Central Electricity Regulatory Commission
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| Agency overview | |
|---|---|
| Formed | 24 July 1998 |
| Jurisdiction | Central government of India and Inter-State Transmission |
| Headquarters | New Delhi |
| Agency executives |
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| Parent agency | Ministry of Power |
| Website | http://www.cercind.gov.in/ |
Central Electricity Regulatory Commission (CERC), a key regulator of power sector in India, is a statutory body functioning with quasi-judicial status under sec – 76 of the Electricity Act 2003. CERC was initially constituted on 24 July 1998 under the Ministry of Power’s Electricity Regulatory Commissions Act, 1998 for rationalization of electricity tariffs, transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, and for matters connected Electricity Tariff regulation. CERC was instituted primarily to regulate the tariff of Power Generating companies owned or controlled by the government of India, and any other generating company which has a composite scheme for power generation and interstate transmission of energy, including tariffs of generating companies.
On 2 July 1998, recognizing the needs for reforms in the electricity sector nationwide, the Central government of India moved forward to enact the Electricity Regulatory Commission Act of 1998, which mandated the creation of the Central Electricity Regulation Commission with the charge of setting the tariff of centrally owned or controlled generation companies. Ministry of Power, India, has published the Electricity Regulatory Commissions Act, 1998. Apart from CERC, the act also introduced a provision for the states to create the State Electricity Regulation Commission (SERC) along with the power to set the tariffs without having to enact separate state laws.
Mr.S.L.Rao was the first Chairman of CERC (1998–2001).
During March 2004, Indian Institute of Management – Ahmedabad (IIM-A) called for the merger of the Central Electricity Authority (CEA) and Central Electricity Regulatory Commission (CERC) on the grounds that technical and economic regulatory functions need to be carried out in close coordination. Even though the Electricity Act (EA) 2003 envisages separate identify for CERC and CEA, and there is a necessity for separation in the short run, the two regulators should be merged eventually, as there are substantial synergies between them. But Ministry of Power rejected IIM-A’s recommendations in this regard and observed that the tariff fixation is in the exclusive domain of electricity regulatory commissions (ERCs), and no other entity or government has any role in this regard.
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