in the nation.
2020: It amended the Open Access Regulations to simplify access to the transmission network for power trading and distribution
Composition and Structure
The commission is led by a Chairperson, typically a retired judge of the Supreme Court or a former Chief Justice of a High Court, who is supported by other members appointed by the Central Government.
It also has four other members
These members bring expertise in areas such as finance, economics, engineering, and law to assist the Chairperson in fulfilling the commission's duties.
CERC is structured into various divisions responsible for different aspects of electricity regulation, including tariff setting, licensing, grid management, renewable energy, dispute resolution, and enforcement of regulations. These divisions collaborate to ensure the power sector operates efficiently, encourages competition, protects consumer interests, and promotes the growth of a reliable and sustainable electricity infrastructure.
FUNCTIONS
The Central Electricity Regulatory Commission (CERC) in India has a crucial role in overseeing and regulating various aspects of the electricity sector. Here are the main functions of the CERC
Tariff Regulation: It sets tariffs for electricity generation, transmission, and distribution to ensure fairness, transparency, and cost reflection and promote efficiency and sustainability.
Market Oversight: It monitors electricity markets to ensure fair competition and prevent anti-competitive practices, including overseeing power exchanges and enforcing market rules.
Grid Operation and Planning: It regulates the operation and planning of the interstate transmission system for ensuring grid reliability, and efficiency, and facilitating integration of renewable energy sources.
Dispute Resolution: It serves as a mechanism for resolving disputes among participants in the electricity sector, including tariff, contract, and regulatory compliance dispute
Policy Formulation The commission advises the government on electricity regulation, policy formulation, and sector development for supporting renewable energy and energy efficiency.
Consumer Protection: CERC protects electricity consumers' interests by ensuring service quality, addressing grievances, and promoting billing and service transparency.
Regulatory Compliance: It enforces compliance with electricity sector laws, regulations, and codes of conduct to uphold safety, reliability, and environmental protection standards.
Overall, the CERC plays a critical role in promoting a competitive, efficient, and sustainable electricity sector in India
IMPORTANT FACTS
Shri Jishnu Barua is the Chairperson of the Central Electricity Regulatory Commission (CERC) in India.
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