Lok Sabha Question No. 340 (UNSTARRED), answered on 2016-11-17
Subject: Central Electricity Regulatory Commission
Ministry: POWER
Asked by: HARISHCHANDRA DEORAM CHAVAN, LAXMAN GILUWA

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.340 TO BE ANSWERED ON 17.11.2016

## CENTRAL ELECTRICITY REGULATORY COMMISSION

†340.  SHRI HARISHCHANDRA CHAVAN: SHRI LAXMAN GILUWA:

Will the Minister of POWER be pleased to state:

- (a) whether  Section  73  of  Electricity  Act  2003  contains  provisions  regarding Central Electricity Regulatory Commission;
- (b) if  so, the details of the functions prescribed to be performed in public interest by the said Commission;
- (c) the functions carried out by the said commission in public interest during the last three  years  along  with  the  number  of  decisions  given  against  power  distribution companies; and
- (d) the provisions proposed to be made to make the Central Electricity Regulatory Commission more effective?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) & (b) : No,  Madam. Section 73 of the Electricity Act, 2003 is pertaining to the duties  of  the    Authority  i.e.  the  Central  Electricity  Authority.    However,  provisions regarding the Central Commission have been prescribed in Sections 76 to 79 of the Electricity Act, 2003. The provisions regarding the functions of the Central Electricity Regulatory Commission as prescribed in section 79 of the Act, are given at Annexure-I.

- (c) & (d) : The Central Electricity Regulatory Commission (CERC), in exercise of its power prescribed under Section 178 read with other relevant sections of the Act, has notified  regulations  on  various  matters  to  carry  out  the  provisions  of  the  Act.  A detailed  list  of  Regulations  (along  with  amendments)  notified  by  the  Commission during the last three years is given at Annexure-II

The  important  regulatory  interventions  of  CERC vis-a-vis  the  statutory requirement under the Act, are in the field of Tariff determination of companies owned and  controlled  by  Central  Government  and  other  generating  companies  which  enter into  or  otherwise have a composite scheme for generation and sale of electricity in more  than  one  State,  License  to  transmit  electricity  as  an  interstate  transmission licensees and to undertake trading in electricity as on interstate electricity traders, power  of adjudication, Grid Discipline and  Grid  Security,  market  development, promotion of Renewable Power, promotion of Energy Efficiency etc.

The  Government  has  already  introduced  Electricity  (Amendment)  Bill, 2014  in  the  Lok  Sabha  on  19 th     December,  2014,  which  includes  the  provisions regarding  performance  oversight  of  Regulatory  Commissions.  The  above  Bill  will  be enacted only after its approval by the Parliament.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF UNSTARRED QUESTION NO. 340 TO BE ANSWERED IN THE LOK SABHA ON 17.11.2016.

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## Functions of the Central Electricity Regulatory Commission

- Section 79.  (1)  The Central Commission shall discharge  the following functions, namely:-
- (a) to regulate the tariff of generating companies  owned or controlled by the Central Government;
- (b) to regulate the tariff of generating companies  other than those owned or controlled  by  the  Central  Government  specified  in  clause  (a),  if  such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State;
- (c) to regulate the inter-State transmission  of electricity ;
- (d) to  determine  tariff  for inter-State  transmission  of  electricity;
- (e)  to  issue  licenses    to  persons  to  function  as      transmission  licensee  and electricity trader   with respect to their inter-State operations.
- (f) to adjudicate upon disputes involving generating companies or transmission licensee  in regard to matters connected with clauses (a) to (d) above and to  refer any dispute for  arbitration;
- (g) to levy fees for the purposes of this Act;
- (h) to specify Grid Code having regard to Grid Standards;
- (i)  to  specify  and    enforce    the  standards  with  respect    to  quality,  continuity and reliability of  service by licensees.
- (j) to fix the trading margin  in  the  inter-State trading of electricity, if considered, necessary;
- (k)  to discharge such other functions as may be assigned under this Act.
- (2)  The  Central  Commission  shall  advise  the  Central  Government  on  all  or  any  of  the following matters, namely :-
- (a)    Advise    the  Central    Government    on  all  or  any  of  the    following  matters, namely:-
- (i)  formulation of National Electricity Policy and tariff policy:
- (ii)  promotion of competition, efficiency and economy in   activities of the electricity industry;
- (iii)   promotion of investment in electricity industry;
- (iv)  any  other  matter  referred  to  the  Central  Commission  by      that Government.
- (3)  The  Central  Commission  shall  ensure  transparency  while  exercising  its  powers  and discharging its functions.
- (4)   In discharge of its functions, the Central Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3.

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (c)  &  (d)  OF  UNSTARRED QUESTION NO. 340 TO BE ANSWERED IN THE LOK SABHA ON 17.11.2016.

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|   Sl. No. | CERC Regulations                                                                                                                                                                                                                                                                                                                                                       |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | The Central Electricity Regulatory Commission (Open Access in Inter-State Transmission) (Fourth Amendment) Regulations, 2016                                                                                                                                                                                                                                           |
|         2 | The Central Electricity Regulatory Commission (Terms and Conditions for Dealing in Energy Savings Certificates) Regulations, 2016.                                                                                                                                                                                                                                     |
|         3 | Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters)(Third Amendment) Regulations, 2016.                                                                                                                                                                                                                                     |
|         4 | Central Electricity Regulatory Commission (Indian Electricity Grid Code) (Fourth Amendment) Regulations, 2016.                                                                                                                                                                                                                                                         |
|         5 | Central Electricity Regulatory Commission (Miscellaneous Provisions) Order, 2016.                                                                                                                                                                                                                                                                                      |
|         6 | Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) (Fourth Amendment) Regulations, 2016.                                                                                                                                                                    |
|         7 | Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) (Fifth Amendment) Regulations, 2016.                                                                                                                                                                                                           |
|         8 | Central Electricity Regulatory Commission (Recruitment, Control and Service Conditions of Staff) (Third Amendment) Regulations, 2016.                                                                                                                                                                                                                                  |
|         9 | Central Electricity Regulatory Commission (Terms and Conditions of Tariff) (First Amendment) Regulations, 2015.                                                                                                                                                                                                                                                        |
|        10 | Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) (Fourth Amendment) Regulations, 2015.                                                                                                                                                                                                          |
|        11 | Central Electricity Regulatory Commission (Ancillary Services Operations) Regulations, 2015.                                                                                                                                                                                                                                                                           |
|        12 | Framework on Forecasting, Scheduling and Imbalance Handling for Variable Renewable Energy Sources (Wind and Solar): Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) (Second Amendment) Regulations, 2015. Central Electricity Regulatory Commission (Indian Electricity Grid Code) (Third Amendment) Regulations, 2015. |
|        13 | Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) (Third Amendment) Regulations, 2015.                                                                                                                                                                                                           |
|        14 | Central Electricity Regulatory Commission (Power System Development Fund) (First Amendment) Regulations, 2015.                                                                                                                                                                                                                                                         |
|        15 | Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2015.                                                                                                                                                                                                                               |
|        16 | Central Electricity Regulatory Commission (Miscellaneous Provisions) Order, 2015.                                                                                                                                                                                                                                                                                      |
|        17 | Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2015.                                                                                                                                                                                                                             |

|   18 | Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) (Fifth Amendment) Regulations, 2015.   |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   19 | Central Electricity Regulatory Commission (Grant of Regulatory Approval for execution of Inter-State Transmission Scheme to Central Transmission Utility) (First Amendment) Regulations, 2015.         |
|   20 | Central Electricity Regulatory Commission (Open Access in inter-State Transmission) (Third Amendment) Regulations, 2015.                                                                               |
|   21 | The Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) (Third Amendment) Regulations, 2015.                                                            |
|   22 | The Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) (Second Amendment) Regulations, 2014.                                      |
|   23 | Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) (First Amendment) Regulations, 2014.                                                                    |
|   24 | The Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) (Third Amendment) Regulations, 2014. |
|   25 | Central Electricity Regulatory Commission (Appointment of Consultants) (Second Amendment) Regulations, 2014.                                                                                           |
|   26 | Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) (Fourth Amendment) Regulations, 2014.  |
|   27 | Central Electricity Regulatory Commission (Power System Development Fund) Regulations, 2014 .                                                                                                          |
|   28 | Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014.                                                                                                          |
|   29 | Central Electricity Regulatory Commission (Power Market) (First Amendment) Regulations, 2014.                                                                                                          |
|   30 | Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) (First Amendment) Regulations, 2014.                                           |
|   31 | Central Electricity Regulatory Commission (Indian Electricity Grid Code) (Second Amendment) Regulations, 2014.                                                                                         |
|   32 | Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014.                                                                                      |
|   33 | Central Electricity Regulatory Commission (Conduct of Business) (Amendment) Regulations, 2013.                                                                                                         |
|   34 | Central Electricity Regulatory Commission (Open Access in inter-State Transmission)(Second Amendment) Regulations, 2013.                                                                               |
|   35 | Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) (Second Amendment) Regulations, 2013.                               |
|   36 | Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) (Second Amendment) Regulations, 2013.    |
|   37 | CERC (Recruitment, Control and Service Conditions of Staff) (First Amendment) Regulations, 2013                                                                                                        |

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