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Power Ministry Plans Review Of Electricity Regulators

The Power Ministry has set up a panel to look into various proposals including introduction of appraisal system for central and state electricity regulators.
The mandate of the committee is to examine and make recommendations on proposed amendments in the Electricity Act 2003.
Sources said the panel, chaired by Central Electricity Authority (CEA) chairman A S Bakshi, would look into the proposal of reviewing the performance of regulatory commissions, among others.
“The performance of regulatory commissions shall be reviewed annually by a multi-disciplinary body on the basis of a performance evaluation matrix and report to the appropriate government,” according to terms of reference of the committee.
However, the Forum of Regulators — comprising chairperson of Central Electricity Regulatory Commission (CERC) as well as chairpersons of State Electricity Regulatory Commissions (SERCs) — is not in favour of such a system.
“We have decided to constitute a working group. We will look at how the performance parameter (should be) and how they can be judged,” Pramod Deo, chairperson of CERC as well as the Forum, told PTI.
Deo said the Forum want to do the “self-introspection” and the working group is expected to come out with its recommendations in two months.
Pointing out that there is no clash with government on the issue, he said, “It (evaluation) has to be done by some independent body. What can be that independent body or what should be the performance criteria is the issue”.
Under the present law, an electricity regulator is accountable only to the legislature.
As per the Power Ministry proposal, the performance of CERC would be reviewed by a six-member group chaired by Planning Commission Member (Energy).
Others in the panel would be Appellate Tribunal for Electricity Member (Technical), Union Power Secretary and three outside experts nominated by the Central government.
At the state-level, the review committees would be chaired by respective chief secretaries. Other members would include CEA chairperson, a joint secretary from the Union Power Ministry, three outside experts nominated by the Centre and secretary of the Forum of Regulators.
Meanwhile, the committee to examine recommendations on proposed amendments in the Electricity Act 2003 would also touch upon issues such as those related to distribution and transmission.
These would include defining roles and responsibilities of distribution licensees in case of multiple licensees in the same area.

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