Function of Central Electricity Regulatory Commission (CERC) of India

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Overview

The Central Electricity Regulatory Commission (CERC) is a statutory body constituted under the Electricity Regulatory Commissions Act, 1998. It plays a pivotal role in regulating the tariff of central generating stations, interstate transmission of electricity, and promoting competition, efficiency, and economy in the electricity sector in India.

Mandate

CERC's mandate includes regulating tariffs for central sector utilities, facilitating interstate transmission, ensuring grid discipline, and promoting open access in transmission. It also advises the government on policy matters and monitors the performance of licensees.

Key Functions

- Determining tariffs for central generating stations and interstate transmission.

- Regulating interstate transmission of electricity.

- Facilitating development of power markets.

- Promoting competition and efficiency in the electricity sector.

- Adjudicating disputes involving generating companies and transmission licensees.

Governance Structure

CERC consists of a Chairperson and four other Members, including a Member (Law). Members are appointed by the Central Government and serve for a term of five years or until the age of 65, whichever is earlier.

Regulatory Framework

CERC operates under the Electricity Act, 2003, which consolidated the laws relating to generation, transmission, distribution, trading, and use of electricity. The Act empowers CERC to issue regulations, determine tariffs, and ensure compliance with grid standards.

Challenges

- Balancing the interests of consumers and utilities.

- Managing the integration of renewable energy sources.

- Ensuring timely tariff revisions and regulatory compliance.

- Addressing issues related to open access and market development.

Future Outlook

CERC is expected to play a crucial role in India's energy transition by facilitating the integration of renewable energy, enhancing grid reliability, and promoting market-based mechanisms. The Commission is also focusing on digitalization and real-time market operations.

Location: India

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